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The Occupational Pension Schemes (Employer Debt) Regulations 2005

Changes over time for: Section 6B

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[F1Scheme apportionment arrangementsU.K.

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6B.(1) Before the trustees or managers of the scheme enter into a scheme apportionment arrangement, the funding test must be met in relation to it.]

[F2(2) Paragraph (1) does not apply where paragraph (3) or (4) applies.]

[F3(3) This paragraph applies where—

(a)the employer’s scheme apportionment arrangement share will be higher than the liability share, and

(b)the trustees or managers are satisfied that the employer is able to pay the scheme apportionment arrangement share.

(4) This paragraph applies where—

(a)the scheme has commenced winding-up by the date the scheme apportionment arrangement is entered into,

(b)the employer’s scheme apportionment arrangement share will be lower than that employer’s liability share,

(c)the trustees or managers are satisfied that it is likely that the employer—

(i)will be able to pay the scheme apportionment arrangement share, and

(ii)would have been unable to pay the liability share if it applied,

(d)the trustees or managers are satisfied that it is likely that any of the employers who—

(i)are remaining in the scheme, and

(ii)are not defined contribution employers,

will be able to pay any amount by which the employer’s scheme apportionment arrangement share will be less than the employer’s liability share,

(e)the scheme is not in an assessment period, and

(f)the trustees or managers are satisfied that an assessment period is unlikely to begin in relation to the scheme within the following 12 months.]

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