The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations (Northern Ireland) 2005

(1) Where the trustees or managers of a non-segregated scheme which is, for the purposes of this Part, an eligible scheme become aware that – (a) one or more of the employers in relation to the scheme is unlikely to continue as a going concern at a time when an insolvency event has also occurred in relation to all other employers in relation to the scheme and, where applicable, an insolvency practitioner is still required by law to act in relation to each of those employers, and (b) the prescribed requirements are met in relation to those employers, they must make an application to the Board for it to assume responsibility for the scheme under Article 112.

• (ii) after paragraph (1) there were inserted the following paragraph –

(1A) Where the trustees or managers of a non-segregated scheme make an application to the Board under paragraph (1), they must issue a notice to that effect as soon as practicable to all the employers in relation to the scheme.

• (iii) in paragraph (4)(a) and (b) for “the employer” there were substituted “an employer”, and

• (iv) after paragraph (5) there were inserted the following paragraph –

(5A) Where the trustees or managers of a non-segregated scheme receive a copy of a notice from the Board under paragraph (5), they must send a copy of that notice as soon as practicable to all the employers in relation to the scheme.

• (2) Article 114 (Board’s duty where application or notification received under Article 113) shall be modified so that it shall be read as if, in its application to a non-segregated scheme to which paragraph (1) or (2) of regulation 61 applies –

• (a) after paragraph (4) there were inserted the following paragraph –

(4A) Where the trustees or managers of a non-segregated scheme receive a copy of notice from the Board under paragraph (4), they must send a copy of that notice as soon as practicable to all the employers in relation to the scheme.

; and

• (b) after paragraph (7) there were inserted the following paragraph –

(7A) Where the trustees or managers of a non-segregated scheme receive a notice from the Board under paragraph (7) together with a copy of the binding notice, they must send a copy of the notice and the binding notice as soon as practicable to all the employers in relation to the scheme.

Assessment periods

66

Article 116 (assessment periods) shall be modified so that it shall be read as if, in its application to a non-segregated scheme to which –

• (a) paragraph (1) of regulation 61 applies –

• (i) in paragraph (2) –

• (aa) for “in relation to an eligible scheme” there were substituted “in relation to a non-segregated scheme which is, for the purposes of this Part, an eligible scheme”;

• (bb) for “the employer” there were substituted “an employer”; and

• (cc) after “an assessment period” there were inserted “in relation to the scheme”, and

• (ii) in paragraph (4) for “in relation to an eligible scheme, an application is made under Article 113(1) or a notification is received under Article 113(5)(a), an assessment period” there were substituted “in relation to a non-segregated scheme which is, for the purposes of this Part, an eligible scheme, an application is made under Article 113(1) or a notification is received under Article 113(5)(a) in respect of more than one employer in relation to the scheme at a time when those employers are the only employers in relation to the scheme, an assessment period in relation to the scheme”; and

• (b) paragraph (2) of regulation 61 applies –

• (i) in paragraph (2) –

• (aa) for “in relation to an eligible scheme” there were substituted “in relation to a non-segregated scheme which is, for the purposes of this Part, an eligible scheme”;

• (bb) for “the employer” there were substituted “an employer”; and

• (cc) after “an assessment period” there were inserted “in relation to the scheme”, and

• (ii) in paragraph (4) for “in relation to an eligible scheme, an application is made under Article 113(1) or a notification is received under Article 113(5)(a), an assessment period” there were substituted “in relation to a non-segregated scheme which is, for the purposes of this Part, an eligible scheme, an application is made under Article 113(1) or a notification is received under Article 113(5)(a) in respect of one or more of the employers in relation to the scheme at a time when an insolvency event has occurred in relation to all other employers in relation to the scheme and, where applicable, an insolvency practitioner is still required by law to be appointed to act in relation to each of those employers, an assessment period”.

Restrictions on winding up, discharge of liabilities etc. and power to validate contraventions of Article 119

67

• (1) Article 119 (restrictions on winding up, discharge of liabilities etc.) shall be modified in its application to a non-segregated scheme to which paragraph (1) or (2) of regulation 61 applies so that it shall be read as if after paragraph (2) there were inserted the following paragraph –

(2A) An employer in relation to a non-segregated scheme must not cease to participate in the scheme during an assessment period.

• (2) Article 120 (power to validate contraventions of Article 119) shall be modified in its application to a non-segregated scheme to which paragraph (1) or (2) of regulation 61 applies so that it shall be read as if in paragraph (2)(c) for “in relation to the employer or, if there is no such insolvency practitioner, the employer” there were substituted “in relation to an employer or, if there is no such insolvency practitioner, that employer”.

Valuation of assets

68

• (1) Article 128 (approval of valuation) shall be modified in its application to a non-segregated scheme to which paragraph (1) or (2) of regulation 61 applies so that it shall be read as if in paragraph (2)(b)(iii) for “in relation to the employer or, if there is no such insolvency practitioner, the employer” there were substituted “in relation to an employer or, if there is no such insolvency practitioner, that employer”.

