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The Pension Protection Fund (Entry Rules) Regulations (Northern Ireland) 2005

Type Ni-Statutory-Rule

Publication 2005-03-16

Last updated 2024-01-04

State In force

Jurisdiction Northern Ireland

Department Government Printer for Northern Ireland

Source legislation.gov.uk

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Made: 16th March 2005

Coming into operation in accordance with regulation 1(1)

The Department for Social Development, in exercise of the powers conferred on it by Articles 2(5)(a), 104(3) and (4), 105(5), 106(3), (5) and (8), 107(5), 110(1)(b), (3) and (5), 113(1)(b), (3) and (8), 114(5) and (8), 117(3), 118(3)(a), 119(4), 122(10)(b) and (12), 123(6), 130(1) and (5), 131(1)(a) and (5), 132(8), 134(5) and (6)(a) to (c), 135(4), (6), (8) and (9)(b) and 287(2) and (3) of the Pensions (Northern Ireland) Order 2005¹ and of all other powers enabling it in that behalf, hereby makes the following Regulations:

Citation, commencement and interpretation

1

(1) These Regulations may be cited as the Pension Protection Fund (Entry Rules) Regulations (Northern Ireland) 2005 and shall come into operation –

(a) for the purposes of this regulation (other than paragraphs (3) and (4)) and regulation 2, on 1st April 2005;

(b) for all other purposes, on 6th April 2005.

(2) In these Regulations –

“the Order” means the Pensions (Northern Ireland) Order 2005;

“the 1988 Act” means the Income and Corporation Taxes Act 1988²;

“the FSMA 2000” means the Financial Services and Markets Act 2000³;

“the appointed day” is the day appointed for the coming into operation of section 27 of the Pensions Act (Northern Ireland) 2012 (definition of money purchase benefits);

“the assessment date” means the date on which the assessment period in relation to the scheme or section, or (where there has been more than one such assessment period) the last one, began;

“cash balance benefits” has the meaning given by regulation 2 of the Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014;

“EEA agreement” means the agreement on the European Economic Area signed at Oporto on 2nd May 1992, together with the Protocol adjusting that Agreement signed at Brussels on 17th March 1993, as modified or supplemented from time to time;

“EEA credit institution” means a credit institution, authorised under Directive 2006/48/EC of the European Parliament and of the Council dated 14th June 2006 relating to the taking up and pursuit of the business of credit institutions, which has its relevant office in an EEA state other than the United Kingdom;

“EEA insurer” means an undertaking, other than a UK insurer, pursuing the activity of direct insurance means a supervisory authority (within the meaning of Article 13(10) of the Solvency 2 directive) of an EEA State;

“EEA regulator” means a competent authority (as referred to in Article 2 of the Solvency 2 Directive) which has received authorisation under Article 14 of the Solvency 2 Directive from its home state regulator; ;

“EEA state”, in relation to any time, means—a state which at that time is a member State, orany other state which at that time is a party to the EEA agreement;

“home state regulator” means the relevant EEA regulator in the EEA state where the EEA insurer’s head office is located;

“the Insolvency Regulation” means Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings;

“the Multi-employer Regulations” means the Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations (Northern Ireland) 2005;

“multi-employer scheme” has the meaning given by Article 280(4) (modification of the Order in relation to certain categories of schemes);

“multi-employer section” means a section of a segregated scheme which has at least 2 employers in relation to that section;

“non-segregated scheme” means a multi-employer scheme which is not a segregated scheme;

“normal pension age” has the meaning given by Article 122(11) (payment of scheme benefits);

“pensionable service” has the meaning given by section 66(2) of the Pension Schemes Act;

“public body” means a government department or any non-departmental public body established by a statutory provision to perform functions conferred on it under that statutory provision or any other statutory provision;

“relevant office” means—in relation to a body corporate, its registered office or, if it has no registered office, its head office, andin relation to a person other than a body corporate, the person’s head office;

“relevant public authority” has the meaning given by Article 280(4);

“restricted information” has the meaning given by Article 179(4);

“segregated scheme” means a multi-employer scheme which is divided into 2 or more sections where –any contributions payable to the scheme by an employer in relation to the scheme or by a member are allocated to that employer’s or that member’s section, anda specified proportion of the assets of the scheme is attributable to each section of the scheme and cannot be used for the purposes of any other section;

“segregated part” –in relation to a non-segregated scheme, means a part of the scheme which is created when the scheme rules require the trustees or managers, in circumstances where an employer in relation to the scheme ceases to participate in the scheme, to segregate such part of the assets of the scheme as is attributable to the liabilities of the scheme to provide pensions or other benefits to, or in respect of, the pensionable service of members of the scheme by reference to that employer, andin relation to a multi-employer section of a segregated scheme, means a part of the section which is created when the rules of the scheme relating to that section require the trustees or managers of the section, in circumstances where an employer in relation to the section ceases to participate in the scheme, to segregate such part of the assets of the section as is attributable to the liabilities of the section to provide pensions or other benefits to, or in respect of, the pensionable service of members of the section by reference to that employer;

“the Solvency 2 Directive” means Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II);

“tax registered scheme” means a pension scheme that is registered under Chapter 2 of Part 4 of the Finance Act 2004 (registration of pension schemes).

“UK insurer” means a person who has permission under Part IV of the FSMA 2000 (permission to carry on regulated activities) to effect or carry out contracts of insurance, but does not include a person who, in accordance with that permission, carries on that activity exclusively in relation to reinsurance contracts.

(3) In Part III of the Order and these Regulations, “employer”, in relation to—

(a) an occupational pension scheme which is not a multi-employer scheme, or

(b) a single-employer section of a segregated scheme,

which has no active members, includes the person who was the employer of persons in the description of employment to which the scheme or section relates immediately before the time at which the scheme or section ceased to have any active members in relation to it.

