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The Pension Protection Fund (Compensation) Regulations 2005

S.I. 2005/670 · Made 11 March 2005 · Extends to England, Wales and Scotland

Up to date with all changes known to legislation.gov.uk, revised to 18 November 2024.

PENSIONS

Made 11th March 2005

Laid before Parliament 16th March 2005

Coming into force 6th April 2005

The Secretary of State for Work and Pensions, in exercise of the powers conferred upon him by sections 315(2), (4) and (5), and 318(1) and (4)(a) of, and paragraphs 4(4), 6(4), 9(4), 12(4)(a), 13(4), 16(3)(b), 17(4)(a), 18(4), 20(4) and (7), 23, 24(1), (2) and (6), 25(1), 26(9) and (10), 28(6) and (7), 31(2)(a) and (3) and 33 of Schedule 7 to, the Pensions Act 2004 M1, and of all other powers enabling him in that behalf, by this instrument, which contains regulations made before the end of the period of six months beginning with the coming into force of the provisions of that Act by virtue of which they are made M2, hereby makes the following Regulations:

Annotations to the whole text

Marginal citations

M1

2004 c. 35. The Pensions Act 2004 is modified in its application to partially guaranteed schemes by the Pension Protection Fund (Partially Guaranteed Schemes) Regulations 2005 (S.I. 2005/277), in its application to hybrid schemes by the Pension Protection Fund (Hybrid Schemes) (Modification) Regulations 2005 (S.I. 2005/449), and in its application to multi-employer schemes by the Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 (S.I. 2005/441). Section 318(1) is cited because of the meaning there given to “modifications”, “prescribed” and “regulations”.

M2

See section 317 of the Pensions Act 2004 which provides that the Secretary of State must consult such persons as he considers appropriate before making regulations by virtue of the provisions of that Act (other than Part 8). This duty does not apply where regulations are made before the end of six months beginning with the coming into force of the provisions of that Act by virtue of which the regulations are made.

Contents

  1. Part 1: Preliminary
  2. 1Citation commencement and interpretation
  3. Part 2: Early payment of compensation
  4. 2Circumstances where a person shall be entitled to early payment of compensation
  5. Part 2A: Postponement of compensation
  6. 2APostponing compensation
  7. 2BCircumstances in which periodic and lump sum compensation can be postponed
  8. 2CConditions subject to which periodic and lump sum compensation can be postponed
  9. 2DDate on which postponement ceases
  10. Part 3: Benefits for Survivors
  11. 3Circumstances where a widow or widower is not entitled to periodic compensation
  12. 4Compensation for surviving dependants
  13. 5Amount and duration of periodic compensation in the case of relevant partners
  14. 6Amount of periodic compensation that can be paid in the case of surviving dependants
  15. 7Period of payment
  16. 8Change of circumstances and backdating
  17. Part 4: Admissible Rules
  18. 9Special provision in relation to pensions in payment to survivors
  19. 10Special provision in relation to pensions in payment following early retirement
  20. 11Special provision in relation to pensions in payment on grounds of ill-health
  21. 12Modification of Schedule 7 in relation to certain pensions in payment before the assessment date
  22. Part 5: Revaluation
  23. 12ARegulation 12A
  24. 13Manner of determining the revaluation percentage in the case of active members who have not attained normal pension age at assessment date
  25. 13AActive members below normal pension age: cases where it is unclear whether pensionable service is attributable to periods on or after 6th April 2009
  26. 14Manner of determining the revaluation amount
  27. 15Manner of determining the higher revaluation percentage in the case of deferred members who have not attained normal pension age at assessment date
  28. 15ZADeferred members below normal pension age: cases where it is unclear whether pensionable service is attributable to periods on or after 6th April 2009
  29. 15AModification of Schedule 7 for schemes with no revaluation
  30. 15BDetermination of the revaluation percentage in respect of certain periods
  31. Part 6: Compensation in respect of protected transfer payment or protected contribution repayment
  32. 16Modification of admissible rules
  33. 17Disapplication of paragraphs 8, 10, 11 and 14 of Schedule 7
  34. 18Transitional provisions
  35. Part 7: Commutation
  36. 19Commutation of periodic compensation
  37. 20Circumstances in which the portion of compensation to be commuted may exceed 25 per cent
  38. 21Manner in which an option to commute may be exercised
  39. Part 8: Compensation cap modifications
  40. 22Application of compensation cap where compensation becomes payable on different dates
  41. 23Disregard of certain small payments in determining PPF compensation cap
  42. Part 9: Annual increase in periodic compensation
  43. 24Annual increase in periodic compensation: post-1997 and pre-1997 service
  44. Part 10: Cash balance schemes
  45. 25Cash balance schemes: modification of paragraphs 5, 15 and 19 paragraphs 3, 5, 8, 10, 11, 14, 15, 19, 22 and 37 of Schedule 7 to the Act
  46. 25ACash balance schemes: modification of Schedule 7 to the Act
  47. Part 11: Career average revalued earnings schemes
  48. 26Career average revalued earnings schemes: modification of paragraphs 8, 10, 11 and 14 of Schedule 7 to the Act
  49. 27Schemes where part of pension entitlement is determined on a career average revalued earnings basis: modification of paragraphs 8, 10, 11 and 14 of Schedule 7 to the Act
  50. Part 12: Variable-rate schemes
  51. 28Variable-rate schemes which provide for a decrease in annual rate of pension: modification of Schedule 7 to the Act
  52. 29Variable-rate schemes which provide for a decrease in annual rate of pension: modification of Schedule 7 to the Act
  53. Part 13: Schemes which provide fixed pensions in respect of transfer payments
  54. 30Schemes which provide fixed pensions in respect of transfer payments: modification of Schedule 7 to the Act
  55. Signature
  56. Explanatory note