Pensions Act 1995

• (4) If, in the case of any report required to be made under subsection (3), the Authority consider (whether on an application made for the purpose or otherwise) that it would be appropriate to do so, they may, at any time before the latest time for the making of that report, postpone that latest time by such period as they think fit.

• (5) The latest time for making a report shall not be postponed under subsection (4) by more than twelve months.

• (6) Subject to the application of the limit specified in subsection (5) to the cumulative period of the postponements, more than one postponement may be made under subsection (4) in the case of the same report.

• (7) A report under this section—

• (a) must contain such information and statements as may be prescribed; and

• (b) must be made in accordance with the prescribed requirements.

• (8) Regulations may—

• (a) provide that, in prescribed circumstances, there shall be no obligation to make a report that would otherwise fall to be made under this section;

• (b) make provision for the period within which, and the manner in which, applications may be made for a postponement under subsection (4); and

• (c) modify subsections (3) and (5) by substituting periods of different lengths for the periods for the time being specified in those subsections.

• (9) If there is any failure by the trustees or managers of any scheme to comply with their duty to make a report in accordance with the requirements imposed by or under this section—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) section 10 applies (irrespective of the description of scheme involved) to any trustee or manager who has failed to take all such steps.

Directions by Authority for facilitating winding-up.

72B

• (1) Subject to the following provisions of this section, the Authority shall have power, at any time after the winding-up of an occupational pension scheme has begun, to give directions under this section if they consider that the giving of the direction is appropriate on any of the grounds set out in subsection (2).

• (2) Those grounds are—

• (a) that the trustees or managers of the scheme are not taking all the steps in connection with the winding-up that the Authority consider would be being taken if the trustees or managers were acting reasonably;

• (b) that steps being taken by the trustees or managers for the purposes of the winding-up involve things being done with what the Authority consider to be unreasonable delay;

• (c) that the winding-up is being obstructed or unreasonably delayed by the failure of any person—

• (i) to provide information to the trustees or managers;

• (ii) to provide information to a person involved in the administration of the scheme;

• (iii) to provide information to a person of a prescribed description; or

• (iv) to take any step (other than the provision of information) that he has been asked to take by the trustees or managers;

• (d) that the winding-up would be likely to be facilitated or accelerated by the taking by any person other than the trustees or managers of any other steps;

• (e) that in any prescribed circumstances not falling within paragraphs (a) to (d)—

• (i) the provision by any person of any information to the trustees or managers or to any other person, or

• (ii) the taking of any other step by any person,

would be likely to facilitate or accelerate the progress of the winding-up.

• (3) Except in prescribed circumstances, the power of the Authority to give a direction under this section in the case of a winding-up shall be exercisable only where—

• (a) periodic reports about the progress of the winding-up are required to be made under section 72A; and

• (b) the first report that has to be made for the purposes of that section in the case of that winding-up either has been made or should have been made.

• (4) Regulations may provide that, in prescribed circumstances, the Authority shall not give a direction on the ground set out in subsection (2)(e) except in response to an application made by the trustees or managers of the scheme for the giving of a direction on that ground.

• (5) A direction under this section is a direction in writing given to and imposing requirements on—

• (a) any or all of the trustees or managers of the scheme;

• (b) a person who is involved in its administration; or

• (c) a person of a prescribed description.

• (6) The requirements that may be imposed by a direction under this section are any requirement for the person to whom it is given, within such period specified in the direction as the Authority may consider reasonable—

• (a) to provide the trustees or managers with all such information as may be specified or described in the direction;

• (b) to provide a person involved in the administration of the scheme with all such information as may be so specified or described;

• (c) to provide a person who is of a prescribed description with all such information as may be so specified or described;

• (d) to take such steps (other than the provision of information) as may be so specified or described.

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) Regulations may—

• (a) impose limitations on the steps that a person may be required to take by a direction under this section;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) In this section references, in relation to a scheme, to a person involved in the administration of the scheme are (subject to subsection (10)) references to any person who is so involved otherwise than as—

• (a) the employer in relation to that scheme;

• (b) a trustee or manager of the scheme;

• (c) the auditor of the scheme or its actuary;

• (d) a legal adviser of the trustees or managers of the scheme;

• (e) a fund manager for the scheme;

• (f) a person acting on behalf of a person who is involved in the administration of the scheme;

• (g) a person providing services to a person so involved;

• (h) a person acting in his capacity as an employee of a person so involved;

• (i) a person who would fall within any of paragraphs (f) to (h) if persons acting in relation to the scheme in any capacity mentioned in the preceding paragraphs were treated as involved in the administration of a scheme.

• (10) In this section references, in relation to a scheme, to a person involved in the administration of the scheme do not include references to persons of a particular description if regulations provide for persons of that description to be excluded from those references.

Duty to comply with directions under s. 72B.

72C

• (1) It shall be the duty of any person to whom a direction is given under section 72B to comply with it.

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

• (3) Section 10 applies to any trustee or manager of a scheme who fails, without reasonable excuse, to take all such steps as are reasonable to secure compliance by the trustees or managers of that scheme with any direction given to them under section 72B.

• (4) Section 10 applies to any person who—

• (a) is a person to whom a direction under section 72B is given otherwise than in the capacity of a trustee or manager; and

• (b) without reasonable excuse, fails to comply with that direction.

• (5) For the purposes of this section it shall not be a reasonable excuse in relation to any failure to provide information in pursuance of a direction under section 72B that the provision of that information would (but for the duty imposed by subsection (1) of this section) involve a breach by any person of a duty owed to another not to disclose that information.

Winding up

Preferential liabilities on winding up.

73

• (1) This section applies where an occupational pension scheme to which this section applies is being wound up to determine the order in which the assets of the scheme are to be applied towards satisfying the liabilities of the scheme in respect of pensions and other benefits.

• (2) This section applies to an occupational pension scheme other than a scheme which is—

• (a) a money purchase scheme, or

• (b) a prescribed scheme or a scheme of a prescribed description.

• (3) The assets of the scheme must be applied first towards satisfying the amounts of the liabilities mentioned in subsection (4) and, if the assets are insufficient to satisfy those amounts in full, then—

• (a) the assets must be applied first towards satisfying the amounts of the liabilities mentioned in earlier paragraphs of subsection (4) before the amounts of the liabilities mentioned in later paragraphs, and

• (b) where the amounts of the liabilities mentioned in one of those paragraphs cannot be satisfied in full, those amounts must be satisfied in the same proportions.