• (2) Article 129 (binding valuations) shall be modified in its application to a non-segregated scheme to which paragraph (1) or (2) of regulation 61 applies so that it shall be read as if in paragraph (3)(c) for “in relation to the employer or, if there is no such insolvency practitioner, the employer” there were substituted “in relation to an employer or, if there is no such insolvency practitioner, that employer”.

Refusal to assume responsibility

69

• (1) Article 130 (schemes which become eligible schemes) shall be modified in its application to a non-segregated scheme to which paragraph (1) or (2) of regulation 61 applies so that it shall be read as if –

• (a) in paragraph (2)(b)(iii) for “in relation to the employer or, if there is no such insolvency practitioner, the employer” there were substituted “in relation to an employer or, if there is no such insolvency practitioner, that employer”; and

• (b) in paragraph (4)(c) for “in relation to the employer or, if there is no such insolvency practitioner, the employer” there were substituted “in relation to an employer or, if there is no such insolvency practitioner, that employer”.

• (2) Article 131 (new schemes created to replace existing schemes) shall be modified in its application to a non-segregated scheme to which paragraph (1) or (2) of regulation 61 applies so that it shall be read as if –

• (a) in paragraph (2)(b)(iii) for “in relation to the employer or, if there is no such insolvency practitioner, the employer” there were substituted “in relation to an employer or, if there is no such insolvency practitioner, that employer”; and

• (b) in paragraph (4)(c) for “in relation to the employer or, if there is no such insolvency practitioner, the employer” there were substituted “in relation to an employer or, if there is no such insolvency practitioner, that employer”.

• (3) Article 132 (withdrawal following issue of Article 106(4) notice) shall be modified in its application to a non-segregated scheme to which paragraph (1) or (2) of regulation 61 applies so that it shall be read as if –

• (a) in paragraph (5)(c) for “the employer” there were substituted “any employer”; and

• (b) in paragraph (7)(c) for “the employer” there were substituted “any employer”.

Transfer notices and the pension compensation provisions

70

• (1) Article 144 (transfer notice) shall be modified in its application to a non-segregated scheme to which paragraph (1) or (2) of regulation 61 applies so that it shall be read as if –

• (a) in paragraph (1) for “where the Board is required to assume responsibility for a scheme” there were substituted “where the Board is required to assume responsibility for a non-segregated scheme”;

• (b) after paragraph (2) there were inserted the following paragraph –

(2A) Where the trustees or managers of a non-segregated scheme receive a transfer notice from the Board under paragraph (2), they must send a copy of that notice as soon as practicable to all the employers in relation to the scheme.

; and

• (c) for paragraph (6) there were substituted the following paragraph –

(6) The Board must give a copy of the transfer notice under paragraph (2) to – (a) the Regulator, and (b) an insolvency practitioner acting in relation to every employer in relation to the scheme in respect of which the transfer notice is issued.

• (2) In Schedule 5 to the Order (transfer of property, rights and liabilities to the Board) paragraph 1 shall be modified in its application to a non-segregated scheme to which paragraph (1) or (2) of regulation 61 applies so that it shall be read as if for “an occupational pension scheme” there were substituted “a non-segregated multi-employer scheme”.

• (3) In Schedule 6 to the Order (pension compensation provisions) paragraph 1 shall be modified in its application to a non-segregated scheme to which paragraph (1) or (2) of regulation 61 applies so that it shall be read as if for “an eligible scheme” there were substituted “a non-segregated multi-employer scheme which is, for the purposes of Part III, an eligible scheme”.

PART VII — NON-SEGREGATED SCHEME WITH AN OPTION TO SEGREGATE ON THE WITHDRAWAL OF A PARTICIPATING EMPLOYER

Application and effect

71

• (1) This regulation applies to a non-segregated multi-employer scheme in circumstances –

• (a) where –

• (i) an insolvency event occurs in relation to an employer in relation to the scheme, or

• (ii) the trustees or managers of the scheme become aware that an employer in relation to the scheme is unlikely to continue as a going concern and meets the requirements prescribed under Article 113(1)(b) (applications and notifications for the purposes of Article 112); and

• (b) where, under the rules of the scheme, the trustees or managers have an option, 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 scheme’s liabilities to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members by reference to that employer.

• (2) In the case of a scheme to which this regulation applies –

• (a) the trustees or managers of the scheme shall be deemed to have exercised the option to segregate under the scheme rules so as to create a segregated part of the scheme unless and until they decide not to exercise that option and have given the Board a notice to this effect as required by Article 104(3A) or 113(1B) as modified by this Part; and

• (b) except as otherwise provided for in paragraph (3), Part III of the Order shall be read in relation to the scheme as if it contained the modifications provided for in Part V of these Regulations.

