Schemes which are not money purchase schemes
I1 Ceasing to participate: transitional provision6
1
This regulation applies to a scheme if a person ceased to be a person employing persons in the description or category of employment to which the scheme relates during the period beginning with 19th December 1996 and ending with 5th April 1997 and at a time when the scheme was not being wound up and continued to have active members; and in this regulation “former participator" means a person who so ceased.
2
In the application of section 75 and these Regulations to a scheme to which this regulation applies, “employer" includes a former participator, unless before the applicable time a time which was the applicable time in relation to the former participator by virtue of paragraph (3) below has occurred and —
a
no debt was then treated as due from him under section 75(1), or
b
such a debt was then treated as becoming due from him F1and–
i
has been paid before the applicable time, or
ii
if not so paid, was not so paid solely because he was not notified of the debt, and of the amount of it, sufficiently in advance of the applicable time for it to be paid before the applicable time;
c
such a debt was then treated as becoming due from him but at the applicable time it is excluded from the value of the assets of the scheme by virtue of regulation 6(1)(b) of the MFR Regulations (exclusion of debts unlikely to be recovered).
3
In the application of section 75 and these Regulations to a scheme to which this regulation applies which is not being wound up, “the applicable time", in relation to a former participator only, includes —
a
the date by reference to which the earliest minimum funding valuation required by section 57(1)(a) for the scheme is made, or
b
the earliest time when a debt is treated under section 75(1) as becoming due from another person by virtue of section 75(3)(b)(i) or (ii) (as substituted by regulation 4(3)),
whichever is the earlier.