Commentary on Sections Summary Active members over normal pension age at assessment date
578.Paragraph 8 provides that pension compensation of 100% is payable to active members of the scheme who were over normal pension age before the assessment date. The compensation is calculated by reference to the protected notional pension accrued plus increases calculated under paragraph 28. This is subject to the Secretary of State’s power to vary the percentage (paragraph 30). The pension compensation is paid from the assessment date and part of it may be commuted for a lump sum (see paragraph 24).
579.Paragraph 9 provides that 50% of the pension compensation in payment will be paid to the member’s widow after he dies. Regulations will set out when the widow or widower will not be entitled to compensation. This will allow provision to be made for cases where the scheme rules did not pay a pension to a widow or widower.
580.Paragraph 10 provides for when lump sum compensation can be paid from the Pension Protection Fund. This will be paid where the active member had a right to a lump sum and was over normal pension age. 100% of the accrued amount in respect of the lump sum plus any increases under the scheme’s rules (referred to as the admissible rules) will be paid at the assessment date. This does not apply to a lump sum received through commutation.