C5C4C6C7Part 2The Board of the Pension Protection Fund

Annotations:
Modifications etc. (not altering text)
C7

Pt. 2 applied in part (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 42(1), 53, 57 (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1)); coming into force immediately after s. 29 of 2011 c. 19 - see S.I. 2014/1683, art. 2

C2C1C3Chapter 3Pension protection

Annotations:
Modifications etc. (not altering text)
C2

Pt. 2 modified in part (9.3.2005 for specified purposes, 1.4.2005 for specified purposes, 6.4.2005 in so far as not already in force (except ch. 4)) by The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 (S.I. 2005/441), regs. 1, 2-60, 71, 72

C1

Pt. 2 modified (8.3.2005 for specified purposes, 6.4.2005 in so far as not already in force) by The Pension Protection Fund (Partially Guaranteed Schemes) (Modification) Regulations 2005 (S.I. 2005/277), regs. 1(1), 2-11

C3

Pt. 2 applied in part (with modifications) (20.7.2005 for specified purposes, 1.9.2005 for specified purposes, 5.12.2005 for specified purposes) by The Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986), regs. 1(1), 4, Sch. 1

Reconsideration

152C1C2Duty to assume responsibility following reconsideration

I11

This section applies where an application is made in respect of a scheme in accordance with section 151.

F11A

Subsection (2) applies where the application is accompanied by a protected benefits quotation.

I12

The Board must assume responsibility for the scheme in accordance with this Chapter if it is satisfied that the value of the assets of the scheme at the reconsideration time is less than the aggregate of—

a

the amount quoted in the protected benefits quotation accompanying the application,

b

the amount at that time of the liabilities of the scheme which are not liabilities to, or in respect of, members of the scheme, and

c

the estimated costs of winding up the scheme at that time.

F32A

Subsection (2B) applies where—

a

the application is accompanied by evidence in the prescribed form which shows that the trustees or managers of the scheme have taken all reasonable steps to obtain a protected benefits quotation but were unable to do so, and

b

the Board is satisfied that that is the case.

2B

The Board must assume responsibility for the scheme in accordance with this Chapter if it is satisfied that the value of the assets of the scheme at the reconsideration time is less than the amount of the protected liabilities at that time.

I13

Where the Board makes a determination for the purposes of subsection (2) F4or (2B), it must issue F5a notice to that effect (a “determination notice”) and give a copy of that notice to—

a

the trustees or managers of the scheme, and

b

the Regulator.

F64

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I15

But where the Board is satisfied of the matters mentioned in subsection (2) F8or (2B), it is not required to assume responsibility for the scheme F9under that subsection until the determination notice issued under subsection (3) becomes binding.

I16

For the purposes of subsection (5) a determination notice 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.

I17

Where a determination notice issued under subsection (3) 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 trustees or managers of the scheme, and

b

the Regulator.

F78

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I19

The Board may—

a

for the purposes of subsection (2), obtain its own valuation of the assets of the scheme as at the reconsideration time (within the meaning of section 151), and

b

for the purposes of subsection (2)(b), obtain its own valuation of the liabilities of the scheme as at that time;

and where it does so, subsections (9)(b), (10) and (11) of section 151 apply in relation to the valuation as they apply in relation to the scheme accounts (within the meaning of that section).

I110

F10Where subsection (2) applies, regulations under subsection (4) of section 143, and guidance under subsection (6) of that section, apply for the purposes of this section in relation to the estimated costs within subsection (2)(c) as they apply for the purposes of section 143 in relation to protected liabilities within section 131(1)(c).

F210A

The Board may, for the purposes of subsection (2B), obtain its own valuation of the assets of the scheme and the protected liabilities of the scheme as at the reconsideration time (within the meaning of section 151).

10B

A valuation under subsection (10A) must be prepared in accordance with such requirements as may be prescribed.

10C

Section 143(3) to (6) applies in relation to a determination under subsection (2B) and a valuation under subsection (10A) as it applies in relation to a determination under section 143(2)(a) and an actuarial valuation obtained under section 143(2)(b).

10D

In the application of section 143 by virtue of subsection (10C)—

a

references to the relevant time are to be read as references to the reconsideration time (within the meaning of section 151), and

b

references to the pre-approval period are to be read as references to the period which begins immediately after the reconsideration time, and ends immediately before the Board first issues a determination notice under this section.

I111

In this section references to the assets of the scheme do not include assets representing the value of any rights in respect of money purchase benefits under the scheme rules.

I112

This section is subject to sections 146 and 147 (refusal to assume responsibility for a scheme).