C5C4C6Part 2The Board of the Pension Protection Fund

Annotations:
Modifications etc. (not altering text)

C2C1C3Chapter 3Pension protection

Annotations:
Modifications etc. (not altering text)
C2

Pt. 2 modified in part (9.3.2005 for specified purposes, 1.4.2005 for specified purposes, 6.4.2005 in so far as not already in force (except ch. 4)) by The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 (S.I. 2005/441), regs. 1, 2-60, 71, 72

C1

Pt. 2 modified (8.3.2005 for specified purposes, 6.4.2005 in so far as not already in force) by The Pension Protection Fund (Partially Guaranteed Schemes) (Modification) Regulations 2005 (S.I. 2005/277), regs. 1(1), 2-11

C3

Pt. 2 applied in part (with modifications) (20.7.2005 for specified purposes, 1.9.2005 for specified purposes, 5.12.2005 for specified purposes) by The Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986), regs. 1(1), 4, Sch. 1

Reconsideration of closed schemes

157Applications and notifications where closed schemes have insufficient assets

I21

If at any time the trustees or managers of a closed scheme become aware that the value of the assets of the scheme is less than the amount of the protected liabilities in relation to the scheme, they must, before the end of the prescribed period beginning with that time, make an application to the Board for it to assume responsibility for the scheme.

I12

Where the Board receives an application under subsection (1), it must give a copy of the application to the Regulator.

I13

If at any time the Regulator becomes aware that the value of the assets of the scheme is less than the amount of the protected liabilities in relation to the scheme, it must give the Board a notice to that effect.

I14

Where the Board receives a notice under subsection (3), it must give the trustees or managers of the scheme a notice to that effect.

I15

The duty imposed by subsection (1) does not apply where the trustees or managers of a closed scheme become aware as mentioned in that subsection by reason of a notice given to them under subsection (4).

I16

The duty imposed by subsection (3) does not apply where the Regulator becomes aware as mentioned in that subsection by reason of a copy of an application made by the trustees or managers of the closed scheme being given to it under subsection (2).

I27

Regulations may require notices and applications under this section to be in the prescribed form and contain the prescribed information.

I18

If the trustees or managers of a closed scheme fail to comply with subsection (1), section 10 of the Pensions Act 1995 (c. 26) (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure compliance.

I29

In this section—

  • “assets”, in relation to a scheme, do not include assets representing the value of any rights in respect of money purchase benefits under the scheme rules;

  • “closed scheme” has the same meaning as in section 155.

I3158Duty to assume responsibility for closed schemes

1

Where the trustees or managers of a closed scheme—

a

make an application under subsection (1) of section 157, or

b

receive a notice from the Board under subsection (4) of that section,

the Board must assume responsibility for the scheme in accordance with this Chapter if the value of the assets of the scheme at the relevant time was less than the amount of the protected liabilities at that time.

2

In subsection (1) the reference to the assets of the scheme is a reference to those assets excluding any assets representing the value of any rights in respect of money purchase benefits under the scheme rules.

F23

The Board must, as soon as reasonably practicable—

a

determine whether the condition in subsection (1) is satisfied, or

b

for the purposes of determining whether that condition is satisfied, obtain an actuarial valuation (within the meaning of section 143) of the scheme as at the relevant time.

3A

Before doing so, it must give the trustees or managers of the scheme a notice stating whether it will make a determination under subsection (3)(a) or obtain an actuarial valuation under subsection (3)(b).

4

Subject to subsection (6), subsection (3) of section 143 applies for F6the purposes of this section as it applies for the purposes of that section (and the definitions contained in paragraphs (b) and (d) of subsection (11) of that section apply accordingly).

5

Subject to subsection (6), the following provisions apply in relation to F7a determination made under subsection (3)(a) and a valuation obtained under subsection (3)(b) as they apply in relation to F8a determination made under section 143(2)(a) and a valuation obtained under section 143(2)(b) —

a

subsections (4) to (7) and (11)(b) and (d) of that section;

F9aa

section 143A (determinations under section 143), other than subsections (1)(c) and (4)(c) (duty to give copy of determinations to employer's insolvency practitioner);

b

section 144 (approval of valuation), other than subsection (2)(b)(iii) (duty to give copy of approved valuation to employer’s insolvency practitioner);

c

section 145 (binding valuations), other than subsection (3)(c) (duty to give copy of binding valuation to employer’s insolvency practitioner).

6

In the application of sections 143 F4, 143A and 145 by virtue of subsection (4) or (5)—

a

F1subsections (3), (5), (5A), (5B) and (11)(b) and (c) of section 143 apply as if the references to “the relevant time” were references to that term as defined in subsection (8) below, F3...

F5aa

subsection (3) of section 143A applies as if the reference to section 128(2)(a) included a reference to subsection (1) of this section, and

b

subsection (2) of section 145 applies as if the reference to section 128(2)(a) included a reference to subsection (1) of this section.

7

An application under subsection (1) of section 157, or notification under subsection (4) of that section, is to be disregarded for the purposes of subsection (1) if it is made or given during an assessment period (see sections 132 and 159) in relation to the scheme which began before the application was made or notification was given.

8

In this section—

  • “closed scheme” has the same meaning as in section 155;

  • “the relevant time” means the time immediately before the application mentioned in subsection (1)(a) was made, or (as the case may be) the notice mentioned in subsection (1)(b) was received, by the trustees or managers of the scheme.

I4159Closed schemes: further assessment periods

1

Subsection (3) applies where—

a

an application is made under subsection (1) of section 157 in relation to a closed scheme, or

b

the trustees or managers of the scheme receive a notice under subsection (4) of that section.

2

For the purposes of subsection (1) an application under subsection (1) of section 157, or notification under subsection (4) of that section, is to be disregarded if it is made or given during an assessment period (see section 132 and this section) in relation to the scheme which began before the application was made or notification was given.

3

An assessment period—

a

begins when the application is made or the notice is received by the trustees or managers of the scheme, and

b

ends when—

i

the trustees or managers receive a transfer notice under section 160, or

ii

the conditions in section 154(5) (closed scheme with sufficient assets to meet protected liabilities etc) are satisfied in relation to the scheme,

whichever first occurs.

4

In this section “closed scheme” has the same meaning as in section 155.