(4) In these Regulations, “employer”, in relation to a non-segregated scheme or a multi-employer section of a segregated scheme—

(a) in an assessment period, includes any person who before the assessment date has ceased to be the employer of persons in the description of employment to which the scheme or section relates unless condition A, B, C, D, E or F is satisfied where—

(i) condition A is that a debt under Article 75 of the 1995 Order became due from that employer and the full amount of the debt has been paid before the assessment date;

(ii) condition B is that—

(aa) such a debt became due;

(bb) a legally enforceable agreement has been entered into the effect of which is to reduce the amount which may be recovered in respect of the debt, and

(cc) the reduced amount has been paid in full before the assessment date;

(iii) condition C is that such a debt became due but before the assessment date it is excluded from the value of the assets of the scheme or section because it is unlikely to be recovered without disproportionate costs or within a reasonable time;

(iv) condition D is that at the time at which any such person ceased to be the employer of persons in the description of employment to which the scheme or section relates the value of the assets of the scheme or section was such that no such debt was treated as becoming due;

(v) condition E is that—

(aa) there is a restructuring within regulation 6ZB or 6ZC of the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005 (employment-cessation events: exemptions);

(bb) in that restructuring, the employer was the exiting employer for the purposes of those Regulations (see the definition of “exiting employer” in regulation 2(3A) of those Regulations), and

(cc) regulation 6ZA(3) or (4) of those Regulations (employment-cessation events: general) does not apply in relation to that restructuring;

(vi) condition F is that a flexible apportionment arrangement has taken effect in accordance with regulation 6E of the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005 where the employer was the leaving employer within the meaning given in paragraph (7) of that regulation;

(b) in any other case, includes any person who has ceased to be the employer of persons in the description of employment to which the scheme or section relates unless condition A, B, C, D, E or F is satisfied where—

(i) condition A is that a debt under Article 75 of the 1995 Order became due from that employer and the full amount of the debt has been paid;

(ii) condition B is that—

(aa) such a debt became due;

(bb) a legally enforceable agreement has been entered into the effect of which is to reduce the amount which may be recovered in respect of the debt, and

(cc) the reduced amount has been paid in full;

(iii) condition C is that such a debt became due but it is excluded from the value of the assets of the scheme or section because it is unlikely to be recovered without disproportionate costs or within a reasonable time;

(iv) condition D is that at the time at which any such person ceased to be the employer of persons in the description of employment to which the scheme or section relates the value of the assets of the scheme or section was such that no such debt was treated as becoming due.

(v) condition E is that—

(aa) there is a restructuring within regulation 6ZB or 6ZC of the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005;

(bb) in that restructuring, the employer was the exiting employer for the purposes of those Regulations (see the definition of “exiting employer” in regulation 2(3A) of those Regulations), and

(cc) regulation 6ZA(3) or (4) of those Regulations does not apply in relation to that restructuring.

(vi) condition F is that a flexible apportionment arrangement has taken effect in accordance with regulation 6E of the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005 where the employer was the leaving employer within the meaning given in paragraph (7) of that regulation.

(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In these Regulations, any reference to a numbered Article is a reference to the Article of the Order bearing that number.

Schemes which are not eligible schemes

2

(1) For the purposes of Article 110(1)(b) (eligible schemes), an occupational pension scheme is not an eligible scheme if it is –

(a) a public service pension scheme under the provisions of which there is no requirement for assets related to the intended rate or amount of benefit under the scheme to be set aside in advance (disregarding requirements relating to voluntary contributions);

(b) a scheme which is made under Article 9 of the Superannuation (Northern Ireland) Order 1972⁴ (superannuation of persons employed in local government service, etc.) which provides pensions to persons mentioned in paragraph (1)(a) of that Article;

(c) a scheme which is established under section 48 of the Northern Ireland Act 1998⁵ (pensions of members), or which was established under Part II of the Ministerial Salaries and Members' Pensions Act (Northern Ireland) 1965⁶ or Article 3 of the Assembly Pensions (Northern Ireland) Order 1976⁷;

(d) a scheme in respect of which a relevant public authority has given a guarantee or made any other arrangements for the purposes of securing that the assets of the scheme are sufficient to meet its liabilities;

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) a scheme which provides relevant benefits within the meaning of section 612(1) of the 1988 Act but which is neither a tax registered scheme nor a relevant statutory scheme within the meaning of section 611A⁸ of that Act;

(fa) a tax registered scheme which, immediately before 6th April 2006, was a former approved superannuation fund within the meaning of paragraph 1(1)(b) of Schedule 36 to the Finance Act 2004 (deemed registration of existing schemes);

(g) a scheme –

(i) which has been categorised by the Commissioners of Inland Revenue for the purposes of its approval as a centralised scheme for non-associated employers;

(ii) which was not contracted-out at any time before the second abolition date , and

(iii) under the provisions of which the only benefits that may be provided on or after retirement (other than money purchase benefits derived from the payment of voluntary contributions by any person) are lump sum benefits which are not calculated by reference to a member’s salary;

(h) a scheme –

(i) the only benefits provided by which (other than money purchase benefits) are death benefits, and

(ii) under the provisions of which no member has accrued rights (other than rights to money purchase benefits);

(i) a scheme with such a superannuation fund as is mentioned in section 615(6)⁹ of the 1988 Act (exemption from tax in respect of certain pensions);

(j) a scheme which does not have its main place of administration registered in the United Kingdom;

(k) a scheme with fewer than 2 members;

(l) a scheme with fewer than 12 members where all the members are trustees of the scheme and either –

(i) the provisions of the scheme provide that any decision made by the trustees is made by the unanimous agreement of the trustees who are members of the scheme, or

(ii) the scheme has a trustee who is independent in relation to the scheme for the purposes of Article 23¹⁰ of the 1995 Order (power to appoint independent trustees) and is registered in the register maintained by the Regulator in accordance with regulations made under paragraph (4) of that Article;

(m) a scheme with fewer than 12 members where all the members are directors of a company which is the sole trustee of the scheme and either –

(i) the provisions of the scheme provide that any decision made by the company in its capacity as trustee is made by the unanimous agreement of the directors of that company who are members of the scheme, or

(ii) one of the directors of the company is independent in relation to the scheme for the purposes of Article 23 of the 1995 Order and is registered in the register maintained by the Regulator in accordance with regulations made under paragraph (4) of that Article; and

(n) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(o) a scheme which, on or after the day appointed¹¹ by the Department for the purposes of Article 110(2), does not have an employer in relation to the scheme and which has not been authorised under Article 137 (closed schemes) to continue as a closed scheme.

(1A) Paragraph (1)(d) shall not apply in relation to a scheme where—

(a) the scheme was in existence immediately prior to IP completion day, and

(b) the application of paragraph (1)(d) immediately prior to IP completion day would have given rise to State aid that was incompatible with the internal market within the meaning of Article 107 of the Treaty on the Functioning of the European Union as it had effect in the United Kingdom immediately prior to IP completion day.

(2) Except as otherwise provided by paragraphs (3) and (4), an occupational pension scheme which would be an eligible scheme but for this paragraph is not an eligible scheme where, at any time, the trustees or managers of the scheme enter into a legally enforceable agreement ...the effect of which is to reduce the amount of any debt due to the scheme... under Article 75 of the 1995 Order (deficiencies in the assets) which may be recovered by, or on behalf of, those trustees or managers.

