Moved by
Lord Balfe
104: After Clause 79, insert the following new Clause—
“Pension Protection Fund: compensation cap underpin (service-related)
(1) Schedule 7 to the Pensions Act 2004 (pension compensation provisions) is amended as follows.
(2) In paragraph 26 (compensation cap), after sub-paragraph (9) insert—
“(9A) This paragraph is subject to paragraph 26B.”
(3) After paragraph 26A insert—
“26B (1) The relevant compensation payable to a person must in every case equal the lower of the amounts specified in sub-paragraphs (2) and (3).
(2) The amount specified in this sub-paragraph is the sum of—
(a) 50% of the annual value of the benefits to which he is entitled under the admissible rules; and
(b) 2% of that amount for each whole year of the person’s pensionable service, subject to a maximum of 40% of that amount.
(3) The amount specified in this sub-paragraph is two times the standard amount.
(4) Expressions used in this paragraph have the same meaning as in paragraphs 26 and 26A.””