C2C4C3Part 2The Board of the Pension Protection Fund
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
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
C2C1C4Chapter 3Pension protection
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
Reconsideration
152C1C2Duty to assume responsibility following reconsideration
I21
This section applies where an application is made in respect of a scheme in accordance with section 151.
I22
The Board must assume responsibility for the scheme in accordance with this Chapter if it is satisfied that the value of the assets of the scheme at the reconsideration time is less than the aggregate of—
a
the amount quoted in the protected benefits quotation accompanying the application,
b
the amount at that time of the liabilities of the scheme which are not liabilities to, or in respect of, members of the scheme, and
c
the estimated costs of winding up the scheme at that time.
I23
Where the Board makes a determination for the purposes of subsection (2), it must issue a determination notice and give a copy of that notice to—
a
the trustees or managers of the scheme, and
b
the Regulator.
I14
In subsection (3) “determination notice” means a notice which is in the prescribed form and contains such information about the determination as may be prescribed.
I25
But where the Board is satisfied of the matters mentioned in subsection (2), it is not required to assume responsibility for the scheme under subsection (2) until the determination notice issued under subsection (3) becomes binding.
I26
For the purposes of subsection (5) a determination notice is not binding until—
a
the period within which the issue of the notice may be reviewed by virtue of Chapter 6 has expired, and
b
if the issue of the notice is so reviewed—
i
the review and any reconsideration,
ii
any reference to the PPF Ombudsman in respect of the issue of the notice, and
iii
any appeal against his determination or directions,
has been finally disposed of and the notice has not been revoked, varied or substituted.
I27
Where a determination notice issued under subsection (3) becomes binding, the Board must as soon as reasonably practicable give a notice to that effect together with a copy of the binding notice to—
a
the trustees or managers of the scheme, and
b
the Regulator.
I18
A notice under subsection (7) must be in the prescribed form and contain such information as may be prescribed.
I29
The Board may—
a
for the purposes of subsection (2), obtain its own valuation of the assets of the scheme as at the reconsideration time (within the meaning of section 151), and
b
for the purposes of subsection (2)(b), obtain its own valuation of the liabilities of the scheme as at that time;
and where it does so, subsections (9)(b), (10) and (11) of section 151 apply in relation to the valuation as they apply in relation to the scheme accounts (within the meaning of that section).
I210
Regulations under subsection (4) of section 143, and guidance under subsection (6) of that section, apply for the purposes of this section in relation to the estimated costs within subsection (2)(c) as they apply for the purposes of section 143 in relation to protected liabilities within section 131(1)(c).
I211
In this section references to the assets of the scheme do not include assets representing the value of any rights in respect of money purchase benefits under the scheme rules.
I212
This section is subject to sections 146 and 147 (refusal to assume responsibility for a scheme).
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