(2A) Except as otherwise provided in paragraphs (3) and (4), an occupational pension scheme which becomes an eligible scheme in accordance with regulation 42(1)(b) of the Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014 (eligibility: schemes treated as money purchase schemes) is not an eligible scheme if—

(a) the trustees or managers of the scheme during the period beginning with the appointed day and ending immediately before 1st April 2015 have entered into a legally enforceable agreement, and

(b) the effect of that agreement (at any time) is to reduce the amount of any debt due to the scheme under Article 75 of the 1995 Order (deficiencies in the assets) which may be recovered by, or on behalf of, the trustees or managers of the scheme.

(3) paragraphs (2) and (2A) shall not apply where –

(a) before the beginning of an assessment period –

(i) the trustees or managers of the scheme enter into a legally enforceable agreement ...the effect of which is to reduce the amount of the debt due to the scheme under Article 75 of the 1995 Order which may be recovered by, or on behalf of, those trustees or managers;

(ii) the value of the scheme’s assets would be sufficient to secure benefits for, or in respect of, members of the scheme which correspond to the amount of compensation which would be payable in relation to the scheme in accordance with the pension compensation provisions if the Board were to assume responsibility for the scheme in accordance with Chapter 3 (pension protection) of Part III of the Order;

(iii) an individual appointed to act as the actuary in relation to the scheme (“the actuary”) has provided the Board with a written estimate of the current value of the assets and the protected liabilities of the scheme together with a statement about the effect which the agreement would have on the value of the scheme’s assets as recorded in that estimate, and

(iv) the Board has determined to validate the estimate and statement provided;

(b) before the beginning of an assessment period, the trustees or managers of the scheme enter into a legally enforceable agreement..., as part of an arrangement under Article 418 of the Companies Order (power of company to compromise with creditors and members), the effect of which is to reduce the amount of the debt due to the scheme under Article 75 of the 1995 Order which may be recovered by, or on behalf of, those trustees or managers, or

(c) after the beginning of an assessment period, or a further assessment period¹², the Board... has entered into a legally enforceable agreement ...on behalf of the trustees or managers of the scheme the effect of which is to reduce the amount of the debt due to the scheme under Article 75 of the 1995 Order which may be recovered by, or on behalf of, those trustees or managers.

(4) paragraphs (2) and (2A) shall not apply in relation to an eligible scheme where before the beginning of an assessment period in relation to the scheme any of the following is in place—

(a) a scheme apportionment arrangement under the Occupational Pension Schemes (Employer Debt) Regulations (Northern Ireland) 2005;

(b) a regulated apportionment arrangement under those Regulations;

(d) an approved withdrawal arrangement under those Regulations.

(e) a restructuring within regulation 6ZB or 6ZC of those Regulations (employment-cessation events: exemptions).

(f) a flexible apportionment arrangement within regulation 6E of those Regulations.

(5) Where the Board has determined to validate, or not to validate, an estimate and statement provided to it by the actuary under paragraph (3)(a)(iii), it must issue a notice to this effect and must give a copy of that notice to –

(a) the trustees or managers of the scheme;

(b) the actuary;

(d) the Regulator.

(6) A notice issued by the Board under paragraph (5) shall be in writing and shall contain the following information –

(a) the name or type of the notice issued;

(b) the date on which the notice is issued;

(d) the Board’s determination to validate, or not to validate, the estimate and statement received from the actuary;

(e) a statement of reasons for the Board’s determination;

(f) the address for communications at which the Board may be contacted in connection with the issue of the notice;

(g) whether the issue of the notice by the Board is a reviewable matter and, if so, the time limit for applying for a review of, or appeal against, the issue of the notice;

(h) the date on which the notice issued will become binding, and

(i) whether or not the notice issued contains any restricted information and, if so, the nature of the restrictions.

(7) The Board’s determination to validate, or not to validate, the estimate and statement provided to it by the actuary under paragraph (3)(a)(iii) does not take effect –

(a) until –

(i) the Board has issued a notice under paragraph (5) relating to the determination, and

(ii) the period within which the issue of that notice may be reviewed by virtue of Chapter 6 (reviews, appeals and maladministration) of Part III of the Order has expired, and

(b) if the issue of the notice was so reviewed, until –

(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.

(8) In their application to a segregated scheme, paragraphs (2) to (7) shall have effect as if each section of the scheme were a separate scheme.

(9) In this regulation—

“contracted-out” is to be construed in accordance with section 3B(2) of the Pension Schemes Act;

“the second abolition date” has the meaning given in section 176(1) of the Pension Schemes Act.

Schemes which cease to be eligible schemes

3

(1) Where, after the beginning of an assessment period in relation to an eligible scheme, the scheme ceases to be an eligible scheme in circumstances where –

(a) the scheme has ceased to be a tax registered scheme, ...

(b) by reason of the death of a member of the scheme, the scheme becomes a scheme described in regulation 2(1)(k), (l) or (m), or

(c) the employer in relation to the scheme, or the last remaining employer in relation to a multi-employer scheme, is dissolved,

the scheme shall, for the purposes of Part III of the Order, be treated as remaining an eligible scheme.

(2) Paragraph (1) does not affect the requirement on the Board under Article 130(1) (schemes which become eligible schemes) to refuse to assume responsibility for an eligible scheme if it is satisfied that the scheme was not an eligible scheme throughout the period prescribed in regulation 21.

(3) In its application to a segregated scheme, paragraph (1) shall have effect as if each section of the scheme were a separate scheme.

Notification of insolvency events in respect of employers

4

(1) The “notification period” in Article 104(3) (duty to notify insolvency events in respect of employers) shall be the period of 14 days beginning on whichever date is the later of –

(a) the insolvency date, and

(b) the date on which the insolvency practitioner becomes aware of the existence of the scheme.

(2) A notice issued by an insolvency practitioner under Article 104(2) shall be in writing and shall contain the following information –

(a) the name or type of the notice issued;

(b) the date on which the notice is issued;

(d) the name of the employer in relation to the scheme in respect of which the notice is issued;

(e) the nature of the insolvency event which has occurred and the date of the occurrence of that event;

(f) the name of the insolvency practitioner in relation to the employer in relation to the scheme;

(g) the date on which the insolvency practitioner in relation to the employer in relation to the scheme was appointed to act, or consented to act, in relation to that employer or, in any case where the insolvency practitioner is the official receiver, the date on which the official receiver began to act in relation to that employer;

(h) the address for communications at which the insolvency practitioner may be contacted by the Board in connection with the issue of the notice, and

(i) whether the notice issued contains any commercially sensitive information.

