The Pension Protection Fund (Entry Rules) Regulations 2005

Circumstances in which insolvency proceedings in relation to the employer are stayed or come to an end E+W+S

6.—(1)  [F1 Subject to paragraph (1A),] the prescribed circumstances referred to in section 122(3)(a) of the Act (insolvency practitioner's duty to issue notices confirming status of scheme) in which insolvency proceedings in relation to an employer in relation to an occupational pension scheme are stayed or come to an end are—

(a) in a case where the employer is a company, where—

(i) the nominee in relation to a proposal for a voluntary arrangement under Part 1 of the 1986 Act (company voluntary arrangements) has submitted a report to the court under section 2 of that Act M1 (procedure where nominee is not the liquidator or administrator) which states that in his opinion meetings of the company and its creditors should be summoned to consider the proposal, but no voluntary arrangement has effect or, where a voluntary arrangement has effect, it later ceases to have effect as the result of a court order under section 6 of the 1986 Act M2 (challenge of decisions);

(ii) the directors of the company have filed (or in Scotland, lodged) documents and statements in accordance with paragraph 7(1) (documents to be submitted to court) of Schedule A1 M3 (moratorium where directors propose voluntary arrangement) to the 1986 Act but—

(aa) the resulting moratorium comes to an end without a voluntary arrangement taking effect, or

(bb) where a voluntary arrangement has effect, it later ceases to have effect as a result of a court order under paragraph 38 (challenge of decisions) of Schedule A1 to the 1986 Act;

(iii) the appointment of an administrator in respect of the company ceases to have effect except where—

(aa) the company moves from administration into winding up pursuant to paragraph 83 (moving from administration to creditor's voluntary liquidation) of Schedule B1 M4 (administration) to the 1986 Act or pursuant to an order of the court under Rule 2.132 of the Insolvency Rules (conversion of administration to winding up – power of court), or

(bb) a winding up order is made by the court immediately upon the appointment of the administrator ceasing to have effect;

(iv) an administrative receiver within the meaning of section 251 of the 1986 Act (interpretation) appointed in relation to the company vacates office under section 45 of that Act (vacation of office); or

(v) all proceedings in the winding up of a company are stayed altogether or an order for the winding up of the company is rescinded or discharged except in circumstances where the court has made an administration order in accordance with paragraph 37 or 38 (application where company in liquidation) of Schedule B1 to the 1986 Act;

[F2 (vi) where the company is a bank (as defined in section 91 of the Banking Act 2009), the bank insolvency procedure is stayed under section 130 of the Insolvency Act 1986 (as applied by section 103 of the Banking Act 2009), or the bank insolvency order is rescinded or discharged, except in circumstances where the court has made an administration order in accordance with section 114 of the Banking Act 2009.]

(b) in a case where the employer is an individual, where—

(i) the nominee in relation to a proposal for a voluntary arrangement under Part 8 of the 1986 Act (individual voluntary arrangements) has submitted a report to the court under section 256(1) (nominee's report on debtor's proposal) or 256A(3) M5 (debtor's proposal and nominee's report) of that Act which states that in his opinion a meeting of the individual's creditors should be summoned to consider the proposal but no voluntary arrangement takes effect or, where a voluntary arrangement takes effect, it later ceases to have effect as a result of a court order under section 262 M6 of the 1986 Act (challenge of meeting's decision);

(ii) a bankruptcy order against the individual is annulled or rescinded; or

(iii) an insolvency administration order in respect of the estate of the individual made in accordance with an order under section 421 of the 1986 Act (insolvent estates of deceased persons) is annulled or rescinded;

(c) in a case where the employer is a partnership, where—

(i) the nominee in relation to a proposal for a voluntary arrangement under Part 1 of the 1986 Act (company voluntary arrangements) (as applied by an order under section 420 of that Act (insolvent partnerships)) has submitted a report to the court under section 2 of that Act (procedure where nominee is not the liquidator or administrator) which states that in his opinion meetings of the partnership and its creditors should be summoned to consider the proposal, but no voluntary arrangement has effect or, where a voluntary arrangement has effect, it later ceases to have effect as a result of a court order under section 6 of the 1986 Act (challenge of decisions) (as applied by an order under section 420 of that Act);

(ii) the members of the partnership have filed documents and statements in accordance with paragraph 7(1) (documents to be submitted to the court) of Schedule A1 (moratorium where directors propose voluntary arrangement) to the 1986 Act (as applied by an order under section 420 of that Act) but—

(aa) the resulting moratorium comes to an end without a voluntary arrangement taking effect, or

