Amendments proposed to the Pensions Bill - continued	House of Commons
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Content and effect of a restoration order

   

Mr Secretary Smith

NC14

To move the following Clause:—

    '(1)   This section applies where a restoration order is made under section [Restoration orders where transactions at an undervalue] in respect of a transaction involving assets of a scheme.

    (2)   Where the restoration order imposes an obligation on a person to do something, the order must specify the period within which the obligation must be complied with.

    (3)   Where the restoration order imposes an obligation on a person ("A") to transfer or pay a sum of money to a person specified in the order ("B"), the sum is to be treated as a debt due from A to B.

    (4)   Where the trustees or managers of the scheme are the persons to whom the debt is due, the Regulator may on their behalf, exercise such powers as the trustees or managers have to recover the debt.

    (5)   But during any assessment period (within the meaning of section 119) in relation to the scheme, the rights and powers of the trustees or managers of the scheme in relation to any debt due to them by virtue of a restoration order are exercisable by the Board of the Pension Protection Fund to the exclusion of the trustees or managers and the Regulator.

    (6)   Where, by virtue of subsection (5), any amount is transferred or paid to the Board in respect of a debt due by virtue of a restoration order, the Board must pay the amount to the trustees or managers of the scheme.'.

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Contribution notice where failure to comply with restoration order

   

Mr Secretary Smith

NC15

To move the following Clause:—

    '(1)   This section applies where—

(a)	a restoration order is made under section [Restoration orders where transactions at an undervalue] in respect of a transaction involving assets of a scheme ("the transaction"), and

(b)	a person fails to comply with an obligation imposed on him by the order which is not an obligation to transfer or pay a sum of money.

    (2)   The Regulator may issue a notice to the person stating that the person is under a liability to pay the sum specified in the notice (a "contribution notice")—

(a)	to the trustees or managers of the scheme, or

(b)	where the Board of the Pension Protection Fund has assumed responsibility for the scheme under Chapter 3 of Part 2 (pension protection), to the Board.

    (3)   The sum specified by the Regulator in a contribution notice may be either the whole or a specified part of the shortfall sum in relation to the scheme.

    (4)   The shortfall sum in relation to the scheme is the amount which the Regulator estimates to be the amount of the decrease in the value of the assets of the scheme as a result of the transaction having been entered into.'.

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Content and effect of a section [Contribution notice where failure to comply with restoration order] contribution notice

   

Mr Secretary Smith

NC16

To move the following Clause:—

    '(1)   This section applies where a contribution notice is issued to a person under section [Contribution notices where failure to comply with restoration order].

    (2)   The contribution notice must—

(a)	contain a statement of the matters which it is asserted constitute the failure to comply with the restoration order under section [Restoration orders where transactions at an undervalue] in respect of which the notice is issued, and

(b)	specify the sum which the person is stated to be under a liability to pay.

    (3)   Where the contribution notice states that the person is under a liability to pay the sum specified in the notice to the trustees or managers of the scheme, the sum is to be treated as a debt due from the person to the trustees or managers of the scheme.

    (4)   In such a case, the Regulator may, on behalf of the trustees or managers of the scheme, exercise such powers as the trustees or managers have to recover the debt.

    (5)   But during any assessment period (within the meaning of section 119) in relation to the scheme, the rights and powers of the trustees or managers of the scheme in relation to any debt due to them by virtue of a contribution notice, are exercisable by the Board of the Pension Protection Fund to the exclusion of the trustees or managers and the Regulator.

    (6)   Where, by virtue of subsection (5), any amount is paid to the Board in respect of a debt due by virtue of a contribution notice, the Board must pay the amount to the trustees or managers of the scheme.

    (7)   Where the contribution notice states that the person is under a liability to pay the sum specified in the notice to the Board, the sum is to be treated as a debt due from the person to the Board.'.