Prescribed insolvency events

5

(1) An insolvency event occurs –

(a) in relation to a company where—

(i) an administration order is made by the High Court in respect of the company by virtue of any statutory provision which applies Part III of the Insolvency Order (administration orders) (with or without modification);

(ii) a notice from an administrator under paragraph 84(2) of Schedule B1 to the Insolvency Order (moving from administration to creditors' voluntary liquidation) in relation to the company is registered by the registrar of companies;

(iii) the company moves from administration to winding up pursuant to an order of the High Court under Rule 2.133 of the Insolvency Rules (conversion of administration to winding up – power of court), or

(iv) an administrator or liquidator of the company, being the nominee in relation to a proposal for a voluntary arrangement under Part II of the Insolvency Order (company voluntary arrangements), summons meetings of the company and of its creditors, to consider the proposal, in accordance with Article 16(2) of that Order (summoning of meetings);

(aa) in relation to a partnership, where—

(i) the partnership moves from administration to winding up pursuant to an order of the High Court under Rule 2.65 of the Insolvency Rules (as applied by an order under Article 364 of the Insolvency Order (insolvent partnerships)) as that Rule stood before the coming into operation of the Insolvency (Amendment) Rules (Northern Ireland) 2006,or

(ii) an administrator, liquidator or trustee of the partnership, being the nominee in relation to a proposal for a voluntary arrangement under Part II of the Insolvency Order (as applied by an order under Article 364 of that Order), summons meetings of the members of the partnership and of the partnership’s creditors, to consider the proposal, in accordance with Article 16(2) of that Order (as applied by an order under Article 364 of that Order);

(b) in relation to a relevant body, where –

(i) any of the events referred to in Article 105(3) (insolvency events) occurs in relation to that body by virtue of the application (with or without modification) of any provision of the Insolvency Order by any other statutory provision, or

(ii) an administration order is made by the High Court in respect of the relevant body by virtue of any statutory provision which applies Part III of the Insolvency Order (with or without modification);

(c) in relation to a building society, where there is dissolution by consent of the members under section 87 of the Building Societies Act 1986¹³ (dissolution by consent);

(d) in relation to a friendly society, where there is dissolution by consent of the members under section 20 of the Friendly Societies Act 1992¹⁴ (dissolution by consent), and

(e) in relation to an industrial and provident society, where there is dissolution by consent of the members under section 67 of the Industrial and Provident Societies Act (Northern Ireland)1969¹⁵ (instrument of dissolution).

(2) In this regulation –

“administration order” means an order whereby the management of the company or relevant body, as the case may be, is placed in the hands of a person appointed by the High Court;

“relevant body” means –a credit union within the meaning of Article 2(2) of the Credit Unions (Northern Ireland) Order 1985¹⁶;a limited liability partnership within the meaning of Article 53(6) of the Order (Articles 34 to 52: partnerships and limited liability partnerships);a building society within the meaning of section 119 of the Building Societies Act 1986;a person who has permission to act under Part IV of the FSMA 2000 (permission to carry on regulated activities);the society of Lloyd’s and Lloyd’s members who have permission under Part XIX of the FSMA 2000 (Lloyd's);a friendly society within the meaning of the Friendly Societies Act 1992, ora society which is registered as an industrial and provident society under the Industrial and Provident Societies Act (Northern Ireland) 1969.

(3) In this regulation, a reference to Part III of the Insolvency Order (administration orders) shall, in so far as it relates to a company or society listed in Article 4(1) of the Insolvency (Northern Ireland) Order 2005 (special administration regimes), have effect as if it referred to Part III of the Insolvency Order as it had effect immediately before the coming into operation of Article 3 of the Insolvency (Northern Ireland) Order 2005 (replacement of Part III of the Insolvency Order).

Circumstances in which insolvency proceedings in relation to the employer are stayed or come to an end

6

(1) Subject to paragraph (1A), the prescribed circumstances referred to in Article 106(3)(a) (insolvency practitioner’s duty to issue notices confirming status of scheme) in which insolvency proceedings in relation to an employer in relation to an occupational pension scheme are stayed or come to an end are –

(a) in a case where the employer is a company, where –

(i) the nominee in relation to a proposal for a voluntary arrangement under Part II of the Insolvency Order (company voluntary arrangements) has submitted a report to the court under Article 15¹⁷ of that Order (procedure where nominee is not the liquidator or administrator) which states that, in his opinion, meetings of the company and its creditors should be summoned to consider the proposal, but no voluntary arrangement has effect or, where a voluntary arrangement has effect, it later ceases to have effect as a result of a court order under Article 19 of that Order (challenge of decisions);

(ii) the directors of the company have filed documents and statements in accordance with paragraph 18(1) (documents to be submitted to High Court) of Schedule A1¹⁸ to that Order (moratorium where directors propose voluntary arrangement) but –

(aa) the resulting moratorium comes to an end without a voluntary arrangement taking effect, or

(bb) where a voluntary arrangement has effect, it later ceases to have effect as a result of a court order under paragraph 48 (challenge of decisions) of Schedule A1 to that Order;

(iii) the appointment of an administrator in respect of the company ceases to have effect except where—

(aa) the company moves from administration into winding up pursuant to paragraph 84 (moving from administration to creditor’s voluntary liquidation) of Schedule B1 (administration) to that Order or pursuant to an order of the High Court under Rule 2.133 of the Insolvency Rules (conversion of administration to winding up – power of court), or

(bb) a winding up order is made by the High Court immediately upon the appointment of the administrator ceasing to have effect;

(iv) an administrative receiver within the meaning of Article 5(1) of that Order appointed in relation to the company vacates office under Article 55 of that Order (vacation of office), or

(v) all proceedings in the winding up of the company are stayed altogether or an order for the winding up of the company is rescinded or discharged except in circumstances where the High Court has made an administration order in accordance with paragraph 38 or 39 (application where company in liquidation) of Schedule B1 to that Order;

(b) in a case where the employer is an individual, where –

(i) the nominee in relation to a proposal for a voluntary arrangement under Chapter II (voluntary arrangements) of Part VIII of the Insolvency Order (individual voluntary arrangements) has submitted a report to the court under Article 230(1)¹⁹ (nominee’s report on debtor’s proposal) or 230A(3) (debtor’s proposal and nominee’s report) of that Order which states that, in his opinion, a meeting of the individual’s creditors should be summoned to consider the proposal, but no voluntary arrangement takes effect or, where a voluntary arrangement takes effect, it later ceases to have effect as a result of a court order under Article 236²⁰ of that Order (challenge of meeting’s decision);

