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Pensions Bill


Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 1 — The Board

70

 

Pension Protection Fund) and the fund maintained under any corresponding

provision in force in Northern Ireland.

(4)   

The Board must not appoint an individual or firm as a fund manager unless it

is satisfied—

(a)   

in the case of an individual, that the individual has the appropriate

5

knowledge and experience for managing the investments of the

Pension Protection Fund, or

(b)   

in the case of a firm, that arrangements are in place to secure that any

individual who will exercise functions which the firm has as fund

manager will, at the time he exercises those functions, have the

10

appropriate knowledge and experience for managing the investments

of that Fund.

103     

Investment principles

(1)   

The Board must secure—

(a)   

that a statement of investment principles is prepared and maintained,

15

and

(b)   

that the statement is reviewed at such intervals, and on such occasions,

as may be prescribed and, if necessary, revised.

(2)   

In this section “statement of investment principles” means a written statement

of the investment principles governing determinations made by the Board

20

about investments.

(3)   

Before preparing or revising a statement of investment principles, the Board

must comply with any prescribed requirements.

(4)   

A statement of investment principles must be in the prescribed form and cover,

amongst other things, the prescribed matters.

25

104     

Borrowing

(1)   

The Board may—

(a)   

borrow from a deposit-taker such sums as it may from time to time

require for exercising any of its functions;

(b)   

give security for any money borrowed by it.

30

(2)   

The Board may not borrow if the effect would be—

(a)   

to take the aggregate amount outstanding in respect of the principal of

sums borrowed by it over its borrowing limit, or

(b)   

to increase the amount by which the aggregate amount so outstanding

exceeds that limit.

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(3)   

In this section—

   

“borrowing limit” means such limit as the Secretary of State may specify

by order;

   

“deposit-taker” means—

(a)   

a person who has permission under Part 4 of the Financial

40

Services and Markets Act 2000 (c. 8) to accept deposits, or

(b)   

an EEA firm of the kind mentioned in paragraph 5(b) of

Schedule 3 to that Act which has permission under paragraph

15 of that Schedule (as a result of qualifying for authorisation

under paragraph 12 of that Schedule) to accept deposits.

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Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 1 — The Board

71

 

(4)   

The definition of “deposit-taker” in subsection (3) must be read with—

(a)   

section 22 of the Financial Services and Markets Act 2000 (c. 8),

(b)   

any relevant order under that section, and

(c)   

Schedule 2 to that Act.

105     

Grants

5

The Secretary of State may pay the Board out of money provided by Parliament

such sums as he may determine towards any of its expenses, other than

expenditure which by virtue of section 156(3) or 171(3) is payable out of—

(a)   

the Pension Protection Fund, or

(b)   

the Fraud Compensation Fund.

10

106     

Administration levy

(1)   

Regulations may provide for the imposition of a levy (“administration levy”)

in respect of eligible schemes (see section 113) for the purpose of meeting—

(a)   

the expenditure of the Secretary of State relating to the establishment of

the Board;

15

(b)   

any expenditure of the Secretary of State under section 105.

(2)   

An administration levy is payable to the Secretary of State by or on behalf of—

(a)   

the trustees or managers of an eligible scheme, or

(b)   

any other prescribed person.

(3)   

An administration levy is payable at the prescribed rate and at prescribed

20

times.

(4)   

Before prescribing a rate under subsection (3), the Secretary of State must

consult the Board.

(5)   

An amount payable by a person on account of an administration levy is a debt

due from him to the Secretary of State.

25

(6)   

An amount so payable is recoverable by the Secretary of State or, if he so

determines, by the Regulator on his behalf.

(7)   

Without prejudice to the generality of subsections (1), (5) and (6), regulations

under this section may include provision relating to—

(a)   

the collection and recovery of amounts payable by way of levy under

30

this section;

(b)   

the circumstances in which any such amount may be waived.

107     

Fees

(1)   

Regulations may authorise the Board—

(a)   

to charge prescribed fees;

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(b)   

to charge fees sufficient to meet prescribed costs.

(2)   

Regulations under subsection (1) may prescribe, or authorise the Board to

determine, the time at which any fee is due.

(3)   

Any fee which is owed to the Board by virtue of regulations under this section

may be recovered as a debt due to the Board.

40

 

 

Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 2 — Information relating to employer’s insolvency etc

72

 

Annual reports

108     

Annual reports to Secretary of State

(1)   

The Board must prepare a report for each financial year.

(2)   

Each report—

(a)   

must deal with the activities of the Board in the financial year for which

5

it is prepared, and

(b)   

must include the report prepared by the Non-Executive Committee

under section 101(6).

(3)   

The Board must send each report to the Secretary of State as soon as practicable

after the end of the financial year for which it is prepared.

10

(4)   

The Secretary of State must lay before each House of Parliament a copy of

every report received by him under this section.

(5)   

In this section “financial year” means—

(a)   

the period beginning with the date on which the Board is established

and ending with the next following 31st March, and

15

(b)   

each successive period of 12 months.

Chapter 2

Information relating to employer’s insolvency etc

Insolvency events

109     

Duty to notify insolvency events in respect of employers

20

(1)   

This section applies where, in the case of an occupational pension scheme, an

insolvency event occurs in relation to the employer.

(2)   

The insolvency practitioner in relation to the employer must give a notice to

that effect within the notification period to—

(a)   

the Board,

25

(b)   

the Regulator, and

(c)   

the trustees or managers of the scheme.

(3)   

For the purposes of subsection (2) the “notification period” is the prescribed

period beginning with the later of—

(a)   

the insolvency date, and

30

(b)   

the date the insolvency practitioner becomes aware of the existence of

the scheme.

