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(  60  )

 
 

(a)   

arose before the commencement of the winding up of the

 

scheme, and

 

(b)   

was not discharged before the commencement of the

 

winding up period.

 

(8)   

Regulations may provide that, in prescribed circumstances,

 

where—

 

(a)   

an occupational pension scheme to which section 73 applies

 

is being wound up,

 

(b)   

a member of the scheme died before the winding up began,

 

and

 

(c)   

during the winding up period a person becomes entitled

 

under the scheme rules to a benefit of a prescribed

 

description in respect of the member,

 

   

his entitlement to payment of all or part of the benefit is, for the

 

purposes of subsection (6), to be treated as having arisen

 

immediately before the commencement of the winding up period.

 

(9)   

If, immediately before the winding up period in relation to an

 

occupational pension scheme to which section 73 applies, a person

 

is entitled to an amount but has postponed payment of it, he is not,

 

for the purposes of subsection (6), to be regarded as having become

 

entitled to payment of the amount before that period.

 

(10)   

For the purposes of this section—

 

(a)   

“winding up provisions” means this section and sections 73,

 

73A and 74, and

 

(b)   

subsection (10) of section 73 applies as it applies for the

 

purposes of that section.”

 

(2)   

In section 74 of the Pensions Act 1995 (c. 26) (discharge of liabilities by

 

insurance, etc on winding up)—

 

(a)   

for subsection (1) substitute—

 

“(1)   

This section applies where an occupational pension scheme

 

to which section 73 applies is being wound up.”,

 

(b)   

in subsection (2) omit “(including increases in pensions)”,

 

(c)   

in subsection (3), after paragraph (d) insert—

 

“(e)   

by the payment of a cash sum in circumstances

 

where prescribed requirements are met.”,

 

(d)   

in subsection (4)—

 

(i)   

for “rules of the scheme” substitute “scheme rules”, and

 

(ii)   

omit “(including increases in pensions)”,

 

(e)   

omit subsection (5)(b) and the word “or” immediately preceding it,

 

and

 

(f)   

after subsection (5) insert—

 

“(6)   

For the purposes of this section—

 

(a)   

references to assets of the scheme do not include any

 

assets representing the value of any rights in respect

 

of money purchase benefits under the scheme rules,

 

and

 

(b)   

references to liabilities of the scheme do not include

 

any liabilities in respect of money purchase benefits

 

under the scheme rules;


 

(  61  )

 
 

   

and “scheme rules” has the same meaning as in the Pensions

 

Act 2004 (see section 303 of that Act).””

Clause 259

389

Page 192, leave out lines 24 to 29 and insert—

 

“(a)   

either—

 

(i)   

no relevant event within subsection (6A)(a) or (b)

 

occurred in relation to the employer during the

 

period beginning with the appointed day and

 

ending with the commencement of the winding up

 

of the scheme, or

 

(ii)   

during the period—

 

(a)   

beginning with the occurrence of the last

 

such relevant event which occurred during

 

the period mentioned in sub-paragraph (i),

 

and

 

(b)   

ending with the commencement of the

 

winding up of the scheme,

 

   

a cessation notice was issued in relation to the

 

scheme and became binding, and

 

(b)   

no relevant event within subsection (6A)(c) has occurred in

 

relation to the employer during the period mentioned in

 

paragraph (a)(i).”

390

Page 192, line 31, leave out “qualifying relevant event” and insert “relevant event

 

(“the current event”)”

391

Page 192 , line 34, leave out “and” and insert—

 

“( )   

the current event—

 

(i)   

occurred on or after the appointed day, and

 

(ii)   

did not occur in prescribed circumstances,”

392

Page 192, line 38, at end insert—

 

“(c)   

if the current event is within subsection (6A)(a) or (b),

 

either—

 

(i)   

no relevant event within subsection (6A)(a) or (b)

 

occurred in relation to the employer during the

 

period beginning with the appointed day and

 

ending immediately before the current event, or

 

