Pension Schemes Bill

Amendments
to be moved
in committee

After Clause 79

LORD BALFE

 

Insert the following new Clause—

“Pension Protection Fund: compensation cap underpin (service-related)

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

(2)     In paragraph 26 (compensation cap), after sub-paragraph (9) insert—

    “This paragraph is subject to paragraph 26B.”

(3)     After paragraph 26A insert—

“26B   (1)  The relevant compensation payable to a person must in every
case equal the lower of the amounts specified in sub-paragraphs
(2) and (3).

(2)     The amount specified in this sub-paragraph is the sum of—

(a)   50% of the annual value of the benefits to which he is
entitled under the admissible rules; and

(b)   2% of that amount for each whole year of the person’s
pensionable service, subject to a maximum of 40% of that
amount.

(3)     The amount specified in this sub-paragraph is two times the
standard amount.

(4)     Expressions used in this paragraph have the same meaning as in
paragraphs 26 and 26A.””

 

Insert the following new Clause—

“Pension Protection Fund: compensation cap underpin (age-related)

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

(2)     In paragraph 26 (compensation cap), after sub-paragraph (9) insert—

    “This paragraph is subject to paragraph 26B.”

(3)     After paragraph 26A insert—

“26B   (1)  The relevant compensation payable to a person must in every
case equal the lower of the amounts specified in sub-paragraphs
(2) and (3).

(2)     The amount specified in this sub-paragraph is the sum of—

(a)   50% of the annual value of the benefits to which he is
entitled under the admissible rules; and

(b)   provided the person is within ten years of reaching his
normal pension age, 4% of that amount for each whole
year by which his age exceeds ten years before his normal
pension age.

(3)     The amount specified in this sub-paragraph is two times the
standard amount.

(4)     Expressions used in this paragraph have the same meaning as in
paragraphs 26, 26A and 34.””

Prepared 18th December 2014