553.This section provides for the Board to issue a transfer notice to the trustees or managers in circumstances where they are required to assume responsibility for a scheme by virtue of section 127, 128, 152 or 158.
554.Once the transfer notice is received by the trustees or managers, section 161 applies to transfer all property, rights and liabilities of the scheme to the Board. The trustees or managers of the scheme are discharged from their pension obligations under the scheme from that time, and the Board is required to pay compensation to scheme members on an ongoing basis in accordance with the provisions of Part 2.
555.Subsection (2) provides for the Board to issue a transfer notice to the trustees or managers of a scheme once they are satisfied that they are required to assume responsibility for a scheme. Subsections (3) and (4) provide for the Board to issue a transfer notice in a case to which section 127 (duty to assume responsibility for schemes following an insolvency event) orsection 128 (duty to assume responsibility for a scheme) applies only after the valuation obtained under section 143 becomes binding. Similarly, in a case to which section 158 (duty to assume responsibility for a closed scheme) applies, no transfer notice can be given until the valuation obtained by the Board under section 158(3) becomes binding
556.Subsection (5) states that a transfer notice may not be given in relation to a scheme during any period when the issue of, or failure to issue, a withdrawal notice under or by virtue of section 146 or 147 (refusal to assume responsibility) is reviewable.
557.Subsection (6) provides for the Board to give a copy of the transfer notice to the Regulator and the insolvency practitioner in relation to the employer, or if there is none, to the employer.
558.Subsection (7) provides for this section to be subject to the provisions relating to fraud compensation cases, which provide that no transfer notice can be issued within the first twelve months of the assessment period or in circumstances where an application for fraud compensation is pending. This is to give time for a fraud compensation application to be made as the payment of such compensation may affect the scheme’s ability to meet the cost for the protected liabilities, and so affect whether the Board must take responsibility for the scheme.
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