(4)   

A notice under this section must be in such form and contain such information

as may be prescribed.

110     

Insolvency event, insolvency date and insolvency practitioner

35

(1)   

In this Part each of the following expressions has the meaning given to it by this

section—

   

“insolvency event”

 

 

Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 2 — Information relating to employer’s insolvency etc

73

 

   

“insolvency date”

   

“insolvency practitioner”.

(2)   

An insolvency event occurs in relation to an individual where—

(a)   

he is adjudged bankrupt or sequestration of his estate has been

awarded;

5

(b)   

the nominee in relation to a proposal for a voluntary arrangement

under Part 8 of the Insolvency Act 1986 (c. 45) submits a report to the

court under section 256(1) or 256A(3) of that Act which states that in his

opinion a meeting of the individual’s creditors should be summoned to

consider the debtor’s proposal;

10

(c)   

a deed of arrangement made by or in respect of the affairs of the

individual is registered in accordance with the Deeds of Arrangement

Act 1914 (c. 47);

(d)   

he executes a trust deed for his creditors or enters into a composition

contract;

15

(e)   

he has died and—

(i)   

an insolvency administration order is made in respect of his

estate in accordance with an order under section 421 of the

Insolvency Act 1986, or

(ii)   

a judicial factor appointed under section 11A of the Judicial

20

Factors (Scotland) Act 1889 (c. 39) is required by that section to

divide the individual’s estate among his creditors.

(3)   

An insolvency event occurs in relation to a company where—

(a)   

the nominee in relation to a proposal for a voluntary arrangement

under Part 1 of the Insolvency Act 1986 submits a report to the court

25

under section 2 of that Act (procedure where nominee is not the

liquidator or administrator) which states that in his opinion meetings

of the company and its creditors should be summoned to consider the

proposal;

(b)   

the directors of the company file (or in Scotland lodge) with the court

30

documents and statements in accordance with paragraph 7(1) of

Schedule A1 to that Act (moratorium where directors propose

voluntary arrangement);

(c)   

an administrative receiver within the meaning of section 251 of that Act

is appointed in relation to the company;

35

(d)   

the company enters administration within the meaning of paragraph

1(2)(b) of Schedule B1 to that Act;

(e)   

a resolution is passed for a voluntary winding up of the company

without a declaration of solvency under section 89 of that Act;

(f)   

a meeting of creditors is held in relation to the company under section

40

95 of that Act (creditors’ meeting which has the effect of converting a

members’ voluntary winding up into a creditors’ voluntary winding

up);

(g)   

an order for the winding up of the company is made by the court under

Part 4 or 5 of that Act.

45

(4)   

An insolvency event occurs in relation to a partnership where—

(a)   

an order for the winding up of the partnership is made by the court

under any provision of the Insolvency Act 1986 (as applied by an order

under section 420 of that Act (insolvent partnerships));

 

 

Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 2 — Information relating to employer’s insolvency etc

74

 

(b)   

sequestration is awarded on the estate of the partnership under section

12 of the Bankruptcy (Scotland) Act 1985 (c. 66) or the partnership

grants a trust deed for its creditors;

(c)   

the nominee in relation to a proposal for a voluntary arrangement

under Part 1 of the Insolvency Act 1986 (c. 45) (as applied by an order

5

under section 420 of that Act) submits a report to the court under

section 2 of that Act (procedure where nominee is not the liquidator or

administrator) which states that in his opinion meetings of the

members of the partnership and the partnership’s creditors should be

summoned to consider the proposal;

10

(d)   

the members of the partnership file with the court documents and

statements in accordance with paragraph 7(1) of Schedule A1 to that

Act (moratorium where directors propose voluntary arrangement) (as

applied by an order under section 420 of that Act);

(e)   

an administration order under Part 2 of the Insolvency Act 1986 (as

15

applied by section 420 of that Act) is made in relation to the

partnership.

(5)   

An insolvency event also occurs in relation to a person where an event occurs

which is a prescribed event in relation to such a person.

(6)   

Except as provided by subsections (2) to (5), for the purposes of this Part an

20

event is not to be regarded as an insolvency event in relation to a person.

(7)   

The Secretary of State may by order amend subsection (4)(e) to make provision

consequential upon any order under section 420 of the Insolvency Act 1986

(insolvent partnerships) applying the provisions of Part 2 of that Act

(administration) as amended by the Enterprise Act 2002 (c. 40).

25

(8)   

“Insolvency date”, in relation to an insolvency event, means the date on which

the event occurs.

(9)   

“Insolvency practitioner”, in relation to a person, means—

(a)   

a person acting as an insolvency practitioner, in relation to that person,

in accordance with section 388 of the Insolvency Act 1986,

30

(b)   

in such circumstances as may be prescribed, a person of a prescribed

description.

(10)   

In this section—

   

“company” means a company within the meaning given by section 735(1)

of the Companies Act 1985 (c. 6) or a company which may be wound up

35

under Part 5 of the Insolvency Act 1986 (unregistered companies);

   

“person acting as an insolvency practitioner”, in relation to a person,

includes the official receiver acting as receiver or manager of any

property of that person.

(11)   

In applying section 388 of the Insolvency Act 1986 under subsection (9)

40

above—

(a)   

the reference in section 388(2)(a) to a permanent or interim trustee in

sequestration must be taken to include a reference to a trustee in

sequestration, and

(b)   

section 388(5) (which includes provision that nothing in the section

45

applies to anything done by the official receiver or the Accountant in

Bankruptcy) must be ignored.

 

 

 
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