The Department for Communities has made a Statutory Rule entitled “The Pension Protection Fund (Compensation) (Amendment) Regulations (Northern Ireland) 2018” (S.R. 2018 No. 26) which comes into operation on 24 February 2018.

The Rule makes technical amendments to existing Regulations in relation to the compensation payable from the Pension Protection Fund to those with occupational pensions that are paid at an initial higher amount which later reduces, usually at state pension age (known as step-down pensions).

A case in point would be a scheme which has a scheme pensionable age of 60 and pays a higher rate of pension between the scheme’s pension age and state pension age. The Rule provides for the level of compensation in respect of a step-down pension to take account of future reductions which would have occurred in the rate of the pension under the rules of the original scheme.

Copies of the Rule may be purchased from the Stationery Office at www.tsoshop.co.uk or by contacting TSO Customer Services on 0333 202 5070 or viewed online at http://www.legislation.gov.uk/nisr.