The Pension Protection Fund—determining members’ normal pension age
Produced in partnership with Squire Patton Boggs and Catherine Lonergan of Eversheds Sutherland (International) LLP
The Pension Protection Fund—determining members’ normal pension age

The following Pensions practice note produced in partnership with Squire Patton Boggs and Catherine Lonergan of Eversheds Sutherland (International) LLP provides comprehensive and up to date legal information covering:

  • The Pension Protection Fund—determining members’ normal pension age
  • Determining normal pension age under the scheme’s admissible rules
  • Protected liabilities—meaning
  • Normal pension age—meaning
  • Where it is not possible to identify the normal pension age from the admissible rules
  • Definition of normal pension age—difficult areas
  • Entitlement to take different parts of a pension or lump sum at different ages
  • Meaning of the ‘earliest age at which the pension or lump sum becomes payable without actuarial adjustment’
  • Meaning of ‘special provision' as to early payment on the grounds of ill health or otherwise’
  • Meaning of ‘special provision as to early payment on the grounds of ill health or otherwise’—Andrew Simmonds QC's opinion

THIS PRACTICE NOTE APPLIES ONLY TO DEFINED BENEFIT AND HYBRID OCCUPATIONAL PENSION SCHEMES

Determining normal pension age under the scheme’s admissible rules

Members’ normal pension age under the scheme’s admissible rules needs to be ascertained so that:

  1. an eligible scheme can provide the Pension Protection Fund (PPF) with an actuarial valuation of the scheme’s assets and protected liabilities at prescribed intervals for the purpose of enabling the PPF to calculate risk-based pension protection levies

  2. where the scheme is in an assessment period, the PPF can obtain an actuarial valuation of the scheme’s assets and protected liabilities as at the relevant time

  3. the PPF can ascertain the date from which compensation will be paid to an individual (and the level of that compensation) under the pension compensation provisions of the Pensions Act 2004, s 162 and Sch 7 (PeA 2004)

For more information on how to determine a scheme’s admissible rules, see Practice Note: The Pension Protection Fund—what are the admissible rules of a scheme?

For more information on the risk-based pension protection levies, see Practice Note: The Pension Protection Fund—the pension protection levy.

Protected liabilities—meaning

The protected liabilities of the scheme are determined (among other things) by reference to the cost of securing benefits for, or in respect of, the members of the scheme which correspond to the compensation payable in accordance with the pension compensation provisions

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