(ii)   

a cessation event has occurred in relation to the

 

scheme in respect of a cessation notice issued during

 

the period—

 

(a)   

beginning with the occurrence of the last

 

such relevant event which occurred during

 

the period mentioned in sub-paragraph (i),

 

and

 

(b)   

ending immediately before the current

 

event, and

 

(d)   

no relevant event within subsection (6A)(c) has occurred in

 

relation to the employer during the period mentioned in

 

paragraph (c)(i),”

393

Page 192, line 41, leave out “A” and insert “Where the current event is within

 

subsection (6A)(a) or (b), the”


 

(  62  )

394

Page 192, line 43, leave out “qualifying relevant” and insert “current”

395

Page 192, line 43, at end insert—

 

“(4AA)   

 Subsection (4B) applies if, in a case within subsection (4)—

 

(a)   

the current event is within subsection (6A)(a) or (b), and

 

(b)   

the scheme was not being wound up immediately before

 

that event.”

396

Page 192, line 44, leave out from beginning to first “the” in line 45 and insert

 

“Where this subsection applies,”

397

Page 193, leave out lines 1 to 15 and insert—

 

“(a)   

a scheme failure notice being issued in relation to the

 

scheme after the current event and the following conditions

 

being satisfied—

 

(i)   

the scheme failure notice is binding,

 

(ii)   

no relevant event within subsection (6A)(c) has

 

occurred in relation to the employer before the

 

scheme failure notice became binding, and

 

(iii)   

a cessation event has not occurred in relation to the

 

scheme in respect of a cessation notice issued during

 

the period—

 

(a)   

beginning with the occurrence of the current

 

event, and

 

(b)   

ending immediately before the issuing of the

 

scheme failure notice,

 

   

and the occurrence of such a cessation event in

 

respect of a cessation notice issued during that

 

period is not a possibility, or

 

(b)   

the commencement of the winding up of the scheme

 

before—

 

(i)   

any scheme failure notice or cessation notice issued

 

in relation to the scheme becomes binding, or

 

(ii)   

any relevant event within subsection (6A)(c) occurs

 

in relation to the employer.””

398

Page 193, line 16, at end insert—

 

“( )   

In subsection (6)—

 

(a)   

after “scheme” insert “rules”, and

 

(b)   

at the end insert—

 

   

“In this subsection “scheme rules” has the same meaning as

 

in the Pensions Act 2004 (see section 303 of that Act).””

399

Page 193 , line 17, leave out subsection (4) and insert—

 

“(4)   

After subsection (6) insert—

 

“(6A)   

For the purposes of this section, a relevant event occurs in relation

 

to the employer in relation to an occupational pension scheme if

 

and when—

 

(a)   

an insolvency event occurs in relation to the employer,

 

(b)   

the trustees or managers of the scheme make an application

 

under subsection (1) of section 121 of the Pensions Act 2004

 

(“the 2004 Act”) or receive a notice from the Board of the


 

(  63  )

 
 

Pension Protection Fund under subsection (5)(a) of that

 

section, or

 

(c)   

a resolution is passed for a voluntary winding up of the

 

employer in a case where a declaration of solvency has been

 

made under section 89 of the Insolvency Act 1986

 

(members’ voluntary winding up).

 

(6B)   

For the purposes of this section—

 

(a)   

a “cessation notice”, in the case of a relevant event within

 

subsection (6A)(a), means—

 

(i)   

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

 

of the 2004 Act (scheme rescue has occurred);

 

(ii)   

a withdrawal notice issued under section

 

(Withdrawal following issue of section 116(4) notice) of

 

that Act (no insolvency event has occurred or is

 

likely to occur);

 

(iii)   

a notice issued under section 116(4) of that Act

 

(inability to confirm status of scheme) in a case

 

where the notice has become binding and section

 

(Withdrawal following issue of section 116(4) notice) of

 

that Act does not apply,

 

