The Pension Protection Fund (Valuation) Regulations 2005

Commencement, citation and interpretation

1.—(1) These Regulations may be cited as the Pension Protection Fund (Valuation) Regulations 2005 and shall come into force on 6th April 2005.

(2) In these Regulations—

“the Act” means the Pensions Act 2004;

“appropriate person” in the case of a section 143 valuation, means the person specified in section 143(11)(a)(ii) of the Act and, in the case of a section 179 valuation means the actuary as defined in section 179(2) of the Act;

“commencement date” means the 6th April 2005;

“contribution notice” means a notice issued under section 38 (contribution notices where avoidance of employer debt), 47 (contribution notices where non-compliance with financial support direction) or 55 (contribution notice where failure to comply with restoration order) of the Act;

“eligible scheme” has the meaning given by section 126 (eligible schemes) of the Act;

“employer” in relation to an occupational pension scheme which has no active members, except in relation to a multi-employer scheme, or section of a multi-employer scheme, includes every person who was the employer of persons in the description of employment to which the scheme relates immediately before the time at which the scheme ceased to have any active members in relation to it;

“employer” in relation to a multi-employer scheme, or a section of a multi-employer scheme includes—

(a)

in the case of a scheme which has no active members, every person who was the employer of persons in the description of employment to which the scheme, relates immediately before the time at which the scheme, or section ceased to have any active members in relation to it unless, after that time—

(i)

a section 75 debt becomes due from that person to the scheme, or section; and

(ii)

either—

(aa)

the full amount of the debt has been paid by that person to the trustees or managers of the scheme, or section, or

(bb)

in circumstances where a legally enforceable agreement has been entered into between that person and the trustees or managers of the scheme, or section, the effect of which is to reduce the amount which is payable in respect of the debt, the reduced amount of the debt has been paid in full by that person to those trustees or managers; and

(b)

in any other case, any person who has ceased to be the employer of persons in the description of employment to which the scheme, or section relates unless—

(i)

at the time when he so ceased the scheme, or section, was not being wound up and continued to have active members in relation to it; and

(ii)

a section 75 debt became due at that time from that person to the scheme, or section and either—

(aa)

the full amount of the debt has been paid by that person to the trustees or managers of the scheme or section, or

(bb)

in circumstances where a legally enforceable agreement has been entered into between that person and the trustees or managers of the scheme or section, the effect of which is to reduce the amount which is payable in respect of the debt, the reduced amount of the debt has been paid in full by that person to those trustees or managers.

“employment” means trade, business, profession, office or vocation;

“external liabilities” means any liabilities which do not fall due to the members of the scheme;

“financial support direction” means a direction issued under section 43 (financial support directions) of the Act;

“pension credit rights” has the meaning given by section 124(1) (interpretation of part I) of the Pensions Act 1995(1);

“registrable scheme” has the meaning given by section 59(2) (register of occupational and personal pension schemes) of the Act;

“relevant accounts” means—

(a)

audited accounts for the scheme which are prepared in respect of a period ending with the relevant time;

(b)

if none are so prepared, the latest such accounts which are available at the relevant time; or

(c)

if the appropriate person’s opinion is that it is practicable to use them, the latest such accounts which are available on the date the appropriate person signs the section 143 or section 179 valuation;

“relevant time” for the purposes of section 179 of the Act, means the date in relation to which the assets and liabilities of the eligible scheme are calculated.

“restoration order” has the meaning given by section 52 of the Act (restoration orders where transactions at an undervalue);

“restricted information” has the meaning given in section 197 of the Act (restricted information);

“section 143 valuation” means an actuarial valuation under that section of the Act;

“section 179 valuation” means an actuarial valuation under that section of the Act;

“section 75 debt” means so much of the amount treated by section 75(2) of the Pensions Act 1995 (deficiencies in the assets) as a debt due from the employer to the trustees or managers at the applicable time.

(1)

1995 c. 26. The definitions of “pension credit”, “pension credit member” and “pension credit rights” were inserted by section 84(1) of, and paragraphs 43, 61(1) and (3) of Schedule 12 to, the Welfare Reform and Pensions Act 1999 (c. 30).

(2)

Section 75 is amended by section 271 of the Pensions Act 2004 (c. 35).