(26-32)

House of Commons

Session 2002 - 03
Internet Publications
Other Bills before Parliament

(  26  )

Clause 132
155
Page 90, line 35, leave out “under the scheme”
156
Page 90, line 41, leave out “under the scheme or another scheme”
157
Page 91, line 1, leave out “under the scheme”
158
Page 91, line 3, after “scheme” insert “rules”
Clause 133
159
Page 91, line 35, leave out “under the scheme”
Clause 134
160
Page 93, line 4, at end insert—


““pensionable service” is to be construed in accordance with Schedule

7;”
161
Page 93, leave out line 5
Clause 135
162
Page 93, line 28, at end insert—

“(2A)
For those purposes, regulations may provide that any of the following are

to be regarded as assets or protected liabilities of the scheme at the relevant

time if prescribed requirements are met—

(a)
a debt due to the trustees or managers of the scheme by virtue of a

contribution notice issued under section 35, 42 or 50 during the pre-

approval period;

(b)
an obligation arising under financial support for the scheme (within

the meaning of section 41) put in place during the pre-approval

period in accordance with a financial support direction issued

under section 39;

(c)
an obligation imposed by a restoration order made under section 47

during the pre-approval period in respect of a transaction involving

assets of the scheme.”
163
Page 93, line 29, leave out subsection (3)
164
Page 93, line 44, at end insert—

“(4A)
Regulations under subsection (4) may provide, in particular, that when

calculating the amount or value of assets or protected liabilities of an

eligible scheme at the relevant time which consist of any of the following—

(a)
a debt (including any contingent debt) due to the trustees or

managers of the scheme from the employer under section 75 of the

Pensions Act 1995 (c. 26) (deficiencies in the scheme assets),

(b)
a debt due to the trustees or managers of the scheme by virtue of a

contribution notice issued under section 35, 42 or 50,

(c)
an obligation arising under financial support for the scheme (within

the meaning of section 41) put in place in accordance with a

financial support direction issued under section 39, or

(d)
an obligation imposed by a restoration order made under section 47

in respect of a transaction involving assets of the scheme,

(  27  )


account must be taken in the prescribed manner of prescribed events which

occur during the pre-approval period.”
165
Page 94, line 1, leave out “those matters” and insert “the matters mentioned in

paragraphs (a) and (b) of that subsection”
166
Page 94, line 5, leave out “which limits the amount of its” and insert “rules which

limits the amount of the scheme’s”
167
Page 94, line 8, at end insert—

“( )
Nothing in subsection (2) requires the actuarial valuation to be obtained

during any period when the Board considers that an event may occur

which, by virtue of regulations under subsection (2A) or (4), may affect the

value of the assets or the amount of the protected liabilities of the scheme

for the purposes of the valuation.”
168
Page 94, line 10, leave out “under the scheme”
169
Page 94, line 14, leave out “In this section” and insert “For the purposes of this

section—

(a)
“actuarial valuation”, in relation to the scheme, means a written

valuation of the assets and protected liabilities of the scheme

which—

(i)
is in the prescribed form and contains the prescribed

information, and

(ii)
is prepared and signed by—

(a)
a person with prescribed qualifications or

experience, or

(b)
a person approved by the Secretary of State,

(b)
“the pre-approval period”, in relation to the scheme, means the

period which—

(i)
begins immediately after the relevant time, and

(ii)
ends immediately before the time the Board first approves a

valuation of the scheme under section 136 after the relevant

time,

(c)
“the relevant time”—

(i)
in a case within subsection (1) of section 119, has the

meaning given in subsection (4)(b) of that section, and

(ii)
in a case within subsection (1) of section 120, has the

meaning given in subsection (3)(b) of that section, and

(d)
”
170
Page 94, line 15, at end insert “rules”
Clause 137
171
Page 95, line 4, after “as” insert “reasonably”
172
Page 95, line 5, at end insert—

“( )
the Regulator,”
173
Page 95, line 6, at end insert “and”
Clause 138
174
Page 95, line 19, leave out “withdrawal notice” and insert “notice to that effect (a

(  28  )

“withdrawal notice”)”
175
Page 95, line 25, leave out subsection (3) and insert—

“(3)
For the purposes of this Part a withdrawal notice issued by virtue of this

section is not binding until—

(a)
the period within which the issue of the notice may be reviewed by

virtue of Chapter 6 has expired, and

(b)
if the issue of the notice is so reviewed—

(i)
the review and any reconsideration,

(ii)
any reference to the PPF Ombudsman in respect of the issue

of the notice, and

(iii)
any appeal against his determination or directions,


has been finally disposed of and the notice has not been revoked,

varied or substituted.

(4)
Where a withdrawal notice issued by virtue of this section becomes

binding, the Board must as soon as reasonably practicable give a notice to

that effect together with a copy of the binding 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.

(5)
Notices under this section must be in the prescribed form and contain such

information as may be prescribed.

