Pensions Act 2004

158 Duty to assume responsibility for closed schemes E+W+S

(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.

[F1 (3) 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 [F2 the 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 [F3 a determination made under subsection (3)(a) and a valuation obtained under subsection (3)(b)] as they apply in relation to [F4 a 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;

[F5 (aa) 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 [F6 , 143A] and 145 by virtue of subsection (4) or (5)—

(a) [F7 subsections (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, F8 ...

[F9 (aa) 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.

Textual Amendments

F1 S. 158(3)(3A) substituted for s. 158(3) (23.7.2012) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 11(2); S.I. 2012/1681, art. 3(b)(ii)

F2 Words in s. 158(4) substituted (23.7.2012) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 11(3); S.I. 2012/1681, art. 3(b)(ii)

F3 Words in s. 158(5) substituted (23.7.2012) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 11(4)(a); S.I. 2012/1681, art. 3(b)(ii)

F4 Words in s. 158(5) substituted (23.7.2012) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 11(4)(b); S.I. 2012/1681, art. 3(b)(ii)

F5 S. 158(5)(aa) inserted (23.7.2012) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 11(4)(c); S.I. 2012/1681, art. 3(b)(ii)

F6 Word in s. 158(6) inserted (23.7.2012) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 11(5)(a); S.I. 2012/1681, art. 3(b)(ii)

F7 Words in s. 158(6)(a) substituted (6.4.2005) by The Occupational Pension Schemes (Modification of Pension Protection Provisions) Regulations 2005 (S.I. 2005/705), regs. 1(2), 2(4)

F8 Word in s. 158(6)(a) omitted (23.7.2012) by virtue of Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 11(5)(b); S.I. 2012/1681, art. 3(b)(ii)

F9 S. 158(6)(aa) inserted (23.7.2012) by Pensions Act 2011 (c. 19), s. 38(4), Sch. 4 para. 11(5)(c); S.I. 2012/1681, art. 3(b)(ii)

Commencement Information

I1 S. 158 in force at 6.4.2007 by S.I. 2006/2272, art. 2(7), Sch. Pt. 2