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substitute—

Postponement of compensation

25A (1) Regulations may prescribe circumstances in which, and
conditions subject to which—

(a) 5a person who becomes entitled to periodic compensation
under paragraph 5, 8, 11 or 15 may elect to postpone the
commencement of periodic compensation under that
paragraph, and

(b) a person who becomes entitled to lump sum compensation
10under paragraph 7, 10, 14 or 19 may elect to postpone the
payment of lump sum compensation under that
paragraph.

(2) Where the commencement of periodic compensation under
paragraph 5, 8, 11 or 15 ceases to be postponed, the Board must
15determine—

(a) the amount mentioned in sub-paragraph (3)(a) of that
paragraph, as at the time the periodic compensation would
have commenced if its commencement had not been
postponed, and

(b) 20the amount in paragraph (a), increased in accordance with
actuarial factors published by the Board.

(3) References in this Schedule to the amount of an actuarial increase
under this paragraph, in relation to periodic compensation, are to
the difference between the amounts in sub-paragraphs (2)(a) and
25(2)(b).

(4) Where the payment of lump sum compensation under paragraph
7, 10, 14 or 19 ceases to be postponed, the Board must determine—

(a) the relevant amount, as at the time the lump sum
compensation would have been payable if its payment had
30not been postponed, and

(b) the amount in paragraph (a), increased in accordance with
actuarial factors published by the Board.

(5) References in this Schedule to the amount of an actuarial increase
under this paragraph, in relation to lump sum compensation, are
35to the difference between the amounts in sub-paragraphs (4)(a)
and (4)(b).

(6) In sub-paragraph (4) the “relevant amount” means (as
appropriate)—

(a) the amount mentioned in paragraph 7(2)(a),

(b) 40the aggregate of the amounts mentioned in paragraph
10(2)(a) and (b),

(c) the amount mentioned in paragraph 14(3)(a), or

(d) the amount mentioned in paragraph 19(3)(a).

22 (1) In paragraph 5(3) (periodic compensation for postponed pensioner at
45assessment date)—

(a) omit “and” at the end of paragraph (a), and

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(b) after that paragraph insert—

(aa) if the commencement of periodic compensation
under this paragraph has been postponed for any
period by virtue of paragraph 25A, the amount of
5the actuarial increase under that paragraph, and.

(2) In paragraph 7(2) (lump sum compensation for postponed pensioner at
assessment date) for the words from “the amount” to the end substitute “the
aggregate of—

(a) the amount of the scheme lump sum which would have
10been payable had the postponement ceased immediately
before the assessment date, and

(b) if the payment of compensation under this paragraph has
been postponed for any period by virtue of paragraph 25A,
the amount of the actuarial increase under that
15paragraph.

(3) In paragraph 8(3) (periodic compensation for active member over pension
age at assessment date)—

(a) omit “and” at the end of paragraph (a), and

(b) after that paragraph insert—

(aa) 20if 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.

(4) In paragraph 10(2) (lump sum compensation for active member over
25pension age at assessment date)—

(a) omit “and” at the end of paragraph (a), and

(b) after paragraph (b) insert , and

(c) if the payment of compensation under this
paragraph has been postponed for any period by
30virtue of paragraph 25A, the amount of the
actuarial increase under that paragraph.

(5) In paragraph 11(3) (periodic compensation for active member under
pension age at assessment date)—

(a) omit “and” at the end of paragraph (a), and

(b) 35after that paragraph insert—

(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.

(6) 40In paragraph 14(3) (lump sum compensation for active member under
pension age at assessment date) for “the protected amount” substitute “the
aggregate of—

(a) the protected amount, and

(b) if the payment of compensation under this paragraph has
45been postponed for any period by virtue of paragraph 25A,
the amount of the actuarial increase under that
paragraph.

(7) In paragraph 15(3) (periodic compensation for deferred member under
pension age at assessment date)—

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(a) omit “and” at the end of paragraph (a), and

(b) after that paragraph insert—

(aa) if the commencement of periodic compensation
under this paragraph has been postponed for any
5period by virtue of paragraph 25A, the amount of
the actuarial increase under that paragraph, and.

(8) In paragraph 19(3) (lump sum compensation for deferred member under
pension age at assessment date) for “the protected amount” substitute “the
aggregate of—

(a) 10the protected amount, and

(b) if the payment of compensation under this paragraph has
been postponed for any period by virtue of paragraph 25A,
the amount of the actuarial increase under that
paragraph.

(9) 15In paragraph 26 (compensation cap)—

(a) in sub-paragraphs (3)(c) and (6)(e) for “14(3)” substitute “14(3)(a)”,
and

(b) in sub-paragraphs (3)(e) and (6)(g) for “19(3)” substitute “19(3)(a)”.