• (3) The exceptions referred to in paragraph (2) are that –

• (a) Article 104 (duty to notify insolvency events in respect of employers) shall be modified so that it shall be read as if –

• (i) for paragraph (1) there were substituted the following paragraph –

(1) This Article applies where an insolvency event occurs in relation to an employer in relation to a multi-employer scheme which is not divided into two or more sections (“a non-segregated scheme”) under the rules of which the trustees or managers of the scheme have an option, 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 scheme’s liabilities to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members of the scheme by reference to that employer (“the segregated part”).

, and

• (ii) after paragraph (3) there were inserted the following paragraph –

(3A) If, where this Article applies to a non-segregated scheme, the trustees or managers of the scheme decide not to exercise the option to segregate under the scheme rules so as to create a segregated part of the scheme they must, as soon as practicable – (a) give a notice to the Board to that effect (a “non-segregation notice”); and (b) send a copy of that notice to – (i) an insolvency practitioner acting in relation to the employer, and (ii) the Regulator.

• (b) Article 106 (insolvency practitioner’s duty to issue notices confirming status of scheme) shall be modified so that it shall be read as if after paragraph (2) there were inserted the following paragraph –

(2A) Where an insolvency practitioner acting in relation to an employer in relation to a non-segregated scheme receives a non-segregation notice under Article 104(3A) from the trustees or managers of the scheme, he must as soon as practicable issue a notice under paragraph (2)(b) (a “withdrawal notice”) in relation to the scheme.

; and

• (c) Article 113 (applications and notifications for the purposes of Article 112) shall be modified so that it shall be read as if –

• (i) for paragraph (1) there were substituted the following paragraph –

(1) The trustees or managers of a non-segregated scheme which is, for the purposes of this Part, an eligible scheme must make an application to the Board for it to assume responsibility for a segregated part of the scheme under Article 112 where they become aware that – (a) an employer in relation to the scheme is unlikely to continue as a going concern, and (b) the prescribed requirements are met in relation to that employer, and where the rules of the scheme contain an option, in circumstances where an employer in relation to the scheme ceases to participate in the scheme, for the trustees or managers to segregate such part of the assets of the scheme as is attributable to the scheme’s liabilities to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members by reference to that employer.

, and

• (ii) after paragraph (1A) there were inserted the following paragraphs –

(1B) If, where paragraph (1) applies to a non-segregated scheme, the trustees or managers of the scheme decide not to exercise the option to segregate under the scheme rules so as to create a segregated part of the scheme they must, as soon as practicable – (a) give a notice to the Board to that effect (a “non-segregation notice”); and (b) send a copy of that notice to the Regulator. (1C) Where the Board receives a non-segregation notice from the trustees or managers of a non-segregated scheme under sub-paragraph (a) of paragraph (1B), it must as soon as practicable issue a notice under Article 114(3) (a “withdrawal notice”) in relation to the scheme.

PART VIII — SEGREGATED SCHEMES: MULTI-EMPLOYER SECTIONS OF SEGREGATED SCHEMES WITH AN OPTION TO SEGREGATE ON THE WITHDRAWAL OF A PARTICIPATING EMPLOYER

Application and effect

72

• (1) This regulation applies to a multi-employer section of a segregated scheme in circumstances –

• (a) where –

• (i) an insolvency event occurs in relation to an employer in relation to that section, or

• (ii) the trustees or managers of the scheme become aware that an employer in relation to that section is unlikely to continue as a going concern and meets the requirements prescribed under Article 113(1)(b) (applications and notifications for the purposes of Article 112); and

• (b) where, under the rules of the scheme, the trustees or managers have an option, 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 scheme as is attributable to the liabilities of the section to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members by reference to that employer.

• (2) In the case of a multi-employer section of a segregated scheme to which this regulation applies –

• (a) the trustees or managers of that section shall be deemed to have exercised the option to segregate under the scheme rules so as to create a segregated part of the section unless and until they decide not to exercise that option and have given the Board a notice to this effect as required by Article 104(3A) or 113(1B) as modified by this Part; and

• (b) except as otherwise provided for in paragraph (3), Part III of the Order shall be read in relation to that section as if it contained the modifications provided for in Part IV of these Regulations.

• (3) The exceptions referred to in paragraph (2) are that –

• (a) Article 104 (duty to notify insolvency events in respect of employers) shall be modified so that it shall be read as if –

• (i) for paragraph (1) there were substituted the following paragraph –

(1) This Article applies where an insolvency event occurs in relation to an employer in relation to a section of a multi-employer scheme which is divided into two or more sections (“a segregated scheme”) with at least two employers in relation to that section of the scheme (“a multi-employer section”) under the rules of which the trustees or managers of that section have an option, in circumstances where an employer in relation to that section of the scheme 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 some or all of the members of that section by reference to that employer (“the segregated part”).

