C3Part 1The Pensions Regulator

Annotations:
Modifications etc. (not altering text)
C3

Pt. 1 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. 1 (as amended (17.7.2008) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/1903), regs. 1, 5(2), 13; (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 5, 18; (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 5, 15)

Financial support directions

C2C144C2Meaning of “service company” and “insufficiently resourced”

I21

This section applies for the purposes of section 43 (financial support directions).

I22

An employer (“E”) is a “service company” at the relevant time if—

a

E is a company F4as defined in section 1(1) of the Companies Act 2006,

b

E is a member of a group of companies, and

c

E’s turnover, as shown in the latest available F5individual accounts for E prepared in accordance with F6Part 15 of that Act, is solely or principally derived from amounts charged for the provision of the services of employees of E to other members of that group.

3

The employer in relation to a scheme is insufficiently resourced at the relevant time if—

I1a

at that time the value of the resources of the employer is less than the amount which is a prescribed percentage of the estimated section 75 debt in relation to the scheme, and

I2F2b

condition A or B is met.

F13A

Condition A is met if—

a

there is at that time a person who falls within section 43(6)(b) or (c), and

b

the value at that time of that person's resources is not less than the relevant deficit, that is to say the amount which is the difference between—

i

the value of the resources of the employer, and

ii

the amount which is the prescribed percentage of the estimated section 75 debt.

3B

Condition B is met if—

a

there are at that time two or more persons who—

i

fall within section 43(6)(b) or (c), and

ii

are connected with, or associates of, each other, and

b

the aggregate value at that time of the resources of the persons who fall within paragraph (a) (or any of them) is not less than the relevant deficit.

I14

For the purposes of F3subsections (3) to (3B) —

a

what constitutes the resources of a person is to be determined in accordance with regulations, and

b

the value of a person’s resources is to be determined, calculated and verified in a prescribed manner.

I25

In this section the “estimated section 75 debt”, in relation to a scheme, means the amount which the Regulator estimates to be the amount of the debt which would become due from the employer to the trustees or managers of the scheme under section 75 of the Pensions Act 1995 (c. 26) (deficiencies in the scheme assets) if—

a

subsection (2) of that section applied, and

b

the time designated by the trustees or managers of the scheme for the purposes of that subsection were the relevant time.

I26

When calculating the estimated section 75 debt in relation to a scheme under subsection (5), the amount of any debt due at the relevant time from the employer under section 75 of the Pensions Act 1995 (c. 26) is to be disregarded.

I27

In this section “the relevant time” has the same meaning as in section 43.