(1)Paragraph 26 of Schedule 7 to the Pensions Act 2004 (Pension Protection Fund: compensation cap) is amended as follows.
(2)In sub-paragraph (1)(b), for “sub-paragraph (2)(a) or (b)” substitute “ sub-paragraph (2)(a), (b) or (c) ”.
(3)In sub-paragraph (2)(a)(ii), for “paragraph (b)(i) does not apply” substitute “ neither of paragraphs (b) and (c) applies ”.
(4)In sub-paragraph (2)(b)—
(a)before paragraph (i) insert—
“(zi)benefit A is attributable to the person's pensionable service,”;
(b)in paragraph (i), after “one or more other benefits” insert “ that are attributable to his pensionable service ”.
(5)In sub-paragraph (2), after paragraph (b) insert “, and
(c)this paragraph applies if—
(i)benefit A is attributable to a pension credit from a transferor,
(ii)at the same time as the person becomes entitled to relevant compensation in respect of benefit A he also becomes entitled to relevant compensation in respect of one or more other benefits that are—
(iia)under the scheme or a connected occupational pension scheme, and
(iib)attributable to a pension credit from the same transferor,
(“benefit or benefits B”), and
(iii)the aggregate of the annual values of benefit A and benefit or benefits B exceeds the compensation cap.”
(6)In sub-paragraph (5), after “sub-paragraph (2)(b)” insert “ or (c) ”.
(7)The amendments made by this section are to be treated as always having had effect.
(8)Regulations under paragraph 26(9) of Schedule 7 to the Pensions Act 2004 (modifications for cases where compensation becomes payable on different occasions) made in consequence of this section may be made with retrospective effect.