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142 | Pension protection levies during the transitional period |
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(1) | Regulations may provide that in respect of any financial year during the |
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(a) | sections 137 and 139(3) and (4) are to apply with such modifications as |
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(b) | section 139(2) is to apply as if the reference to the levy ceiling for the |
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financial year were a reference to such lower amount as is specified in |
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(2) | Regulations which contain provision made by virtue of subsection (1)(b) may |
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only be made with the approval of the Treasury. |
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(3) | For the purposes of this section “the transitional period” means the prescribed |
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period beginning immediately after the initial period (within the meaning of |
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143 | Calculation, collection and recovery of levies |
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(1) | This section applies in relation to— |
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(a) | the initial levy imposed under section 136 in respect of a scheme, and |
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(b) | any pension protection levy imposed under section 137 in respect of a |
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(2) | The levy is payable to the Board by or on behalf of— |
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(a) | the trustees or managers of the scheme, or |
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(b) | any other prescribed person. |
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(3) | The Board must in respect of the levy— |
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(a) | determine the schemes in respect of which it is imposed, |
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(b) | calculate the amount of the levy in respect of each of those schemes, |
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(c) | notify any person liable to pay the levy in respect of the scheme of the |
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amount of the levy in respect of the scheme and the date or dates on |
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which it becomes payable. |
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(4) | The Board may require the Regulator to discharge the Board’s functions under |
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subsection (3) in respect of the levy. |
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(5) | Where a scheme is an eligible scheme for only part of a financial year, the |
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amount of the levy payable in respect of the scheme for that year is such |
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proportion of the full amount as that part bears to the year. |
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(6) | An amount payable by a person on account of the levy is a debt due from him |
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(7) | An amount so payable may be recovered— |
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(b) | if the Board so determines, by the Regulator on its behalf. |
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(8) | Regulations may make provision relating to— |
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(a) | the collection and recovery of amounts payable by way of any levy in |
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relation to which this section applies; |
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(b) | the circumstances in which any such amount may be waived. |
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Entitlement to fraud compensation |
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144 | Cases where fraud compensation payments can be made |
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(1) | The Board shall, in accordance with this section, make one or more payments |
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(in this Part referred to as “fraud compensation payments”) in respect of an |
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occupational pension scheme if— |
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(a) | the scheme is not of a prescribed description, |
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(b) | the value of the assets of the scheme has been reduced since the relevant |
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date and the Board considers that there are reasonable grounds for |
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believing that the reduction was attributable to an act or omission |
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constituting a prescribed offence, |
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(c) | subsection (2), (3) or (4) applies, |
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(d) | an application is made which meets the requirements of subsection (5), |
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(e) | the application is made within the authorised period. |
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(2) | This subsection applies where— |
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(a) | a qualifying insolvency event has occurred in relation to the employer |
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in relation to the scheme, |
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(b) | after that event, an insolvency practitioner in relation to the employer |
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has issued a notice under section 96(2) confirming that a scheme rescue |
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is not possible in relation to the scheme, and |
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(c) | in the period which began with the occurrence of the insolvency event |
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and ended immediately before that notice was issued, no cessation |
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(3) | This subsection applies where— |
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(a) | in relation to the scheme, an application has been made under |
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subsection (1), or a notification has been given under subsection (5)(a), |
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(b) | in response to that application, or the notice given by the Regulator |
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under subsection (4) of that section, the Board has issued a notice under |
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section 102(2) confirming that a scheme rescue is not possible in |
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(4) | This subsection applies where— |
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(a) | the scheme is not an eligible scheme, |
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(b) | the employer in relation to the scheme is unlikely to continue as a going |
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(c) | the prescribed requirements are met in relation to the employer, |
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(d) | the application under this section states that the case is one in relation |
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to which paragraphs (b) and (c) apply, and |
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(e) | in response to that application the Board has issued a notice under |
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section 145(2) confirming that a scheme rescue is not possible in |
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(5) | An application meets the requirements of this subsection if— |
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(a) | it is made by a prescribed person, |
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(b) | it is made in the prescribed manner and contains the prescribed |
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(6) | Subject to subsection (7), an application is made within the authorised period |
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if it is made within the period of 12 months beginning with the later of— |
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(a) | the time of the relevant event, or |
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(b) | the time when the auditor or actuary of the scheme, or the trustees or |
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managers, knew or ought reasonably to have known that a reduction of |
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value falling within subsection (1)(b) had occurred, |
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| or within such longer period as the Board may determine in any case. |
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(7) | No application for fraud compensation may be made under this section in |
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respect of a scheme once a transfer notice is given in relation to the scheme |
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(8) | For the purposes of this section— |
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(a) | a cessation event occurs in relation to a scheme when— |
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(i) | an insolvency practitioner in relation to the employer issues a |
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notice under section 96(2), or the Board issues a notice under |
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section 102(3) or 145(2), confirming that a scheme rescue has |
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occurred in relation to the scheme, |
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(ii) | the Board ceases to be involved with the scheme by virtue of an |
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event within section 117(2)(c)(i) or (ii), or |
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(iii) | a person who is or was an insolvency practitioner in relation to |
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the employer issues a notice under section 96(4), in a case where |
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section 117(4) does not apply, and |
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(b) | an insolvency event (“the current event”) in relation to the employer is |
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a qualifying insolvency event if— |
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(i) | it is the first insolvency event in relation to the employer, or |
