Pensions Citation, commencement and interpretation 1 1 This Order may be cited as the Pensions Act 2014 (Pension Protection Fund: Increased Compensation Cap for Long Service) (Pension Compensation Sharing on Divorce) (Transitional Provision) Order 2017 and comes into force on 6th April 2017. 2 In this Order— “the 2004 Act ” means the Pensions Act 2004 ; “the 2008 Act ” means the Pensions Act 2008 ; “the 2014 Act ” means the Pensions Act 2014. Transitional provision in connection with the Pension Protection Fund: increased compensation cap for long service and compensation sharing on divorce etc. 2 1 This article applies in relation to a person if— a compensation is payable under Chapter 1 of Part 3 of the 2008 Act (pension compensation on divorce etc.); and b the compensation is restricted in accordance with regulations made under paragraph 18 of Schedule 5 to that Act (compensation cap) . 2 Part 3 of Schedule 20 to the 2014 Act (effect of change in transitional cases) has effect in relation to a person to whom this article applies as it has effect in relation to compensation payable under Schedule 7 to the 2004 Act (pension compensation provisions) subject to the following modifications. 3 Paragraph 8 (recalculation of periodic compensation going forwards) has effect as if the reference in— a sub-paragraph (1)(a) to compensation under paragraph 3, 11 or 15 of Schedule 7 to the 2004 Act (which relate to compensation payable to, respectively, pensioners, active members and deferred members) were to compensation under paragraph 4 or 6 of Schedule 5 to the 2008 Act (compensation payable to transferee) ; b sub-paragraph (1)(b) to the restriction in paragraph 26 of Schedule 7 to the 2004 Act (compensation cap) were to the restriction in regulations made under paragraph 18 of Schedule 5 to the 2008 Act (compensation cap); c sub-paragraph (2) to the protected pension rate were, in both places where that reference appears, a reference to the initial annual rate of compensation for the purposes of paragraph 4 or 6 of Schedule 5 to the 2008 Act; and d sub-paragraph (5) to paragraph 28 of Schedule 7 to the 2004 Act (annual increase in periodic compensation) were to paragraph 17 of Schedule 5 to the 2008 Act (annual increase in periodic compensation) . 4 Paragraph 9 (new cap does not generally affect old payments) has effect as if— a the reference to periodic compensation were a reference to periodic compensation within paragraph 4 or 6 of Schedule 5 to the 2008 Act; and b sub-paragraph (1)(b) and the definition of “lump sum compensation” in sub-paragraph (2) were omitted. 5 Paragraph 10 (survivors’ compensation) has effect as if the reference to— a paragraph 4(3), 13(3) or 18(3) of Schedule 7 to the 2004 Act were to paragraph 5(3) or 7(3) of Schedule 5 to the 2008 Act (compensation payable to widow, widower or surviving civil partner); and b paragraph 8 were to that paragraph as modified by this Order. 6 Paragraph 11 (cases involving early payment or postponement of compensation) has effect as if the reference to— a paragraph 25 of Schedule 7 to the 2004 Act (early payment of compensation) were to paragraph 10 of Schedule 5 to the 2008 Act (early payment of compensation); and b paragraph 25A (of Schedule 7 to the 2004 Act) (postponement of compensation) were to paragraph 16A of Schedule 5 to the 2008 Act (postponement of compensation) . 7 Paragraph 12 (recalculation of terminal illness lump sums given in the past year) has effect as if the reference in— a sub-paragraph (1)(a) to paragraph 25E of Schedule 7 to the 2004 Act (terminal illness lump sum: effect of successful application) were to paragraph 15 of Schedule 5 to the 2008 Act (terminal illness lump sum: effect of successful application) ; b sub-paragraph (1)(b) to the restriction in paragraph 26 of Schedule 7 to the 2004 Act were to the restriction in regulations made under paragraph 18 of Schedule 5 to the 2008 Act (pension compensation payable on discharge of pension compensation credit); and c sub-paragraph (2) to Schedule 7 to the 2004 Act were to Schedule 5 to the 2008 Act. Signed by authority of the Secretary of State Richard Harrington Parliamentary Under- Secretary of State Department for Work and Pensions 8th March 2017