PPF compensation regulations: MCA 1973 s. 25G
MCA 1973 s. 25G empowers the Lord Chancellor to make regulations governing Pension Protection Fund compensation payments, valuation, and notices.
25G The Lord Chancellor may by regulations— make provision, in relation to any provision of section 25F which authorises the court making an order under section 23 to require the Board of the Pension Protection Fund to make a payment for the benefit of the other party, as to the person to whom, and the terms on which, the payment is to be made; make provision, in relation to payment under a mistaken belief as to the continuation in force of a provision included by virtue of section 25F in an order under section 23, about the rights or liabilities of the payer, the payee or the person to whom the payment was due; require notices to be given in respect of changes of circumstances relevant to orders under section 23 which include provision made by virtue of section 25F; make provision for the Board of the Pension Protection Fund to be discharged in prescribed circumstances from a requirement imposed by virtue of section 25F; make provision about calculation and verification in relation to the valuation of PPF compensation for the purposes of the court's functions in connection with the exercise of any of its powers under this Part. Regulations under subsection (1)(e) may include— provision for calculation or verification in accordance with guidance from time to time prepared by a prescribed person; provision by reference to regulations under section 112 of the Pensions Act 2008. Regulations under subsection (1) may make different provision for different cases. The power to make regulations under subsection (1) is exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. In this section and section 25F— “ the party with compensation rights ” means the party to the marriage who is or is likely to be entitled to PPF compensation, and “ the other party ” means the other party to the marriage; “ prescribed ” means prescribed by regulations.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
Section 25G grants authority to the Lord Chancellor to enact statutory regulations concerning Pension Protection Fund compensation orders. These regulations clarify administrative procedures when a court directs payments from the Board of the Pension Protection Fund to a former spouse during financial provision proceedings.
The regulations may specify who receives payments, set terms for distribution, and establish rules for handling payments made under a mistaken belief that an order remained active. They also govern notification obligations regarding changed circumstances, discharge the Board from obligations under prescribed circumstances, and define how compensation is valued and calculated.
Rules created under this power are issued via statutory instruments. Guidance for valuation and calculation may refer to external standards or rules established under section 112 of the Pensions Act 2008.
When it applies
- The Lord Chancellor issuing rules on how the Pension Protection Fund pays compensation directly to an ex-spouse.
- Establishing procedural rules when payments were made after a pension compensation order was mistakenly thought to be active.
- Setting notification requirements for ex-spouses when their personal circumstances change following a court order.
- Determining standard rules and methods for calculating and verifying the value of Pension Protection Fund compensation.
What this section does not say
- Deciding directly whether a court orders pension compensation attachment, which is governed by section 25F.
- Determining the general factors a court considers when dividing marital property, which is addressed elsewhere in this Part.
- Directing the initial order for financial provision under section 23 without relying on implementing regulations.
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This page reproduces the text of MCA 1973 s. 25G in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.