• (4) The liabilities referred to in subsection (3) are—

• (a) where—

• (i) the trustees or managers of the scheme are entitled to benefits under a relevant pre-1997 contract of insurance entered into in relation to the scheme, and

• (ii) either that contract may not be surrendered or the amount payable on surrender does not exceed the liability secured by the contract,

the liability so secured;

• (b) any liability for pensions or other benefits to the extent that the amount of the liability does not exceed the corresponding PPF liability, other than a liability within paragraph (a);

• (c) any liability for pensions or other benefits which, in the opinion of the trustees or managers, are derived from the payment by any member of voluntary contributions, other than a liability within paragraph (a) or (b);

• (d) any other liability in respect of pensions or other benefits.

• (5) For the purposes of subsection (4)—

• “corresponding PPF liability” in relation to any liability for pensions or other benefits means—where the liability is to a member of the scheme, the cost of securing benefits for or in respect of the member corresponding to the compensation which would be payable to or in respect of the member in accordance with the pension compensation provisions if the Board of the Pension Protection Fund assumed responsibility for the scheme in accordance with Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection), andwhere the liability is to another person in respect of a member of the scheme, the cost of securing benefits for that person corresponding to the compensation which would be payable to that person in respect of the member in accordance with the pension compensation provisions if the Board assumed responsibility for the scheme in accordance with that Chapter;

• “relevant pre-1997 contract of insurance” means a contract of insurance which was entered into before 6th April 1997 with a view to securing the whole or part of the scheme’s liability for—any pension or other benefit payable to or in respect of one particular person whose entitlement to payment of a pension or other benefit has arisen, andany benefit which will be payable in respect of that person on his death.

• (6) For the purposes of this section, when determining the corresponding PPF liability in relation to any liability of a scheme to, or in respect of, a member for pensions or other benefits, the pension compensation provisions apply with such modifications as may be prescribed.

• (7) Regulations may modify subsection (4).

• (8) For the purposes of that subsection—

• (a) regulations may prescribe how it is to be determined whether a liability for pensions or other benefits which, in the opinion of the trustees or managers of the scheme, are derived from the payment by any member of voluntary contributions falls within paragraph (a) or (b) of that subsection;

• (b) no pension or other benefit which is attributable (directly or indirectly) to a pension credit is to be regarded for the purposes of paragraph (c) of that subsection as derived from the payment of voluntary contributions.

• (9) Where, on the commencement of the winding up period, a member becomes a person to whom Chapter 2 of Part 4ZA of the Pension Schemes Act 1993 (early leavers: cash transfer sums and contribution refunds) applies, that Chapter applies in relation to him with such modifications as may be prescribed.

• (10) For the purposes of this section—

• “assets” of a scheme to which this section applies do not include any assets representing the value of any rights in respect of money purchase benefits under the scheme rules;

• “liabilities” of such a scheme do not include any liabilities in respect of money purchase benefits under the scheme rules;

• “the pension compensation provisions” has the same meaning as in Part 2 of the Pensions Act 2004 (see section 162 of that Act);

• “scheme rules” has the same meaning as in the Pensions Act 2004 (see section 318 of that Act);

• “winding up period”, in relation to an occupational pension scheme to which this section applies, means the period which—begins with the day on which the time immediately after the beginning of the winding up of the scheme falls, andends when the winding up of the scheme is completed.

Operation of scheme during winding up period

73A

• (1) This section applies where an occupational pension scheme to which section 73 applies is being wound up.

• (2) During the winding up period, the trustees or managers of the scheme—

• (a) must secure that any pensions or other benefits (other than money purchase benefits) paid to or in respect of a member are reduced, so far as necessary, to reflect the liabilities of the scheme to or in respect of the member which will be satisfied in accordance with section 73, and

• (b) may, for the purposes of paragraph (a), take such steps as they consider appropriate (including steps adjusting future payments) to recover any overpayment or pay any shortfall.

• (3) During the winding up period—

• (a) no benefits may accrue under the scheme rules to, or in respect of, members of the scheme, and

• (b) no new members of any class may be admitted to the scheme.

• (4) Subsection (3) does not prevent any increase, in a benefit, which would otherwise accrue in accordance with the scheme or any enactment.

• (5) Subsection (3) does not prevent the accrual of money purchase benefits to the extent that they are derived from income or capital gains arising from the investment of payments which are made by, or in respect of, a member of the scheme.

• (6) Where a person is entitled to a pension credit derived from another person’s shareable rights under the scheme, subsection (3) does not prevent the trustees or managers of the scheme discharging their liability in respect of the credit under Chapter 1 of Part 4 of the Welfare Reform and Pensions Act 1999 (sharing of rights under pension arrangements) by conferring appropriate rights under the scheme on that person.

• (6A) During the winding up period no right or entitlement of any member, or of any other person in respect of a member, to a benefit that is not a money purchase benefit is to be converted into, or replaced with, a right or entitlement to a money purchase benefit under the scheme rules.

• (7) Regulations may require the trustees or managers of the scheme, in prescribed circumstances—

• (a) to adjust the entitlement of a person to a pension or other benefit under the scheme rules where the entitlement arises as a result of a discretionary award which takes effect during the winding up period;

• (b) to adjust the entitlement of a person (“the survivor”) to a pension or other benefit under the scheme rules where—

• (i) a member of the scheme, or a person who was (or might have become) entitled to a pension or other benefit in respect of a member, dies during the winding up period, and

• (ii) the survivor’s entitlement is to a pension or other benefit in respect of the member (whether arising on the date of that death or subsequently).

• (8) Regulations under subsection (7) may, in particular—

• (a) prescribe how the required adjustments to entitlement are to be determined and the manner in which they are to be made;

• (b) in a case where the commencement of the winding up of the scheme is backdated (whether in accordance with section 154 of the Pensions Act 2004 (requirement to wind up schemes with sufficient assets to meet protected liabilities) or otherwise), require any adjustment to a person’s entitlement to be made with effect from the time the award takes effect;

• (c) without prejudice to sections 10(3) to (9), 73B(2) and 116, make provision about the consequences of breaching the requirements of the regulations.

• (9) If the scheme confers power on any person other than the trustees or managers of the scheme to apply the assets of the scheme in respect of pensions or other benefits (including increases in pensions or benefits), it cannot be exercised by that person but may, subject to the provisions made by or by virtue of this section and sections 73 and 73B, be exercised instead by the trustees or managers.

