Discharge of Board’s liabilities
Section 169: Discharge of liabilities in respect of compensation
629.This section enables the Board, once it has assumed responsibility for a scheme, to discharge any of its liabilities to pay compensation to members by: taking out one or more insurance policies; entering into one or more annuity contracts; transferring the benefit of such policies or contracts; payment of cash sum, as prescribed. In the majority of cases it is expected that the liability to pay compensation will be discharged not through this section but by making the compensation payments as they fall due under Chapter 3 of Part 2.
Section 170: Discharge of liabilities in respect of money purchase benefits
630.Subsection (1) provides for this section to apply where the Board assumes responsibility for an eligible scheme and one or more members have accrued rights under the scheme to money purchase benefits. Subsection (2) provides for regulations to require the Board to ensure that liabilities in respect of money purchase benefits transferred to the Board under section 161(effect of Board assuming responsibility for a scheme) are discharged in a prescribed manner. Subsection (3) provides for regulations under subsection (2) to include provision prescribing the manner in which protected rights (within the meaning of section 10 of the Pensions Schemes Act 1993 (civil penalties)) are disbursed.