(bb) where a voluntary arrangement has effect, it later ceases to have effect as a result of a court order under paragraph 38 (application where company in liquidation) of Schedule A1 to the 1986 Act (as applied by an order under section 420 of that Act);

(iii) an administration order in relation to a partnership under Part 2 of the 1986 Act M7 (administration orders) is discharged except where—

(aa) a winding up order is made by a court immediately upon the discharge of the administration order, or

(bb) the discharge is pursuant to an order of the court for the administration to be converted into winding up under Rule 2.61(1) of the Insolvency Rules (conversion of administration into winding up – power of court) as those rules stood before the coming into force of the Insolvency (Amendment) Rules 2003 M8 ; or

(iv) all proceedings in a winding up of the partnership are stayed altogether or an order for the winding up of the partnership is rescinded or discharged.

[F3 (d) in a case where the employer is a building society, where—

(i) the appointment of a building society special administrator under Part 3 of the Banking Act 2009 (bank administration) (as applied in relation to building societies by an order under section 158 of that Act) in respect of the building society ceases to have effect, or

(ii) the building society insolvency procedure is stayed under Article 110 of the Insolvency Order (as applied by sections 103 and 134 of the Banking Act 2009 and an order made under section 130 of that Act), or the building society insolvency order is rescinded or discharged, except in circumstances where the court has made an administration order in accordance with section 114 of the Banking Act 2009 (as applied by an order made under section 130 of that Act).]

[F4 (1A) This regulation does not apply in relation to an insolvency event under regulation 5A.]

(2) The prescribed circumstances referred to in section 122(3)(a) of the Act in which insolvency proceedings are stayed or come to an end shall also include circumstances where a deed of arrangement made by or in respect of the affairs of an employer in relation to an occupational pension scheme who is an individual who has been registered under the Deeds of Arrangement Act 1914 M9 but the deed is void in accordance with the provisions of section 3(1) of that Act (avoidance of deeds of arrangement unless assented to by majority of creditors) .

Textual Amendments

F1 Words in reg. 6(1) inserted (temp. until 21.07.2017) (21.7.2014) by The Pension Protection Fund (Entry Rules) (Amendment) Regulations 2014 (S.I. 2014/1664), regs. 1(1), 2(3)(a)

F2 Reg. 6(1)(a)(vi) inserted (21.2.2009) by The Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009 (S.I. 2009/317), arts. 1, 8(2)

F3 Reg. 6(1)(d) inserted (7.4.2010) by The Building Societies (Insolvency and Special Administration) (Amendment) Order 2010 (S.I. 2010/1189), arts. 1(2), 4(3)

F4 Reg. 6(1A) inserted (temp. until 21.07.2017) (21.7.2014) by The Pension Protection Fund (Entry Rules) (Amendment) Regulations 2014 (S.I. 2014/1664), regs. 1(1), 2(3)(b)

Modifications etc. (not altering text)

C1 Reg. 6 applied (with modifications) (6.4.2014) by The Industrial and Provident Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014 (S.I. 2014/229), art. 1, Sch. 5 para. 2(1)(2)

Marginal Citations

M1 Section 2 of the Insolvency Act 1986 was amended by sections 1 and 2 of, and Schedules 1 and 2 to, the Insolvency Act 2000 (c. 39).

M2 Section 6 of the Insolvency Act 1986 was amended by section 2 of, and Part 1 of Schedule 2 to, the Insolvency Act 2000.

M3 Schedule A1 to the Insolvency Act 1986 was inserted by section 1 of, and paragraphs 1 and 4 of Schedule 1 to, the Insolvency Act 2000.

M4 Schedule B1 to the Insolvency Act 1986 was inserted by section 248 of, and Schedule 16 to, the Enterprise Act 2002.

M5 Section 256A of the Insolvency Act 1986 was inserted by section 3 of, and paragraph 6 of Schedule 3 to, the Insolvency Act 2000 (c. 39).

M6 Sections 256(1) and 262 of the Insolvency Act 1986 were amended by, and section 256A of that Act was inserted by, section 3 of, and Schedule 3 to, the Insolvency Act 2000 (c. 39).

M7 The Enterprise Act 2003 (Commencement No. 4 and Transitional Provisions and Savings) Order 2003 (S.I. 2003/2093 (C.85)) provided for the law relating to administration under Part 2 of the Insolvency Act 1986, without the amendments and repeals made by the Enterprise Act 2002, to continue to apply insofar as is necessary to give effect to the Insolvent Partnerships Order 1994 (S.I. 1994/2421).

M8 S.I.2003/1730.

M9 1914 c. 47.