Paragraph 1 IntroductoryF1

(1)

This Schedule applies for the purposes of determining the amount of a payment payable to a person to whom regulation 17G or 17H applies.

(2)

Where the scheme manager is satisfied that an amount is owed by the beneficiary to the Secretary of State as a result of the beneficiary owing, before a transfer notice is given, a debt to a qualifying pension scheme to which Part 7 applies, the scheme manager may determine how the payment which would otherwise be payable under this Schedule is to be reduced, having regard to the amount owed by the beneficiary and to such other matters as the scheme manager considers relevant.

(3)

Sub-paragraph (5) applies where the scheme manager is satisfied that the amount of interim pension paid to a beneficiary in respect of any year in the period determined in accordance with sub-paragraph (4) is higher or lower than the sum of—

(a)

the notional pension; and

(b)

any annual increases or proportion of annual increases, which the scheme manager considers could have been paid in respect of that year, taking into account—

(i)

the determination under regulation 27(1)(d); and

(ii)

the proportion of that year which falls after the 1^st January.

(4)

For the purposes of sub-paragraph (3), the period is the period from the later of—

(a)

the day on which the beneficiary began to receive a payment from the scheme; and

(b)

the day on which the qualifying pension scheme began to be wound up,

until the day on which the scheme manager gave a transfer notice to the scheme trustees or managers.

(5)

Where this sub-paragraph applies, the scheme manager may—

(a)

determine the amount by which the payment which would otherwise be payable under this Schedule in respect of the beneficiary is to be reduced, having regard to—

(i)

the amount of interim pension which was paid to the beneficiary;

(ii)

the amount of the sum of—

(aa)

the notional pension; and

(bb)

any annual increases, or proportion of annual increases, which the scheme manager considers could have been paid; and

(iii)

such other matters as the scheme manager considers relevant; and

(b)

where the interim pension paid in respect of any year is lower than the sum referred to in sub-paragraph (3) in respect of that year, make a payment to the beneficiary or, where the beneficiary has died prior to the scheme manager making this determination, to the beneficiary’s estate, having regard to—

(i)

the amount of interim pension which was paid to the beneficiary;

(ii)

the amount of the sum of—

(aa)

the notional pension; and

(bb)

any annual increases, or proportion of annual increases, which the scheme manager considers could have been paid; and

(iii)

such other matters as the scheme manager considers relevant.

Annotations

Textual amendments

F1: Sch. 7 added (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 18(e), Sch. 2