The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 No. 441

PART 4 U.K. SEGREGATED SCHEMES:

NON-SEGREGATED MULTI-EMPLOYER SECTIONS OF SEGREGATED SCHEMES WITH REQUIREMENT FOR PARTIAL WIND UP ON WITHDRAWAL OF PARTICIPATING EMPLOYER U.K.

Board to act as creditor of the employer U.K.

37.  Section 137 of the Act (Board to act as creditor of the employer) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if—

(a) after the words “due to them by the employer” in subsection (2), there were inserted the words “ in respect of the protected liabilities that are included in the segregated part ”; and

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

“(3A) Where an amount is paid to the trustees or managers of a multi-employer scheme in respect of any debt owed to the scheme by the employer in relation to a segregated part of a multi-employer section of the scheme which does not relate to the employer's liabilities to or in respect of members of the scheme who are not designated to that segregated part, that amount shall be applied by the trustees or managers of the scheme towards the liabilities of the scheme as a whole.”.