(6)
A notice given under subsection (4) must state the time from which the

Board ceases to be involved with the scheme (see section 140).”
Clause 139
176
Page 96, line 7, leave out “withdrawal notice” and insert “notice to that effect (a

“withdrawal notice”)”
177
Page 96, line 13, leave out subsection (3) and insert—

“(3)
For the purposes of this Part a withdrawal notice issued under this section

is not binding until—

(a)
the period within which the issue of the notice may be reviewed by

virtue of Chapter 6 has expired, and

(b)
if the issue of the notice is so reviewed—

(i)
the review and any reconsideration,

(ii)
any reference to the PPF Ombudsman in respect of the issue

of the notice, and

(iii)
any appeal against his determination or directions,


has been finally disposed of and the notice has not been revoked,

varied or substituted.

(4)
Where a withdrawal notice issued under this section becomes binding, the

Board must as soon as reasonably practicable give a notice to that effect

together with a copy of the binding 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.

(  29  )

(5)
Notices under this section must be in the prescribed form and contain such

information as may be prescribed.

(6)
A notice given under subsection (4) must state the time from which the

Board ceases to be involved with the scheme (see section 140).”
After Clause 139
178
Insert the following new Clause—


“Withdrawal following issue of section 116(4) notice

(1)
This section applies where—

(a)
a notice under section 116(4) (inability to confirm status of scheme)

is issued in relation to an eligible scheme and becomes binding, and

(b)
a withdrawal event has not occurred in relation to the scheme in

respect of a withdrawal notice which has been issued during the

period—

(i)
beginning with the occurrence of the last insolvency event

in relation to the employer, and

(ii)
ending immediately before the notice under section 116(4)

becomes binding,


and the occurrence of such a withdrawal event in respect of a

withdrawal notice issued during that period is not a possibility (see

section 140).

(2)
The Board must determine whether any insolvency event—

(a)
has occurred in relation to the employer since the issue of the notice

under section 116(4), or

(b)
is likely to so occur before the end of the period of six months

beginning with the date on which this section applies.

(3)
If the Board determines under subsection (2) that no insolvency event has

occurred or is likely to occur as mentioned in that subsection, it must issue

a notice to that effect (a “withdrawal notice”).

(4)
Where—

(a)
no withdrawal notice is issued under subsection (3) before the end

of the period mentioned in subsection (2)(b), and

(b)
no further insolvency event occurs in relation to the employer

during that period,


the Board must issue a notice to that effect (a “withdrawal notice”).

(5)
Where the Board is required to issue a withdrawal notice under this

section, it must give a copy of the notice to—

(a)
the Regulator,

(b)
the trustees or managers of the scheme, and

(c)
the employer.

(6)
For the purposes of this Part, a withdrawal notice issued under this section

is not binding until—

(a)
the period within which the issue of the notice may be reviewed by

virtue of Chapter 6 has expired, and

(b)
if the issue of the notice is so reviewed—

(i)
the review and any reconsideration,

(  30  )

(ii)
any reference to the PPF Ombudsman in respect of the issue

of the notice, and

(iii)
any appeal against his determination or directions,


has been finally disposed of and the notice has not been revoked,

varied or substituted.

(7)
Where a withdrawal notice issued under this section becomes binding, the

Board must as soon as reasonably practicable give a notice to that effect

together with a copy of the binding notice to—

(a)
the Regulator,

(b)
the trustees or managers of the scheme, and

(c)
the employer.

(8)
Notices under this section must be in the prescribed form and contain such

information as may be prescribed.

(9)
A notice given under subsection (7) must state the time from which the

Board ceases to be involved with the scheme (see section 140).”
Clause 140
179
Page 96, line 23, leave out subsections (2) to (7) and insert—

“(2)
For this purpose the following are withdrawal events in relation to a

scheme—

(a)
a withdrawal notice issued under section 116(2)(b) (scheme rescue

has occurred) becoming binding;

(b)
a withdrawal notice issued under section 122(3) (scheme rescue has

occurred) becoming binding;

(c)
a withdrawal notice issued under or by virtue of section 138 or 139

(refusal to assume responsibility) becoming binding;

(d)
a withdrawal notice issued under section (Withdrawal following issue

of section 116(4) notice) (no insolvency event has occurred or is likely

to occur) becoming binding,


and references in this Chapter to a “withdrawal event” are to be construed

accordingly.

(3)
Subsection (4) applies where a withdrawal notice mentioned in subsection

(2) is issued in relation to a scheme and becomes binding and—

(a)
an insolvency event in relation to the employer occurs during the

interim period and, if subsection (4) did not apply, the event would

not be a qualifying insolvency event within the meaning given by

subsection (3) of section 119 solely because the condition in sub-

paragraph (ii) of paragraph (b) of that subsection would not be

satisfied, or

(b)
an application under section 121(1) is made, or a notification under

section 121(5)(a) is given, in relation to the scheme during the

interim period and, if subsection (4) did not apply, the application

or notification would be disregarded for the purposes of—

(i)
subsection (1) of section 120 by virtue of subsection (4) of

that section, and

(ii)
subsection (4) of section 124 by virtue of subsection (5) of

that section.

