Does PPF compensation count towards SLA & trigger MPAA?

Shylock

I took compensation from the Pension Protection Fund in 2016 at the age of 56.  It was a tax free lump sum and an ongoing monthly payment for life.
Perhaps naively I understood this to be "compensation", rather than a Pension, so gave no thought to it affecting future pension arrangements.
I have checked with them previously and was told that it didn't reduce my MPAA but in response to a recent query they've said it DOES count towards my SLA and quoted me the percentage figure.
I'm a bit confused as to how it counts towards my SLA but didn't trigger a reduced MPAA?  Have I understood correctly?

Marcon

It does count towards SLA.

It doesn't trigger the MPAA because any compensation paid via the PPF can only be paid in respect of a DB pension scheme - and you can't 'flexibly access' benefits under a DB scheme or as PPF compensation. It is only when you 'flexibly access' any part of a DC pension scheme that the MPAA is triggered.

Shylock

Marcon said:

It does count towards SLA.

It doesn't trigger the MPAA because any compensation paid via the PPF can only be paid in respect of a DB pension scheme - and you can't 'flexibly access' benefits under a DB scheme or as PPF compensation. It is only when you 'flexibly access' any part of a DC pension scheme that the MPAA is triggered.

Ah..!  Of course!  That makes sense.  Many thanks.