Pensions Act 2004

185 Fraud compensation payments

(1) Where the Board determines to make one or more fraud compensation payments, it must make the payment or payments to the trustees or managers of the scheme in accordance with this section.

(2) A fraud compensation payment may be made on such terms (including terms requiring repayment in whole or in part) and on such conditions as the Board considers appropriate.

(3) The amount of the payment (or, if there is more than one, the aggregate) must not exceed the difference between—

(a) the amount of the reduction (or, if more than one, the aggregate amount of the reductions) within section 182(1)(b), and

(b) the amount of any recoveries of value obtained before the settlement date (within the meaning of section 184(2)).

(4) Subject to subsection (3), the Board—

(a) must determine the amount of any fraud compensation payment in accordance with regulations made for the purposes of this subsection, and

(b) must take account of any interim payment already made under section 186.

(5) The Board must give written notice of its determination under subsection (4) to—

(a) the Regulator,

(b) the trustees or managers of the scheme,

(c) if the trustees or managers did not make the application under section 182 (fraud compensation payments), the person who made that application, and

(d) any insolvency practitioner in relation to the employer or, if there is no such insolvency practitioner, the employer.