6.—(1) Section 131 of the Act (protected liabilities) 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, for subsection (1), there were substituted the following subsection—
“(1) For the purposes of this Chapter the protected liabilities, in relation to a section of a segregated scheme which is, for the purposes of this Part, an eligible scheme, at a particular time (“the relevant time”), are—
(a)the cost of securing benefits for and in respect of members of the section which correspond to the compensation which would be payable, in relation to the section, in accordance with the pension compensation provisions (see section 162) if the Board assumed responsibility for the section in accordance with this Chapter,
(b)a proportion of the liabilities of the scheme as a whole [F1as determined by the Board or as calculated in the Board’s valuation of the relevant section of the scheme under section 143] which are not liabilities to, or in respect of, members,
(c)the estimated cost of winding up the section.”.
(2) Section 132 of the Act (assessment periods) 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, after the words “an assessment period” in subsections (2) and (4), there were inserted the words “ in relation to a section of a segregated scheme ”.
Textual Amendments
F1Words in reg. 6(1) substituted (24.1.2013) by The Pension Protection Fund (Miscellaneous Amendments) (No. 2) Regulations 2012 (S.I. 2012/3083), regs. 1(2)(b), 2(2) (with regs. 9(2), 10)