• (ii) after paragraph (3) there were inserted the following paragraph –

(3A) If, where this Article applies to a multi-employer section of a segregated scheme, the trustees or managers of the section decide not to exercise the option to segregate under the scheme rules so as to create a segregated part of that section they must, as soon as practicable – (a) give a notice to the Board to that effect (a “non-segregation notice”); and (b) send a copy of that notice to – (i) an insolvency practitioner acting in relation to the employer, and (ii) the Regulator.

• (b) Article 106 (insolvency practitioner’s duty to issue notices confirming status of scheme) shall be modified so that it shall be read as if after paragraph (2) there were inserted the following paragraph –

(2A) Where an insolvency practitioner acting in relation to an employer in relation to a multi-employer section of a segregated scheme receives a non-segregation notice under Article 104(3A) from the trustees or managers of that section, he must as soon as practicable issue a notice under paragraph (2)(b) (a “withdrawal notice”) in relation to that section.

; and

• (c) Article 113 (applications and notifications for the purposes of Article 112) shall be modified so that it shall be read as if –

• (i) for paragraph (1) there were substituted the following paragraph –

(1) The trustees or managers of a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme must make an application to the Board for it to assume responsibility for a segregated part of the section under Article 112 where they become aware that – (a) an employer in relation to the section is unlikely to continue as a going concern, and (b) the prescribed requirements are met in relation to that employer, and where the rules of the scheme contain an option, in circumstances where an employer in relation to a section of the scheme ceases to participate in the scheme, for the trustees or managers 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 some or all of the members by reference to that employer.

, and

• (ii) after paragraph (1A) there were inserted the following paragraphs –

(1B) If, where paragraph (1) applies to a multi-employer section of a segregated scheme, the trustees or managers of the section decide not to exercise the option to segregate under the scheme rules so as to create a segregated part of that section they must, as soon as practicable – (a) give a notice to the Board to that effect (a “non-segregation notice”); and (b) send a copy of the notice to the Regulator. (1C) Where the Board receives a non-segregation notice from the trustees or managers of a multi-employer section of a segregated scheme under sub-paragraph (a) of paragraph (1B), it must as soon as practicable issue a notice under Article 114(3) (a “withdrawal notice”) in relation to that section.

PART IX — MULTI-EMPLOYER SCHEMES: THE PENSION PROTECTION LEVIES

Modification of Articles 158 to 164: segregated schemes

73

• (1) This regulation applies to a segregated scheme.

• (2) In the case of a segregated scheme to which this regulation applies –

• (a) Articles 158 to 164 (pension protection levies) shall have effect as if each section of the scheme were a separate scheme; and

• (b) references in Article 158 to 164 to “an eligible scheme” shall be read as if they were references to a section of the scheme in circumstances where that section, if it were a scheme, would not be –

• (i) a money purchase scheme; or

• (ii) a scheme which is a prescribed scheme or a scheme of a prescribed description under Article 110(1)(b) (eligible schemes).

• (3) For the purposes of this regulation, Article 162 (valuations to determine scheme underfunding) shall be modified so that it shall be read as if in paragraph (1)(a) for “an actuarial valuation of the scheme” there were substituted “an actuarial valuation of the section”.

Modification of Articles 158 to 164: non-segregated schemes

74

• (1) This regulation applies to a multi-employer scheme which is not divided into two or more sections (“a non-segregated scheme”).

• (2) In the case of a scheme to which this regulation applies, references to “an eligible scheme” in Articles 158 to 164 (pension protection levies) are to a non-segregated scheme which –

• (a) is not a money purchase scheme; or

• (b) is not a prescribed scheme or a scheme of a prescribed description under Article 110(1)(b) (eligible schemes).

• (3) Article 158 shall be modified so that it shall be read as if –

• (a) in the case of a scheme to which this regulation applies, the rules of which contain a requirement for the trustees or managers to segregate such part of the assets as is attributable to the liabilities of the scheme to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members of the scheme by reference to an employer in relation to the scheme which would be triggered when such an employer ceased to participate in the scheme, for sub-paragraph (a) of paragraph (2) there were substituted the following sub-paragraph –

(a) a risk-based pension protection levy is a levy assessed by reference to – (i) the difference between the value of the scheme’s assets (disregarding any assets representing the value of any rights in respect of money purchase benefits under the scheme rules) and the amount of its protected liabilities, (ii) where the Board considers it appropriate, the scheme rules containing a requirement for the trustees or managers of the scheme to segregate such part of the assets of the scheme as is attributable to the scheme’s liabilities to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members by reference to an employer in relation to the scheme in circumstances where that employer ceases to participate in the scheme, (iii) except in relation to any prescribed scheme or scheme of a prescribed description, the likelihood of an insolvency event occurring in relation to each employer in relation to the scheme, and (iv) if the Board considers it appropriate, one or more other risk factors mentioned in paragraph (3), and

• (b) in the case of a scheme to which this regulation applies, the rules of which give the trustees or managers an option to segregate such part of the assets as is attributable to the liabilities of the section to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members of the section by reference to an employer in relation to that section when an employer in relation to the section ceases to participate in the scheme, for sub-paragraph (a) of paragraph (2) there were substituted the following sub-paragraph –

