Commentary on Sections Summary Active member who have not attained normal pension age
581.Paragraph 11 provides that 90% pension compensation is paid to active members who had not attained normal pension age before the assessment date. The amount payable will be calculated by reference to the accrued protected notional pension plus increases under paragraph 28 plus the revaluation amount. This is subject to the compensation cap (paragraph 26) and the power of the Secretary of state to vary percentages (paragraph 30). The pension compensation will commence at his normal pension age and part can be commuted (see paragraph 24).
582.Paragraph 13 provides that 50% of the pension compensation in payment, or payable, will be paid to the member’s widow or widower after his death. 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.
583.Paragraph 14 provides for when lump sum compensation can be paid. Where the member has been entitled to a lump sum he will receive 90% of the accrued amount plus the revaluation amount. This will be paid when he attains normal pension age. 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).