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

• (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 paragraph (a) of subsection (2), there were substituted the following 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 subsection (3), and

Modification of sections 175 to 181 of the Act: multi-employer sections of segregated schemes

75

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

• (2) Section 175 of the Act 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 paragraph (a) of subsection (2), there were substituted the following 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 subsection (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 paragraph (a) of subsection (2), there were substituted the following 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 subsection (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 paragraph (a) of subsection (2), there were substituted the following 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 subsection (3), and

PART 10 — FINANCIAL ASSISTANCE SCHEME FOR MEMBERS OF CERTAIN PENSION SCHEMES

Modification of section 286 of the Act

76

Section 286 of the Act (financial assistance for members of certain pension schemes) shall be modified in its application to a multi-employer scheme so that it shall be read as if, for paragraph (c) of the definition of “qualifying pension scheme” in subsection (2), there were substituted the following paragraph—

(c) one, some or all of the employers in relation to which satisfy such conditions as may be prescribed at such time as may be prescribed, and

Signed

Signed by authority of the Secretary of State for Work and Pensions

Malcolm Wicks — Minister of State, — Department for Work and Pensions — 2005-03-02

Explanatory note

(This note is not part of the Regulations)

Footnotes

Power to validate contraventions of section 135 and Board to act as creditor of the employer

Transfer notice and assumption of responsibility for a scheme

Ill health pensions

37A

• (1) Section 141 of the Act (effect of a review) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if–

• (a) in subsection (4) the words “a determination under section 143(2)(a) or” were omitted; and

• (b) in subsection (5)(a) the words “makes a determination under section 143(2)(a) or” were omitted.

• (2) Section 142(1) of the Act (sections 140 and 141: interpretation) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if, for the words “143(2)(b)” in the definition of “scheme valuation” there were substituted the word “143”.

Valuation of assets

Refusal to assume responsibility for a scheme

Reconsideration

Closed schemes, requirement to wind up schemes with sufficient assets and applications and notifications where closed schemes have insufficient assets

Transfer notices and assumption of responsibility for a scheme

Further actuarial valuation of segregated parts

The pension compensation provisions

Ill health pensions

53A

• (1) Section 141 of the Act (effect of a review) shall be modified in its application to a segregated part to which regulation 45 applies so that it shall be read as if–

• (a) in subsection (4) the words “a determination under section 143(2)(a) or” were omitted; and

• (b) in subsection (5)(a) the words “makes a determination under section 143(2)(a) or” were omitted.

• (2) Section 142(1) of the Act (sections 140 and 141: interpretation) shall be modified in its application to a segregated part to which regulation 45 applies, so that it shall be read as if for the words “143(2)(b)” in the definition of “scheme valuation” there were substituted the word “143”.

Valuation of assets

Refusal to assume responsibility for a scheme

Reconsideration

Closed schemes, requirement to wind up schemes with sufficient assets and applications and notifications where closed schemes have insufficient assets)

Transfer notices and assumption of responsibility for a scheme

Further actuarial valuation of segregated parts

The pension compensation provisions

Applications and notifications and Board’s duty where application or notification received under section 129

Power to validate contraventions of section 135 and Board to act as creditor of the employer

Transfer notice and the pension compensation provisions

Editorial notes