(a) a risk-based pension protection levy is a levy assessed by reference to – (i) the difference between the value of the scheme’s assets (disregarding any assets representing the value of any rights in respect of money purchase benefits under the scheme rules) and the amount of its protected liabilities, (ii) where the Board considers it appropriate, whether or not the scheme rules containing a requirement for the trustees or managers of the scheme to segregate such part of the assets of the scheme as is attributable to the scheme’s liabilities to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members by reference to an employer in relation to the scheme in circumstances where that employer ceases to participate in the scheme, (iii) except in relation to any prescribed section or section of a prescribed description, the likelihood of an insolvency event occurring in relation to each employer in relation to the scheme, and (iv) if the Board considers it appropriate, one or more other risk factors mentioned in paragraph (3), and

; and

• (c) in the case of a scheme to which this regulation applies, the rules of which do not contain a requirement for the trustees or managers to segregate such part of the assets as is attributable to the liabilities of the scheme to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members of the scheme by reference to an employer in relation to that scheme which would be triggered when such an employer ceased to participate in the scheme, for sub-paragraph (a) of paragraph (2), there were substituted the following sub-paragraph –

(a) a risk-based pension protection levy is a levy assessed by reference to – (i) the difference between the value of the scheme’s assets (disregarding any assets representing the value of any rights in respect of money purchase benefits under the scheme rules) and the amount of its protected liabilities, (ii) except in relation to any prescribed scheme or scheme of a prescribed description, the likelihood of an insolvency event occurring in relation to all the employers in relation to the scheme, and (iii) if the Board considers it appropriate, one or more other risk factors mentioned in paragraph (3), and

Modification of Articles 158 to 164: multi-employer sections of segregated schemes

75

• (1) This regulation applies to a multi-employer section of a segregated scheme.

• (2) Article 158 shall be modified so that it shall be read as if –

• (a) in the case of a section of a scheme to which this regulation applies, the rules of which contain a requirement for the trustees or managers to segregate such part of the assets as is attributable to the liabilities of the section to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members of the section by reference to an employer in relation to that section which would be triggered when an employer in relation to the section ceased to participate in the scheme, for sub-paragraph (a) of paragraph (2) there were substituted the following sub-paragraph –

(a) a risk-based pension protection levy is a levy assessed by reference to – (i) the difference between the value of the assets of the section (disregarding any assets representing the value of any rights in respect of money purchase benefits under the scheme rules) and the amount of its protected liabilities, (ii) where the Board considers it appropriate, whether or not the scheme rules relating to the section contain a requirement for the trustees or managers of 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 some or all of the members by reference to an employer in relation to the section in circumstances where that employer ceases to participate in the scheme, (iii) except in relation to any prescribed section or section of a prescribed description, the likelihood of an insolvency event occurring in relation to each employer in relation to the section, and (iv) if the Board considers it appropriate, one or more other risk factors mentioned in paragraph (3), and

• (b) in the case of a section of a scheme to which this regulation applies, the rules of which give the trustees or managers an option to segregate such part of the assets as is attributable to the liabilities of the section to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members of the section by reference to an employer in relation to that section when an employer in relation to the section ceases to participate in the scheme, for sub-paragraph (a) of paragraph (2) there were substituted the following sub-paragraph –

(a) a risk-based pension protection levy is a levy assessed by reference to – (i) the difference between the value of the assets of the section (disregarding any assets representing the value of any rights in respect of money purchase benefits under the scheme rules) and the amount of its protected liabilities, (ii) where the Board considers it appropriate, whether or not the scheme rules relating to the section contain a requirement for the trustees or managers of 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 some or all of the members by reference to an employer in relation to the section in circumstances where that employer ceases to participate in the scheme, (iii) except in relation to any prescribed section or section of a prescribed description, the likelihood of an insolvency event occurring in relation to each employer in relation to the section, and (iv) if the Board considers it appropriate, one or more other risk factors mentioned in paragraph (3), and

; and

• (c) in the case of a section of a scheme to which this regulation applies, the rules of which do not contain a requirement for the trustees or managers to segregate such part of the assets as is attributable to the liabilities of the section to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members of the section by reference to an employer in relation to that section which would be triggered when an employer in relation to the section ceased to participate in the scheme, for sub-paragraph (a) of paragraph (2), there were substituted the following sub-paragraph –

(a) a risk-based pension protection levy is a levy assessed by reference to – (i) the difference between the value of the assets of the section (disregarding any assets representing the value of any rights in respect of money purchase benefits under the scheme rules) and the amount of its protected liabilities, (ii) except in relation to any prescribed section or section of a prescribed description, the likelihood of an insolvency event occurring in relation to all the employers in relation to the section, and (iii) if the Board considers it appropriate, one or more other risk factors mentioned in paragraph (3), and

Signed

Sealed with the Official Seal of the Department for Social Development on 11th March 2005.

