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Statutory Instrument 2005 No. 441
The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005
(The document as of February, 2008)
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STATUTORY INSTRUMENTS
2005 No. 441
PENSIONS
The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005
| | Made | 2nd March 2005 | | | | Laid before Parliament | 2nd March 2005 | | | | Coming into force in accordance with regulation 1 |
ARRANGEMENT OF REGULATIONSPART 1PRELIMINARY
| 1. | Citation, commencement and interpretation |
PART 2SEGREGATED SCHEMESSINGLE EMPLOYER SECTIONS
| 3. | Notification of insolvency events, confirmation of scheme status etc |
| 5. | Board's duty where application or notification received under section 129 |
| 6. | Protected liabilities and assessment periods |
| 7. | Directions and power to validate contraventions of section 135 |
| 9. | Refusal to assume responsibility for a scheme |
| 10. | Reconsideration and duty to assume responsibility for a scheme following reconsideration |
| 11. | Closed schemes and requirement to wind up schemes with sufficient assets to meet protected liabilities |
| 12. | Transfer notices and assumption of responsibility |
| 13. | The pension compensation provisions |
PART 3SEGREGATED SCHEMESMULTI-EMPLOYER SECTIONS WITHOUT REQUIREMENT FOR PARTIAL WIND UP ON WITHDRAWAL OF PARTICIPATING EMPLOYER
| 14. | Application and effect |
| 15. | Notification of insolvency events, confirmation of scheme status etc |
| 17. | Duty to assume responsibility for schemes |
| 18. | Board's duty where application and notification received under section 129 |
| 22. | Restrictions on winding up, discharge of liabilities etc and power to validate contraventions of section 135 |
| 24. | Refusal to assume responsibility for a scheme |
| 25. | Reconsideration, closed schemes and requirement to wind up schemes with sufficient assets to meet protected liabilities |
| 26. | Transfer notices and assumption of responsibility for a scheme |
| 27. | The pension compensation provisions |
PART 4SEGREGATED SCHEMESNON-SEGREGATED MULTI-EMPLOYER SECTIONS OF SEGREGATED SCHEMES WITH REQUIREMENT FOR PARTIAL WIND UP ON WITHDRAWAL OF PARTICIPATING EMPLOYER
| 28. | Application and effect |
| 29. | Notification of insolvency events, confirmation of scheme status etc |
| 31. | Duty to assume responsibility for schemes |
| 32. | Board's duty where application and notification received under section 129 |
| 36. | Restrictions on winding up, discharge of liabilities etc and power to validate contraventions of section 135 |
| 37. | Board to act as creditor of the employer |
| 39. | Refusal to assume responsibility for a scheme |
| 41. | Closed schemes and requirements to wind up schemes with sufficient assets |
| 42. | Transfer notices and assumption of responsibility for a scheme |
| 43. | Further actuarial valuation of segregated parts |
| 44. | The pension compensation provisions |
PART 5NON-SEGREGATED SCHEMESSCHEMES WITH A REQUIREMENT FOR PARTIAL WIND UP ON THE WITHDRAWAL OF A PARTICIPATING EMPLOYER
| 45. | Application and effect |
| 46. | Notification of insolvency events, confirmation of scheme status etc |
| 48. | Duty to assume responsibility for schemes following insolvency event |
| 49. | Board's duty where application or notification received under section 129 |
| 50. | Protected liabilities and assessment period |
| 52. | Restrictions on winding up, discharge of liabilities etc |
| 53. | Board to act as creditor of the employer |
| 54. | Valuation of assets and protected liabilities |
| 55. | Refusal to assume responsibility for a scheme |
| 57. | Closed schemes and requirement to wind up schemes with sufficient assets |
| 58. | Transfer notices and assumption of responsibility for a scheme |
| 59. | Further actuarial valuation of segregated parts |
| 60. | The pension compensation provisions |
PART 6NON-SEGREGATED SCHEMESSCHEMES WITHOUT PROVISION FOR PARTIAL WIND UP ON WITHDRAWAL OF A PARTICIPATING EMPLOYER
| 61. | Application and effect |
| 62. | Notification of insolvency events, confirmation of scheme status etc |
| 64. | Duty to assume responsibility for schemes |
| 65. | Applications and notifications |
| 67. | Restrictions on winding up, discharge of liabilities etc |
| 69. | Refusal to assume responsibility |
| 70. | Transfer notices and the pension compensation provisions |
PART 7NON-SEGREGATED SCHEME WITH AN OPTION TO SEGREGATE ON THE WITHDRAWAL OF A PARTICIPATING EMPLOYER
| 71. | Application and effect |
PART 8SEGREGATED SCHEMESMULTI-EMPLOYER SECTIONS OF SEGREGATED SCHEMES WITH AN OPTION TO SEGREGATE ON THE WITHDRAWAL OF A PARTICIPATING EMPLOYER
