Citation, commencement, application and extent1

Interpretation2

• M3“the 1993 Act” means the Pension Schemes Act 1993;

• “the 1995 Act” means the Pensions Act 1995;

• “the 2004 Act” means the Pensions Act 2004;

• M4“the 1996 Regulations” means the Occupational Pension Schemes (Deficiency on Winding Up etc.) Regulations 1996;

• F4“actuarial valuation” has the same meaning as in Part 3 of the 2004 Act;

• “the actuary” means the actuary appointed for the scheme in pursuance of subsection (1)(b) of section 47 of the 1995 Act or, in the case of a scheme to which that provision does not apply by virtue of regulations made under subsection (5) of that section, an actuary otherwise authorised by the trustees or managers to provide such valuations or certifications as may be required under these Regulations;

• F4“amount A” means the amount calculated in accordance with paragraph 4 of Schedule 1A;

• F4“amount B” means the amount calculated in accordance with either sub-paragraph (2) or (3) of paragraph 5 of Schedule 1A;

• “the applicable time” means the time as at which the value of the assets of a scheme and the amount of its liabilities are to be determined, calculated and verified for the purposes of section 75 of the 1995 Act;

• F4“approved withdrawal arrangement” means an arrangement that meets the funding test and is approved by the Authority under regulation 7;

• F4“approved withdrawal arrangement share” means an amount that is—

  1. a

     a cessation employer's share of the difference,

  2. b

     less than amount A, and

  3. c

     payable by a cessation employer pursuant to an approved withdrawal arrangement;

• F4“assessment period” has the meaning given in section 132 of the 2004 Act (assessment periods);

• F16...

• F29“the Board of the PPF” means the Board of the Pension Protection Fund;

• F4“cessation employer” means an employer in relation to the scheme in respect of whom an employment-cessation event has occurred;

• F4“cessation expenses” are all expenses which, in the opinion of the trustees or managers of a scheme, are likely to be incurred by the scheme in connection with an employment-cessation event occurring to an employer in relation to the scheme;

• F4“the corresponding assets” means the assets transferred in connection with the transfer from the scheme in respect of any relevant transfer liabilities;

• F27“defined benefits”, in relation to a member of an occupational pension scheme, means benefits which are not money purchase benefits (but the rate or amount of which is calculated by reference to earnings or service of the member or any other factor other than an amount available for their provision);

• F4“defined contribution employer” means an employer all the liabilities attributable to whom in relation to a scheme are liabilities in respect of money purchase benefits as defined in section 181(1) of the 1993 Act or in respect of supplementary benefits provided on an ancillary basis in the form of payments on death;

• F4“departing employer” means—

  1. a

     a cessation employer; or

  2. b

     an employer in respect of whom an insolvency event has occurred;

• “employer” has the same meaning as in section 75 of the 1995 Act (but see paragraph (2) and regulations F216, 9 and 13);

• F13“employment-cessation event” has the meaning given in regulation 6ZA;

• F30“flexible apportionment arrangement” means an arrangement that takes effect in accordance with regulation 6E;

• F4“frozen scheme” means a scheme which has ceased to have active members;

• F4“guarantors” means such one or more of the parties to a withdrawal arrangement or an approved withdrawal arrangement as are specified in the arrangement as the persons who have given guarantees in relation to amount B for the purposes of the arrangement;

• “the guarantee time” means the earliest time when an event specified in paragraph 3 of Schedule 1A occurs;

• “liability proportion” means “F11K divided by L” where—

  1. a

     “K” equals the amount of a scheme's liabilities attributable to an employer in accordance with paragraph (4) of regulation 6; and

  2. b

     “L” equals the total amount of the scheme's liabilities attributable to employment with the employers;

• “liability share” means an amount equal to the liability proportion F9multiplied by the total difference between the value of the assets and the amount of the liabilities of the scheme;

• M5“the MFR Regulations” means the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996;

• “money purchase scheme” means an occupational pension scheme under which all the benefits that may be provided other than death benefits are money purchase benefits;

• F17“multi-employer scheme” means a scheme (or a section of a scheme treated pursuant to regulation 8 as a separate scheme) in relation to which there is more than one employer;

• F26...

