The Pension Protection Fund (Entry Rules) Regulations 2005

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Pension Protection Fund (Entry Rules) Regulations 2005.

(2) These Regulations shall come into force—

(a) for the purposes of regulation 1 (except paragraphs (4) and (5)) and regulation 2, on 1st April 2005; and

(b) for all other purposes on 6th April 2005.

(3) In these Regulations—

“the Act” means the Pensions Act 2004;

“the 1986 Act” means the Insolvency Act 1986(1);

“the 1988 Act” means the Income and Corporation Taxes Act 1988(2);

“the 1993 Act” means the Pension Schemes Act 1993(3);

“the 1995 Act” means the Pensions Act 1995(4);

“the FSMA” means the Financial Services and Markets Act 2000(5);

“the Authority” has the meaning given in section 124(1) of the 1995 Act (interpretation)(6);

“the Insolvency Rules” means the Insolvency Rules 1986(7);

“multi-employer scheme” has the meaning given in section 307(4) of the Act (modification of the Act in relation to certain categories of pension scheme);

“multi-employer section” means a section of a segregated scheme which has at least two employers in relation to that section;

“non-segregated scheme” means a multi-employer scheme which is not a segregated scheme;

“normal pension age” has the meaning given in section 138(11) of the Act (payment of scheme benefits);

“pensionable service” has the meaning given in section 70(2) of the 1993 Act (interpretation);

“public body” means a government department or any non-departmental public body established by an Act of Parliament or by a statutory instrument made under an Act of Parliament to perform functions conferred on it under or by virtue of that Act or instrument or any other Act or instrument;

“relevant public authority” has the meaning given in section 307(4) of the Act;

“restricted information” has the meaning given in section 197(4) of the Act (restricted information);

“segregated scheme” means a multi-employer scheme which is divided into two or more sections where—

(a)

any contributions payable to the scheme by an employer in relation to the scheme or by a member are allocated to that employer’s or that member’s section; and

(b)

a specified proportion of the assets of the scheme is attributable to each section of the scheme and cannot be used for the purposes of any other section;

“segregated part”—

(a)

in relation to a non-segregated scheme, means a part of the scheme which is created when the rules of the scheme require the trustees or managers, in circumstances where an employer in relation to the scheme ceases to participate in the scheme, to segregate such part of the assets of the scheme as is attributable to the liabilities of the scheme to provide pensions or other benefits to or in respect of the pensionable service of members of the scheme by reference to that employer; and

(b)

in relation to a multi-employer section of a segregated scheme, means a part of the section which is created when the rules of the scheme relating to that section require the trustees or managers of the section, in circumstances where an employer in relation to the section ceases to participate in the scheme, to segregate such part of the assets of the section as is attributable to the liabilities of the section to provide pensions or other benefits to or in respect of the pensionable service of members of the section by reference to that employer; and

“tax approved scheme” means a scheme which is approved or was formerly approved under section 590 (conditions for approval of retirement benefit schemes) or 591 (discretionary approval) of the 1988 Act or in respect of which an application for such approval has been duly made but has not been determined.

(4) Subject to paragraph (5), in these Regulations, “employer”, in relation to an occupational pension scheme which has no active members, includes every person who was the employer of persons in the description of employment to which the scheme relates immediately before the time at which the scheme ceased to have any active members in relation to it.

(5) In these Regulations, “employer”, in relation to a multi-employer scheme, or a section of a multi-employer scheme, includes—

(a) in the case of a scheme which has no active members, every person who was the employer of persons in the description of employment to which the scheme, or section, relates immediately before the time at which the scheme, or section, ceased to have any active members in relation to it unless, after that time—

(i) a debt under section 75 of the 1995 Act(8) (deficiencies in the assets) becomes due from that person to the scheme, or section; and

(ii) either—

(aa) the full amount of the debt has been paid by that person to the trustees or managers of the scheme, or section, or

(bb) in circumstances where a legally enforceable agreement has been entered into between that person and the trustees or managers of the scheme, or section, the effect of which is to reduce the amount which is payable in respect of the debt, the reduced amount of the debt has been paid in full by that person to those trustees or managers; and

(b) in any other case, any person who has ceased to be the employer of persons in the description of employment to which the scheme, or section, relates unless—

(i) at the time when he so ceased, the scheme, or section, was not being wound up and continued to have active members in relation to it; and

(ii) a debt under section 75 of the 1995 Act became due at that time from that person to the scheme, or section, and either—

(aa) the full amount of the debt has been paid by that person to the trustees or managers of the scheme, or section, or

(bb) in circumstances where a legally enforceable agreement has been entered into between that person and the trustees or managers of the scheme, or section, the effect of which is to reduce the amount which is payable in respect of the debt, the reduced amount of the debt has been paid in full by that person to those trustees or managers.

(1)

1986 c. 45.

(2)

1988 c. 1.

(3)

1993 c. 48.

(4)

1995 c. 26.

(5)

2000 c. 8.

(6)

See section 7(2)(b) of the Pensions Act 2004 which provides that “the Authority” in section 124(1) of the Pensions Act 1995 means “the Pensions Regulator”.

(7)

S.I. 1986/1925 as amended by S.I. 1987/1919, 1989/397, 1991/495, 1993/602, 1995/586, 1999/359, 1999/1022, 2001/763, 2002/1307, 2002/2712, 2003/1750, 2004/584 and 2004/1070.

(8)

Section 75 is amended by section 271 of the Pensions Act 2004.