• (10) For the purposes of this section—

• “appropriate rights” has the same meaning as in paragraph 5 of Schedule 5 to the Welfare Reform and Pensions Act 1999 (pension credits: mode of discharge);

• “discretionary award” means an award of a prescribed description;

• “shareable rights” has the same meaning as in Chapter 1 of Part 4 of the Welfare Reform and Pensions Act 1999 (sharing of rights under pension arrangements);

• and subsection (10) of section 73 applies as it applies for the purposes of that section.

Sections 73 and 73A: supplementary

73B

• (1) Any action taken in contravention of section 73A(3) or (6A) is void.

• (2) If any provision made by or by virtue of the winding up provisions is not complied with in relation to a scheme to which section 73 applies, section 10 applies to any trustee or manager of the scheme who has failed to take all reasonable steps to secure compliance.

• (3) For the purposes of subsection (2), when determining whether section 73A(3) or (6A) has been complied with subsection (1) of this section is to be disregarded.

• (4) Regulations may—

• (a) prescribe how, for the purposes of the winding up provisions—

• (i) the assets and liabilities of a scheme to which section 73 applies, and

• (ii) their value or amount,

are to be determined, calculated and verified;

• (b) modify any of the winding up provisions as it applies—

• (i) to prescribed schemes or prescribed descriptions of schemes;

• (ii) in relation to a scheme where only part of the scheme is being wound up;

• (iii) in relation to a case where any liability of the scheme in respect of a member has been discharged by virtue of regulations under section 135(4) of the Pensions Act 2004 (power to make regulations permitting discharge of scheme’s liabilities during an assessment period).

• (5) Without prejudice to the generality of subsection (4), regulations under paragraph (b)(i) of that subsection may, in particular, modify any of the winding up provisions as it applies in relation to a scheme in relation to which there is more than one employer.

• (6) The winding up provisions do not apply—

• (a) in relation to any liability for an amount by way of pensions or other benefits which a person became entitled to payment of, under the scheme rules, before commencement of the winding up period,

• (b) in prescribed circumstances, in relation to any liability in respect of rights of a prescribed description to which a member of the scheme became entitled under the scheme rules by reason of his pensionable service under the scheme terminating before the commencement of the winding up period,

• (c) in relation to any liability in respect of rights of prescribed descriptions to which a member of the scheme had become entitled under the scheme rules before the commencement of the winding up period, or

• (d) in relation to any liability the discharge of which is validated under section 136 of the Pensions Act 2004 (power to validate actions taken during an assessment period to discharge liabilities of a scheme).

• (7) But nothing in subsection (6) prevents the winding up provisions applying in relation to a liability under Chapter 1 of Part 4ZA of the Pension Schemes Act 1993 (transfer values) which—

• (a) arose before the commencement of the winding up of the scheme, and

• (b) was not discharged before the commencement of the winding up period.

• (8) Regulations may provide that, in prescribed circumstances, where—

• (a) an occupational pension scheme to which section 73 applies is being wound up,

• (b) a member of the scheme died before the winding up began, and

• (c) during the winding up period a person becomes entitled under the scheme rules to a benefit of a prescribed description in respect of the member,

his entitlement to payment of all or part of the benefit is, for the purposes of subsection (6), to be treated as having arisen immediately before the commencement of the winding up period.

• (9) If, immediately before the winding up period in relation to an occupational pension scheme to which section 73 applies, a person is entitled to an amount but has postponed payment of it, he is not, for the purposes of subsection (6), to be regarded as having become entitled to payment of the amount before that period.

• (10) For the purposes of this section—

• (a) “winding up provisions” means this section and sections 73, 73A and 74, and

• (b) subsection (10) of section 73 applies as it applies for the purposes of that section.

Discharge of liabilities by insurance, etc.

74

• (1) This section applies where an occupational pension scheme to which section 73 applies is being wound up.

• (2) A liability to or in respect of a member of the scheme in respect of pensions or other benefits ... is to be treated as discharged (to the extent that it would not be so treated apart from this section) if the trustees or managers of the scheme have, in accordance with prescribed arrangements, provided for the discharge of the liability in one or more of the ways mentioned in subsection (3).

• (3) The ways referred to in subsection (2) are—

• (a) by acquiring transfer credits allowed under the rules of another occupational pension scheme which satisfies prescribed requirements and the trustees or managers of which are able and willing to accept payment in respect of the member,

• (b) by acquiring rights allowed under the rules of a personal pension scheme which satisfies prescribed requirements and the trustees or managers of which are able and willing to accept payment in respect of the member’s accrued rights or pension credit rights,

• (c) by purchasing one or more annuities which satisfy prescribed requirements from one or more insurers, being companies willing to accept payment in respect of the member from the trustees or managers,

• (d) by subscribing to other pension arrangements which satisfy prescribed requirements,

• (e) by the payment of a cash sum in circumstances where prescribed requirements are met.

• (4) If the assets of the scheme are insufficient to satisfy in full the liabilities, as calculated in accordance with the scheme rules, in respect of pensions and other benefits ... , the reference in subsection (2) to providing for the discharge of any liability in one or more of the ways mentioned in subsection (3) is to applying any amount available, in accordance with section 73, in one or more of those ways.

• (5) Regulations may provide for this section—

• (a) to have effect in relation to so much of any liability as may be determined in accordance with the regulations, ...

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) For the purposes of this section—

• (a) references to assets of the scheme do not include any assets representing the value of any rights in respect of money purchase benefits under the scheme rules, and

• (b) references to liabilities of the scheme do not include any liabilities in respect of money purchase benefits under the scheme rules;

and “scheme rules” has the same meaning as in the Pensions Act 2004 (see section 318 of that Act).

Deficiencies in the assets.

75

• (1) This section applies in relation to an occupational pension scheme other than a scheme which is—

• (a) a money purchase scheme, or

• (b) a prescribed scheme or a scheme of a prescribed description.

• (1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate occupational pension scheme which is a money purchase scheme.

• (2) If—

• (a) at any time which falls—

• (i) when a scheme is being wound up, but

• (ii) before any relevant event in relation to the employer which occurs while the scheme is being wound up,

the value of the assets of the scheme is less than the amount at that time of the liabilities of the scheme, and

• (b) the trustees or managers of the scheme designate that time for the purposes of this subsection (before the occurrence of an event within paragraph (a)(ii)),

an amount equal to the difference shall be treated as a debt due from the employer to the trustees or managers of the scheme.

This is subject to subsection (3).