23 (1) In paragraph 6 (periodic compensation for widow or widower of postponed
20pensioner at assessment date)—

(a) in sub-paragraph (3) after “including” insert “any actuarial increase
under paragraph 25A and”, and

(b) after sub-paragraph (3) insert—

(3A) If, on the day the postponed pensioner (“P”) died,
25commencement of P’s periodic compensation under
paragraph 5 was postponed by virtue of paragraph 25A,
assume for the purposes of sub-paragraph (3) that the
periodic compensation commenced immediately before
the date of P’s death.

(2) 30In paragraph 9 (periodic compensation for widow or widower of active
member over pension age at assessment date)—

(a) in sub-paragraph (3) after “including” insert “any actuarial increase
under paragraph 25A and”, and

(b) after sub-paragraph (3) insert—

(3A) 35If, on the day the active member (“A”) died,
commencement of A’s periodic compensation under
paragraph 8 was postponed by virtue of paragraph 25A,
assume for the purposes of sub-paragraph (3) that the
periodic compensation commenced immediately before
40the date of A’s death.

(3) In paragraph 13 (periodic compensation for widow or widower of active
member under pension age at assessment date)—

(a) in sub-paragraph (3)(a) after “including” insert “any actuarial
increase under paragraph 25A and”,

(b) 45in sub-paragraph (3)(b) after sub-paragraph (ii) insert—

(none) (assuming commencement of the periodic
compensation was not postponed by virtue of
paragraph 25A)., and

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(c) after sub-paragraph (3) insert—

(3ZA) For the purposes of sub-paragraph (3)(a), if on the day the
active member (“A”) died commencement of A’s periodic
compensation under paragraph 11 was postponed by
5virtue of paragraph 25A, assume that the periodic
compensation commenced immediately before the date of
A’s death.

(4) In paragraph 18 (periodic compensation for widow or widower of deferred
member under pension age at assessment date)—

(a) 10in sub-paragraph (3)(a) after “including” insert “any actuarial
increase under paragraph 25A and”,

(b) in sub-paragraph (3)(b) after sub-paragraph (ii) insert—

(none) (assuming commencement of the periodic
compensation was not postponed by virtue of
15paragraph 25A)., and

(c) after sub-paragraph (3) insert—

(3ZA) For the purposes of sub-paragraph (3)(a), if on the day the
deferred member (“D”) died commencement of D’s
periodic compensation under paragraph 15 was
20postponed by virtue of paragraph 25A, assume that the
periodic compensation commenced immediately before
the date of D’s death.

24 In paragraph 24(1) (commutation of periodic compensation) for “becomes
payable” substitute “commences”.

25 (1) 25In paragraph 25B (eligibility for terminal illness lump sum)—

(a) in sub-paragraph (4) in the definition of “relevant age”—

(i) in paragraph (a) omit “or deferred” and “or (as the case may
be) 25A”, and

(ii) in paragraph (b) omit “or deferred”, and

(b) 30after sub-paragraph (4) insert—

(5) Sub-paragraph (6) applies where—

(a) the commencement of a person’s periodic
compensation under paragraph 11 or 15 is
postponed by virtue of paragraph 25A, or

(b) 35the payment of a person’s lump sum compensation
under paragraph 14 or 19 is postponed by virtue of
that paragraph.

(6) This paragraph applies as if—

(a) the person first becomes entitled to compensation
40under the paragraph in question immediately after
the period of postponement ends, and

(b) in sub-paragraph (1)(b), for “if the person lived to
the relevant age, the person would become entitled
on attaining that age” there were substituted “if the
45period of postponement ended, the person would
become entitled”.

(2) In paragraph 25E (effect of successful application for terminal illness lump

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sum) after sub-paragraph (6) insert—

(7) Where on the granting of the application—

(a) the commencement of a person’s periodic compensation
under paragraph 11 or 15 is postponed by virtue of
5paragraph 25A, or

(b) the payment of a person’s lump sum compensation under
paragraph 14 or 19 is postponed by virtue of that
paragraph,

this paragraph applies as if the references to the person attaining
10the relevant age were references to the period of postponement
ending.

26 (1) Paragraph 28 (annual increase in periodic compensation) is amended as
follows.

(2) In sub-paragraph (3)—

(a) 15in the definition of “underlying rate”, for “any of the paragraphs
mentioned in sub-paragraph (1)” substitute “paragraph 3 or 22”, and

(b) after that definition insert—

(3) 30In sub-paragraph (5)—

(a) in paragraph (a) for the second “the” substitute “each”,

(b) omit the “and” at the end of that paragraph, and

(c) after paragraph (b) insert—

(c) for the purposes of sub-paragraph (2), the
35definition of “underlying rate” in the case of
periodic compensation under paragraph 5, 8, 11 or
15 applies as if the reference in paragraph (b) of the
definition to the amount mentioned in sub-
paragraph (3)(aa) of the paragraph in question was
40a reference to that amount reduced by the
commutation percentage, and

(d) that amount (as so reduced) is attributable to post-
1997 service and pre-1997 service in the same
proportions as that amount would have been so
45attributable had no part of the periodic
compensation been commuted.