(ii) a bankruptcy order against the individual is annulled or rescinded, or

(iii) an insolvency administration order in respect of the estate of the individual made in accordance with an order under Article 365²¹ of that Order (insolvent estates of deceased persons) is annulled or rescinded;

(i) the nominee in relation to a proposal for a voluntary arrangement under Part II of the Insolvency Order (as applied by an order under Article 364²² of that Order (insolvent partnerships)) has submitted a report to the court under Article 15 of that Order which states that, in his opinion, meetings of the partnership and its creditors should be summoned to consider the proposal, but no voluntary arrangement has effect or, where a voluntary arrangement has effect, it later ceases to have effect as a result of a court order under Article 19 of that Order (as applied by an order under Article 364 of that Order);

(ii) the members of the partnership have filed documents and statements in accordance with paragraph 18(1) of Schedule A1 to that Order (as applied by an order under Article 364 of that Order) but –

(aa) the resulting moratorium comes to an end without a voluntary arrangement taking effect, or

(bb) where a voluntary arrangement has effect, it later ceases to have effect as a result of a court order under paragraph 48 of Schedule A1 to that Order (as applied by an order under Article 364 of that Order);

(iii) an administration order in relation to a partnership under Part III of that Order (administration orders) is discharged except where—

(aa) a winding up order is made by the High Court immediately upon the discharge of the administration order, or

(bb) the discharge is pursuant to an order of the High Court for the administration to be converted into winding up under Rule 2.65(1) of the Insolvency Rules (conversion of administration into winding up – power of court) as those Rules stood before the coming into operation of the Insolvency (Amendment) Rules (Northern Ireland) 2006, or

(iv) all proceedings in a winding up of the partnership are stayed altogether or an order for the winding up of the partnership is rescinded or discharged.

(1A) This regulation does not apply in relation to an insolvency event under regulation 5A.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Applications and notifications to the Board

7

(1) Except in a case to which regulation 7A applies, the prescribed requirement for the purposes of Article 113(1)(b) and (4)(b) (applications and notifications for the purposes of Article 112) is that at least one of paragraphs (2) and (4) applies to the employer.

(2) This paragraph applies to an employer if it is not—

(a) an individual;

(b) a company as defined in section 1(1) of the Companies Act 2006;

(d) a partnership, or

(e) a relevant body as defined in regulation 5(2).

(3) For the purposes of paragraph (2)(c), an employer which is a company incorporated outside the United Kingdom is to be regarded as a company which may be wound up under Part 6 of the Insolvency Order.

(4) This paragraph applies to an employer if it is an EEA insurer or an EEA credit institution.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Applications and notifications to the Board

8

(1) Except in a case to which regulation 8A applies, the prescribed period for making an application to the Board under Article 113(1) shall be the period of—

(a) 28 days, or

(b) such longer period of not more than three months as the Board may determine is reasonable in the circumstances of a particular case,

beginning with the date on which the trustees or managers of an eligible scheme become aware that the employer in relation to the scheme is unlikely to continue as a going concern.

(2) Applications to the Board for the purposes of Article 112 shall be in writing and shall contain the following information –

(a) a description of the type or purpose of the application;

(b) the name, address and pension scheme registration number of the scheme in respect of which the application is made;

(d) a statement by the trustees or managers of the scheme that the employer in relation to the scheme is unlikely to continue as a going concern and that the requirements prescribed under Article 113(1)(b) have been met in relation to that employer;

(e) the date on which the trustees or managers of the scheme became aware that the employer in relation to the scheme is unlikely to continue as a going concern, ...

(f) the date on which the application was sent to the Board by the trustees or managers of the scheme , and

(g) if the application was not sent to the Board within the period specified in paragraph (1)(a), the reasons for this.

(3) Where the Regulator becomes aware that the employer in relation to an eligible scheme is unlikely to continue as a going concern and that the requirements prescribed under Article 113(1)(b) are met in relation to that employer, the prescribed information to be contained in the notice referred to in Article 113(4) which the Regulator must give to the Board is as follows –

(a) the name or type of the notice issued;

(b) the date on which the notice is issued;

(d) the name of the employer in relation to the scheme in respect of which the notice is issued;

(e) a statement by the Regulator that the employer in relation to the scheme is unlikely to continue as a going concern and that the requirements prescribed under Article 113(1)(b) are met in relation to that employer, and

(f) the date on which the Regulator became aware that the employer in relation to the scheme is unlikely to continue as a going concern.

(4) Where the Board receives a notice from the Regulator to which paragraph (3) applies, the prescribed information that must be contained in the notice referred to in Article 113(5) which the Board must give to the trustees or managers of the scheme concerned and copy to the employer in relation to that scheme is as follows –

(a) the name or type of the notice issued;

(b) the date on which the notice is issued;

(d) the name of the employer in relation to the scheme in respect of which the notice is issued;

(e) a statement that the Board received a notice from the Regulator under Article 113(4) and the date on which that notice was received by the Board;

(f) the date on which the Regulator became aware that the employer in relation to the scheme is unlikely to continue as a going concern;

(g) the address for communications at which the Board may be contacted in respect of the issue of the notice, and

(h) whether the notice issued by the Board contains any restricted information and, if so, the nature of the restrictions.

Confirmation of scheme status by insolvency practitioner

9

(1) The prescribed matters referred to in Article 106(5)(a) (insolvency practitioner’s duty to issue notices confirming status of scheme) which the insolvency practitioner in relation to the employer in relation to an occupational pension scheme must be able to confirm are –

(a) in circumstances where the employer is not an individual or a partnership , that –

(i) the employer has been rescued as a going concern and the employer –

(aa) retains responsibility for meeting the pension liabilities under the scheme, and

(bb) has not entered into an agreement to which regulation 2(3)(c) applies, or

(ii) another person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme;

(b) in circumstances where the employer is an individual, that –

(i) there has been a rescue of all or part of the employer’s business as a going concern and the employer –

(aa) retains responsibility for meeting the pension liabilities under the scheme, and

(bb) has not entered into an agreement to which regulation 2(3)(c) applies, or

(ii) another person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme;

(i) there has been a rescue of all or part of the employer’s business and the employer –

(aa) retains responsibility for meeting the pension liabilities under the scheme, and

(bb) has not entered into an agreement to which regulation 2(3)(c) applies, or

(ii) another person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme.