• (3) Subsection (2) applies only if—

• (a) either—

• (i) no relevant event within subsection (6A)(a) or (b) occurred in relation to the employer during the period beginning with the appointed day and ending with the commencement of the winding up of the scheme, or

• (ii) during the period—

• (a) beginning with the occurrence of the last such relevant event which occurred during the period mentioned in sub-paragraph (i), and

• (b) ending with the commencement of the winding up of the scheme,

a cessation notice was issued in relation to the scheme and became binding, and

• (b) no relevant event within subsection (6A)(c) has occurred in relation to the employer during the period mentioned in paragraph (a)(i).

• (4) Where—

• (a) immediately before a relevant event (“the current event”) occurs in relation to the employer the value of the assets of the scheme is less than the amount at that time of the liabilities of the scheme,

• (b) the current event—

• (i) occurred on or after the appointed day, and

• (ii) did not occur in prescribed circumstances,

• (c) if the scheme was being wound up immediately before that event, subsection (2) has not applied in relation to the scheme to treat an amount as a debt due from the employer to the trustees or managers of the scheme,

• (d) if the current event is within subsection (6A)(a) or (b), either—

• (i) no relevant event within subsection (6A)(a) or (b) occurred in relation to the employer during the period beginning with the appointed day and ending immediately before the current event, or

• (ii) a cessation event has occurred in relation to the scheme in respect of a cessation notice issued during the period—

• (a) beginning with the occurrence of the last such relevant event which occurred during the period mentioned in sub-paragraph (i), and

• (b) ending immediately before the current event, and

• (e) no relevant event within subsection (6A)(c) has occurred in relation to the employer during the period mentioned in paragraph (d)(i),

an amount equal to the difference shall be treated as a debt due from the employer to the trustees or managers of the scheme.

• (4A) Where the current event is within subsection (6A)(a) or (b), the debt under subsection (4) is to be taken, for the purposes of the law relating to insolvency as it applies to the employer, to arise immediately before the occurrence of the current event.

• (4B) Subsection (4C) applies if, in a case within subsection (4)—

• (a) the current event is within subsection (6A)(a) or (b), and

• (b) the scheme was not being wound up immediately before that event.

• (4C) Where this subsection applies, the debt due from the employer under subsection (4) is contingent upon—

• (a) a scheme failure notice being issued in relation to the scheme after the current event and the following conditions being satisfied—

• (i) the scheme failure notice is binding,

• (ii) no relevant event within subsection (6A)(c) has occurred in relation to the employer before the scheme failure notice became binding, and

• (iii) a cessation event has not occurred in relation to the scheme in respect of a cessation notice issued during the period—

• (a) beginning with the occurrence of the current event, and

• (b) ending immediately before the issuing of the scheme failure notice,

and the occurrence of such a cessation event in respect of a cessation notice issued during that period is not a possibility, or

• (b) the commencement of the winding up of the scheme before—

• (i) any scheme failure notice or cessation notice issued in relation to the scheme becomes binding, or

• (ii) any relevant event within subsection (6A)(c) occurs in relation to the employer.

• (5) For the purposes of subsections (2) and (4), the liabilities and assets to be taken into account, and their amount or value, must be determined, calculated and verified by a prescribed person and in the prescribed manner.

• (6) In calculating the value of any liabilities for those purposes, a provision of the scheme rules which limits the amount of its liabilities by reference to the amount of its assets is to be disregarded.

In this subsection “scheme rules” has the same meaning as in the Pensions Act 2004 (“the 2004 Act”) (see section 318 of that Act).

• (6A) For the purposes of this section, a relevant event occurs in relation to the employer in relation to an occupational pension scheme if and when—

• (a) an insolvency event occurs in relation to the employer,

• (b) the trustees or managers of the scheme make an application under subsection (1) of section 129 of the 2004 Act or receive a notice from the Board of the Pension Protection Fund under subsection (5)(a) of that section, or

• (c) a resolution is passed for a voluntary winding up of the employer in a case where a declaration of solvency has been made under section 89 of the Insolvency Act 1986 (members' voluntary winding up).

• (6B) For the purposes of this section—

• (a) a “cessation notice”, in the case of a relevant event within subsection (6A)(a), means—

• (i) a withdrawal notice issued under section 122(2)(b) of the 2004 Act (scheme rescue has occurred),

• (ii) a withdrawal notice issued under section 148 of that Act (no insolvency event has occurred or is likely to occur),

• (iii) a notice issued under section 122(4) of that Act (inability to confirm status of scheme) in a case where the notice has become binding and section 148 of that Act does not apply,

• (b) a “cessation notice” in the case of a relevant event within subsection (6A)(b), means a withdrawal notice issued under section 130(3) of the 2004 Act (scheme rescue has occurred),

• (c) a cessation event occurs in relation to a scheme when a cessation notice in relation to the scheme becomes binding,

• (d) the occurrence of a cessation event in relation to a scheme in respect of a cessation notice issued during a particular period (“the specified period”) is a possibility until each of the following are no longer reviewable—

• (i) any cessation notice which has been issued in relation to the scheme during the specified period,

• (ii) any failure to issue such a cessation notice during the specified period,

• (iii) any notice which has been issued by the Board under Chapter 2 or 3 of Part 2 of the 2004 Act which is relevant to the issue of a cessation notice in relation to the scheme during the specified period or to such a cessation notice which has been issued during that period becoming binding,

• (iv) any failure to issue such a notice as is mentioned in sub-paragraph (iii),

• (e) the issue or failure to issue a notice is to be regarded as reviewable—

• (i) during the period within which it may be reviewed by virtue of Chapter 6 of Part 2 of the 2004 Act, and

• (ii) if the matter is so reviewed, until—

• (a) the review and any reconsideration,

• (b) any reference to the Ombudsman for the Board of the Pension Protection Fund in respect of the matter, and

• (c) any appeal against his determination or directions,

has been finally disposed of, and

• (f) a “scheme failure notice” means a scheme failure notice issued under section 122(2)(a) or 130(2) of the 2004 Act (scheme rescue not possible).

• (6C) For the purposes of this section—

• (a) section 121 of the 2004 Act applies for the purposes of determining if and when an insolvency event has occurred in relation to the employer,

• (b) “appointed day” means the day appointed under section 126(2) of the 2004 Act (no pension protection under Chapter 3 of Part 2 of that Act if the scheme begins winding up before the day appointed by the Secretary of State),

• (c) references to a relevant event in relation to an employer do not include a relevant event which occurred in relation to him before he became the employer in relation to the scheme,

• (d) references to a cessation notice becoming binding are to the notice in question mentioned in subsection (6B)(a) or (b) and issued under Part 2 of the 2004 Act becoming binding within the meaning given by that Part of that Act, and

• (e) references to a scheme failure notice becoming binding are to the notice in question mentioned in subsection (6B)(f) and issued under Part 2 of the 2004 Act becoming binding within the meaning given by that Part of that Act.

