12.—[F1(1) If—
(a)a scheme in relation to which there is more than one employer is divided into two or more sections; and
(b)the provisions of the scheme are such that they meet conditions A and B,
sections 73 to 74 apply as if each section of the scheme were a separate scheme.
(1A) Condition A is that contributions payable to the scheme by an employer, or by a member in employment under that employer, are allocated to that employer’s section (or, if more than one section applies to the employer, to the section which is appropriate in respect of the employment in question).
(1B) Condition B is that a specified part or proportion of the assets of the scheme is attributable to each section and cannot be used for the purposes of any other section.
(1C) In their application to a scheme—
(a)which has been such a scheme as is mentioned in paragraph (1);
(b)which is divided into two or more sections, some or all of which apply only to members who are not in pensionable service under the section;
(c)the provisions of which have not been amended so as to prevent conditions A and B being met in relation to two or more sections; and
(d)in relation to one or more sections of which those conditions have ceased to be met at any time by reason only of there being no members in pensionable service under the section and no contributions which are to be allocated to it,
sections 73 to 74 apply as if the section in relation to which those conditions have ceased to be met were a separate scheme.
(1D) For the purposes of paragraphs (1) to (1C), any provisions of the scheme by virtue of which contributions or transfers of assets may be made to make provision for death benefits are disregarded.
(1E) But if paragraph (1) or (1C) applies and, by virtue of any provisions of the scheme, contributions or transfers of assets to make provision for death benefits are made to a section (“the death benefits section”) the assets of which may only be applied for the provision of death benefits, the death benefits section is also to be treated as a separate scheme.
(1F) For the purpose of this regulation, any provisions of a scheme by virtue of which assets attributable to one section may on the winding up of the scheme or a section be used for the purposes of another section are disregarded.]
(3) Where by virtue of paragraph 1 of [F2Schedule 2 to the Occupational Pension Schemes (Scheme Funding) Regulations 2005] (sectionalised multi-employer schemes) [F3Part 3 of the Pensions Act 2004] applies to a trust scheme as if different parts of the scheme were separate schemes, section 38 and regulation 10 (except paragraph (1)(e) of that regulation) shall also so apply.
(4) Where any provision of this regulation applies in relation to a scheme, then references to the scheme and its members in the provisions of other regulations shall be construed accordingly.
Textual Amendments
F1 Reg. 12(1) - reg. 12(1F) substituted for reg. 12 (1) (6.4.2005) by Occupational Pension Schemes (Winding Up etc.) Regulations 2005 (S.I. 2005/706), reg. 1(2), Sch. para. 6 (with Sch. para. 6)
F2Words in reg. 12(3) substituted (30.12.2005) by The Occupational Pension Schemes (Scheme Funding) Regulations 2005 (S.I. 2005/3377), reg. 1, Sch. 3 para. 7(2)(a)
F3Words in reg. 12(3) substituted (30.12.2005) by The Occupational Pension Schemes (Scheme Funding) Regulations 2005 (S.I. 2005/3377), reg. 1, Sch. 3 para. 7(2)(b)
12A.—(1) This regulation applies if a relevant public authority has—
(a)given a guarantee in relation to any part of a scheme, any benefits payable under the scheme or any member of the scheme; or
(b)made any other arrangements for the purposes of securing that the assets of the scheme are sufficient to meet any part of its liabilities.
(2) Where this regulation applies, sections 73 to 74 and the provisions of these Regulations (apart from this regulation) apply as if the guaranteed part of the scheme and the other part of the scheme were separate schemes.
(3) In this regulation—
“the guaranteed part of the scheme” means the part of the scheme—
in relation to which the guarantee has been given;
which relates to benefits payable under the scheme in relation to which the guarantee has been given; or
which relates to benefits payable under the scheme in relation to the liabilities for which those other arrangements have been made; and
“relevant public authority” has the meaning given in subsection (4) of section 307 of the Pensions Act 2004 (modification of that Act in relation to certain categories of schemes).
Textual Amendments
F4Reg. 12A - Reg. 12B inserted (6.4.2005) by Occupational Pension Schemes (Winding Up etc.) Regulations 2005 (S.I. 2005/706), reg. 1(2), Sch. para. 7
12B.—(1) Paragraph (2) applies where a scheme which applies to members in employment in the United Kingdom and members in employment outside the United Kingdom is divided into two or more sections and the provisions of the scheme are such that––
(a)different sections of the scheme apply to members in employment in the United Kingdom and to members in employment outside the United Kingdom (“the United Kingdom section” and “the foreign section”);
(b)contributions payable to the scheme in respect of a member are allocated to the section applying to that member’s employment;
(c)a specified part or proportion of the assets of the scheme is attributable to each section and cannot be used for the purposes of any other section; and
(d) the United Kingdom section meets the tax condition (as defined in regulation 2(1) of the Occupational Pension Schemes (Winding up etc. ) Regulations 2005) and the foreign section does not do so.