(4) After sub-paragraph (5) insert—

(5A) The amount mentioned in sub-paragraph (3)(aa) of paragraph 5, 8,
11 or 15 is attributable—

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(a) to post-1997 service, in so far as it relates to so much of the
amount mentioned in sub-paragraph (3)(a) of the
paragraph in question as is attributable to post-1997
service, and

(b) 5to pre-1997 service, in so far as it relates to so much of that
amount as is attributable to pre-1997 service.

(5B) Where the commencement of periodic compensation under
paragraph 5, 8, 11 or 15 has been postponed by virtue of paragraph
25A, this paragraph applies as if the person first becomes entitled
10to periodic compensation under the paragraph in question on the
day on which the periodic compensation commences.

27 (1) In paragraph 29 (Board’s powers to alter rates of revaluation and
indexation) after sub-paragraph (6) insert—

(6A) A determination under sub-paragraph (2) which has effect as
15mentioned in sub-paragraph (6)(b)(ii) may provide that, where the
payment of periodic compensation to a person is postponed by
virtue of paragraph 25A, the determination applies as if the person
first becomes entitled to the periodic compensation on the day on
which the periodic compensation commences.

(2) 20In paragraph 30 (Secretary of State’s powers to vary percentage paid as
compensation) after sub-paragraph (6) insert—

(6A) An order under this paragraph which has effect as mentioned in
sub-paragraph (6)(b)(ii) may provide that, where the payment of
compensation to a person is postponed by virtue of paragraph
2525A, the order applies as if the person first becomes entitled to the
compensation immediately after the period of postponement
ends.

Pension compensation sharing: postponement of compensation

28 Schedule 5 to the Pensions Act 2008 (pension compensation payable on
30discharge of pension compensation credit) is amended as follows.

29 (1) Omit paragraph 11 (deferral of compensation).

(2) In Part 4, after the Part heading insert—

Postponement of compensation

16A (1) Regulations may prescribe circumstances in which, and
35conditions subject to which, a person who becomes entitled to
periodic compensation under paragraph 4 or 6 may elect to
postpone the commencement of periodic compensation under
that paragraph.

(2) Where the commencement of periodic compensation under
40paragraph 4 or 6 ceases to be postponed, the Board must
determine—

(a) the relevant amount, as at the time the periodic
compensation would have commenced if its
commencement had not been postponed, and

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(b) the amount in paragraph (a), increased in accordance with
actuarial factors published by the Board.

(3) References in this Schedule to the amount of an actuarial increase
under this paragraph are to the difference between the amounts in
5sub-paragraphs (2)(a) and (2)(b).

(4) In sub-paragraph (2) the “relevant amount” means (as
appropriate)—

(a) the amount mentioned in paragraph 4(3)(a), or

(b) the aggregate of the amounts mentioned in paragraph
106(3)(a) and (b).

30 (1) In paragraph 4(3) (periodic compensation for transferee over pension
compensation age on transfer day)—

(a) omit “and” at the end of paragraph (a), and

(b) after that paragraph insert—

(aa) 15if the commencement of periodic compensation
under this paragraph has been postponed for any
period by virtue of paragraph 16A, the amount of
the actuarial increase under that paragraph, and.

(2) In paragraph 4(4) (provisions to which paragraph 4 is subject) after “subject
20to” insert “paragraph 16A (postponement of compensation) and”.

(3) In paragraph 6(3) (periodic compensation for transferee under pension
compensation age on transfer day)—

(a) omit “and” at the end of paragraph (b), and

(b) after that paragraph insert—

(ba) 25if the commencement of periodic compensation
under this paragraph has been postponed for any
period by virtue of paragraph 16A, the amount of
the actuarial increase under that paragraph, and.

(4) In paragraph 6(4) (provisions to which paragraph 6 is subject)—

(a) 30omit the entry for paragraph 11,

(b) omit “and” at the end of the entry for paragraph 15, and

(c) after that entry insert—

31 (1) 35In paragraph 5 (periodic compensation for widow etc of transferee over
pension compensation age on transfer day)—

(a) in sub-paragraph (3) after “(including” insert “any actuarial increase
under paragraph 16A and”, and

(b) after sub-paragraph (3) insert—

(3A) 40If, on the day the transferee (“T”) died, commencement of
T’s periodic compensation under paragraph 4 was
postponed by virtue of paragraph 16A, assume for the
purposes of sub-paragraph (3) that the periodic
compensation commenced immediately before the date of
45T’s death.