| 72. | Application and effect |
PART 9MULTI-EMPLOYER SCHEMESTHE PENSION PROTECTION LEVIES
| 73. | Modification of sections 175 to 181 of the Act: segregated schemes |
| 74. | Modification of sections 175 to 181 of the Act: non-segregated schemes |
| 75. | Modification of sections 175 to 181 of the Act: multi-employer sections of segregated schemes |
PART 10FINANCIAL ASSISTANCE SCHEME FOR MEMBERS OF CERTAIN PENSION SCHEMES
| 76. | Modification of section 286 of the Act |
The Secretary of State for Work and Pensions, in exercise of the powers conferred upon him by sections 307(1)(b) and (2)(b) and (e), 315(1), (2), (4) and (5) and 318(1) and (4)(a) of the Pensions Act 2004[1], and of all other powers enabling him in that behalf, by this instrument, which contains regulations made before the end of the period of six months beginning with the coming into force of the provisions of that Act by virtue of which they is made[2], hereby makes the following Regulations: PART 1PRELIMINARYCitation, commencement and interpretation 1. - (1) These Regulations may be cited as the Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 and shall come into force - (a) for the purposes of this regulation and regulations 2(2)(b), 3(2)(d), 5(2)(d), 9(1)(a) and (2)(a), 14(3)(b), 15(2)(e), 18(c), 24(1)(a) and (2)(a), 28(4)(b), 29(2)(d), 32(d), 38(1)(d)(i), 39(1)(a) and (2)(a), 45(4)(b), 46(2)(d), 49(d), 54(1)(d)(i), 55(1)(a) and (2)(a), 63(1) and 73(3) for the purpose only of the making of regulations on 9th March 2005; and
(b) for the purposes of regulation 76, on whichever is the later of -
(i) the day which is 21 days after the date on which this instrument is laid, or
(ii) the day on which section 286 of the Pensions Act 2004 comes into force;
(c) for the purposes of regulations 4, 16, 30, 47, 63(2), 73(2)(b) and 74(2) on 1st April 2005; and
(d) for all other purposes on 6th April 2005.
(2) In these Regulations -
"the Act" means the Pensions Act 2004; "multi-employer section" means a section of a segregated scheme which has at least two employers in relation to that section; "pensionable service" has the meaning given by section 70(2) of the Pension Schemes Act 1993[3] (interpretation); and "segregated scheme" means a multi-employer scheme which is divided into two or more sections where - (a) any contributions payable to the scheme by an employer in relation to the scheme or by a member are allocated to that employer's or that member's section; and
(b) a specified proportion of the assets of the scheme is attributable to each section of the scheme and cannot be used for the purposes of any other section.
(3) In the application of Part 2 of the Act and of these Regulations to a multi-employer scheme, or a section of a multi-employer scheme, "employer" includes -
(a) in the case of a scheme which has no active members, every person who was the employer of persons in the description or category of employment to which the scheme, or section, relates immediately before the time at which the scheme, or section, ceased to have any active members in relation to it unless, after that time -
(i) a debt under section 75 of the Pensions Act 1995[4] (deficiencies in the assets) becomes due from that person to the scheme, or section; and
(ii) either -
(aa) the full amount of the debt has been paid by that person to the trustees or managers of the scheme, or section, or
(bb) in circumstances where a legally enforceable agreement has been entered into between that person and the trustees or managers of the scheme, or section, the effect of which is to reduce the amount which is payable in respect of the debt, the reduced amount of the debt has been paid in full by that person to those trustees or managers; and
(b) in any other case, any person who has ceased to be the employer of persons in the description or category of employment to which the scheme, or section, relates unless -
(i) at the time when he so ceased, the scheme, or section, was not being wound up and continued to have active members in relation to it; and
(ii) a debt under section 75 of the Pensions Act 1995 became due at that time from that person to the scheme or section and either -
(aa) the full amount of the debt has been paid by that person to the trustees or managers of the scheme, or section, or
(bb) in circumstances where a legally enforceable agreement has been entered into between that person and the trustees or managers of the scheme, or section, the effect of which is to reduce the amount which is payable in respect of the debt, the reduced amount of the debt has been paid in full by that person to those trustees or managers.
