SCHEDULE 20Pension Protection Fund: increased compensation cap for long service
Part 4Schemes undergoing assessment or winding up on the commencement date
Schemes that begin winding up before the commencement date
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(1)
This paragraph applies in relation to an eligible scheme that is being wound up if the winding up began (or is treated as having begun) before the commencement date.
Use the old cap when working out the preferential liabilities (generally)
(2)
For the purposes of sections 73 and 73A of the Pensions Act 1995, ignore any effect that this Schedule has on the compensation which would be payable if the Board assumed responsibility for the scheme in accordance with Chapter 3 of Part 2 of the Pensions Act 2004.
Going forwards, pay pensions on the basis of the new cap during assessment
(3)
If for any period the scheme is being wound up and is also undergoing assessment (“the overlap period”), sub-paragraph (4) applies.
(4)
For the purposes of section 73A of the Pensions Act 1995 as it applies in relation to the overlap period, take into account any effect that this Schedule has on the compensation which would be payable if the Board assumed responsibility for the scheme in accordance with Chapter 3 of Part 2 of the Pensions Act 2004.