The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005

Transfer notices and assumption of responsibility for a schemeU.K.

This section has no associated Explanatory Memorandum

42.—(1) Section 160 of the Act (transfer notice) 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 subsection (1), there were inserted the following section—

“(1A) This section also applies where the Board is required to assume responsibility for a segregated part of a multi-employer section of a segregated scheme.”;

(b)after subsection (2) there were inserted the following subsection—

“(2A) Where the trustees or managers of a segregated part of a multi-employer section of a segregated scheme receive a transfer notice from the Board under subsection (2), 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.”;

[F1(ba)for the words “determination made or valuation obtained under section 143(2)” in subsection (3), there were substituted the words “valuation obtained under section 143”;

(bb)in subsection (4) the words “determination made or” were omitted;]

(c)after subsection (4), there were inserted the following subsection—

“(4B) In a case where the Board is required to assume responsibility for a segregated part of a multi-employer section of a segregated scheme under section 127, 128, 152 or 158, a transfer notice may not be given until the Board has obtained a further actuarial valuation of the assets and protected liabilities of the section as a whole and of the segregated part under section 160A as at the date on which it is required to assume responsibility for the segregated part and that valuation has been approved by the Board and become binding.”; and

(d)for subsection (6) there were substituted the following subsection—

“(6) The Board must give a copy of the transfer notice under subsection (2) to—

(a)the Regulator, and

(b)an insolvency practitioner acting in relation to the employer in relation to the segregated part of the multi-employer section of the segregated scheme in respect of which the transfer notice is issued.”.

(2) Section 161 of the Act (effect of Board assuming responsibility for a scheme) 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 word “obligations” in paragraph (b) of subsection (2), there were inserted the words “ to or in respect of members of the segregated part ”; and

(b)after the words “to or in respect of persons” in paragraph (a) of subsection (4), there were inserted the words “ who are or were members of the segregated part ”.

(3) Paragraph 1 of Schedule 6 to the Act (transfer of property, rights and liabilities to the Board) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if, for the words “an occupational pension scheme”, there were substituted the words “ a segregated part of a multi-employer section of a segregated multi-employer scheme ”.

Textual Amendments