PART 2SEGREGATED SCHEMES:SINGLE EMPLOYER SECTIONSApplication and effect 2. - (1) This regulation applies to a section of a segregated scheme with one employer in relation to that section in circumstances where - (a) an insolvency event occurs in relation to an employer in relation to that section; or
(b) the trustees or managers of the scheme become aware that the employer in relation to that section is unlikely to continue as a going concern and meets the requirements prescribed under subsection (1)(b) of section 129 of the Act (applications and notifications for the purposes of section 128).
(2) Except as otherwise provided in this Part, in a case to which this regulation applies -
(a) Part 2 of the Act, except Chapter 4, shall be read as if it contained the modifications provided for by this Part; and
(b) references in Part 2 of the Act, except in Chapter 4, to -
(i) "scheme rules" shall be read as if they were references to "scheme rules relating to the section";
(ii) "the scheme" shall be read as if they were references to "the section";
(iii) "the employer" shall be read as if they were references to "the employer in relation to the section"; and
(iv) "trustees or managers of the scheme" shall, in relation to a section of a segregated scheme, be read as if they were references to "trustees or managers with ultimate responsibility for the administration of the section".
(3) Paragraph (2) shall not have effect in relation to section 174 of the Act (initial levy).
Notification of insolvency events, confirmation of scheme status etc.
3. - (1) Section 120 of the Act (duty to notify insolvency events in respect of employers) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) for the words "in the case of an occupational pension scheme, an insolvency event occurs in relation to the employer" in subsection (1), there were substituted the words "in the case of a multi-employer scheme which is divided into two or more sections ("a segregated scheme"), an insolvency event occurs in relation to an employer in relation to a section of the scheme in circumstances where that employer is the only employer in relation to that section"; and
(b) after subsection (2), there were inserted the following subsection -
"(2A) Where the trustees or managers of a section of a segregated scheme receive a notice from an insolvency practitioner under subsection (2), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(2) Section 122 of the Act (insolvency practitioner's duty to issue notices confirming status of the scheme) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) for the words "employer in relation to an occupational pension scheme" in subsection (1), there were substituted the words "employer in relation to a section of a segregated scheme in circumstances where that employer is the only employer in relation to that section";
(b) in subsection (2) -
(i) after the words "a scheme rescue is not possible" in paragraph (a), there were inserted the words "in relation to the relevant section of the scheme"; and
(ii) after the words "a scheme rescue has occurred" in paragraph (b), there were inserted the words "in relation to the relevant section of the scheme";
(c) for the words "in relation to the scheme" in subsection (4), there were substituted the words "in relation to the relevant section of the scheme";
(d) for the words "in relation to an occupational pension scheme" in paragraphs (a) and (b) of subsection (5), there were substituted the words "in relation to a section of a segregated scheme"; and
(e) after subsection (6), there were inserted the following subsection -
"(6A) Where the trustees or managers of a section of a segregated scheme receive a copy of a notice issued by an insolvency practitioner or former insolvency practitioner under subsection (6), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(3) Section 123 of the Act (approval of notices issued under section 122) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a section of a segregated scheme receive a copy of a determination notice issued by the Board under subsection (4), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(4) Section 124 of the Act (Board's duty where there is a failure to comply with section 122) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) for the words "in relation to an occupational pension scheme" in subsection (1), there were substituted the words "in relation to a section of a segregated scheme in circumstances where the employer is the only employer in relation to that section"; and
(b) after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a section of a segregated scheme receive a copy of a notice issued by the Board under section 122 by virtue of this section, they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(5) Section 125 of the Act (binding notices confirming status of scheme) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) after subsection (3), there were inserted the following subsection -
"(3A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (3) 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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme."; and
(b) for the words "ceases to be involved with the scheme" in paragraph (b) of subsection (4), there were substituted the words "ceases to be involved with the relevant section of the scheme".
