Explanatory Note
(This note is not part of the Regulations)
These Regulations make provision in relation to the payment by the Board of the Pension Protection Fund of fraud compensation under Chapter 4 of Part III of the Pensions (Northern Ireland) Order 2005 (“the Order”). Fraud compensation is payable from 1st September 2005 where an employer in relation to an occupational pension scheme is insolvent, or unlikely to continue as a going concern, and the scheme has suffered a loss as a result of an act or omission which qualifies as a prescribed offence under regulation 3 of these Regulations.
Regulation 2 specifies the schemes and types of schemes which cannot apply for fraud compensation payments.
Regulation 3 provides that the prescribed offence for the purpose of Article 165 of the Order is any offence involving dishonesty.
Regulation 4 provides for the conditions which must be satisfied by an employer, who is an employer in relation to a scheme which is not an eligible scheme, and is unlikely to continue as a going concern.
Regulation 5 specifies who may make an application for fraud compensation and what information an application must contain.
Regulation 6 specifies what must be contained in a notice confirming that a scheme status notice has become binding.
Regulation 7 sets out how the Board will calculate amounts paid as fraud compensation.
Regulation 8 sets out the liabilities in respect of which interim fraud compensation payments can be made and also makes other provision as regards the making of interim payments.
Regulation 9 provides for the effect of determinations under Article 167 of the Order for the purpose of any reviews under Chapter 6 of Part III of the Order.
Regulation 10 provides that where the loss is attributable to a section or part of a hybrid scheme, fraud compensation payments should be added to the assets of that section or part.
Regulation 11 provides for where an unsecured part of a partially guaranteed scheme suffers a loss and an application is made for fraud compensation payments.
Regulation 12 provides that, for the purpose of these Regulations, the approved part of a partially approved scheme is to be treated as if it were a scheme in its own right.
Regulation 13 modifies the application of Articles 165, 166 and 168 of the Order where a stakeholder pension scheme, established under a trust, does not have an employer.
Regulations 14 to 20 provide for where multi-employer schemes suffer a loss and an application is made for fraud compensation payments.
Regulations 21 to 23 make consequential amendments to the Pension Protection Fund (Reviewable Matters) Regulations (Northern Ireland) 2005, the Pension Protection Fund (Provision of Information) Regulations (Northern Ireland) 2005 and Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations (Northern Ireland) 2005.
The Pensions (2005 Order) (Commencement No. 1 and Consequential and Transitional Provisions) Order (Northern Ireland) 2005 (S.R. 2005 No. 48 (C. 5)) provides for some of the enabling provisions under which these Regulations are made to be brought fully into operation as follows—
Article 280(1)(b) and (3) on 8th March 2005; and
Articles 2(5)(a), 172(1), 185(1), 188(2)(a) and (3) and 280(1)(a) on 6th April 2005,
and Articles 165, 166, 168 and 169 of the Order were brought into operation, for the purpose of authorising the making of regulations, on 14th July 2005 and for all other purposes on 1st September 2005, by virtue of the Pensions (2005 Order) (Commencement No. 5 and Appointed Day) Order (Northern Ireland) 2005 (S.R. 2005 No. 321 (C. 24)).
As these Regulations are made before the end of the period of six months beginning with the coming into operation of the provisions of the Order by virtue of which they are made, the requirement to consult under Article 289(1) of the Order does not apply by virtue of paragraph (2)(c) of that Article.