Board's power to modify relevant contractsE+W+S
2.—(1) Where section 161(1) of the Act (effect of the Board assuming responsibility for a scheme) applies, and the Board considers that a contract relating to the property, rights or liabilities of the scheme contains terms or conditions that the Board considers to be onerous (whether triggered by the insolvency event in relation to the eligible scheme or otherwise) the Board may—
(a)disapply any such term or condition; or
(b)substitute for the term or condition, a term or condition that the Board considers to be reasonable.
(2) Where—
(a)any rights or liabilities under a relevant contract of insurance are transferred to the Board by virtue of section 161(2)(a) of the Act; and
(b)as a result of that transfer, the Board is required, by reason of a term of that contract, to pay a specified amount, or specified amounts to a specified person who, immediately before the time mentioned in section 161(2)(a) of the Act, was a member of the scheme or a person entitled to benefits in respect of such a member,
the Board may modify that term of that contract so that benefit under that contract shall be payable to the Board.