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Debt due from the employer in the case of multi-employer schemes

   

Mr Secretary Smith

NC17

To move the following Clause:—

'After section 75 of the Pensions Act 1995 (c.26) (deficiencies in the assets) insert—

    "75A Deficiencies in the assets: multi-employer schemes

    (1)   Regulations may modify section 75 (deficiencies in the assets) as it applies in relation to multi-employer schemes.

    (2)   The regulations may in particular provide for the circumstances in which a debt is to be treated as due under section 75 from an employer in relation to a multi-employer scheme (a "multi-employer debt").

    (3)   Those circumstances may include circumstances other than those in which the scheme is being wound up or a relevant event occurs (within the meaning of section 75).

    (4)   For the purposes of regulations under this section, regulations under section 75(5) may prescribe alternative manners for determining, calculating and verifying—

(a)	the liabilities and assets of the scheme to be taken into account, and

(b)	their amount or value.

    (5)   The regulations under this section may in particular—

(a)	provide for the application of each of the prescribed alternative manners under section 75(5) to depend upon whether prescribed requirements are met;

(b)	provide that, where in a particular case a prescribed alternative manner under section 75(5) is applied, the Authority may in prescribed circumstances issue a direction—

(i)	that any resulting multi-employer debt is to be unenforceable for such a period as the Authority may specify, and

(ii)	that the amount of the debt is to be re-calculated applying a different prescribed manner under section 75(5) if prescribed requirements are met within that period.

    (6)   The prescribed requirements mentioned in subsection (5) may include a requirement that a prescribed arrangement, the details of which are approved in a notice issued by the Authority, is in place.

    (7)   The regulations may provide that the Authority may not approve the details of such an arrangement unless prescribed conditions are met.

    (8)   Those prescribed conditions may include a requirement that—

(a)	the arrangement identifies one or more persons to whom the Authority may issue a contribution notice under the regulations, and

(b)	the Authority are satisfied of prescribed matters in respect of each of those persons.

    (9)   For the purposes of subsection (8) a "contribution notice" is a notice stating that the person to whom it is issued is under a liability to pay the sum specified in the notice to—

(a)	the trustees of the multi-employer scheme in question, or

(b)	where the Board of the Pension Protection Fund has assumed responsibility for the scheme under Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection), to the Board.

    (10)   The regulations may provide for the Authority to have power to issue a contribution notice to a person identified in an arrangement as mentioned in subsection (8) if—

(a)	the arrangement ceases to be in place or the Authority consider that the arrangement is no longer appropriate, and

(b)	the Authority are of the opinion that it is reasonable to impose liability on the person to pay the sum specified in the notice.

    (11)   Where a contribution notice is issued to a person under the regulations as mentioned in subsection (8), the sum specified in the notice is to be treated as a debt due from that person to the person to whom it is to be paid as specified in the notice.

    (12)   Where the regulations provide for the issuing of a contribution notice by the Authority as mentioned in subsection (8)—

(a)	the regulations must—

(i)	provide for how the sum specified by the Authority in a contribution notice is to be determined,

(ii)	provide for the circumstances (if any) in which a person to whom a contribution notice is issued is jointly and severally liable for the debt,

(iii)

provide for the matters which the notice must contain, and

(iv)	provide for who may exercise the powers to recover the debt due by virtue of the contribution notice, and

(b)	the regulations may apply with or without modifications some or all of the provisions of sections 42 to 46 of the Pensions Act 2004 (contribution notices where non-compliance with financial support direction) in relation to contribution notices issued under the regulations.

    (13)   In this section "multi-employer scheme" means a trust scheme which applies to earners in employments under different employers.

    (14)   This section is without prejudice to the powers conferred by—

section 75(5) (power to prescribe the manner of determining, calculating and verifying assets and liabilities etc),section 75(10) (power to modify section 75 as it applies in prescribed circumstances),section 118(1)(a) (power to modify any provisions of this Part in their application to multi-employer trust schemes), andsection 125(3) (power to extend for the purposes of this Part the meaning of "employer" to include former employers).".'.

Prepared 18 May 2004