C1C2Part 2The Board of the Pension Protection Fund
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
C2Chapter 3Pension protection
Circumstances in which Board assumes responsibility for eligible schemes
127Duty to assume responsibility for schemes following insolvency event
1
This section applies where a qualifying insolvency event has occurred in relation to the employer in relation to an eligible scheme.
2
The Board must assume responsibility for the scheme in accordance with this Chapter if—
a
the value of the assets of the scheme at the relevant time was less than the amount of the protected liabilities at that time (see sections 131 and 143),
b
after the relevant time a scheme failure notice is issued under section 122(2)(a) in relation to the scheme and that notice becomes binding, and
c
a withdrawal event has not occurred in relation to the scheme in respect of a withdrawal notice which has been issued during the period—
i
beginning with the occurrence of the qualifying insolvency event, and
ii
ending immediately before the issuing of the scheme failure notice under section 122(2)(a),
and the occurrence of such a withdrawal event in respect of a withdrawal notice issued during that period is not a possibility (see section 149).
3
For the purposes of this section, in relation to an eligible scheme an insolvency event (“the current event”) in relation to the employer is a qualifying insolvency event if—
a
it occurs on or after the day appointed under section 126(2), and
b
it—
i
is the first insolvency event to occur in relation to the employer on or after that day, or
ii
does not occur within an assessment period (see section 132) in relation to the scheme which began before the occurrence of the current event.
4
For the purposes of this section—
a
the reference in subsection (2)(a) 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, and
b
“the relevant time” means the time immediately before the qualifying insolvency event occurs.
5
This section is subject to sections 146 and 147 (cases where Board must refuse to assume responsibility for a scheme).
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