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111 | Insolvency practitioner’s duty to issue notices confirming status of scheme |
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(1) | This section applies where an insolvency event has occurred in relation to the |
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employer in relation to an occupational pension scheme |
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(2) | If an insolvency practitioner in relation to the employer 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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| he must issue a notice to that effect. |
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(3) | Subsection (4) applies where— |
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(a) | in prescribed circumstances, insolvency proceedings in relation to the |
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employer are stayed or come to an end, or |
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(b) | a prescribed event occurs. |
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(4) | If a person who was acting as an insolvency practitioner in relation to the |
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employer immediately before this subsection applies has not been able to |
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confirm in relation to the scheme— |
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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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| he must issue a notice to that effect. |
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(5) | For the purposes of this section— |
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(a) | a person is able to confirm that a scheme rescue has occurred in relation |
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to an occupational pension scheme if, and only if, he is able to confirm |
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such matters as are prescribed for the purposes of this paragraph, and |
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(b) | a person is able to confirm that a scheme rescue is not possible, in |
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relation to such a scheme if, and only if, he is able to confirm such |
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matters as are prescribed for the purposes of this paragraph. |
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(6) | Where an insolvency practitioner or former insolvency practitioner in relation |
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to the employer issues a notice under this section, he must give a copy of that |
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(c) | the trustees or managers of the scheme. |
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(7) | A person must comply with an obligation imposed on him by subsection (2), |
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(4) or (6) as soon as reasonably practicable. |
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(8) | Regulations may require notices issued under this section— |
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(a) | to be in a prescribed form; |
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(b) | to contain prescribed information. |
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112 | Board’s duty where there is a failure to comply with section 111 |
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(1) | This section applies where, in relation to an occupational pension scheme, the |
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Board is satisfied that an insolvency practitioner, or former insolvency |
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practitioner, in relation to the employer has failed to issue a notice which he |
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was required to issue under section 111. |
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(2) | The Board must issue a notice in the form in which it ought to have been issued. |
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(3) | Subject to subsections (4) and (5), a notice issued under subsection (2) has effect |
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as if it were a notice issued under section 111 by an insolvency practitioner or, |
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as the case may, former insolvency practitioner in relation to the employer. |
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(4) | Where a notice is issued under subsection (2), section 111(6) does not apply and |
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the Board must, as soon as reasonably practicable, give a copy of the notice to— |
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(b) | the trustees or managers of the scheme, and |
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(c) | 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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(5) | The issuing of a notice under subsection (2) does not have effect to prevent an |
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insolvency event in relation to the employer being a qualifying insolvency |
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event within the meaning of any provision of this Part or a qualifying relevant |
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event within the meaning of section 75 of the Pensions Act 1995 (c. 26) if— |
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(a) | the event occurs after the failure mentioned in subsection (1), and |
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(b) | had the insolvency practitioner issued the required notice under |
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section 111, the event would have been a qualifying insolvency event |
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or, as the case may be, a qualifying relevant event for those purposes. |
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(1) | In this Part references to an “eligible scheme” are to an occupational pension |
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(a) | is not a money purchase scheme, and |
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(b) | is not a prescribed scheme or a scheme of a prescribed description. |
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(2) | A scheme is not an eligible scheme if it is being wound up immediately before |
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the day appointed by the Secretary of State by order for the purposes of this |
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Circumstances in which Board assumes responsibility for eligible schemes |
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114 | Duty to assume responsibility for schemes following insolvency event |
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(1) | This section applies where a qualifying insolvency event has occurred in |
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relation to the employer in relation to an eligible scheme. |
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(2) | The Board must assume responsibility for the scheme in accordance with this |
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(a) | the value of the assets of the scheme at the relevant time was less than |
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the amount of the protected liabilities at that time (see sections 118 and |
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(b) | after the relevant time an insolvency practitioner in relation to the |
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employer issues a notice under section 111 confirming that a scheme |
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rescue is not possible in relation to the scheme, and |
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(c) | the Board has not ceased to be involved with the scheme (see section |
