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Pensions Bill


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

75

 

Status of scheme

111     

Insolvency practitioner’s duty to issue notices confirming status of scheme

(1)   

This section applies where an insolvency event has occurred in relation to the

employer in relation to an occupational pension scheme

(2)   

If an insolvency practitioner in relation to the employer is able to confirm—

5

(a)   

that a scheme rescue is not possible, or

(b)   

that a scheme rescue has occurred,

   

he must issue a notice to that effect.

(3)   

Subsection (4) applies where—

(a)   

in prescribed circumstances, insolvency proceedings in relation to the

10

employer are stayed or come to an end, or

(b)   

a prescribed event occurs.

(4)   

If a person who was acting as an insolvency practitioner in relation to the

employer immediately before this subsection applies has not been able to

confirm in relation to the scheme—

15

(a)   

that a scheme rescue is not possible, or

(b)   

that a scheme rescue has occurred,

   

he must issue a notice to that effect.

(5)   

For the purposes of this section—

(a)   

a person is able to confirm that a scheme rescue has occurred in relation

20

to an occupational pension scheme if, and only if, he is able to confirm

such matters as are prescribed for the purposes of this paragraph, and

(b)   

a person is able to confirm that a scheme rescue is not possible, in

relation to such a scheme if, and only if, he is able to confirm such

matters as are prescribed for the purposes of this paragraph.

25

(6)   

Where an insolvency practitioner or former insolvency practitioner in relation

to the employer issues a notice under this section, he must give a copy of that

notice to—

(a)   

the Board,

(b)   

the Regulator, and

30

(c)   

the trustees or managers of the scheme.

(7)   

A person must comply with an obligation imposed on him by subsection (2),

(4) or (6) as soon as reasonably practicable.

(8)   

Regulations may require notices issued under this section—

(a)   

to be in a prescribed form;

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(b)   

to contain prescribed information.

Board’s duties

112     

Board’s duty where there is a failure to comply with section 111

(1)   

This section applies where, in relation to an occupational pension scheme, the

Board is satisfied that an insolvency practitioner, or former insolvency

40

practitioner, in relation to the employer has failed to issue a notice which he

was required to issue under section 111.

 

 

Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 3 — Pension protection

76

 

(2)   

The Board must issue a notice in the form in which it ought to have been issued.

(3)   

Subject to subsections (4) and (5), a notice issued under subsection (2) has effect

as if it were a notice issued under section 111 by an insolvency practitioner or,

as the case may, former insolvency practitioner in relation to the employer.

(4)   

Where a notice is issued under subsection (2), section 111(6) does not apply and

5

the Board must, as soon as reasonably practicable, give a copy of the notice to—

(a)   

the Regulator,

(b)   

the trustees or managers of the scheme, and

(c)   

any insolvency practitioner in relation to the employer, or if there is no

such insolvency practitioner, the employer.

10

(5)   

The issuing of a notice under subsection (2) does not have effect to prevent an

insolvency event in relation to the employer being a qualifying insolvency

event within the meaning of any provision of this Part or a qualifying relevant

event within the meaning of section 75 of the Pensions Act 1995 (c. 26) if—

(a)   

the event occurs after the failure mentioned in subsection (1), and

15

(b)   

had the insolvency practitioner issued the required notice under

section 111, the event would have been a qualifying insolvency event

or, as the case may be, a qualifying relevant event for those purposes.

Chapter 3

Pension protection

20

Eligible schemes

113     

Eligible schemes

(1)   

In this Part references to an “eligible scheme” are to an occupational pension

scheme which—

(a)   

is not a money purchase scheme, and

25

(b)   

is not a prescribed scheme or a scheme of a prescribed description.

(2)   

A scheme is not an eligible scheme if it is being wound up immediately before

the day appointed by the Secretary of State by order for the purposes of this

subsection.

Circumstances in which Board assumes responsibility for eligible schemes

30

114     

Duty to assume responsibility for schemes following insolvency event

(1)   

This section applies where a qualifying insolvency event has occurred in

relation to the employer in relation to an eligible scheme.

(2)   

The Board must assume responsibility for the scheme in accordance with this

Chapter if—

35

(a)   

the value of the assets of the scheme at the relevant time was less than

the amount of the protected liabilities at that time (see sections 118 and

127),

 

 

Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 3 — Pension protection

77

 

(b)   

after the relevant time an insolvency practitioner in relation to the

employer issues a notice under section 111 confirming that a scheme

rescue is not possible in relation to the scheme, and

(c)   

the Board has not ceased to be involved with the scheme (see section

132) in the period beginning with the relevant time and ending with the

5

issuing of that notice.