Eligible schemes
4. - (1) Except as otherwise provided in this Part, for the purposes of Part 2 of the Act, except Chapter 4, as it applies in the case of a section of a segregated scheme to which regulation 2 applies, references to "an eligible scheme" shall be read as if they were references to a section of a segregated scheme in circumstances where that section, if it were a scheme, would not be -
(a) a money purchase scheme; or
(b) a scheme which is a prescribed scheme or a scheme of a prescribed description under section 126(1)(b) of the Act (eligible schemes).
(2) Paragraph (1) above shall not apply for the purposes of sections 174 to 181 of the Act (the levies).
Board's duty where application or notification received under section 129
5. - (1) Section 129 of the Act (applications and notifications for the purposes of section 128) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) after subsection (1), there were inserted the following subsection -
"(1A) Where the trustees or managers of a section of a segregated scheme make an application to the Board under subsection (1), they must issue a notice to that effect as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme."; and
(b) after subsection (5), there were inserted the following subsection -
"(5A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (5), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(2) Section 130 of the Act (Board's duty where application or notification received under section 129) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) after the words "a scheme rescue is not possible" in subsection (2), there were inserted the words "in relation to the relevant section of a segregated scheme";
(b) after the words "a scheme rescue has occurred" in subsection (3), there were inserted the words "in relation to that section";
(c) after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a section of a segregated scheme receive a copy of a notice from the Board under subsection (4), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.";
(d) for the words "in relation to an occupational pension scheme" in paragraphs (a) and (b) of subsection (5), there were substituted the words "in relation to a section of a segregated scheme"; and
(e) after subsection (7), there were inserted the following subsection -
"(7A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Protected liabilities and assessment periods
6. - (1) Section 131 of the Act (protected liabilities) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, for subsection (1), there were substituted the following subsection -
"(1) For the purposes of this Chapter the protected liabilities, in relation to a section of a segregated scheme which is, for the purposes of this Part, an eligible scheme, at a particular time ("the relevant time"), are -
(a) the cost of securing benefits for and in respect of members of the section which correspond to the compensation which would be payable, in relation to the section, in accordance with the pension compensation provisions (see section 162) if the Board assumed responsibility for the section in accordance with this Chapter,
(b) a proportion of the liabilities of the scheme as a whole as calculated in the Board's valuation of the relevant section of the scheme under section 143 which are not liabilities to, or in respect of, members,
(c) the estimated cost of winding up the section.".
(2) Section 132 of the Act (assessment periods) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, after the words "an assessment period" in subsections (2) and (4), there were inserted the words "in relation to a section of a segregated scheme".
Directions and power to validate contraventions of section 135
7. - (1) Section 134 of the Act (directions) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) in subsection (2) -
(i) for the words "the scheme's protected liabilities do not exceed its assets", there were substituted the words "the protected liabilities of the section do not exceed its assets"; and
(ii) for the words "in relation to the scheme", there were substituted the words "in relation to the segregated scheme in question"; and
(b) for the words "the trustees or managers" in paragraph (a)(i) of subsection (3), there were substituted the words "any trustees or managers".
(2) Section 136 of the Act (power to validate contraventions of section 135) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, after subsection (2), there were inserted the following subsection -
"(2A) Where the trustees or managers of a section of a segregated scheme receive a copy of a notice from the Board under subsection (2), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Valuation of assets
8. - (1) Section 143 of the Act (Board's obligation to obtain valuation of assets and protected liabilities) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, for the words "the scheme" in subsection (2), there were substituted the words "the relevant section of the scheme".
