The Pension Protection Fund (Closed Schemes) Regulations 2007

6.—(1) For the purposes of a section 156 valuation, where for the purpose of giving effect to a pension sharing order or provision, arrangements are being made by the closed scheme for the transfer from it of any pension credit rights, until such time as the trustees or managers of the scheme to which the transfer is being made (“ the receiving scheme”) have received assets of the full amount agreed by them as consideration for the transfer, it shall be assumed— E+W+S

(a) that the rights have not been transferred; and

(b) that any assets transferred in respect of the transfer of those rights are assets of the scheme making the transfer and not of the receiving scheme.

(2) For the purposes of a section 156 valuation, in the case of a pre-6th April 1997 contract of insurance, the value shall be—

(a) the amount of the liability secured where the contract of insurance falls within the definition of a relevant contract of insurance in section 161(8); or where this is not the case either—

(b) the surrender value of the contract of insurance; or

(c) where it appears to the appropriate person that the surrender value of the contract of insurance does not accurately reflect the actual value at the effective date, then he shall adopt such a value as appears to him to be appropriate.

(3) In the case of an asset to which paragraph 3 applies, the appropriate person shall adopt as the value of the asset the amount due to the closed scheme given in the notice, direction or order.

(4) For the purposes of a section 156 valuation—

(a) where the appropriate person, in accordance with guidance issued by the Board under section 156(3), holds the opinion that any section 75 debt falling due to the closed scheme will be recouped in the future, then he shall treat the proportion of the section 75 debt that he believes will be recovered as an asset of the scheme;

(b) where an amount is due under a contribution notice, a financial support direction or a restoration order, and—

(i) a proportion of the amount due has been recouped before the effective date; and

(ii) the appropriate person, in accordance with any guidance issued by the Board in accordance with section 156(3), holds the opinion that no further payments due under the notice, direction or order will be recouped by the closed scheme,

the appropriate person shall adjust the value of the asset contained in the notice, direction or order to the value recouped by the trustees or managers of the closed scheme before the effective date.

(c) if the appropriate person—

(i) has been given notice; or

(ii) holds the opinion,

that the value of any asset set out in the relevant accounts, that is not excluded from the actuarial valuation, is substantially different at the effective date from that set out in the relevant accounts, then he shall adjust the value of the asset to the market value of the asset at the effective date; or

(d) where the appropriate person—

(i) has been given notice; or

(ii) holds the opinion,

in accordance with any guidance issued by the Board in accordance with section 156(3), that there exists an asset of the scheme which is not listed in the relevant accounts, and which is not excluded from the actuarial valuation, then he shall adopt such a value for the asset as he considers appropriate.

(5) The appropriate person shall not make an adjustment to the value of an interest in real property unless the adjustment reflects a more recent valuation given by a chartered surveyor in accordance with any relevant practice statements and guidance issued by the Royal Institution of Chartered Surveyors M1 current on the date the valuation is signed.

Marginal Citations

M1 The Royal Institution of Chartered Surveyors can be contacted at RICS Contact Centre, Surveyor Court, Westwood Way, Coventry, CV4 8JE.