Valuation of protected liabilitiesE+W+S
6.—[F1(1)] Subject to regulation 7, in the case of protected liabilities M1 the value of a protected liability shall be—
(a)for a section 143 [F2determination or section 143] valuation, the estimated cost of securing scheme benefits calculated in accordance with [F3Schedule 7 to the Act] (pension compensation provisions) to the member by means of an annuity purchased at the market rate at the relevant time;
(b)for a section 179 valuation, the estimated cost of securing scheme benefits in accordance with any guidance issued by the Board in accordance with section 179(4) of the Act, for the member by means of an annuity purchased at the market rate at the relevant time.
[F4(2) Where regulation 3(c) applies, the amount representing the value of a protected liability in respect of the benefits secured by a pre-6th April 1997 contract of insurance shall be excluded from the valuation of the eligible scheme’s protected liabilities.]
Textual Amendments
F1Reg. 6(1): reg. 6 renumbered as reg. 6(1) (6.4.2007) by The Pension Protection Fund (Miscellaneous Amendments) Regulations 2007 (S.I. 2007/782), regs. 1(1), 4(5)(a)
F2Words in reg. 6(1)(a) inserted (24.1.2013) by The Pension Protection Fund (Miscellaneous Amendments) (No. 2) Regulations 2012 (S.I. 2012/3083), regs. 1(2)(b), 5(4) (with reg. 9(1)(e)(2), 10)
F3Words in reg. 6(a) substituted (1.4.2005) by The Occupational Pension Schemes and Pension Protection Fund (Amendment) Regulations 2005 (S.I. 2005/993), regs. 1(1), 8(a)
F4Reg. 6(2) added (6.4.2007) by The Pension Protection Fund (Miscellaneous Amendments) Regulations 2007 (S.I. 2007/782), regs. 1(1), 4(5)(b)
Marginal Citations
M1The term “protected liabilities” is defined in section 131(1) (protected liabilities) of the Pensions Act 2004;