The Department for Work and Pensions (DWP) has published two sets of regulations intended to address issues concerning Pension Protection Fund (PPF) sharing when a person seeks a divorce, dissolution of their civil partnership or an annulment of their marriage or civil partnership.
The regulations have been introduced following an earlier consultation. The regulations are the Pension Protection Fund (Pension Compensation Sharing and Attachment on Divorce etc) Regulations 2011 (SI 2011/726) and the Pension Protection Fund (Pensions on Divorce etc: Charges) Regulations 2011 (SI 2011/726).
The main purpose of the regulations is to implement provisions set out in the Pensions Act 2008, which permit the courts to make pension compensation sharing orders and attached orders in respect of compensation payable from the PPF on the abovementioned circumstances. The provisions deal with, amongst others:
- The information that the PPF board must supply before the court makes a pension compensation sharing or attachment order;
- The charges the PPF board may recover from the parties to relevant proceedings; and
- The circumstances in which compensation may be commuted for a lump sum, or paid early.
The regulations will come into force on 6 April 2011.
Please click on the following link to view the DWP’s response to the consultation online