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(ii) | a cessation event has occurred after the last such insolvency |
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event to occur before the current event. |
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| “auditor” and “actuary”, in relation to an occupational pension scheme, |
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have the meaning given by section 47 of the Pensions Act 1995 (c. 26); |
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| “the relevant event” means— |
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(a) | in a case where subsection (2) applies in relation to an eligible |
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scheme, the event within paragraph (a) of that subsection, |
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(b) | in any other case where subsection (2) applies, the event within |
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paragraph (b) of that subsection, |
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(c) | in a case where subsection (3) applies, the event within |
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paragraph (a) of that subsection, and |
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(d) | in a case where subsection (4) applies, the trustees or managers |
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becoming aware that paragraphs (b) and (c) of that subsection |
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apply in relation to the scheme; |
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| “the relevant date” means— |
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(a) | in the case of an occupational pension scheme established |
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under a trust, 6th April 1997, and |
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(b) | in any other case, the day appointed by the Secretary of State by |
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order for the purposes of this section. |
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(10) | This section is subject to section 146(2) (no fraud compensation payments to be |
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made until settlement date determined). |
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145 | Schemes which are not eligible schemes or subject to insolvency events |
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(1) | This section applies where, in a case to which paragraphs (a) to (c) of |
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subsection (4) of section 144 apply (employer not likely to continue as going |
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concern etc), the Board receives an application within paragraph (d) of that |
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(2) | If the Board is able to confirm— |
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(a) | that a scheme rescue is not possible, or |
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(b) | that a scheme rescue has occurred, |
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| it must, as soon as practicable, issue a notice to that effect. |
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(3) | Where the Board issues a notice under subsection (2), it must, as soon as |
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practicable, give a copy of the notice to— |
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(b) | the trustees or managers of the scheme, |
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(c) | if the trustees or managers did not make the application mentioned in |
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subsection (1), the person who made that application, and |
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(d) | any insolvency practitioner in relation to the employer or, if there is no |
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such insolvency practitioner, the employer. |
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(4) | Section 102(5) (circumstances in which scheme rescue can or cannot be |
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confirmed) applies for the purposes of this section. |
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(1) | Where an application for a fraud compensation payment is made, the trustees |
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or managers must obtain any recoveries of value, to the extent that they may |
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do so without disproportionate cost and within a reasonable time. |
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(2) | No fraud compensation payment may be made until the date (“the settlement |
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date”) determined by the Board, after consulting the trustees or managers of |
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the scheme in question, as the date after which further recoveries of value are |
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unlikely to be obtained without disproportionate cost or within a reasonable |
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(3) | In this section “recovery of value” means any increase in the value of the assets |
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of the scheme, being an increase attributable to any payment received |
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(otherwise than from the Board) by the trustees or managers of the scheme in |
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respect of any act or omission— |
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(a) | which there are reasonable grounds for believing constituted an offence |
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prescribed for the purposes of paragraph (b) of section 144(1), and |
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(b) | to which any reduction in value falling within that paragraph was |
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(4) | It is for the Board to determine whether anything received by the trustees or |
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managers of the scheme is to be treated as a payment received in respect of any |
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| For this purpose “payment” includes any money or money’s worth. |
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147 | Fraud compensation payments |
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(1) | Where the Board determines to make one or more fraud compensation |
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payments, it must make the payment or payments to the trustees or managers |
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of the scheme in accordance with this section. |
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(2) | A fraud compensation payment may be made on such terms (including terms |
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requiring repayment in whole or in part) and on such conditions as the Board |
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(3) | The amount of the payment (or, if there is more than one, the aggregate) must |
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not exceed the difference between— |
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(a) | the amount of the reduction (or, if more than one, the aggregate amount |
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of the reductions) within section 144(1)(b), and |
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(b) | the amount of any recoveries of value obtained before the settlement |
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date (within the meaning of section 146(2)). |
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(4) | Subject to subsection (3), the Board— |
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(a) | must determine the amount of any fraud compensation payment in |
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accordance with regulations made for the purposes of this subsection, |
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(b) | must take account of any interim payment already made under section |
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(5) | The Board must give written notice of its determination under subsection (4) |
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(b) | the trustees or managers of the scheme, |
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(c) | if the trustees or managers did not make the application under section |
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144 (fraud compensation payments), the person who made that |
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(d) | any insolvency practitioner in relation to the employer or, if there is no |
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such insolvency practitioner, the employer. |
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(1) | The Board may, on an application under section 144, make a payment or |
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payments to the trustees or managers of an occupational pension scheme if— |
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(a) | it is of the opinion that— |
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(i) | the case is one to which subsection (1) of that section applies or |
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(ii) | the trustees or managers would not otherwise be able to meet |
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liabilities of a prescribed description, but |
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(b) | it has not determined the settlement date under section 146. |
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(2) | Amounts payable under this section must not exceed the amounts determined |
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in accordance with regulations. |
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(3) | The Board may, except in prescribed circumstances, recover so much of any |
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payment made under subsection (1) as it considers appropriate if, after the |
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payment is made, it determines— |
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(a) | that the case is not one to which section 144(1) applies, or |
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(b) | that the amount of the payment was excessive. |
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(4) | Subject to that, a payment under subsection (1) may be made on such terms |
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(including terms requiring repayment in whole or in part) and on such |
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conditions as the Board considers appropriate. |
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