Commentary on Sections Summary Deferred members who have not attained normal pension age at assessment date
584.Paragraph 15 provides that 90% pension compensation will be paid to deferred members who have not attained normal pension age. The pension compensation paid is calculated by reference to the accrued protected pension plus the revaluation amount. This is subject to the compensation cap (paragraph 26) and the Secretary of State’s power to vary the percentage (paragraph 30). The pension comes into payment from the deferred member’s normal pension age and part may be commuted as a lump sum (see paragraph 24).
585.Paragraph 18 provides that 50% of the pension compensation in payment or payable will be paid to the deferred member’s widow or widower 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.
586.Paragraph 19 sets out when lump sum compensation is payable from normal pension age. 90% of the lump sum to which the deferred member was entitled under the scheme rules (referred to as admissible rules) will be paid. This does not apply to a lump sum received through commutation. This is subject to the compensation cap (paragraph 26) and the Secretary of State’s power to vary percentages (paragraph 30).