• (6D) Where—

• (a) a resolution is passed for a voluntary winding up of the employer in a case where a declaration of solvency has been made under section 89 of the Insolvency Act 1986 (members' voluntary winding up), and

• (b) the voluntary winding up of the employer—

• (i) is stayed other than in prescribed circumstances, or

• (ii) becomes a creditors’ voluntary winding up under section 96 of that Act (conversion to creditors’ voluntary winding up),

this section has effect as if that resolution had never been passed and any debt which arose under this section by virtue of the passing of that resolution shall be treated as if it had never arisen.

• (7) This section does not prejudice any other right or remedy which the trustees or managers may have in respect of a deficiency in the scheme’s assets.

• (8) A debt due by virtue only of this section shall not be regarded—

• (a) as a preferential debt for the purposes of the Insolvency Act 1986, or

• (b) as a preferred debt for the purposes of the Bankruptcy (Scotland) Act 2016.

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) Regulations may modify this section as it applies in prescribed circumstances.

Deficiencies in the assets: multi-employer schemes

75A

• (1) Regulations may modify section 75 (deficiencies in the assets) as it applies in relation to multi-employer schemes.

• (2) The regulations may in particular provide for the circumstances in which a debt is to be treated as due under section 75 from an employer in relation to a multi-employer scheme (a “multi-employer debt”).

• (3) Those circumstances may include circumstances other than those in which the scheme is being wound up or a relevant event occurs (within the meaning of section 75).

• (4) For the purposes of regulations under this section, regulations under section 75(5) may prescribe alternative manners for determining, calculating and verifying—

• (a) the liabilities and assets of the scheme to be taken into account, and

• (b) their amount or value.

• (5) The regulations under this section may in particular—

• (a) provide for the application of each of the prescribed alternative manners under section 75(5) to depend upon whether prescribed requirements are met;

• (b) provide that, where in a particular case a prescribed alternative manner under section 75(5) is applied, the Authority may in prescribed circumstances issue a direction—

• (i) that any resulting multi-employer debt is to be unenforceable for such a period as the Authority may specify, and

• (ii) that the amount of the debt is to be re-calculated applying a different prescribed manner under section 75(5) if prescribed requirements are met within that period.

• (6) The prescribed requirements mentioned in subsection (5) may include a requirement that a prescribed arrangement, the details of which are approved in a notice issued by the Authority, is in place.

• (7) The regulations may provide that the Authority may not approve the details of such an arrangement unless prescribed conditions are met.

• (8) Those prescribed conditions may include a requirement that—

• (a) the arrangement identifies one or more persons to whom the Authority may issue a contribution notice under the regulations, and

• (b) the Authority are satisfied of prescribed matters in respect of each of those persons.

• (9) For the purposes of subsection (8) a “contribution notice” is a notice stating that the person to whom it is issued is under a liability to pay the sum specified in the notice—

• (a) to the trustees of the multi-employer scheme in question, or

• (b) where the Board of the Pension Protection Fund has assumed responsibility for the scheme in accordance with Chapter 3 of Part 2 of the Pensions Act 2004 (pension protection), to the Board.

• (10) The regulations may provide for the Authority to have power to issue a contribution notice to a person identified in an arrangement as mentioned in subsection (8) if—

• (a) the arrangement ceases to be in place or the Authority consider that the arrangement is no longer appropriate, and

• (b) the Authority are of the opinion that it is reasonable to impose liability on the person to pay the sum specified in the notice.

• (11) Where a contribution notice is issued to a person under the regulations as mentioned in subsection (8), the sum specified in the notice is to be treated as a debt due from that person to the person to whom it is to be paid as specified in the notice.

• (12) Where the regulations provide for the issuing of a contribution notice by the Authority as mentioned in subsection (8)—

• (a) the regulations must—

• (i) provide for how the sum specified by the Authority in a contribution notice is to be determined,

• (ii) provide for the circumstances (if any) in which a person to whom a contribution notice is issued is jointly and severally liable for the debt,

• (iii) provide for the matters which the notice must contain, and

• (iv) provide for who may exercise the powers to recover the debt due by virtue of the contribution notice, and

• (b) the regulations may apply with or without modifications some or all of the provisions of sections 47 to 51 of the Pensions Act 2004 (contribution notices where non-compliance with financial support direction) in relation to contribution notices issued under the regulations.

• (13) In this section “multi-employer scheme” means a trust scheme which applies to earners in employments under different employers.

• (14) This section is without prejudice to the powers conferred by—

• section 75(5) (power to prescribe the manner of determining, calculating and verifying assets and liabilities etc),

• section 75(10) (power to modify section 75 as it applies in prescribed circumstances),

• section 118(1)(a) (power to modify any provisions of this Part in their application to multi-employer trust schemes), and

• section 125(3) (power to extend for the purposes of this Part the meaning of “employer”).

Excess assets on winding up.

76

• (1) This section applies to a trust scheme in any circumstances if—

• (a) it is a registered pension scheme under section 153 of the Finance Act 2004,

• (b) the scheme is being wound up, and

• (c) in those circumstances power is conferred on the employer or the trustees to distribute assets to the employer on a winding up.

• (2) The power referred to in subsection (1)(c) cannot be exercised unless the requirements of subsections (3) and (in prescribed circumstances) (4), and any prescribed requirements, are satisfied.

• (3) The requirements of this subsection are that—

• (a) the liabilities of the scheme have been fully discharged,

• (b) where there is any power under the scheme, after the discharge of those liabilities, to distribute assets to any person other than the employer, the power has been exercised or a decision has been made not to exercise it,

• (c) ... and

• (d) notice has been given in accordance with prescribed requirements to the members of the scheme of the proposal to exercise the power.

• (4) The requirements of this subsection are that the Authority are of the opinion that—

• (a) any requirements prescribed by virtue of subsection (2) are satisfied, and

• (b) the requirements of subsection (3) are satisfied.

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

• (6) If, where this section applies to any trust scheme, the trustees purport to exercise the power referred to in subsection (1)(c) without complying with the requirements of this section, section 10 applies to any of them who have failed to take all such steps as are reasonable to secure compliance.

• (7) If, where this section applies to any trust scheme, any person other than the trustees purports to exercise the power referred to in subsection (1)(c) without complying with the requirements of this section, section 10 applies to him.

• (8) Regulations may provide that, in prescribed circumstances, this section does not apply to schemes falling within a prescribed class or description, or applies to them with prescribed modifications.