• “F4the PPF Valuation Regulations” means the Pension Protection Fund (Valuation) Regulations 2005;

• “protected liabilities” has the same meaning as for the purposes of a valuation under section 179 of the 2004 Act (valuations to determine scheme under funding);

• “recovery plan” means a recovery plan that complies with the requirements in section 226 of the 2004 Act and the Scheme Funding Regulations;

• “regulated apportionment arrangement” is an arrangement under the scheme rules that—

  1. a

     provides for the amount that would have been the employer's liability share to be changed;

  2. b

     where the employer's liability share is reduced, apportions all or part of the amount that would have been the employer's liability share to one or more of the remaining employers;

  3. c

     may provide for when the amount apportioned is to be paid;

  4. d

     is entered into before, on or after the applicable time;

  5. e

     sets out the amount of an employer's regulated apportionment arrangement share; and

  6. f

     meets the conditions in regulation 7A;

• “regulated apportionment arrangement share” means the amount under a regulated apportionment arrangement that is an employer's share of the difference;

• “relevant accounts” means the audited accounts for the scheme that comply with the requirements imposed under section 41 of the 1995 Act (provision of documents to members);

• “the relevant transfer deduction” means the amount of the relevant transfer liabilities less the value of the corresponding assets;

• “the relevant transfer liabilities” means the liabilities attributable to a departing employer that are transferred after the applicable time to an occupational or personal pension scheme or are otherwise secured;

• “schedule of contributions” means the most recent schedule of contributions that is adopted in relation to the scheme for the purposes of Part 3 of the 2004 Act;

• “scheme apportionment arrangement” means an arrangement under the scheme rules that—

  1. a

     provides for the employer to pay a scheme apportionment arrangement share instead of the employer's liability share;

  2. b

     where that amount is less than the employer's liability share, apportions all or part of the amount that would have been the employer's liability share to one or more of the remaining employers;

  3. c

     may provide for when the amount apportioned is to be paid;

  4. d

     is entered into before, on or after the applicable time;

  5. e

     sets out the amount of an employer's scheme apportionment arrangement share;

  6. f

     F8each of the following persons consents to—

     1. i

        the trustees or managers, and either

     2. ii

        (where the circumstances referred to in paragraph (b) apply) any remaining employer to whom all or part of the amount that would have been the employer’s liability share is being apportioned, or

     3. iii

        (where the circumstances referred to in paragraph (b) do not apply) the employer; and

  7. g

     meets the funding test;

• “scheme apportionment arrangement share” means the amount under a scheme apportionment arrangement that is an employer's share of the difference;

• “scheme's apportionment rule” means a scheme rule which makes provision for the difference between the value of a scheme's assets and the amount of its liabilities to be apportioned among the employers in different proportions from those which would otherwise arise;

• “the Scheme Funding Regulations” means the Occupational Pension Schemes (Scheme Funding) Regulations 2005;

• “share of the difference” means the amount calculated as at the applicable time that is an employer's share of the total difference between the value of the assets and the amount of the liabilities of a scheme;

• F26...

• “the tax condition”, in relation to a scheme, means–

  1. a

     that the scheme has been approved by the Commissioners of the Board of Inland Revenue for the purposes of section 590 or 591 of the Taxes Act at any time before 6th April 2006; or

  2. b

     M6that the scheme is registered under section 153 of the Finance Act 2004;

• M7“the Taxes Act” means the Income and Corporation Taxes Act 1988.

• F22“technical provisions” has the meaning given by section 222(2) of the 2004 Act;

• F19...

• “updated asset assessment” means an update (whether or not audited) of the value of the assets of the scheme identified in the most recent relevant accounts received by the trustees or managers which—

  1. a

     is prepared by the trustees or managers, and

  2. b

     estimates where they consider appropriate any alteration in the value of the assets of the scheme between the date by reference to which those accounts are prepared and the applicable time;

• F7“updated liabilities assessment” means the actuary’s assessment of any changes in the liabilities of the scheme in respect of pensions and other benefits between—

  1. a

     the effective date of the actuary’s estimate of the solvency of the scheme (as defined in regulation 7(6) of the Scheme Funding Regulations) included in the most recent actuarial valuation of the scheme received by the trustees or managers—

     1. i

        under section 224 of the 2004 Act (actuarial valuations and reports); or

     2. ii

        where the trustees or managers have not received an actuarial valuation under section 224, which the actuary thinks it is appropriate to use, and

  2. b

     the applicable time;

• F15“withdrawal arrangement” means an arrangement that meets the conditions specified in paragraph 1 of Schedule 1A and meets the funding test;

• F4“withdrawal arrangement share” means an amount that is—

  1. a

     a cessation employer’s share of the difference,

  2. b

     equal to or, where the employer agrees, greater than amount A, and

  3. c

     payable by a cessation employer pursuant to a withdrawal arrangement;

Disapplication of the 1996 Regulations3

Schemes to which section 75 of the 1995 Act does not apply4