Session 2014-15
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Pension Schemes Bill
to be moved
in committee
After Clause 79
LORD BALFE
Insert the following new Clause—
(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—
(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.””