Excess assets remaining after winding up: power to distribute.

77

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The Pensions Compensation Board

The Compensation Board.

78

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Reports to Secretary of State.

79

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Review of decisions.

80

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The compensation provisions

Cases where compensation provisions apply.

81

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Applications for payments.

82

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Amount of compensation.

83

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Payments made in anticipation.

84

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Surplus funds.

85

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Modification of compensation provisions.

86

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Money purchase schemes

Schedules of payments to money purchase schemes.

87

• (1) This section applies to an occupational pension scheme which is a money purchase scheme, other than one falling within a prescribed class or description.

• (1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section and section 88 as an occupational pension scheme which is a money purchase scheme.

• (2) The trustees or managers of every occupational pension scheme to which this section applies must secure that there is prepared, maintained and from time to time revised a schedule (referred to in this section and section 88 as a “payment schedule”) showing—

• (a) the rates of contributions payable towards the scheme by or on behalf of the employer and the active members of the scheme,

• (b) such other amounts payable towards the scheme as may be prescribed, and

• (c) the dates on or before which payments of such contributions or other amounts are to be made (referred to in those sections as “due dates”).

• (3) The payment schedule for a scheme must satisfy prescribed requirements.

• (4) The matters shown in the payment schedule for a scheme—

• (a) to the extent that the scheme makes provision for their determination, must be so determined, and

• (b) otherwise,

• (i) must be matters previously agreed between the employer and the trustees or managers of the scheme, or

• (ii) if no such agreement has been made as to all matters shown in the schedule (other than those for whose determination the scheme makes provision), must be matters determined by the trustees or managers of the scheme.

• (5) Where in the case of a scheme this section is not complied with—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) section 10 applies to any trustee or manager who has failed to take all such steps.

Schedules of payments to money purchase schemes: supplementary.

88

• (1) Where, in the case of an occupational pension scheme to which section 87 applies—

• (a) there is a failure to pay on or before the due date any amounts payable in accordance with the payment schedule, and

• (b) the trustees or managers have reasonable cause to believe that the failure is likely to be of material significance in the exercise by the Authority of any of their functions,

they must, except in prescribed circumstances, give notice of the failure to the Authority and to the members of the scheme within a reasonable period after the due date.

• (2) Any such amounts which for the time being remain unpaid after that date (whether payable by the employer or not) shall, if not a debt due from the employer to the trustees or managers apart from this subsection, be treated as such a debt.

• (3) Where any amounts payable in accordance with the payment schedule by or on behalf of the employer on the employer’s own account have not been paid on or before the due date, section 10 applies to the employer.

• (4) If, in the case of an occupational pension scheme to which section 87 applies, subsection (1) is not complied with—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) section 10 applies to any trustee or manager who has failed to take all such steps.

Application of further provisions to money purchase schemes.

89

• (1) In the case of money purchase schemes falling within a prescribed class or description, regulations may—

• (a) provide for any of the provisions of Part 3 of the Pensions Act 2004 to apply, or apply with prescribed modifications (in spite of anything in that Part), and

• (b) provide for any of the provisions of sections 87 and 88 to apply with prescribed modifications or not to apply,

to such extent as may be prescribed.

• (2) Regulations may provide for any of the provisions of section 75 to apply, or apply with prescribed modifications, to money purchase schemes to such extent as may be prescribed (in spite of anything in that section), and the power conferred by this subsection includes power to apply section 75 in circumstances other than those in which the scheme is being wound up or a relevant ... event occurs (within the meaning of that section).

• (3) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate money purchase scheme.

Unpaid contributions in cases of insolvency.

90

In section 124 of the Pension Schemes Act 1993 (duty of Secretary of State to pay unpaid contributions to schemes), after subsection (3) there is inserted—

(3A) Where the scheme in question is a money purchase scheme, the sum payable under this section by virtue of subsection (3) shall be the lesser of the amounts mentioned in paragraphs (a) and (c) of that subsection

, and, accordingly, at the beginning of subsection (3) there is inserted “Subject to subsection (3A),”.

Assignment, forfeiture, bankruptcy etc.

Inalienability of occupational pension.

91

• (1) Subject to subsection (5), where a person is entitled to a pension under an occupational pension scheme or has a right to a future pension under such a scheme—

• (a) the entitlement or right cannot be assigned, commuted or surrendered,

• (b) the entitlement or right cannot be charged or a lien exercised in respect of it, and

• (c) no set-off can be exercised in respect of it,

and an agreement to effect any of those things is unenforceable.

• (2) Where by virtue of this section a person’s entitlement to a pension under an occupational pension scheme, or right to a future pension under such a scheme, cannot, apart from subsection (5), be assigned, no order can be made by any court the effect of which would be that he would be restrained from receiving that pension.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) Subsection (2) does not prevent the making of—

• (a) an attachment of earnings order under the Attachment of Earnings Act 1971, or

• (b) an income payments order under the Insolvency Act 1986.

• (5) In the case of a person (“the person in question”) who is entitled to a pension under an occupational pension scheme, or has a right to a future pension under such a scheme, subsection (1) does not apply to any of the following, or any agreement to effect any of the following—

• (a) an assignment in favour of the person in question’s widow, widower, surviving civil partner or dependant,

• (b) a surrender, at the option of the person in question, for the purpose of—

• (i) providing benefits for that person’s widow, widower, surviving civil partner or dependant, or

• (ii) acquiring for the person in question entitlement to further benefits under the scheme,

• (c) a commutation—

• (i) of the person in question’s benefit on or after retirement or in exceptional circumstances of serious ill health,

• (ii) in prescribed circumstances, of any benefit for that person’s widow, widower, surviving civil partner or dependant, or

• (iii) in other prescribed circumstances,

• (d) subject to subsection (6), a charge or lien on, or set-off against, the person in question’s entitlement, or right, (except to the extent that it includes transfer credits other than prescribed transfer credits) for the purpose of enabling the employer to obtain the discharge by him of some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by him,

• (e) subject to subsection (6), except in prescribed circumstances a charge or lien on, or set-off against, the person in question’s entitlement, or right, for the purpose of discharging some monetary obligation due from the person in question to the scheme and—

• (i) arising out of a criminal, negligent or fraudulent act or omission by him, or

• (ii) in the case of a trust scheme of which the person in question is a trustee, arising out of a breach of trust by him,

• (f) subject to subsection (6), a charge or lien on, or set-off against, the person in question’s entitlement, or right, for the purpose of discharging some monetary obligation due from the person in question to the scheme arising out of a payment made in error in respect of the pension.

