The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013
| Jurisdiction | UK Non-devolved |
| Citation | SI 2013/627 |
| Year | 2013 |
2013 No. 627
Pensions
The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013
Made 14th March 2013
Laid before Parliament 19th March 2013
Coming into force in accordance with regulation 1
The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by sections 146(4) and (6)(b), 181(1) and 182(2) and (3) of the Pension Schemes Act 19931, sections 75A(1) to (4), 124(1) and 174(2) and (3) of the Pensions Act 19952, sections 143(3) to (5), 143A(5), 170(2), 203(1)(a), 207(1) and (5)(a), 307(3), 315(2), (4) and (5) and 318(1) of, and paragraphs 23(1)(b) and (2), 24(1) and (2), 25(1), 25A(1), 26(9) and 31(2)(a) of Schedule 7 to, the Pensions Act 20043and sections 108, 119 and 144(2) and (4) of, and paragraph 16A(1) of Schedule 5 to, the Pensions Act 20084.
In accordance with section 185(1)5of the Pension Schemes Act 1993, section 120(1) of the Pensions Act 1995 and section 317(1) of the Pensions Act 2004 the Secretary of State has consulted such persons as the Secretary of State considers appropriate.
Citation and commencement
1.—(1) These Regulations may be cited as the Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013 and, except as otherwise provided in paragraph (2), come into force on 30th April 2013.
(2) Regulation 3(6) comes into force—
(a)
(a) in respect of a surviving dependant—
(i) who is receiving periodic compensation on 29th April 2013 and
(ii) is on a qualifying course on that date,
on the date that person leaves that qualifying course, and
(b)
(b) in respect of any other surviving dependant, on 30th April 2013.
(c)
(c) In this regulation “qualifying course” and “surviving dependant” have the meaning given under regulation 1(2) of the Pension Protection Fund (Compensation) Regulations 2005.6
Amendment of the Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations 2005
2. In regulation 3(1)(a) of the Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations 20057(time for making an application for a review decision), for “two months” substitute “28 days”.
Amendment of the Pension Protection Fund (Compensation) Regulations 2005
3.—(1) The Pension Protection Fund (Compensation) Regulations 20058are amended as follows.
(2) In regulation 1(2) (interpretation) after the definition of “the assessment date”9insert—
““commutation limit” means the amount specified in paragraph 7(4) of Schedule 2910to the 2004 Act (trivial commutation lump sum);”.
(3) In regulation 2 (circumstances where a person shall be entitled to early payment of compensation), omit paragraph (5).
(4) After Part 2 (early payment of compensation), insert—
“PART 2A
Postponement of compensation
Postponing compensation
2A.—(1) A person who becomes entitled to periodic compensation under paragraph 511, 812, 1113or 1514of Schedule 7 to the Act, or by virtue of paragraph 21 or 21A of that Schedule,15may elect to postpone the commencement of periodic compensation under that paragraph—
(a)
(a) in any of the circumstances prescribed in regulation 2B; and
(b)
(b) subject to all of the conditions prescribed in regulation 2C.
(2) A person who becomes entitled to lump sum compensation under paragraph 716, 1017, 1418or 1919of Schedule 7 to the Act, or by virtue of paragraph 21 or 21A of that Schedule, may elect to postpone the payment of lump sum compensation under that paragraph—
(a)
(a) in any of the circumstances prescribed in regulation 2B; and
(b)
(b) subject to all of the conditions prescribed in regulation 2C.
Circumstances in which periodic and lump sum compensation can be postponed
2B.—(1) The circumstances referred to in regulation 2A(1)(a) and (2)(a) are as follows.
(2) The first circumstance is where the person has—
(a)
(a) not attained normal pension age; or
(b)
(b) not attained normal benefit age,
on the date when an assessment period begins in relation to the scheme.
(3) The second circumstance is where the person—
(a)
(a) has not received any pension (including any lump sum entitlement) under the scheme;
(b)
(b) is an active member; and
(c)
(c) has attained normal pension age,
on the date when an assessment period begins in relation to the scheme.
(4) The third circumstance is where the person—
(a)
(a) has had their pension payment postponed; and
(b)
(b) payment of the pension remains postponed
on the date of the transfer notice issued under section 160 of the Act20 to trustees and managers of the scheme.
Conditions subject to which periodic and lump sum compensation can be postponed
2C.—(1) The conditions referred to in regulation 2A(1)(b) and (2)(b) are as follows.