(b)   

a “cessation notice” in the case of a relevant event within

 

subsection (6A)(b), means a withdrawal notice issued under

 

section 122(3) of the 2004 Act (scheme rescue has occurred),

 

(c)   

a cessation event occurs in relation to a scheme when a

 

cessation notice in relation to the scheme becomes binding,

 

(d)   

the occurrence of a cessation event in relation to a scheme in

 

respect of a cessation notice issued during a particular

 

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

 

the following are no longer reviewable—

 

(i)   

any cessation notice which has been issued in

 

relation to the scheme during the specified period;

 

(ii)   

any failure to issue such a cessation notice during

 

the specified period;

 

(iii)   

any notice which has been issued by the Board

 

under Chapter 2 or 3 of Part 2 of the 2004 Act which

 

is relevant to the issue of a cessation notice in

 

relation to the scheme during the specified period or

 

to such a cessation 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),

 

(e)   

the issue 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 of Part 2 of the 2004 Act, and

 

(ii)   

if the matter is so reviewed, until—

 

(a)   

the review and any reconsideration,

 

(b)   

any reference to the Ombudsman for the

 

Board of the Pension Protection Fund in

 

respect of the matter, and

 

(c)   

any appeal against his determination or

 

directions,


 

(  64  )

 
 

   

has been finally disposed of, and

 

(f)   

a “scheme failure notice” means a scheme failure notice

 

issued under section 116(2)(a) or 122(2) of the 2004 Act

 

(scheme rescue not possible).

 

(6C)   

For the purposes of this section—

 

(a)   

section 115 of the 2004 Act applies for the purposes of

 

determining if and when an insolvency event has occurred

 

in relation to the employer,

 

(b)   

“appointed day” means the day appointed under section

 

118(2) of the 2004 Act (no pension protection under Chapter

 

3 of Part 2 of that Act if the scheme begins winding up

 

before the day appointed by the Secretary of State),

 

(c)   

references to a relevant event in relation to an employer do

 

not include a relevant event which occurred in relation to

 

him before he became the employer in relation to the

 

scheme,

 

(d)   

references to a cessation notice becoming binding are to the

 

notice in question mentioned in subsection (6B)(a) or (b) and

 

issued under Part 2 of the 2004 Act becoming binding

 

within the meaning given in that Part of that Act, and

 

(e)   

references to a scheme failure notice becoming binding are

 

to the notice in question mentioned in subsection (6B)(f) and

 

issued under Part 2 of the 2004 Act becoming binding

 

within the meaning given in that Part of that Act.

 

(6D)   

Where—

 

(a)   

a resolution is passed for a voluntary winding up of the

 

employer in a case where a declaration of solvency has been

 

made under section 89 of the Insolvency Act 1986

 

(members’ voluntary winding up), and

 

(b)   

either—

 

(i)   

the voluntary winding up of the employer is stayed

 

other than in prescribed circumstances, or

 

(ii)   

a meeting of creditors is held in relation to the

 

employer under section 95 of that Act (creditors’

 

meeting which has the effect of converting a

 

members’ voluntary winding up into a creditors’

 

voluntary winding up),

 

   

this section has effect as if that resolution had never been passed

 

and any debt which arose under this section by virtue of the passing

 

of that resolution shall be treated as if it had never arisen.””

Clause 262

400

Page 200, line 8, at end insert—

 

“(6)   

The persons to whom section 1 of the Superannuation Act 1972 (c. 11)

 

(persons to or in respect of whom benefits may be provided by schemes

 

under that section) applies are to include a deputy to the Pensions

 

Ombudsman.

 

(7)   

The Pensions Ombudsman must pay to the Minister for the Civil Service,

 

at such times as he may direct, such sums as he may determine in respect


 

(  65  )

 
 

of the increase attributable to subsection (6) in the sums payable out of

 

money provided by Parliament under that Act.”