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132) in the period beginning with the relevant time and ending with the |
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(3) | For the purposes of this section, in relation to an eligible scheme an insolvency |
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event (“the current event”) in relation to the employer is a qualifying |
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(a) | it occurs on or after the day appointed under section 113(2), |
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(i) | is the first insolvency event to occur in relation to the employer |
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(ii) | does not occur within an assessment period (see section 119) in |
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relation to the scheme which began before the occurrence of the |
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(c) | it does not occur in such circumstances as may be prescribed. |
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(4) | For the purposes of this section— |
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(a) | the reference in subsection (2)(a) to the assets of the scheme is a |
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reference to those assets excluding any assets representing the value of |
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any rights in respect of money purchase benefits under the scheme, and |
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(b) | “the relevant time” means the time immediately before the qualifying |
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(5) | This section is subject to sections 130 and 131 (cases where Board must refuse |
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to assume responsibility for a scheme). |
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115 | Duty to assume responsibility for schemes following application or |
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(1) | This section applies where, in relation to an eligible scheme, the trustees or |
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(a) | make an application under subsection (1) of section 116 (a “section 116 |
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(b) | receive a notice from the Board under subsection (5)(a) of that section |
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(a “section 116 notification”). |
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(2) | The Board must assume responsibility for the scheme in accordance with this |
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(a) | the value of the assets of the scheme at the relevant time was less than |
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the amount of the protected liabilities at that time (see sections 118 and |
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(b) | after the relevant time the Board issues a notice under section 117 |
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confirming that a scheme rescue is not possible in relation to the |
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(c) | the Board has not ceased to be involved with the scheme (see section |
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132) in the period beginning with the relevant time and ending with the |
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(a) | the reference in paragraph (a) to the assets of the scheme is a reference |
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to those assets excluding any assets representing the value of any rights |
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in respect of money purchase benefits under the scheme, and |
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(b) | “the relevant time” means the time immediately before the section 116 |
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application was made or, as the case may be, the section 116 notification |
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(4) | An application under section 116(1) or notification under section 116(5)(a) is to |
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be disregarded for the purposes of subsection (1) if it is made or given during |
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an assessment period (see section 119) in respect of the scheme which began |
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before the application was made or notification was given. |
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(5) | This section is subject to sections 130 and 131 (cases where Board must refuse |
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to assume responsibility for a scheme). |
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116 | Applications and notifications for the purposes of section 115 |
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(1) | Where the trustees or managers of an eligible scheme become aware that— |
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(a) | the employer in relation to the scheme is unlikely to continue as a going |
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(b) | the prescribed requirements are met in relation to the employer, |
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| they must make an application to the Board for it to assume responsibility for |
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the scheme under section 115. |
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(2) | Where the Board receives an application under subsection (1), it must give a |
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copy of the application to— |
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(3) | An application under subsection (1) must— |
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(a) | be in the prescribed form and contain the prescribed information, and |
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(b) | be made within the prescribed period. |
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(4) | Where the Regulator becomes aware that— |
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(a) | the employer in relation to an eligible scheme is unlikely to continue as |
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(b) | the requirements mentioned in subsection (1)(b) are met in relation to |
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| it must give the Board a notice to that effect. |
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(5) | Where the Board receives a notice under subsection (4), it must— |
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(a) | give the trustees or managers of the scheme a notice to that effect, and |
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(b) | give the employer a copy of that notice. |
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(6) | The duty imposed by subsection (1) does not apply where the trustees or |
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managers of an eligible scheme become aware as mentioned in that subsection |
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by reason of a notice given to them under subsection (5). |
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(7) | The duty imposed by subsection (4) does not apply where the Regulator |
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becomes aware as mentioned in that subsection by reason of a copy of an |
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application made by the trustees or managers of the eligible scheme in question |
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given to the Regulator under subsection (2). |
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(8) | Regulations may require notices under this section to be in the prescribed form |
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and contain the prescribed information. |
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