{
  "url": "https://openlegislation.uk/pensions-northern-ireland-order-2005/schedule-6/paragraph-8",
  "json_url": "https://openlegislation.uk/pensions-northern-ireland-order-2005/schedule-6/paragraph-8.json",
  "legislation": "nisi/2005/255",
  "legislation_title": "The Pensions (Northern Ireland) Order 2005",
  "legislation_url": "https://openlegislation.uk/pensions-northern-ireland-order-2005",
  "path": "schedule/6/paragraph/8",
  "kind": "paragraph",
  "number": "8",
  "heading": null,
  "text": "(1) Compensation is payable in accordance with this paragraph where a person who, under the admissible rules, is (immediately before the assessment date) an active member of the scheme has, before that date, attained normal pension age in respect of his rights under the admissible rules of the scheme to a pension.\n(2) The active member is entitled to periodic compensation in respect of that pension ( “the pension”) commencing at the assessment date and continuing for life.\n(3) The annual rate of the periodic compensation is 100% of the aggregate of—\n(a) the protected notional pension, ...\n(aa) if the commencement of periodic compensation under this paragraph has been postponed for any period by virtue of paragraph 25A, the amount of the actuarial increase under that paragraph, and\n(b) any increases under paragraph 28 (annual increases in periodic compensation).\n(4) In sub-paragraph (3) “the protected notional pension” means the aggregate of—\n(a) the accrued amount, and\n(b) any increases in the pension to which the active member would have been entitled under the admissible rules (by virtue of the fact that the pension did not come into payment at normal pension age) if he had ceased to be an active member of the scheme immediately before the assessment date.\n(5) Subject to sub-paragraphs (6) and (7), the accrued amount is—\nAR×PE×PSwhere—\nAR is the active member's annual accrual rate in respect of the pension under the admissible rules,\nPE is the active member's annual pensionable earnings in respect of the pension under the admissible rules, and\nPS is the active member's pensionable service in respect of the pension under the admissible rules in years (including any fraction of a year).\n(6) If the accrual rates or pensionable earnings differ in respect of different parts of the active member's pensionable service relating to the pension, an amount is calculated in accordance with the formula in sub-paragraph (5) in respect of each of those parts and the accrued amount is the aggregate of those amounts.\nFor this purpose the references in that sub-paragraph to the active member's pensionable service, accrual rate and pensionable earnings are to be read as references to the part of his pensionable service in question and to his accrual rate and pensionable earnings in respect of that part.\n(7) In any case where the Board is satisfied that it is not possible to identify one or more of the elements of the formula in sub-paragraph (5), the Board may, having regard to the admissible rules, determine how the accrued amount is to be calculated.\n(8) This paragraph is subject to—\n(a) paragraph 20 (compensation in respect of scheme right to transfer payment or contribution refund),\n(aa) paragraph 22A (calculation of compensation on and after 1st January 2024),\n(b) paragraph 24 (commutation), and\n(c) paragraph 30 (power of Department to change percentage rates by order).",
  "extent": "N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Word in Sch. 6 para. 8(3)(a) omitted (27.3.2013) by virtue of Pensions Act (Northern Ireland) 2012 (c. 3), s. 34(3), Sch. 4 para. 23(3)(a); S.R. 2013/83, art. 2(b)(ii)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Sch. 6 para. 8(3)(aa) inserted (27.3.2013) by Pensions Act (Northern Ireland) 2012 (c. 3), s. 34(3), Sch. 4 para. 23(3)(b); S.R. 2013/83, art. 2(b)(ii)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Sch. 6 para. 8(8)(aa) inserted (31.12.2023) by The Pensions (Pension Protection Fund Compensation) (Northern Ireland) Regulations 2023 (S.I. 2023/1312), regs. 1(2), 3(5)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "mod. by SR 2005/149"
    }
  ],
  "outstanding_effects": [
    {
      "type": "words substituted",
      "affecting": "nia/2008/13",
      "affecting_title": "Pensions (No. 2) Act (Northern Ireland) 2008"
    },
    {
      "type": "substituted for (b)(c)",
      "affecting": "nia/2008/13",
      "affecting_title": "Pensions (No. 2) Act (Northern Ireland) 2008"
    },
    {
      "type": "words inserted",
      "affecting": "nia/2008/13",
      "affecting_title": "Pensions (No. 2) Act (Northern Ireland) 2008"
    },
    {
      "type": "substituted for Sch. 6 para. 28(2)",
      "affecting": "ukpga/2026/22",
      "affecting_title": "Pension Schemes Act 2026"
    },
    {
      "type": "words substituted",
      "affecting": "ukpga/2026/22",
      "affecting_title": "Pension Schemes Act 2026"
    },
    {
      "type": "words substituted",
      "affecting": "ukpga/2026/22",
      "affecting_title": "Pension Schemes Act 2026"
    },
    {
      "type": "words substituted",
      "affecting": "ukpga/2026/22",
      "affecting_title": "Pension Schemes Act 2026"
    },
    {
      "type": "words substituted",
      "affecting": "ukpga/2026/22",
      "affecting_title": "Pension Schemes Act 2026"
    },
    {
      "type": "words inserted",
      "affecting": "ukpga/2026/22",
      "affecting_title": "Pension Schemes Act 2026"
    },
    {
      "type": "words substituted",
      "affecting": "ukpga/2026/22",
      "affecting_title": "Pension Schemes Act 2026"
    },
    {
      "type": "substituted",
      "affecting": "ukpga/2026/22",
      "affecting_title": "Pension Schemes Act 2026"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/nisi/2005/255/schedule/6/paragraph/8",
    "retrieved_at": "2026-10-29T04:39:49.445550+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}