John O'Neill — A senior officer of the — Department for Social Development

Explanatory note

(This note is not part of the Regulations.)

These Regulations modify the provisions of Part III of the Pensions (Northern Ireland) Order 2005 (“the Order”) as they apply in relation to multi-employer schemes. Part III of the Order makes provision in respect of the functions of the Board of the Pension Protection Fund (“the Board”) which is established under section 107 of the Pensions Act 2004 (c. 35).

Part I of the Regulations provides for citation, commencement and general interpretation.

Part II of the Regulations modifies Part III of the Order as it applies in relation to a section of a segregated multi-employer scheme with only one employer in relation to that section so that Part III of the Order can apply in relation to such a section as if it were a separate scheme.

Part III of the Regulations modifies Part III of the Order as it applies in relation to a section of a segregated multi-employer scheme with at least two employers in relation to that section (“a multi-employer section”). It applies where the scheme rules relating to a multi-employer section do not contain any provision for the partial winding up of the section in specified circumstances. Part III of the Order is modified so that an assessment period is not triggered in relation to a multi-employer section of a segregated scheme unless an insolvency event has occurred in relation to all of the employers in relation to that section of the scheme or where all of the employers in relation to that section of the scheme are unlikely to continue as a going concern and meet prescribed requirements.

Part IV of the Regulations modifies Part III of the Order as it applies in relation to a non-segregated multi-employer section of a segregated multi-employer scheme. It applies where the scheme rules relating to that section contain a provision for the partial winding up of the section in certain specified circumstances. Part III of the Order is modified so that an assessment period is triggered in respect of a segregated part of such a multi-employer section which is created when an insolvency event has occurred in relation to an employer in relation to the section or where an employer in relation to the section is unlikely to continue as a going concern and meets prescribed requirements.

Part V of the Regulations modifies Part III of the Order as it applies in relation to a non-segregated multi-employer scheme the rules of which contain a provision for the partial winding up of the scheme in certain specified circumstances. Part III of the Order is modified so that an assessment period is not triggered in respect of a segregated part of such a scheme which is created when an insolvency event has occurred in relation to an employer in relation to the scheme or where an employer in relation to the scheme is unlikely to continue as a going concern and meets prescribed requirements.

Part VI of the Regulations modifies Part III of the Order as it applies in relation to a non-segregated multi-employer scheme the rules of which do not contain a provision for the partial winding up of the section in certain specified circumstances. Part III of the Order is modified so that an assessment period is not triggered in respect of such a scheme unless an insolvency event has occurred in relation to all of the employers in relation to the scheme or where all of the employers in relation to the scheme are unlikely to continue as a going concern and meet prescribed requirements.

Part VII of the Regulations modifies Part III of the Order as it applies in relation to a non-segregated scheme the rules of which contain an option for the trustees or managers of the scheme to segregate such part of the assets of the scheme as is attributable to the scheme’s liabilities to provide pensions or other benefits to or in respect of the pensionable service of members by reference to an employer in relation to the scheme in specified circumstances. The modifications of Part III of the Order which are provided for in Part V of the Regulations are to apply in respect of such a scheme unless the trustees or managers of the scheme decide not to exercise the option to segregate under the scheme rules so as to create a segregated part of the scheme.

Part VIII of the Regulations modifies Part III of the Order as it applies in relation to a multi-employer section of a segregated scheme the rules of which contain an option for the trustees or managers of the scheme to segregate such part of the assets of the section which are attributable to the liabilities of the section to provide pensions or other benefits to or in respect of the pensionable service of members by reference to an employer in relation to the section in specified circumstances. The modifications of Part III of the Order provided for in Part IV of the Regulations are to apply in respect of such a section of such a scheme unless the trustees or managers of the section decide not to exercise the option to segregate under the scheme rules so as to create a segregated part of the section.

Part IX of the Regulations modifies Articles 158 to 164 of the Order (pension protection levies) as they apply in respect of multi-employer schemes or sections of multi-employer schemes to which the Parts II to VIII of these Regulations apply.

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 the coming into operation of Article 2(5)(a) on 25th February 2005 for the purpose of authorising the making of regulations and on 6th April 2005 for all other purposes, Article 280(1)(b) on 25th February 2005 for the purpose of authorising the making of regulations and on 8th March 2005 for all other purposes and Article 280(2)(b) on 8th March 2005.

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 2005 Order by virtue of which they are made, the requirement to consult under Article 289(1) of that Order does not apply by virtue of paragraph (2)(c) of that Article.