(2) In paragraph 7 (periodic compensation for widow etc of transferee under
pension compensation age on transfer day)—

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(a) in sub-paragraph (3)(a) after “(see paragraph 8)” insert “, any
actuarial increase under paragraph 16A”,

(b) in sub-paragraph (3)(b) after sub-paragraph (ii) insert—

(none) (assuming commencement of the periodic
5compensation was not postponed by virtue of
paragraph 16A)., and

(c) after sub-paragraph (3) insert—

(3A) For the purposes of sub-paragraph (3)(a), if on the day the
transferee (“T”) died commencement of T’s periodic
10compensation under paragraph 6 was postponed by virtue
of paragraph 16A, assume that the periodic compensation
commenced immediately before the date of T’s death.

32 In paragraph 9(1) (commutation of periodic compensation) for “becomes
payable” substitute “commences”.

33 (1) 15In paragraph 12 (eligibility for terminal illness lump sum)—

(a) in sub-paragraph (4) in the definition of “relevant age”—

(i) in paragraph (a) omit “or deferred” and “or (as the case may
be) 11”, and

(ii) in paragraph (b) omit “or deferred”, and

(b) 20after sub-paragraph (4) insert—

(5) Sub-paragraph (6) applies where the commencement of a
person’s periodic compensation under paragraph 6 is
postponed by virtue of paragraph 16A.

(6) This paragraph applies as if—

(a) 25the person first becomes entitled to compensation
under paragraph 6 immediately after the period of
postponement ends, and

(b) in sub-paragraph (1)(b), for “if the transferee lived
to the relevant age, he or she would become
30entitled on attaining that age” there were
substituted “if the period of postponement ended,
the transferee would become entitled”.

(2) In paragraph 15 (effect of successful application for terminal illness lump
sum) after sub-paragraph (3) insert—

(4) 35Where on the granting of the application the commencement of a
person’s periodic compensation under paragraph 6 is postponed
by virtue of paragraph 16A, this paragraph applies as if the
references to the transferee attaining the relevant age were
references to the period of postponement ending.

34 (1) 40Paragraph 17 (annual increase in periodic compensation) is amended as
follows.

(2) In sub-paragraph (4), in the definition of “the underlying rate”—

(a) omit “and” at the end of paragraph (a), and

(b) after that paragraph insert—

(aa) 45so much of any actuarial increase under paragraph
16A as relates to the amount in paragraph (a), and.

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(3) In sub-paragraph (7)—

(a) after “references in” insert “paragraph (a) of”, and

(b) at the end insert “(and paragraph (aa) of the definition applies
accordingly).”

(4) 5After sub-paragraph (7) insert—

(7A) Where the commencement of periodic compensation has been
postponed by virtue of paragraph 16A, this paragraph applies as
if the transferee first becomes entitled to the periodic
compensation on the day on which the periodic compensation
10commences.

35 In paragraph 20 (Board’s power to alter rates of revaluation and indexation)
after sub-paragraph (5) insert—

(5A) A determination under sub-paragraph (1)(b) which has effect as
mentioned in sub-paragraph (5)(b)(ii) may provide that, where the
15payment of periodic compensation to the transferee is postponed
by virtue of paragraph 16A, the determination applies as if the
transferee first becomes entitled to the periodic compensation on
the day on which the periodic compensation commences.

Calculation of compensation: admissible rules etc

36 (1) 20Schedule 7 to the Pensions Act 2004 (pension compensation provisions) is
amended as follows.

(2) In paragraph 3(6) (pensions in payment at assessment date) for “35(3)”
substitute “35(3A)”.

(3) In paragraph 5(5) (pensions postponed at assessment date) for “35(3)”
25substitute “35(3A)”.

(4) In paragraph 35 (admissible rules, recent discretionary increases etc)—

(a) for sub-paragraph (3) substitute—

(3) This sub-paragraph applies to a scheme if, in calculating
the protected liabilities in relation to the scheme at the
30relevant time, the effect of taking into account any recent
rule changes is that those liabilities are greater than they
otherwise would be.

(3A) This sub-paragraph applies to a scheme if, in calculating
the protected liabilities in relation to the scheme at the
35relevant time, the effect of taking into account any recent
discretionary increases is that those liabilities are greater
than they otherwise would be., and

(b) in sub-paragraph (4) for “sub-paragraph (3)” substitute “sub-
paragraphs (3) and (3A)”.

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Section 25

SCHEDULE 5 Contributions towards cost of judicial pensions etc

Part 1 Contributions towards cost of judicial pensions

5District Judges (Magistrates’ Courts) Pensions Act (Northern Ireland) 1960 (c. 2 (N.I.))

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