• (6) Where a charge, lien or set-off is exercisable by virtue of subsection (5)(d) , (e) or (f) —

• (a) its amount must not exceed the amount of the monetary obligation in question, or (if less) the value (determined in the prescribed manner) of the person in question’s entitlement or accrued right, and

• (b) the person in question must be given a certificate showing the amount of the charge, lien or set-off and its effect on his benefits under the scheme,

and where there is a dispute as to its amount, the charge, lien or set-off must not be exercised unless the obligation in question has become enforceable under an order of a competent court or in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.

• (7) This section is subject to section 159 of the Pension Schemes Act 1993 (inalienability of guaranteed minimum pension ... ).

Forfeiture, etc.

92

• (1) Subject to the provisions of this section and section 93, an entitlement to a pension under an occupational pension scheme or a right to a future pension under such a scheme cannot be forfeited.

• (2) Subsection (1) does not prevent forfeiture by reference to—

• (a) a transaction or purported transaction which under section 91 is of no effect, ...

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

whether or not that event occurred before or after the pension became payable.

• (3) Where such forfeiture as is mentioned in subsection (2) occurs, any pension which was, or would but for the forfeiture have become, payable may, if the trustees or managers of the scheme so determine, be paid to all or any of the following—

• (a) the member of the scheme to or in respect of whom the pension was, or would have become, payable,

• (b) the spouse, civil partner, widow, widower or surviving civil partner of the member,

• (c) any dependant of the member, and

• (d) any other person falling within a prescribed class.

• (4) Subsection (1) does not prevent forfeiture by reference to the pensioner, or prospective pensioner, having been convicted of one or more offences—

• (a) which are committed before the pension becomes payable, and

• (b) which are—

• (i) offences of treason,

• (ii) offences under the Official Secrets Acts 1911 to 1989 for which the person has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years, ...

• (iia) offences under section 18 of, or listed in section 33(3)(a) of, the National Security Act 2023 for which the person has been sentenced on the same occasion to a term of imprisonment of, or to two or more consecutive terms amounting in the aggregate to, at least 10 years, or

• (iii) prescribed offences.

• (5) Subsection (1) does not prevent forfeiture by reference to a failure by any person to make a claim for pension—

• (a) where the forfeiture is in reliance on any enactment relating to the limitation of actions, or

• (b) where the claim is not made within six years of the date on which the pension becomes due.

• (6) Subsection (1) does not prevent forfeiture in prescribed circumstances.

• (7) In this section and section 93, references to forfeiture include any manner of deprivation or suspension.

Forfeiture by reference to obligation to employer.

93

• (1) Subject to subsection (2), section 92(1) does not prevent forfeiture of a person’s entitlement to a pension under an occupational pension scheme or right to a future pension under such a scheme by reference to the person having incurred some monetary obligation due to the employer and arising out of a criminal, negligent or fraudulent act or omission by the person.

• (2) A person’s entitlement or right may be forfeited by reason of subsection (1) to the extent only that it does not exceed the amount of the monetary obligation in question, or (if less) the value (determined in the prescribed manner) of the person’s entitlement or right.

• (3) Such forfeiture as is mentioned in subsection (1) must not take effect where there is a dispute as to the amount of the monetary obligation in question, unless the obligation has become enforceable under an order of a competent court or in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.

• (4) Where a person’s entitlement or right is forfeited by reason of subsection (1), the person must be given a certificate showing the amount forfeited and the effect of the forfeiture on his benefits under the scheme.

• (5) Where such forfeiture as is mentioned in subsection (1) occurs, an amount not exceeding the amount forfeited may, if the trustees or managers of the scheme so determine, be paid to the employer.

Sections 91 to 93: supplementary.

94

• (1) Regulations may—

• (a) modify sections 91 to 93 in their application to public service pension schemes or to other schemes falling within a prescribed class or description, or

• (b) provide that those sections do not apply in relation to schemes falling within a prescribed class or description.

• (2) In those sections, “pension” in relation to an occupational pension scheme, includes any benefit under the scheme and any part of a pension and any payment by way of pension.

• (3) In the application of sections 91 and 92 to Scotland—

• (a) references to a charge are to be read as references to a right in security or a diligence and “charged” is to be interpreted accordingly,

• (b) references to assignment are to be read as references to assignation and “assign” is to be interpreted accordingly,

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) the reference to an income payments order under the Insolvency Act 1986 is to be read as a reference to an order under section 90 or 95 of the Bankruptcy (Scotland) Act 2016, ...

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

• (f) after subsection 91(4) there is inserted—

Subject to section 73(3)(d) of the Debtors (Scotland) Act 1987, nothing in this section prevents any diligence mentioned in section 46 of that Act being done against a pension under an occupational pension scheme.

Pension rights of individuals adjudged bankrupt etc.

95

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Questioning the decisions of the Authority

Review of decisions.

96

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References and appeals from the Authority.

97

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Gathering information: the Authority

Provision of information.

98

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Inspection of premises.

99

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Warrants.

100

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Information and inspection: penalties.

101

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Savings for certain privileges etc.

102

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Publishing reports.

103

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Disclosure of information: the Authority

Restricted information.

104

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Information supplied to the Authority by corresponding overseas authorities.

105

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Disclosure for facilitating discharge of functions by the Authority.

106

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Disclosure for facilitating discharge of functions by other supervisory authorities.

107

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Other permitted disclosures.

108

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Disclosure of information by the Inland Revenue.

109

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Gathering information: the Compensation Board

Provision of information.

110

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Information: penalties.

111

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Savings for certain privileges.

112

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Publishing reports.

113

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Disclosure of information.

114

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General

Offences by bodies corporate and partnerships.

115

• (1) Where an offence under this Part committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a director, manager, secretary or other similar officer of the body, or a person purporting to act in any such capacity, he as well as the body corporate is guilty of the offence and liable to be proceeded against and punished accordingly.

• (2) Where the affairs of a body corporate are managed by its members, subsection (1) applies in relation to the acts and defaults of a member in connection with his functions of management as to a director of a body corporate.

• (3) Where an offence under this Part committed by a Scottish partnership is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a partner, he as well as the partnership is guilty of the offence and liable to be proceeded against and punished accordingly.

Breach of regulations.

116

• (1) Regulations made by virtue of any provision of this Part may provide for the contravention of any provision contained in any such regulations to be an offence under this Part and for the recovery on summary conviction for any such offence of a fine not exceeding level 5 on the standard scale.