401

Page 200, line 8, at end insert—

 

“( )   

The Pensions Ombudsman must also pay to the Minister for the Civil

 

Service, at such times as he may direct, such sums as he may determine in

 

respect of the amount payable out of money provided by Parliament under

 

that Act which is attributable to the following persons being persons to

 

whom section 1 of that Act applies—

 

(a)   

the Pensions Ombudsman;

 

(b)   

the employees of the Pensions Ombudsman.”

Clause 266

402

Page 201, line 30, leave out from “subsection (1)” to end of line 35 and insert “—

 

(a)   

omit “and” at the end of sub-paragraph (i) of paragraph (a),

 

(b)   

at the end of sub-paragraph (ii) of that paragraph insert—

 

“(iii)   

in the case where the pension becomes a

 

pension in payment on or after the

 

commencement day, is not a money

 

purchase scheme, and”, and

 

(c)   

for paragraph (b) substitute—

 

“(b)   

the whole, or any part of, the pension is

 

attributable—

 

(i)   

to pensionable service on or after the

 

appointed day, or

 

(ii)   

in the case of money purchase benefits where

 

the pension is in payment before the

 

commencement day, to payments in respect

 

of employment carried on on or after the

 

appointed day, and”

403

Page 201, line 42, at end insert—

 

“( )   

In subsection (2) after “money purchase benefits” insert “where the pension

 

is in payment before the commencement day”.”

404

Page 202, line 13, leave out from “day” to end of line 15

405

Page 202, line 21, leave out from “day” to end of line 23

406

Page 202, line 28, leave out from “day” to “, and” in line 30

407

Page 202, line 32, leave out from “day” to end of line 33

Clause 267

408

Page 203, line 21, leave out “subsections (2) and (3)” and insert “subsection (2)”

409

Page 203, line 23, at end insert—

 

““( )   

the pension became a pension in payment before the

 

commencement day,”

410

Page 203, line 34, leave out subsections (3) and (4)

411

Page 204, line 34, after “supplementary)” insert “—


 

(  66  )

 
 

(a)   

in the definition of “appropriate percentage”, for the words from

 

“revaluation period” to the end substitute “latest revaluation period

 

specified in the order under paragraph 2 of Schedule 3 to the

 

Pension Schemes Act 1993 (revaluation of accrued pension benefits)

 

which is in force at the time of the increase (expressions used in this

 

definition having the same meaning as in that paragraph of that

 

Schedule)”, and

 

(b)   

Clause 268

412

Page 204, line 43, at end insert—

 

“( )   

In subsection (2), for “This” substitute “Subject to subsection (2A), this”.”

413

Page 204, line 45, after “(2A)” insert—

 

“    

Subsection (2) does not apply to pensions which—

 

(a)   

are money purchase benefits, and

 

(b)   

become pensions in payment on or after the commencement

 

day.

 

(2B)   

414

Page 205, line 12, at end insert—

 

   

“““money purchase benefit” has the meaning given by section 181(1)

 

of the Pension Schemes Act 1993;””

415

Page 205, line 15, leave out “relate.” and insert “are (directly or indirectly)

 

attributable;”

Clause 274

416

Page 207, line 26, after “payments” insert “entirely from public funds with no

 

charges, levies or contributions to be made by the private sector”

417

Page 207, line 27, at end insert—

 

“( )   

Payments made under this section shall be made to eligible scheme

 

members regardless of their income or capital.”

418

Page 208, line 4, leave out “such period as may be prescribed” and insert “the

 

prescribed period ending immediately before the day appointed under section

 

118(2)”

419

Page 208, line 5, leave out “and”

420

Page 208, line 7, at end insert “, and

 

( )   

prescribed details of which have been notified to such person as

 

may be prescribed by a person of a prescribed description—

 

(i)   

in the prescribed form and manner, and

 

(ii)   

before the prescribed date;”

421

Page 208, line 42, at end insert—

 

“( )   

for or in connection with—

 

(i)   

the review of, or appeals against, any determination, or

 

failure to make a determination, in connection with the

 

financial assistance scheme, or


 
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