34E—(1) For the purposes of Article 34 the employer resources test is met in relation to an act or failure to act if the Regulator is of the opinion that—
(a)the act or failure reduced the value of the resources of the employer, and
(b)that reduction was a material reduction relative to the estimated Article 75 debt in relation to the scheme.
(2) For the purposes of this Article—
(a)what constitutes the resources of the employer is to be determined in accordance with regulations;
(b)the value of the resources of the employer is to be determined, calculated and verified in a prescribed manner.
(3) In this Article the “estimated Article 75 debt” means the amount which the Regulator estimates to be the amount of the debt which would become due from the employer to the trustees or managers of the scheme under Article 75 of the 1995 Order (deficiencies in the scheme assets) if—
(a)Article 75(2) applied, and
(b)the time designated by the trustees or managers of the scheme for the purposes of Article 75(2) were the relevant time.
(4) When calculating the estimated Article 75 debt under paragraph (3), the amount of any debt due at the relevant time from the employer under Article 75 of the 1995 Order is to be disregarded.
(5) In this Article “the relevant time” means—
(a)in a case where the act or failure to act forms part of a series of acts or failures to act, the time immediately before the first of the acts occurred or the first of the failures to act first occurred;
(b)in any other case, the time immediately before the act occurred or the failure to act first occurred.]
F1Arts. 34E, 34F inserted (1.9.2021 for specified purposes, 1.10.2021 in so far as not already in operation) by Pension Schemes Act 2021 (c. 1), s. 131(2)(b), Sch. 8 para. 2(3); S.R. 2021/240, art. 2(1)(c); S.R. 2021/271, art. 2(5)(a) (with art. 3(1)(2))