Schedule 4: Pension compensation payable on discharge of pension compensation credit
Schedule 4 makes detailed provision concerning the calculation of compensation payable to the transferee (former spouse or civil partner). The way the compensation is calculated depends upon the status of the transferee at the date the transfer takes place.
The Schedule is accordingly divided into four parts:-
	Part 1 is introductory, covering interpretation and the determination of a pension compensation age;
	Part 2 makes provision where transferees attain pension compensation age before or on transfer day;
	Part 3 makes provision where transferees attain pension compensation age after transfer day; and
	Part 4 provisions apply irrespective of the age of the transferee on transfer day.
The Schedule is intended to operate in a similar way to the corresponding provisions of Schedule 6 of the Pensions (Northern Ireland) Order 2005 (pension compensation provisions) as they apply to the calculation of pension compensation generally.
Paragraph 3 makes provision about the age at which the transferee is to start receiving periodic compensation under the Schedule (the transferee’s “pension compensation age”).  In the usual case this will be when they reach the age at which the transferor starts to receive pension compensation payments.