Estimated deficits
126.—(1) Where, having taken into account the estimate, and any other relevant information, it appears to the Secretary of State that the total amount likely to be payable out of the FPF in the relevant financial year will exceed the total amount likely to be payable into that FPF in that year, the Secretary of State must pay an amount to the scheme manager equal to 80% of the likely deficit.
(2) Where, having taken into account any revised estimate and any other relevant information, it appears to the Secretary of State that—
(a)the total amount likely to be payable out of the FPF in the relevant financial year will exceed the total amount likely to be paid into the FPF in that year; and
(b)80% of the likely deficit is more than—
(i)the amount paid or payable by the Secretary of State to the scheme manager under paragraph (1) of this regulation in relation to the relevant financial year, or
(ii)where no such amount was paid or payable by the Secretary of State, zero,
the Secretary of State may pay to the scheme manager such amount as the Secretary of State thinks fit.
(3) Where the Secretary of State has paid an amount to a scheme manager under paragraphs (1) and (2), the total of these amounts must not exceed 80% of the likely deficit of the FPF for that year.
(4) Where the Secretary of State pays an amount to a scheme manager under paragraph (2), any amount paid or payable by that scheme manager to the Secretary of State in relation to the relevant financial year under regulation 127(1) (estimated surpluses) must not be paid, or if paid, the Secretary of State must repay it.
(5) The Secretary of State must make the payment to the scheme manager under paragraph (1) before the end of July of the relevant financial year or as soon as practicable thereafter.
(6) Where the Secretary of State makes a payment under paragraph (2) or a repayment under paragraph (4), the payment or repayment must be made before the end of the relevant financial year or as soon as reasonably practicable thereafter.