PART 2 U.K.SEGREGATED SCHEMES:

SINGLE EMPLOYER SECTIONSU.K.

Reconsideration and duty to assume responsibility for a scheme following reconsiderationU.K.

10.—(1) Section 151 of the Act (application for reconsideration) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, in the definition of “protected benefits quotation” in subsection (8), for the words from “ “protected benefits quotation” in relation to a scheme means” to the words “from the reconsideration time” there were substituted the following words—

““protected benefits quotation”, in relation to a section of a segregated scheme, means a quotation for one or more annuities from one or more insurers, being companies willing to accept payment in respect of the members of the section from the trustees or managers of the scheme, which would provide in respect of each member of the section from the reconsideration time—”.

(2) Section 152 of the Act (duty to assume responsibility following reconsideration) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if—

(a)for subsection (2), there were substituted the following subsection—

“(2) The Board must assume responsibility in accordance with this Chapter for a section of a segregated scheme if it is satisfied that the value of the assets of the section at the reconsideration time is less than the aggregate of—

(a)the amount quoted in the protected benefits quotation accompanying the application;

(b)a proportion of the amount of liabilities of the scheme as a whole at that time, [F1as determined by the Board or calculated in the valuation of the relevant section of the scheme] referred to in [F2subsection (2) or (3) of section 151], which are not liabilities to, or in respect of, members of the scheme;

(c)the estimated cost of winding up the section at that time.”;

(b)after subsection (3), there were inserted the following subsection—

“(3A) Where the trustees or managers of a section of a segregated scheme receive a copy of a determination notice from the Board under subsection (3), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.”; and

(c)after subsection (7), there were inserted the following subsection—

“(7A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (7) together with a copy of the binding notice, they must send a copy of the notice and the binding notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.”.

Textual Amendments