(  31  )

(4)
In such a case, the withdrawal notice is to be treated for the purposes of

subsections (1) and (2), as if the time when it became binding was the time

immediately before—

(a)
in a case falling within subsection (3)(a), the occurrence of the

insolvency event, and

(b)
in a case falling within subsection (3)(b), the making of the

application under section 121(1) or, as the case may be, the giving

of the notification under section 121(5)(a).

(5)
For the purposes of subsection (3), the “interim period” in relation to a

scheme means the period beginning with the issuing of the withdrawal

notice in relation to the scheme and ending with that notice becoming

binding.

(6)
For the purposes of this Chapter—

(a)
the occurrence of a withdrawal event in relation to a scheme in

respect of a withdrawal notice issued during a particular period

(“the specified period”) is a possibility until each of the following

are no longer reviewable—

(i)
any withdrawal notice which has been issued in relation to

the scheme during the specified period;

(ii)
any failure to issue such a withdrawal notice during the

specified period;

(iii)
any notice which has been issued by the Board under

Chapter 2 or this Chapter which is relevant to the issue of a

withdrawal notice in relation to the scheme during the

specified period or to such a withdrawal notice which has

been issued during that period becoming binding;

(iv)
any failure to issue such a notice as is mentioned in sub-

paragraph (iii), and

(b)
the issue of, or failure to issue, a notice is to be regarded as

reviewable—

(i)
during the period within which it may be reviewed by

virtue of Chapter 6, and

(ii)
if the matter is so reviewed, until—

(a)
the review and any reconsideration,

(b)
any reference to the PPF Ombudsman in respect of

the matter, and

(c)
any appeal against his determination or directions,


has been finally disposed of.”
Clause 141
180
Page 97, line 29, after “scheme” insert “rules”
181
Page 97, line 33, at end insert—

“(1A)
Where the winding up of the scheme began before the end of the

assessment period (whether by virtue of section 210 (backdating the

winding up of eligible schemes) or otherwise), the reference in subsection

(1)(b) to the amount of any benefit payable to a member, or to a person in

respect of a member, under the scheme rules is a reference to the amount

so payable taking account of any reduction required by virtue of sections

73 to 73B of the Pensions Act 1995 (c. 26) (provisions relating to the winding

up of certain schemes).

(  32  )

(1B)
Where—

(a)
an assessment period comes to an end by virtue of the Board

ceasing to be involved with an eligible scheme, and

(b)
during the assessment period the amount of benefit paid to a

member, or to a person in respect of a member, under the scheme

rules exceeded the amount that would have been payable in the

absence of section 130(2A) (requirement to disregard winding up

when paying benefits during assessment period),


the trustees or managers of the scheme must, at the end of that period, take

such steps as they consider appropriate (including steps to adjust future

payments under the scheme rules) to recover an amount equal to the excess

from the person to whom it was paid.

(1C)
Subsections (1) to (1B) are without prejudice to section 73A(2)(b) of the

Pensions Act 1995 (c. 26) (requirement to adjust benefits paid to reflect

liabilities which can be met on winding up).”
182
Page 97, line 35, after “scheme” insert “rules”
183
Page 97, line 39, at end insert “rules”
184
Page 98, line 2, at end insert—

“( )
modifying section 31 of the Welfare Reform and Pensions Act 1999

(c. 30) (reduction of benefit where a person’s shareable rights are

subject to a pension debit), in its application in relation to cases

where benefits accrue under the scheme by virtue of regulations

under subsection (2).”
Clause 142
185
Page 98, line 14, leave out paragraph (a) and insert—

“(a)
a scheme failure notice has been issued under section 116(2)(a) in

relation to the scheme, that notice has become binding and the

trustees or managers have received a copy of the binding notice

under section (Binding notices confirming status of scheme)(3),”
186
Page 98, line 25, leave out from “a” to end of line 28 and insert “scheme failure

notice under subsection (2) of section 122 in relation to the scheme, that notice has

become binding and the trustees or managers have received a copy of the binding

notice under subsection (7) of that section,”
187
Page 98, line 37, leave out from beginning to “within” in line 38 and insert “audited

scheme accounts for a period which—

(i)
begins with such date as may be determined in accordance

with regulations, and

(ii)
ends with a date which falls”
188
Page 98, line 44, at end insert “of the binding”
189
Page 99, line 1, leave out “were notified” and insert “received a copy”
190
Page 99, line 4, at end insert “of the binding”
191
Page 99, line 6, leave out “were notified” and insert “received a copy”
192
Page 99, line 7, at end insert—

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

a copy of the application to the Regulator.”