Footnotes

[^f00001]: S.I. 2005/255 (N.I. 1)

[^f00002]: Article 75 is amended by Article 248 of the Pensions (Northern Ireland) Order 2005

[^f00003]: See regulation 10(1)(a) of S.R. 2005 No. 55

Editorial notes

[^key-c459e463a6ca5344ae73e6dc72edd0cd]: Reg. 1 in operation at 14.3.2005, see reg. 1(1)(a)

[^key-0b14fd05ddcc2d04faae483dbf5525c3]: Reg. 2(1)(2)(a)(3) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-abd0fc26cd6ebfaf7c1c825e46a5baf8]: Reg. 2(2)(b) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-07afbd5a1cc8a51f75f6445c57de697f]: Reg. 3(1)(2)(a)-(c)(e)(3)-(5) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-4875ec6788bcafc57a41eed6d6a4dc57]: Reg. 3(2)(d) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-09c8fe4d88b39341f025a8a85d91ffcb]: Reg. 4 in operation at 1.4.2005, see reg. 1(1)(b)

[^key-56a32033341de64b7bd0e30efd35a059]: Reg. 5(1)(2)(a)-(c)(e) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-6ea17e8832e8df38cd882bbca414a485]: Reg. 5(2)(d) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-4291b06182ae7a19ecc3cac5858c9da8]: Reg. 6 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-991e992969aa213653b5c9c1cbadc862]: Reg. 7 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-fe32e2fa7bbb9ae5655546b078192b2a]: Reg. 8 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-f3a9622cff2fd1f799cb49a55a070f4c]: Reg. 9(1)(b)-(d)(2)(b)(c)(3) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-62c5588bc7a5a9775e3b383e0a99e34b]: Reg. 9(1)(a)(2)(a) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-1dd016f77f9e52062cb768711477d4cb]: Reg. 10 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-9e1182bc7eefae2e37ce3bf74432c426]: Reg. 11 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-80097a4eac47d9e095833a387abd09bc]: Reg. 12 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-9a0c3ae708f807458f329a02d9fe9833]: Reg. 13 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-636bbdbab1e51c9e0399fb32854538ef]: Reg. 14(1)(2)(3)(a)(4) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-13ecc7ece2360ffdd294b8472d13f1d2]: Reg. 14(3)(b) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-c5aea9526009d49799052a9c14c12728]: Reg. 15(1)(2)(a)-(d)(f)(g)(3)-(5) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-22f4beb3991a6eba32e8f7629ce9b8da]: Reg. 15(2)(e) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-c2c3f422f8f90c0f967e7230a8323e17]: Reg. 16 in operation at 1.4.2005, see reg. 1(1)(b)

[^key-658b2725a0e12f7a904420957c0b792f]: Reg. 17 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-13c48dfee5cb470d895fc1c4abcdf794]: Reg. 18(a)(b)(d)(e) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-762ced50d1ac5725ee19c65381c10c41]: Reg. 18(c) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-71ea3f3251daa2b4004f03782fe8cdcf]: Reg. 19 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-8c11c98b928662920ab71df47cf5cedd]: Reg. 20 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-9c1a55b4069fbfde5bed9e65c1adaa59]: Reg. 21 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-bc4ee8663f3bf9a18bce8a9f3f626de3]: Reg. 22 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-831822cbdcde1421fe30fed52a0231c7]: Reg. 23 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-d5fb7d08d3f228cf00920734ec9dd94e]: Reg. 24(1)(b)-(e)(2)(b)-(e)(3) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-eb990a5a2bf68bdd06ea44388fffd8a9]: Reg. 24(1)(a)(2)(a) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-6f0f48457989deb54af154861cb7b8b1]: Reg. 25 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-13fec516a4f6f342faa7367744c0e23a]: Reg. 26 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-86198f8b6eaad0d82e424ddd52464ad5]: Reg. 27 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-4040ee37ec27c742a42313afd49ccfe6]: Reg. 28(1)-(3)(4)(a)(5) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-03654d964ed1fe121611a67e61f2df89]: Reg. 28(4)(b) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-33766fc153a952864fdc869f1da114bd]: Reg. 29(1)(2)(a)-(c)(e)(3)-(5) in operation at 6.4.2025, see reg. 1(1)(c)

[^key-d201fbbe843a007e86218c4ae3ce9a80]: Reg. 29(2)(d) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-aee9e316c08e1f5f742b151ba60f716e]: Reg. 30 in operation at 1.4.2005, see reg. 1(1)(b)