(2) If this paragraph applies sections 73 to 74 and the provisions of these Regulations (apart from this regulation) apply as if each section of the scheme were a separate scheme.
(3) Paragraph (4) applies where—
(a)a scheme applies to members in employment in the United Kingdom and members in employment outside the United Kingdom;
(b)paragraph (2) does not apply to the scheme; and
(c)part of the scheme is registered under section 153 of the Finance Act 2004 (registration of pension schemes) by virtue of that part having been treated as a separate scheme under section 611(3) of the Income and Corporation Taxes Act 1988 that is treated as becoming a registered pension scheme under paragraph 1(1) of Schedule 36 to the Finance Act 2004 by virtue of paragraph 1(2) of that Schedule.
(4) If this paragraph applies, sections 73 to 74 and the provisions of these Regulations (apart from this regulation) apply as if the approved and unapproved parts of the scheme were separate schemes.
(5) In their application to a scheme—
(a)which has been such a scheme as is mentioned in paragraph (1) or (3);
(b)which is divided into two or more sections, some or all of which apply only to members who are not in pensionable service under the section;
(c)the provisions of which have not been amended so as to prevent the conditions in paragraph (1) or, as the case may be, paragraph (3) being met in relation to two or more sections; and
(d)in relation to one or more sections of which those conditions have ceased to be met at any time by reason only of there being no members in pensionable service under the section and, in the case of paragraph (1), no contributions which are to be allocated to it,
sections 73 to 74 apply and the provisions of these Regulations (apart from this regulation) apply as if any section in relation to which those conditions have ceased to be met were a separate scheme.
(6) Before 6th April 2006 paragraph (3) applies with the substitution for sub-paragraph (c) of the following paragraph—
“(c)part of the scheme has been approved by the Commissioners of the Board of Inland Revenue for the purposes of section 590 or 591 of the Income and Corporation Taxes Act 1988 by virtue of section 611(3) of that Act;”.]
Textual Amendments
F4Reg. 12A - Reg. 12B inserted (6.4.2005) by Occupational Pension Schemes (Winding Up etc.) Regulations 2005 (S.I. 2005/706), reg. 1(2), Sch. para. 7
13.—(1) In relation to any scheme—
(a)which is not a money purchase scheme, but
(b)where some of the benefits that may be provided are relevant money purchase benefits,
section 73 applies as if—
(i)the liabilities of the scheme did not include liabilities in respect of those benefits, and
(ii)the assets of the scheme did not include the assets by reference to which the rate or amount of those benefits is calculated.
(2) In paragraph (1) “relevant money purchase benefits" means money purchase benefits other than—
(a)benefits derived from the payment by any member of voluntary contributions, or
(b)underpin benefits.
(3) In this regulation “underpin benefits" means money purchase benefits which under the provisions of the scheme will only be provided in respect of a member if their value exceeds the value of other benefits in respect of him under the scheme which are not money purchase benefits.
(4) Where a scheme which is not a money purchase scheme may provide underpin benefits, the amount of the liability for those benefits shall be calculated in accordance with regulation 4 (but omitting paragraphs (1)(c) and (3) to (5) of that regulation)[F5, but regulation 4A shall not apply for that purpose].
(5) If in the case of a scheme to which paragraph (1) applies—
(a)the aggregate value of the assets of the scheme has been reduced, and
(b)there are reasonable grounds for believing that the reduction is attributable to an act or omission constituting an offence prescribed for the purposes of section 81(1)(c),
then, for the purposes of section 73 as it applies by virtue of paragraph (1), the values of the assets excluded by paragraph (1)(ii) and of the other assets shall be taken to be equal to their values apart from the reduction, less in the case of each asset so much of the reduction as its value bears to the aggregate value of the assets of the scheme apart from the reduction.
F6(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F5Words in reg. 13(4) inserted (19.3.2002) by Occupational Pension Schemes (Minimum Funding Requirement and Miscellaneous Amendments) Regulations 2002 (S.I. 2002/380), regs. 1(1), 3(4)
F6Reg. 13(6)(7) omitted (30.12.2005) by virtue of The Occupational Pension Schemes (Scheme Funding) Regulations 2005 (S.I. 2005/3377), reg. 1, Sch. 3 para. 7(3)
Modifications etc. (not altering text)
C1Reg. 13 modified (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 12(2) (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1)); coming into force immediately after s. 29 of 2011 c 19 - see S.I. 2014/1683, art. 2