(2) The prescribed matters referred to in Article 106(5)(b) which the insolvency practitioner must be able to confirm are –

(a) in circumstances where the employer is not an individual or a partnership , that –

(i) that employer has entered into an agreement to which regulation 2(3)(c) applies, or

(ii) that employer is not continuing as a going concern and –

(aa) no other person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme, and

(bb) the insolvency practitioner is of the opinion that the employer’s pension liabilities under the scheme will not be assumed by another person;

(b) in circumstances where the employer is an individual, that –

(i) that employer has entered into an agreement to which regulation 2(3)(c) applies, or

(ii) no part of the employer’s business is being continued by that employer as a going concern and –

(aa) no other person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme, and

(bb) the insolvency practitioner is of the opinion that the employer’s pension liabilities under the scheme will not be assumed by another person;

(i) that employer has entered into an agreement to which regulation 2(3)(c) applies, or

(ii) no part of the employer’s business is being continued by one or more of the partners as a going concern and –

(aa) no other person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme, and

(bb) the insolvency practitioner is of the opinion that the employer’s pension liabilities under the scheme will not be assumed by another person.

(3) A notice issued by an insolvency practitioner under Article 106(2)(a) or (b) or by a former insolvency practitioner under Article 106(4) shall be in writing and shall contain the following information –

(a) the name or type of the notice issued;

(b) the date on which the notice is issued;

(d) the name of the employer in relation to the scheme in respect of which the notice is issued;

(e) the name of the insolvency practitioner or former insolvency practitioner and the address at which that insolvency practitioner may be contacted by the Board in connection with the issue of the notice;

(f) a statement by the insolvency practitioner or former insolvency practitioner that, as the case may be, a scheme rescue has occurred or a scheme rescue is not possible or that he has been unable to confirm that a scheme rescue has occurred or that a scheme rescue is not possible;

(g) if a scheme rescue has occurred, the date or the approximate date of the scheme rescue and, if there is a new employer in relation to the scheme, the name and address of that employer in relation to the scheme;

(h) if a scheme rescue is not possible, a statement from the insolvency practitioner or former insolvency practitioner as to why, in his opinion, that is not possible;

(i) if Article 106(4) applies and the former insolvency practitioner has not been able to confirm in relation to the scheme that a scheme rescue is not possible, a statement from that insolvency practitioner as to why, in his opinion, that is the case;

(j) a statement that the notice issued will not become binding until it has been approved by the Board, and

(k) whether, in the opinion of the insolvency practitioner or former insolvency practitioner, the notice issued contains any commercially sensitive information.

Confirmation of scheme status by Board

10

(1) This regulation applies in a case where Article 113 (applications and notifications for the purposes of Article 112) applies and where the requirements prescribed in regulation 7 or 7A have been met in relation to the employer in relation to an eligible scheme.

(2) The prescribed matters referred to in Article 114(5)(a) (Board’s duty where application or notification received under Article 113) which the Board must be able to confirm are that –

(a) all or part of the employer’s business has been rescued as a going concern and the employer –

(i) retains responsibility for meeting the pension liabilities under the scheme, and

(ii) has not entered into an agreement to which regulation 2(3)(c) applies, or

(b) the Board is satisfied that another person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme.

(3) The prescribed matters referred to in Article 114(5)(b) which the Board must be able to confirm are –

(a) in circumstances where the employer is not an individual or a partnership , that –

(i) that employer has entered into an agreement to which regulation 2(3)(c) applies, or

(ii) that employer is not continuing as a going concern and –

(aa) no other person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme, and

(bb) the Board is of the opinion that the employer’s pension liabilities under the scheme will not be assumed by another person;

(b) in circumstances where the employer is an individual, that –

(i) that employer has entered into an agreement to which regulation 2(3)(c) applies, or

(ii) no part of the employer’s business is being continued by that employer as a going concern and –

(aa) no other person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme, and

(bb) the Board is of the opinion that the employer’s pension liabilities under the scheme will not be assumed by another person;

(i) that employer has entered into an agreement to which regulation 2(3)(c) applies, or

(ii) no part of the employer’s business is being continued by one or more of the partners as a going concern and –

(aa) no other person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme, and

(bb) the Board is of the opinion that the employer’s pension liabilities under the scheme will not be assumed by another person.

(4) A notice issued by the Board under Article 114(2) or (3) shall be in writing and shall contain the following information –

(a) the name or type of the notice issued;

(b) the date on which the notice is issued;

(d) the name of the employer in relation to the scheme in respect of which the notice is issued;

(e) a statement by the Board that a scheme rescue has occurred or that a scheme rescue is not possible;

(f) if a scheme rescue has occurred, the date or the approximate date of the scheme rescue and, if there is a new employer in relation to the scheme, the name and address of that employer;

(g) if a scheme rescue is not possible, a statement by the Board to that effect;

(h) the address for communications at which the Board may be contacted in connection with the issue of the notice;

(i) whether the issue of the notice by the Board is a reviewable matter and, if so, the time limit for applying for a review of, or appeal against, the issue of the notice;

(j) the date on which the notice issued will become binding, and

(k) whether the notice issued contains any restricted information and, if so, the nature of the restrictions.

Confirmation of scheme status by insolvency practitioner

11

(1) This regulation applies to –

(a) a section of a segregated scheme with only one employer in relation to that section;

(b) a multi-employer section of a segregated scheme, or

where the scheme rules contain a provision for the partial winding up of the scheme, or the section, in circumstances where an employer in relation to the scheme, or the section, ceases to participate in the scheme.

(2) Where, by virtue of Article 106²³ (insolvency practitioner’s duty to issue notices confirming status of scheme), an insolvency practitioner is required to issue a notice under paragraph (2)(a) (a “scheme failure notice”) or (2)(b) (a “withdrawal notice”) of that Article in relation to –

(a) a section of a segregated scheme;

(b) a segregated part of a multi-employer section of a segregated scheme, or

to which this regulation applies, regulation 9 shall have effect and shall be read as if for “the scheme”, in each place where it appears, there were substituted “the section” or, as the case may be, “the segregated part”.

(3) Where, by virtue of Article 104(3A) or, as the case may be, 113(1B)²⁴, the trustees or managers of a scheme, or a section of a scheme, to which this regulation applies are required to give a non-segregation notice to the Board, the notice shall be in writing and shall contain the following information –

(a) the name or type of the notice issued;

(b) the date on which the notice is issued;

(d) the name of the employer in relation to the scheme in respect of which the notice is issued, and

(e) a statement that the trustees or managers have decided not to exercise the option to segregate under the scheme.