[^key-a7072d9e8e3df50a3edabcac4112997d]: Reg. 31 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-80e0fe8bd07b36f20da40959c138d685]: Reg. 32(a)-(c)(e) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-6e4e1ccb28ef2517a4444e3439d10779]: Reg. 32(d) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-7150249621e041e5be11ccd5f94a7077]: Reg. 33 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-8ba858c9295fdd23e5c3678eefe32e25]: Reg. 34 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-c5ae4a69b05586ee678d0663b6de76a0]: Reg. 35 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-5501629bb8d3b990f097d8844155db3c]: Reg. 36 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-af7010453a355c2bb7418a50cc8110cb]: Reg. 37 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-f20053dcd903fa9783992a343e5c01b4]: Reg. 38(1)(a)-(c)(d)(ii)(iii)(2)(3) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-5603c60a73d0e1452bdfbc0151261574]: Reg. 38(1)(d)(i) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-ab3dc57195d4c6821bf2e5c67fd6aa46]: Reg. 39(1)(b)-(d)(2)(b)(c)(3) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-77917c3681a8d5cff90ab25d994ea2f9]: Reg. 39(1)(a)(2)(a) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-101ccb3596b9dc6e6e511d419ae17497]: Reg. 40 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-7b486c1f1329f7344b278058c1daee4f]: Reg. 41 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-893d93543961684739673ea69bd4c96d]: Reg. 42 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-5296d96c6d098aea6b33230c8c99216f]: Reg. 43 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-1b2f27ba2b1223d0217ff272b3344789]: Reg. 44 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-772e0413fe395d14c3593f2ea66b7839]: Reg. 45(1)-(3)(4)(a)(5) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-ba0a707ab9d83b61c7fbfe4cbb2aef21]: Reg. 45(4)(b) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-42a16efdce66102d68a2ac9d8588c577]: Reg. 46(1)(2)(a)-(c)(e)(3)-(5) in operation at 14.3.2005, see reg. 1(1)(c)

[^key-a6c4029c8c14960998a57435b0565386]: Reg. 46(2)(d) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-2ac6dd0de0d2794a7d798a757ac2a819]: Reg. 47 in operation at 1.4.2005, see reg. 1(1)(b)

[^key-f97b343f0a2fbc5efefc435a4a157115]: Reg. 48 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-e2b07443886d9113de29d900f201a8a2]: Reg. 49(a)-(c)(e) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-a85a634dd09347ad30a231d6633e8679]: Reg. 49(d) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-2874bb8b7fc1f8ba2e3b047ded3b03d9]: Reg. 50 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-9431dbc8ac87d5387210195aa55858a5]: Reg. 51 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-340a8e28dd1b118b54b833a9e1ae3c8d]: Reg. 52 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-a9aa87eb1a4bd413ef11d29fdf7a718b]: Reg. 53 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-f2b83ec6a1e69baae1215193696b45e8]: Reg. 54(1)(a)-(c)(d)(ii)(iii)(2)(3) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-3f5fec68953ca0c3cc7b77cab5461d79]: Reg. 54(1)(d)(i) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-4410309ab333675d561592176851f8b6]: Reg. 55(1)(b)-(d)(2)(b)(c)(3) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-55c3e2f1801fa3feca9b0fce212a55f6]: Reg. 55(1)(a)(2)(a) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-e897433c84dbf261b7e59bef044cc319]: Reg. 56 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-49be8d470ca64c8c5f0184a292425f84]: Reg. 57 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-15158944a6ac706193b029e61ccef915]: Reg. 58 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-1f7fd8404deff55488766f036a1d5682]: Reg. 59 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-5962a4177a61a8d65dbd68417bdfa377]: Reg. 60 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-4a81f94c3ab47e5cf4240f79e6fc686b]: Reg. 61 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-4477d2815a689ace186a6e994d4b8b9f]: Reg. 62 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-a90236f639d946262c638c631ce7d7c5]: Reg. 63(1) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-df5976f6eeae0e768493c7b5f4dc741f]: Reg. 63(2) in operation at 1.4.2005, see reg. 1(1)(b)

[^key-6b351aa62c70c7b7665d9c407d72fe82]: Reg. 64 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-3862a931aa6117d0233f53f6273b2360]: Reg. 65 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-443fd7a351dec02ea74780b1a2ee6429]: Reg. 66 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-c3f54fc2dadc21c79193a0fb56d09192]: Reg. 67 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-073e3328828ec309f1f86c6ce75d848e]: Reg. 68 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-d50a728fb25445ea3de64dcbccd7003c]: Reg. 69 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-78a7fac3903550fa6e28be9f09897910]: Reg. 70 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-c7cab2a3d79e5e2bbb0f5890d9ce4f01]: Reg. 71 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-3c0a6ad6e47aec500e14d1aa3c179322]: Reg. 72 in operation at 6.4.2005, see reg. 1(1)(c)

[^key-1da5069ff6863a58c0668fb19540c16f]: Reg. 73(3) in operation at 14.3.2005, see reg. 1(1)(a)

[^key-413c1c968b21a142f3ab14c87b418fa5]: Reg. 73(2)(b) in operation at 1.4.2005, see reg. 1(1)(b)

[^key-e1bfb541d1b7f91bb94b488d5c496055]: Reg. 73(1)(2)(a) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-249f64b8ce2cb85b0eb2572910db1a49]: Reg. 74(1) in operation at 6.4.2005, see reg. 1(1)(c)

[^key-02fe419e65aaf77c6d7c604d8c5a7535]: Reg. 74(2) in operation at 1.4.2025, see reg. 1(1)(b)

[^key-58d315e0ce7d7df0da603a59cb307c96]: Reg. 75 in operation at 6.4.2005, see reg. 1(1)(c)