• (2) An offence under any provision of the regulations may be charged by reference to any day or longer period of time; and a person may be convicted of a second or subsequent offence under such a provision by reference to any period of time following the preceding conviction of the offence.

• (3) Where by reason of the contravention of any provision contained in regulations made by virtue of this Part—

• (a) a person is convicted of an offence under this Part, or

• (b) a person pays a penalty under section 10 or under provision contained in regulations made by virtue of section 41C,

then, in respect of that contravention, he shall not, in a case within paragraph (a), be liable to pay such a penalty or, in a case within paragraph (b), be convicted of such an offence.

Overriding requirements.

117

• (1) Where any provision mentioned in subsection (2) conflicts with the provisions of an occupational pension scheme—

• (a) the provision mentioned in subsection (2), to the extent that it conflicts, overrides the provisions of the scheme, and

• (b) the scheme has effect with such modifications as may be required in consequence of paragraph (a).

• (2) The provisions referred to in subsection (1) are those of—

• (a) this Part,

• (b) any subordinate legislation made or having effect as if made under this Part, ...

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Powers to modify this Part.

118

• (1) Regulations may modify any provisions of this Part, in their application—

• (a) to a trust scheme which applies to earners in employments under different employers,

• (b) to a trust scheme of which there are no members who are in pensionable service under the scheme, or

• (c) to any case where a partnership is the employer, or one of the employers, in relation to a trust scheme.

• (2) Regulations may provide for some or all of the provisions of sections 22 to 26, and section 117 (so far as it applies to those sections), not to apply in relation to a trust scheme falling within a prescribed class or description.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculations etc. under regulations: sub-delegation.

119

Regulations made by virtue of section ... 73B(4)(a) or 75 may provide for the values of the assets and the amounts of the liabilities there mentioned to be calculated and verified in accordance with guidance prepared and from time to time revised by a prescribed body.

Consultations about regulations.

120

• (1) Before the Secretary of State makes any regulations by virtue of this Part, he must consult such persons as he considers appropriate.

• (2) Subsection (1) does not apply—

• (a) to regulations made for the purpose only of consolidating other regulations revoked by them,

• (b) to regulations in the case of which the Secretary of State considers consultation inexpedient because of urgency,

• (c) to regulations made before the end of the period of six months beginning with the coming into force of the provision of this Part by virtue of which the regulations are made, or

• (d) to regulations which—

• (i) state that they are consequential upon a specified enactment, and

• (ii) are made before the end of the period of six months beginning with the coming into force of that enactment.

Crown application.

121

• (1) This Part applies to an occupational pension scheme managed by or on behalf of the Crown as it applies to other occupational pension schemes; and, accordingly, references in this Part to a person in his capacity as a trustee or manager of an occupational pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.

• (2) References in this Part to a person in his capacity as employer in relation to an occupational pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.

• (3) This section does not apply to any provision made by or under this Part under which a person may be prosecuted for an offence; but such a provision applies to persons in the public service of the Crown as it applies to other persons.

• (4) This section does not apply to sections 42 to 46.

• (5) Nothing in this Part applies to Her Majesty in Her private capacity (within the meaning of the Crown Proceedings Act 1947).

Consequential amendments.

122

Schedule 3 (amendments consequential on this Part) shall have effect.

“Connected” and “associated” persons.

123

• (1) Sections 249 and 435 of the Insolvency Act 1986 (connected and associated persons) shall apply for the purposes of the provisions of this Act listed in subsection (3) as they apply for the purposes of that Act.

• (2) Section 229 of the Bankruptcy (Scotland) Act 2016 (meaning of “associate”) shall apply for the purposes of the provisions so listed as it applies for the purposes of that Act.

• (3) The provisions referred to in subsections (1) and (2) are—

• (a) section 23(3)(b),

• (b) sections 27 and 28,

• (c) section 40,

but in the case of section 40 the provisions mentioned in subsections (1) and (2) shall apply for those purposes with any prescribed modifications.

Interpretation of Part I.

124

• (1) In this Part—

• “active member”, in relation to an occupational pension scheme, means a person who is in pensionable service under the scheme,

• “the actuary” and “the auditor”, in relation to an occupational pension scheme, have the meanings given by section 47,

• “the Authority” means the Pensions Regulator,

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• “the Compensation Board” has the meaning given by section 78(1),

• “the compensation provisions” has the meaning given by section 81(3),

• “contravention” includes failure to comply,

• “deferred member”, in relation to an occupational pension scheme, means a person (other than an active or pensioner member) who has accrued rights under the scheme,

• “employer”, in relation to an occupational pension scheme, means the employer of persons in the description or category of employment to which the scheme in question relates (but see section 125(3)),

• “equal treatment rule” has the meaning given by section 62,

• “firm” means a body corporate or a partnership,

• “fund manager”, in relation to an occupational pension scheme, means a person who manages the investments held for the purposes of the scheme,

• “independent trustee” has the meaning given by section 23(3),

• “managers”, in relation to an occupational pension scheme other than a trust scheme, means the persons responsible for the management of the scheme,

• “member”, in relation to an occupational pension scheme, means any active, deferred , pensioner or pension credit member (but see section 125(4)),

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• “normal pension age” has the meaning given by section 180 of the Pension Schemes Act 1993,

• “payment schedule” has the meaning given by section 87(2),

• “pension credit” means a credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999, or under corresponding Northern Ireland legislation,

• “pension credit member”, in relation to an occupational pension scheme, means a person who has rights under the scheme which are attributable (directly or indirectly) to a pension credit,

• “pension credit rights”, in relation to an occupational pension scheme, means rights to future benefits under the scheme which are attributable (directly or indirectly) to a pension credit,

• “pensionable service”, in relation to a member of an occupational pension scheme, means service in any description or category of employment to which the scheme relates which qualifies the member (on the assumption that it continues for the appropriate period) for pension or other benefits under the scheme,

• “pensioner member”, in relation to an occupational pension scheme, means a person who in respect of his pensionable service under the scheme or by reason of transfer credits, is entitled to the present payment of pension or other benefits ... ,

• “prescribed” means prescribed by regulations,

• “professional adviser”, in relation to a scheme, has the meaning given by section 47,

• “public service pension scheme” has the meaning given by section 1 of the Pension Schemes Act 1993,

• “regulations” means regulations made by the Secretary of State,

• “resources”, in relation to an occupational pension scheme, means the funds out of which the benefits provided by the scheme are payable from time to time, including the proceeds of any policy of insurance taken out, or annuity contract entered into, for the purposes of the scheme,

• “Scottish partnership” means a partnership constituted under the law of Scotland,

• “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988,