(4) Where, under Article 114 (Board’s duty where application or notification received under Article 113), the Board is required to issue a notice under paragraph (2) (a “scheme failure notice”) or (3) (a “withdrawal notice”) of that Article in relation to –

(a) a section of a segregated scheme;

(b) a segregated part of a multi-employer section of a segregated scheme, or

to which this regulation applies, regulation 10 shall have effect and shall be read as if for “the scheme”, in each place where it appears, there were substituted “the section” or, as the case may be, “the segregated part”.

Confirmation of scheme status by Board – multi-employer schemes

12

(1) This regulation applies to –

(a) a non-segregated scheme, or

(b) a multi-employer section of a segregated scheme,

the rules of which do not contain a provision for the partial winding up of the scheme, or the section, in circumstances where an employer in relation to the scheme, or the section, ceases to participate in the scheme.

(2) Where, under Article 106(2)(a) (insolvency practitioner’s duty to issue notices confirming status of scheme), an insolvency practitioner is required to issue a scheme failure notice in relation to a multi-employer section of a segregated scheme or a non-segregated scheme to which this regulation applies, regulation 9(2) shall have effect and shall be read as if –

(a) in the case of a multi-employer section of a segregated scheme –

(i) in sub-paragraph (a)(ii)(aa), for “no other person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme” there were substituted “no other person or other persons has or have assumed responsibility for meeting all of the pension liabilities under the section”;

(ii) in sub-paragraph (a)(ii)(bb), for “the insolvency practitioner is of the opinion that the employer’s pension liabilities under the scheme will not be assumed by another person” there were substituted “the insolvency practitioner is of the opinion that all of the pension liabilities under the section will not be assumed by another person”;

(b) in the case of a non-segregated scheme –

(i) in sub-paragraph (a)(ii)(aa), for “no other person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme” there were substituted “no other person or other persons has or have assumed responsibility for meeting all of the pension liabilities under the scheme”;

(ii) in sub-paragraph (a)(ii)(bb), for “the insolvency practitioner is of the opinion that the employer’s pension liabilities under the scheme will not be assumed by another person” there were substituted “the insolvency practitioner is of the opinion that all of the pension liabilities under the scheme will not be assumed by another person”.

(3) Where, under Article 106(2)(b), an insolvency practitioner is required to issue a scheme rescue notice in relation to a multi-employer section of a segregated scheme or a non-segregated scheme to which this regulation applies, regulation 9(1) shall have effect and shall be read as if –

(a) in the case of a multi-employer section of a segregated scheme –

(i) for “retains responsibility for meeting the pension liabilities under the scheme”, in each place where it appears, there were substituted “assumes responsibility for meeting all of the pension liabilities under the section”;

(ii) for “another person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme”, in each place where it appears, there were substituted “another person or other persons has or have assumed responsibility for meeting all of the pension liabilities under the section”;

(b) in the case of a non-segregated scheme –

(i) or “retains responsibility for meeting the pension liabilities under the scheme”, in each place where it appears, there were substituted “assumes responsibility for meeting all of the pension liabilities under the scheme”;

(ii) for “another person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme”, in each place where it appears, there were substituted “another person or other persons has or have assumed responsibility for meeting all of the pension liabilities under the scheme”.

(4) Where, under Article 114(2) (Board’s duty where application or notification received under Article 113), the Board is required to issue a scheme failure notice in relation to a multi-employer section of a segregated scheme or a non-segregated scheme to which this regulation applies, regulation 10(3) shall have effect and shall be read as if –

(a) in the case of a multi-employer section of a segregated scheme –

(i) in sub-paragraph (a)(ii)(aa), for “no other person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme” there were substituted “no other person or other persons has or have assumed responsibility for meeting all of the pension liabilities under the section”;

(ii) in sub-paragraph (a)(ii)(bb), for “the Board is of the opinion that the employer’s pension liabilities under the scheme will not be assumed by another person” there were substituted “the Board is of the opinion that all of the pension liabilities under the section will not be assumed by another person”;

(b) in the case of a non-segregated scheme –

(i) in sub-paragraph (a)(ii)(aa), for “no other person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme” there were substituted “no other person or other persons has or have assumed responsibility for meeting all of the pension liabilities under the scheme”;

(ii) in sub-paragraph (a)(ii)(bb), for “the Board is of the opinion that the employer’s pension liabilities under the scheme will not be assumed by another person” there were substituted “the Board is of the opinion that all of the pension liabilities under the scheme will not be assumed by another person”.

(5) Where, under Article 114(3), the Board is required to issue a withdrawal notice in relation to a multi-employer section of a segregated scheme or a non-segregated scheme to which this regulation applies, regulation 10(2) shall have effect and shall be read as if –

(a) in the case of a multi-employer section of a segregated scheme –

(i) in sub-paragraph (a)(i), for “retains responsibility for meeting the pension liabilities under the scheme” there were substituted “assumes responsibility for meeting all of the pension liabilities under the section”;

(ii) in sub-paragraph (b), for “the Board is satisfied that another person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme” there were substituted “the Board is satisfied that another person or other persons has or have assumed responsibility for meeting all of the pension liabilities under the section”;

(b) in the case of a non-segregated scheme –

(i) in sub-paragraph (a)(i), for “retains responsibility for meeting the pension liabilities under the scheme” there were substituted “assumes responsibility for meeting all of the pension liabilities under the scheme”;

(ii) in sub-paragraph (b), for “the Board is satisfied that another person or other persons has or have assumed responsibility for meeting the employer’s pension liabilities under the scheme” there were substituted “the Board is satisfied that another person or other persons has or have assumed responsibility for meeting all of the pension liabilities under the scheme”.

Confirmation of scheme status – binding notices

13

(1) Where the Board determines to approve or not to approve a notice issued by an insolvency practitioner or former insolvency practitioner in relation to an employer in relation to an occupational pension scheme under Article 106 (insolvency practitioner's duty to issue notices confirming status of scheme), the determination notice which the Board must issue under paragraph (4) of that Article to that effect shall be in writing and shall contain the following information –

(a) the name or type of the notice issued;

(b) the date on which the notice is issued;

(d) the name of the employer in relation to the scheme in respect of which the notice is issued;

(e) a statement that the Board received a notice from the insolvency practitioner or former insolvency practitioner under Article 106, the effect of that notice and the date on which it was issued by the insolvency practitioner;

(f) the name of the insolvency practitioner or former insolvency practitioner;

(g) a statement of whether or not the Board has determined to approve the notice issued by the insolvency practitioner or former insolvency practitioner under Article 106;

(h) the address for communications at which the Board may be contacted in connection with the issue of the notice, and

(i) whether the notice issued by the Board contains any restricted information and, if so, the nature of the restriction.