(2) The first condition is that—
(a)
(a) where the person elects to postpone periodic compensation in respect of a benefit under the scheme, they must also elect to postpone the payment of any lump sum compensation to which they are entitled in respect of that scheme; or
(b)
(b) where the person elects to postpone lump sum compensation in respect of a benefit under the scheme, they must also elect to postpone the payment of any periodic compensation to which they are entitled in respect of that scheme.
(3) The second condition is that the person must not have received, or have received in respect of, any benefit under the scheme—
(a)
(a) their pension;
(b)
(b) any periodic compensation; or
(c)
(c) any lump sum compensation.
(4) The third condition is that for each election to postpone periodic compensation or lump sum compensation, the person has sent written notice to the Board—
(a)
(a) in accordance with paragraph (5);
(b)
(b) that the person wishes to postpone the commencement of periodic compensation or payment of lump sum compensation; and
(c)
(c) before the commencement of that periodic compensation or payment of lump sum compensation.
(5) The notice referred to in paragraph (4) must include—
(a)
(a) the person’s name, address, date of birth and national insurance number;
(b)
(b) the name of the scheme for which the Board has assumed responsibility; and
(c)
(c) the date on which the person would like the commencement of periodic compensation or payment of lump sum compensation to cease to be postponed, which must be a date before the person attains the age of 75.
Date on which postponement ceases
2D.—(1) Periodic compensation and lump sum compensation ceases to be postponed on the date elected under regulation 2C(5)(c) unless the person has further elected an earlier date or a later date (which must be a date before the person attains the age of 75).
(2) A person who wishes to make a further election under this regulation must send a written notice to the Board before the date notified (or most recently notified) under regulation 2C(5)(c).
(3) The notice referred to in paragraph (2) must include the information set out in regulation 2C(5).”.
(5) In regulation 4(3) (compensation for surviving dependants)—
(a)
(a) in sub-paragraph (a)—
(i) omit “or unborn child”, and
(ii) for “demonstrating” substitute “or other evidence demonstrating to the satisfaction of the Board”, and
(b)
(b) after sub-paragraph (b), insert—
“(ba)
“(ba) in the case of a child of the member who, at the date of the member’s death, was being carried by the mother and had not been born, evidence demonstrating to the satisfaction of the Board that the child—
(i) is the child of the member; and
(ii) would have been a dependant of the member had the child been born before the date of the member’s death; or”.
(6) In regulation 7(4)21(period of payment)—
(a)
(a) for “Where” substitute “This paragraph applies where”, and
(b)
(b) for “later” substitute “earlier”.
(7) At the end of regulation 10(1)(b)(ii)(bb) (special provision in relation to pensions in payment following early retirement), insert “and”.
(8) In regulation 19 (commutation of periodic compensation)22—
(a)
(a) for paragraph (2)(b)(ii), substitute—
“(ii)
“(ii) payment of periodic compensation commences,”, and
(b)
(b) in paragraph (3), omit “PPF”.
(9) In regulation 2023(circumstances in which the portion of compensation to be commuted may exceed 25 per cent) omit paragraph (4).
(10) In regulation 22(1) (application of compensation cap where compensation becomes payable on different dates) for “paragraph (4)” substitute “paragraph (3)”.
Amendment of the Pension Protection Fund (Valuation) Regulations 2005
4.—(1) The Pension Protection Fund (Valuation) Regulations 200524are amended as follows.
(2) In regulation 1(2) (interpretation)—
(a)
(a) after the definition of “section 152 determination”25insert—
““section 152(9) valuation” means a valuation obtained under section 152(9) of the Act;”, and
(b)
(b) after the definition of “section 158 determination”26insert—
““section 158 valuation” means a valuation obtained under section 158(3)(b) of the Act;”.
(3) In regulation 6(1)(a) and (b)27(valuation of protected liabilities), for “market rate” substitute “best value rate available in the market as estimated by the Board”.
(4) In regulation 7(4)28(alternative valuation of assets and protected liabilities in specific cases)—
(a)
(a) in sub-paragraph (c)(i), at the beginning insert “either none of the amount due or only”, and
(b)
(b) in sub-paragraph (c)(ii)—
(i) for “no further” substitute “some or all of the”, and
(ii) after “notice or direction will” insert “not”.
(5) In regulation 7A29(application of these regulations to applications for reconsideration and by closed schemes)—
(a)
(a) for paragraph (3) substitute—
“3 Regulations 3 to 7 apply in relation to a section 152(9) valuation...
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