Pension Schemes Act 1993

123 Interpretation of Chapter II.E+W+S

(1)For the purposes of this Chapter, an employer shall be taken to be insolvent if, but only if, in England and Wales—

(a)he has been [F1made] bankrupt or has made a composition or arrangement with his creditors;

(b)he has died and his estate falls to be administered in accordance with an order under section 421 of the M1Insolvency Act 1986; F2...

(c)where the employer is a company—

(i)a winding-up order F3... is made or a resolution for voluntary winding up is passed with respect to it [F4or the company enters administration],

(ii)a receiver or manager of its undertaking is duly appointed,

(iii)possession is taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the company comprised in or subject to the charge, or

(iv)a voluntary arrangement proposed for the purpose of Part I of the M1Insolvency Act 1986 is approved under that Part; [F5or]

[F5(d)where subsection (2A) is satisfied.]

(2)For the purposes of this Chapter, an employer shall be taken to be insolvent if, but only if, in Scotland—

(a)sequestration of his estate is awarded or he executes a trust deed for his creditors or enters into a composition contract;

(b)he has died and a judicial factor appointed under section 11A of the M2Judicial Factors (Scotland) Act 1889 is required by that section to divide his insolvent estate among his creditors; or

(c)where the employer is a company—

(i)a winding-up order F6... is made or a resolution for voluntary winding up is passed with respect to it [F7or the company enters administration],

(ii)a receiver of its undertaking is duly appointed, or

(iii)a voluntary arrangement proposed for the purpose of Part I of the M1Insolvency Act 1986 is approved under that Part.

[F8(2A)This subsection is satisfied if—

(a)a request has been made for the first opening of collective proceedings—

(i)based on the insolvency of the employer, as provided for under the laws, regulations and administrative provisions of a member State; and

(ii)involving the partial or total divestment of the employer’s assets and the appointment of a liquidator or a person performing a similar task; and

(b)the competent authority has—

(i)decided to open the proceedings; or

(ii)established that the employer’s undertaking or business has been definitively closed down and the available assets of the employer are insufficient to warrant the opening of the proceedings.

(2B)For the purposes of subsection (2A)—

(a)“liquidator or person performing a similar task” includes the official receiver or an administrator, trustee in bankruptcy, judicial factor, supervisor of a voluntary arrangement, or person performing a similar task,

(b)“competent authority” includes—

(i)a court,

(ii)a meeting of creditors,

(iii)a creditors’ committee,

(iv)the creditors by a decision procedure, and

(v)an authority of a member State empowered to open insolvency proceedings, to confirm the opening of such proceedings or to take decisions in the course of such proceedings.

(2C)An application under section 124 may only be made in respect of a worker who worked or habitually worked in Great Britain in that employment to which the application relates.]

(3)In this Chapter—

  • [F9“employer”, “employment”, “worker” and “worker's contract” and other expressions which are defined in the Employment Rights Act 1996 have the same meaning as in that Act (see further subsections (3A) and (3B));]

  • “holiday pay” means—

    (a)

    pay in respect of holiday actually taken; or

    (b)

    any accrued holiday pay which under [F10the worker's contract] would in the ordinary course have become payable to him in respect of the period of a holiday if his employment with the employer had continued until he became entitled to a holiday;

  • F11...

[F12(3A)Section 89 of the Pensions Act 2008 (agency workers) applies for the purposes of this Chapter as it applies for the purposes of Part 1 of that Act.

(3B)References in this Chapter to a worker include references to an individual to whom Part 1 of the Pensions Act 2008 applies as if the individual were a worker because of regulations made under section 98 of that Act; and related expressions are to be read accordingly.]

F13(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)Any reference in this Chapter to the resources of a scheme is a reference to the funds out of which the benefits provided by the scheme are from time to time payable.

Textual Amendments

Modifications etc. (not altering text)

C1S. 123 applied (6.4.1997) by Pensions Act 1995 (c. 26), ss. 81(8), 180(1) (with s. 121(5)); S.I. 1997/664, art. 2(3), Sch. Pt. 2

Commencement Information

I1Ss. 1-187 in force at 7.2.1994 by S.I. 1994/86, art. 2

Marginal Citations