(1A) Where a notice issued under Article 106 becomes binding, the notice which the Board must give under Article 109(3) (binding notices confirming status of scheme) shall be in writing.

(2) Where a notice issued under Article 114(2) or (3) (Board’s duty where application or notification received under Article 113) becomes binding, the notice which the Board must issue under Article 114(7) to that effect shall be in writing and shall contain the following information –

(a) the name or type of the notice issued;

(b) the date on which the notice is issued;

(d) the name of the employer in relation to the scheme in respect of which the notice is issued;

(e) a statement that the notice issued under Article 114(2) or (3) has become binding;

(f) the date on which the notice under Article 114(2) or (3) was issued, and

(g) whether the notice issued by the Board contains any restricted information and, if so, the nature of the restriction.

Contributions to schemes

14

During an assessment period in relation to an eligible scheme, the prescribed circumstances in which further contributions may be paid to the scheme by an employer in relation to the scheme are where those contributions relate to –

(a) all or any part of that employer’s liability for any debt due from him to the scheme under Article 75²⁵ of the 1995 Order (deficiencies in the assets) which has not yet been discharged, and

(b) the value of an asset of the scheme arising from a debt or obligation referred to in Article 127(5)(a) to (d) (Board’s obligation to obtain valuation of assets and protected liabilities).

Directions

15

(1) The prescribed person who may be a “relevant person” in relation to an eligible scheme for the purposes of Article 118 (directions) is any individual who is appointed by the trustees or managers of the scheme as the scheme administrator responsible for the discharge of the functions conferred or imposed on the scheme administrator of the scheme by or under Part 4 of the Finance Act 2004²⁶ (pension schemes etc).

(2) The amendment of the scheme rules is prescribed as a matter for the purposes of Article 118(2) of the Order.

Restrictions on winding up, discharge of liabilities etc.

16

(1) Subject to paragraph (2), the prescribed circumstances in which –

(za) a right or entitlement to benefits that are not money purchase benefits may be converted into, or replaced with, a right or entitlement to money purchase benefits under an eligible scheme are where, before the beginning of the assessment period in relation to the scheme, a person has—

(i) a right or entitlement under the scheme rules in respect of flexible benefits (as defined by section 74 of the Pension Schemes Act 2015) that are not money purchase benefits;

(ii) notified the trustees or managers of the scheme that the person wishes to exercise an option under the scheme rules to convert those benefits (or a portion of them) into, or replace them (or a portion of them) with, money purchase benefits for the purpose of designating sums or assets as available for the payment of drawdown pension, dependants’ drawdown pension, nominees’ drawdown pension or successors’ drawdown pension (as defined by paragraphs 4, 18, 27B and 27G of Schedule 28 to the Finance Act 2004, respectively), and

(iii) complied with any requirements, and satisfied any conditions, to which the exercise of that option is subject;

(a) a transfer or transfer payment in respect of a member’s rights under the scheme rules may be made by the trustees or managers of an eligible scheme are where a member has, before the beginning of an assessment period in relation to the scheme –

(i) been provided with a written statement of entitlement of the amount of the cash equivalent at the guarantee date of any benefits which have accrued to, or in respect of, him under the applicable rules pursuant to an application made by that member under section 89A(1)²⁷ of the Pension Schemes Act (right to statement of entitlement: benefits other than money purchase), and ;

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) made an application under section 91²⁸ of that Act (ways of taking right to cash equivalent) requiring the trustees or managers of an eligible scheme to use the cash equivalent to which he has acquired a right in whichever of the ways specified in subsection (2) of that section and has not withdrawn that application, and

(b) other steps may be taken by the trustees or managers of an eligible scheme to discharge any liability of the scheme to, or in respect of, a member of the scheme in respect of –

(i) a pension or other benefit (except an ill health pension), and

(ii) a refund of contributions,

are where the member became entitled to the pension or benefit or to the refund of contributions before the beginning of an assessment period in relation to the scheme.

(2) A conversion or replacement of benefits under an eligible scheme under paragraph (1)(za), a transfer or transfer payment in respect of a member’s rights under an eligible scheme , or a refund of a member’s contributions to an eligible scheme, shall not be made unless the trustees or managers of the scheme –

(a) are satisfied that to do so is consistent with the objective of ensuring that the scheme’s protected liabilities do not exceed its assets or, if they do exceed its assets, that the excess is kept to a minimum, and

(b) reduce the value or amount of the benefits (or the portion of them) to be converted or replaced, the transfer or transfer payment or the refund of contributions by the extent necessary to ensure that it does not exceed the cost of securing benefits for, and in respect of, members of the scheme which correspond to the compensation that would be payable, in relation to the scheme, in accordance with the pension compensation provisions if the Board were to assume responsibility for the scheme in accordance with Chapter 3 (pension protection) of Part III of the Order.

(3) For the purposes of this regulation, a member is entitled to –

(a) a pension or other benefit where he has reached normal pension age, and

(b) a refund of contributions when he has –

(i) requested and received a quotation from the trustees or managers of the scheme showing the amount of the contributions which may be refunded in respect of his accrued rights to benefits under the scheme, and

(ii) notified the trustees or managers of the scheme in writing of his agreement to accept a refund of contributions on the basis of the quotation.

(4) In this regulation –

“the guarantee date” has the meaning given by section 89A(2) of the Pension Schemes Act;

“the applicable rules” has the meaning given by section 90(2) of that Act.

Payment of scheme benefits

17

(1) The commencement of a member’s pension or payment of a member’s lump sum or other benefits under an eligible scheme may be postponed for the whole or any part of an assessment period in relation to the scheme for which he continues in employment after attaining normal pension age in circumstances where –

(a) the trustees or managers of the scheme have not received a notice from the Board to the effect that a notice issued by an insolvency practitioner or former insolvency practitioner in relation to the employer in relation to the scheme which confirms that a scheme rescue is not possible has become binding, or

(b) the trustees or managers of the scheme have not received a binding scheme failure notice issued by the Board in respect of the scheme under Article 114(2) (Board’s duty where application or notification received under Article 113).

(2) Where –

(a) a member of an eligible scheme has died before the commencement of an assessment period in relation to the scheme, and

(b) during the assessment period, a person becomes entitled under the scheme rules to a death benefit or a contribution refund (within the meaning of section 97AB(4) of the Pension Schemes Act) payable in respect of that member,

that benefit is, for the purposes of Article 122(2) (payment of scheme benefits), to be treated as having become payable before the commencement of the assessment period.

Loans to pay scheme benefits

18

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