Pension Schemes Act 2021

Sanctions for failure to comply with a contribution notice

5 (1) In Article 36 (content and effect of an Article 34 contribution notice)—

(a) after paragraph (2) insert—

“(2A) Without prejudice to paragraphs (3) and (7), the contribution notice must also specify a date for the purposes of Articles 38A(2) and 38B(2) (sanctions for failure to comply with a contribution notice).”;

(b) in paragraph (9), after sub-paragraph (b) (and before the “and”) insert—

“(ba) specifies the same date for the purposes of Articles 38A(2) and 38B(2) as is specified in P’s contribution notice,”.

(2) In Article 37 (Article 34 contribution notice: relationship with employer debt)—

(a) after paragraph (8) insert—

“(8A) An application under paragraph (7) may not be made after—

(a) the date specified under Article 36(2A) for the purposes of Articles 38A(2) and 38B(2) (sanctions for failure to comply with a contribution notice), or

(b) if a different date has effect instead of that date (see paragraphs (10A) and (11B)), that different date.”;

(b) after paragraph (10) insert—

“(10A) Where an application under paragraph (7) is made to the Regulator, the Regulator may, if it is of the opinion that it is appropriate to do so—

(a) change the date that has effect for the purposes of Articles 38A(2) and 38B(2) (whether specified in the contribution notice or an earlier revised contribution notice), and

(b) specify the revised date in the revised contribution notice issued under paragraph (9)(b) or, if the Regulator does not issue a revised contribution notice under paragraph (9)(b), issue a revised contribution notice specifying the revised date.”;

(c) after paragraph (11) insert—

“(11A) Paragraph (11B) applies where—

(a) P’s contribution notice specifies that P is jointly and severally liable for the debt with other persons, and

(b) the Regulator issues a revised contribution notice to P under paragraph (9)(b) or (10A)(b) specifying a revised date for the purposes of Articles 38A(2) and 38B(2).

(11B) Where this paragraph applies, the Regulator must—

(a) change the date that has effect for the purposes of Articles 38A(2) and 38B(2) in the case of the contribution notices or revised contribution notices issued in respect of the debt to those other persons, and

(b) specify the revised date in the revised contribution notices issued to those other persons under paragraph (11) or, if the Regulator does not issue revised contribution notices under paragraph (11), issue revised contribution notices to those other persons specifying the revised date.”

(3) After Article 38 insert—

“38A Offence of failing to comply with an Article 34 contribution notice

(1) This Article applies where a contribution notice is issued to a person under Article 34.

(2) If the person, without reasonable excuse, fails to pay the debt due by virtue of the contribution notice to—

(a) the trustees or managers of the scheme, or

(b) the Board (as the case may be),

before the date specified in the contribution notice for the purposes of this paragraph (see Article 36(2A)), the person is guilty of an offence.

(3) A person guilty of an offence under paragraph (2) is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(4) Proceedings for an offence under paragraph (2) may not be instituted if an application under Article 37(7) has been made—

(a) in relation to the contribution notice, or

(b) in relation to a contribution notice which is a corresponding contribution notice for the purposes of Article 36(8),

and the application has not been determined, withdrawn or abandoned.

(5) Proceedings for an offence under paragraph (2) may be instituted only—

(a) by the Regulator or the Department, or

(b) by or with the consent of the Director of Public Prosecutions for Northern Ireland.”

(4) After Article 38A (inserted by sub-paragraph (3)) insert—

“38B Financial penalty for failure to comply with an Article 34 contribution notice

(1) This Article applies where a contribution notice is issued to a person under Article 34.

(2) Article 83A (financial penalties) applies to the person if the person, without reasonable excuse, fails to pay the debt due by virtue of the contribution notice to—

(a) the trustees or managers of the scheme, or

(b) the Board (as the case may be),

before the date specified in the contribution notice for the purposes of this paragraph (see Article 36(2A)).

(3) The Regulator may not issue a warning notice to the person in respect of the imposition of a penalty under Article 83A as it applies by virtue of paragraph (2) if an application under Article 37(7) has been made—

(a) in relation to the contribution notice, or

(b) in relation to a contribution notice which is a corresponding contribution notice for the purposes of Article 36(8),

and the application has not been determined, withdrawn or abandoned.

(4) In this Article “warning notice” means a notice given as mentioned in Article 91(2)(a).”