Paragraph 3

Compensation is payable in accordance with this paragraph where, immediately before the assessment date, a person is entitled to present payment of a pension under the admissible rules of the scheme.

That person ( “the pensioner”) is entitled to periodic compensation in respect of that pension ( “the pension”) commencing at the assessment date and continuing for life or, in a case to which sub-paragraph (8) applies, until such time as entitlement to the pension would have ceased under the admissible rules.

The annual rate of the periodic compensation is the appropriate percentage of the aggregate of—

In sub-paragraph (3) “the appropriate percentage” means—

In sub-paragraph (3) “the protected pension rate” means the annual rate of the pension, under the admissible rules, immediately before the assessment date.

In determining for the purposes of sub-paragraph (5) the annual rate of the pension immediately before the assessment date, any recent discretionary increase is to be disregarded if paragraph F235(3A) applies F3to the scheme.

This sub-paragraph applies where the pensioner has not attained normal pension age in respect of the pension before the assessment date and his entitlement to the pension—

This sub-paragraph applies where the pension was not attributable to—

This paragraph does not apply if compensation is payable in respect of the pension in accordance with paragraph 5 (pension benefits postponed at assessment date).

This paragraph is subject to—