(3)   

For the purposes of this section, in relation to an eligible scheme an insolvency

event (“the current event”) in relation to the employer is a qualifying

insolvency event if—

(a)   

it occurs on or after the day appointed under section 113(2),

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(b)   

it—

(i)   

is the first insolvency event to occur in relation to the employer

on or after that day, or

(ii)   

does not occur within an assessment period (see section 119) in

relation to the scheme which began before the occurrence of the

15

current event, and

(c)   

it does not occur in such circumstances as may be prescribed.

(4)   

For the purposes of this section—

(a)   

the reference in subsection (2)(a) to the assets of the scheme is a

reference to those assets excluding any assets representing the value of

20

any rights in respect of money purchase benefits under the scheme, and

(b)   

“the relevant time” means the time immediately before the qualifying

insolvency event occurs.

(5)   

This section is subject to sections 130 and 131 (cases where Board must refuse

to assume responsibility for a scheme).

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115     

Duty to assume responsibility for schemes following application or

notification

(1)   

This section applies where, in relation to an eligible scheme, the trustees or

managers of the scheme—

(a)   

make an application under subsection (1) of section 116 (a “section 116

30

application”), or

(b)   

receive a notice from the Board under subsection (5)(a) of that section

(a “section 116 notification”).

(2)   

The Board must assume responsibility for the scheme in accordance with this

Chapter if—

35

(a)   

the value of the assets of the scheme at the relevant time was less than

the amount of the protected liabilities at that time (see sections 118 and

127),

(b)   

after the relevant time the Board issues a notice under section 117

confirming that a scheme rescue is not possible in relation to the

40

scheme, and

(c)   

the Board has not ceased to be involved with the scheme (see section

132) in the period beginning with the relevant time and ending with the

issuing of that notice.

(3)   

In subsection (2)—

45

 

 

Pensions Bill
Part 2 — The Board of the Pension Protection Fund
Chapter 3 — Pension protection

78

 

(a)   

the reference in paragraph (a) to the assets of the scheme is a reference

to those assets excluding any assets representing the value of any rights

in respect of money purchase benefits under the scheme, and

(b)   

“the relevant time” means the time immediately before the section 116

application was made or, as the case may be, the section 116 notification

5

was received.

(4)   

An application under section 116(1) or notification under section 116(5)(a) is to

be disregarded for the purposes of subsection (1) if it is made or given during

an assessment period (see section 119) in respect of the scheme which began

before the application was made or notification was given.

10

(5)   

This section is subject to sections 130 and 131 (cases where Board must refuse

to assume responsibility for a scheme).

116     

Applications and notifications for the purposes of section 115

(1)   

Where the trustees or managers of an eligible scheme become aware that—

(a)   

the employer in relation to the scheme is unlikely to continue as a going

15

concern, and

(b)   

the prescribed requirements are met in relation to the employer,

   

they must make an application to the Board for it to assume responsibility for

the scheme under section 115.

(2)   

Where the Board receives an application under subsection (1), it must give a

20

copy of the application to—

(a)   

the Regulator, and

(b)   

the employer.

(3)   

An application under subsection (1) must—

(a)   

be in the prescribed form and contain the prescribed information, and

25

(b)   

be made within the prescribed period.

(4)   

Where the Regulator becomes aware that—

(a)   

the employer in relation to an eligible scheme is unlikely to continue as

a going concern, and

(b)   

the requirements mentioned in subsection (1)(b) are met in relation to

30

the employer,

   

it must give the Board a notice to that effect.

(5)   

Where the Board receives a notice under subsection (4), it must—

(a)   

give the trustees or managers of the scheme a notice to that effect, and

(b)   

give the employer a copy of that notice.

35

(6)   

The duty imposed by subsection (1) does not apply where the trustees or

managers of an eligible scheme become aware as mentioned in that subsection

by reason of a notice given to them under subsection (5).

(7)   

The duty imposed by subsection (4) does not apply where the Regulator

becomes aware as mentioned in that subsection by reason of a copy of an

40

application made by the trustees or managers of the eligible scheme in question

given to the Regulator under subsection (2).

(8)   

Regulations may require notices under this section to be in the prescribed form

and contain the prescribed information.

 

 

 
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