(1)If at any time the trustees or managers of a closed scheme become aware that the value of the assets of the scheme is less than the amount of the protected liabilities in relation to the scheme, they must, before the end of the prescribed period beginning with that time, make an application to the Board for it to assume responsibility for the scheme.
(2)Where the Board receives an application under subsection (1), it must give a copy of the application to the Regulator.
(3)If at any time the Regulator becomes aware that the value of the assets of the scheme is less than the amount of the protected liabilities in relation to the scheme, it must give the Board a notice to that effect.
(4)Where the Board receives a notice under subsection (3), it must give the trustees or managers of the scheme a notice to that effect.
(5)The duty imposed by subsection (1) does not apply where the trustees or managers of a closed scheme become aware as mentioned in that subsection by reason of a notice given to them under subsection (4).
(6)The duty imposed by subsection (3) does not apply where the Regulator becomes aware as mentioned in that subsection by reason of a copy of an application made by the trustees or managers of the closed scheme being given to it under subsection (2).
(7)Regulations may require notices and applications under this section to be in the prescribed form and contain the prescribed information.
(8)If the trustees or managers of a closed scheme fail to comply with subsection (1), section 10 of the Pensions Act 1995 (c. 26) (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure compliance.
(9)In this section—
“assets”, in relation to a scheme, do not include assets representing the value of any rights in respect of money purchase benefits under the scheme rules;
“closed scheme” has the same meaning as in section 155.
(1)Where the trustees or managers of a closed scheme—
(a)make an application under subsection (1) of section 157, or
(b)receive a notice from the Board under subsection (4) of that section,
the Board must assume responsibility for the scheme in accordance with this Chapter if the value of the assets of the scheme at the relevant time was less than the amount of the protected liabilities at that time.
(2)In subsection (1) the reference 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 rules.
(3)For the purposes of determining whether the condition in subsection (1) is satisfied, the Board must, as soon as reasonably practicable, obtain an actuarial valuation (within the meaning of section 143) of the scheme as at the relevant time.
(4)Subject to subsection (6), subsection (3) of section 143 applies for those purposes as it applies for the purposes mentioned in subsection (2) of that section (and the definitions contained in paragraphs (b) and (d) of subsection (11) of that section apply accordingly).
(5)Subject to subsection (6), the following provisions apply in relation to a valuation obtained under subsection (3) as they apply in relation to a valuation obtained under section 143—
(a)subsections (4) to (7) and (11)(b) and (d) of that section;
(b)section 144 (approval of valuation), other than subsection (2)(b)(iii) (duty to give copy of approved valuation to employer’s insolvency practitioner);
(c)section 145 (binding valuations), other than subsection (3)(c) (duty to give copy of binding valuation to employer’s insolvency practitioner).
(6)In the application of sections 143 and 145 by virtue of subsection (4) or (5)—
(a)subsections (3), (5) and (11)(b) and (d) of section 143 apply as if the references to “the relevant time” were references to that term as defined in subsection (8) below, and
(b)subsection (2) of section 145 applies as if the reference to section 128(2)(a) included a reference to subsection (1) of this section.
(7)An application under subsection (1) of section 157, or notification under subsection (4) of that section, is to be disregarded for the purposes of subsection (1) if it is made or given during an assessment period (see sections 132 and 159) in relation to the scheme which began before the application was made or notification was given.
(8)In this section—
“closed scheme” has the same meaning as in section 155;
“the relevant time” means the time immediately before the application mentioned in subsection (1)(a) was made, or (as the case may be) the notice mentioned in subsection (1)(b) was received, by the trustees or managers of the scheme.
(1)Subsection (3) applies where—
(a)an application is made under subsection (1) of section 157 in relation to a closed scheme, or
(b)the trustees or managers of the scheme receive a notice under subsection (4) of that section.
(2)For the purposes of subsection (1) an application under subsection (1) of section 157, or notification under subsection (4) of that section, is to be disregarded if it is made or given during an assessment period (see section 132 and this section) in relation to the scheme which began before the application was made or notification was given.
(3)An assessment period—
(a)begins when the application is made or the notice is received by the trustees or managers of the scheme, and
(b)ends when—
(i)the trustees or managers receive a transfer notice under section 160, or
(ii)the conditions in section 154(5) (closed scheme with sufficient assets to meet protected liabilities etc) are satisfied in relation to the scheme,
whichever first occurs.
(4)In this section “closed scheme” has the same meaning as in section 155.