(2) Section 144 of the Act (approval of valuation) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) for the words "obtains a valuation in respect of a scheme" in subsection (1), there were substituted the words "obtains a valuation in respect of the relevant section of the scheme"; and
(b) after subsection (2), there were inserted the following subsection -
"(2A) Where the trustees or managers of a segregated scheme receive a copy of a valuation of the relevant section of the scheme under subsection (2), they must send a copy of that valuation as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(3) Section 145 of the Act (binding valuations) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) for the words "in relation to a scheme" in subsection (2), there were substituted the words "in relation to the relevant section of the scheme"; and
(b) after subsection (3), there were inserted the following subsection -
"(3A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (3) together with a copy of the binding valuation, they must send a copy of the notice and the binding valuation as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Refusal to assume responsibility for a scheme
9. - (1) Section 146 of the Act (schemes which become eligible schemes) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) for subsection (1), there were substituted the following subsection -
"(1) Regulations may provide that where the Board is satisfied that any section of a segregated scheme is not, for the purposes of this Part, an eligible scheme throughout such period as may be prescribed, the Board must refuse to assume responsibility for that section under this Chapter.";
(b) for the words "a scheme" in subsection (2), there were substituted the words "a section of the scheme";
(c) after subsection (2), there were inserted the following subsection -
"(2A) Where the trustees or managers of a section of a segregated scheme receive a copy of a withdrawal notice from the Board under subsection (2), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme."; and
(d) after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (4) 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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(2) Section 147 of the Act (new schemes created to replace existing schemes) shall be modified in its application to a new section of a segregated scheme or a section of a new segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) for subsection (1), there were substituted the following subsection -
"(1) The Board must refuse to assume responsibility for a new section of a segregated scheme or a section of a new segregated scheme ("the new section") under this Chapter where it is satisfied that -
(a) the new section was established during such period as may be prescribed,
(b) the employer in relation to the new section was, at the date of establishment of that section, also an employer in relation to another scheme ("the old scheme") or another section of the scheme ("the old section") established before the new section,
(c) a transfer or transfers of, or a transfer payment or transfer payments in respect of, any rights of members under the old scheme or the old section has or have been made to the new section, and
(d) the main purpose or one of the main purposes of establishing the new section and making the transfer or transfers, or transfer payment or transfer payments, was to enable those members to receive compensation under the pension compensation provisions in respect of their rights under the new section in circumstances where, in the absence of the transfer or transfers, regulations under section 146 would have operated to prevent such payments in respect of their rights under the old scheme or the old section.";
(b) after subsection (2), there were inserted the following subsection -
"(2A) Where the trustees or managers of a section of a segregated scheme receive a copy of a withdrawal notice from the Board under subsection (2), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme."; and
(c) after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (4) 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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(3) Section 148 of the Act (withdrawal following issue of section 122(4) notice) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) after subsection (5), there were inserted the following subsection -
"(5A) Where the trustees or managers of a section of a segregated scheme receive a copy of a withdrawal notice issued by the Board under this section, they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme."; and
(b) after subsection (7), there were inserted the following subsection -
"(7A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Reconsideration and duty to assume responsibility for a scheme following reconsideration
10. - (1) Section 151 of the Act (application for reconsideration) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, in the definition of "protected benefits quotation" in subsection (8), for the words from ""protected benefits quotation" in relation to a scheme means" to the words "from the reconsideration time" there were substituted the following words -
""protected benefits quotation", in relation to a section of a segregated scheme, means a quotation for one or more annuities from one or more insurers, being companies willing to accept payment in respect of the members of the section from the trustees or managers of the scheme, which would provide in respect of each member of the section from the reconsideration time - ".
(2) Section 152 of the Act (duty to assume responsibility following reconsideration) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) for subsection (2), there were substituted the following subsection -
"(2) The Board must assume responsibility in accordance with this Chapter for a section of a segregated scheme if it is satisfied that the value of the assets of the section at the reconsideration time is less than the aggregate of -
(a) the amount quoted in the protected benefits quotation accompanying the application;
(b) a proportion of the amount of liabilities of the scheme as a whole at that time, as calculated in the valuation of the relevant section of the scheme referred to in subsection (4) of section 151, which are not liabilities to, or in respect of, members of the scheme;
(c) the estimated cost of winding up the section at that time.";
(b) after subsection (3), there were inserted the following subsection -
"(3A) Where the trustees or managers of a section of a segregated scheme receive a copy of a determination notice from the Board under subsection (3), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme."; and
(c) after subsection (7), there were inserted the following subsection -
"(7A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Closed schemes and requirement to wind up schemes with sufficient assets to meet protected liabilities
11. - (1) Section 153 of the Act (closed schemes) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) for the words "a closed scheme" in subsection (2), there were substituted the words "a closed section of a scheme";
(b) for the words "a closed scheme" in subsection (5), there were substituted the words "a closed section of a scheme"; and
(c) after subsection (6), there were inserted the following subsection -
"(6A) Where the trustees or managers of a section of a segregated scheme receive a copy of a determination notice from the Board under subsection (6), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(2) Section 154 of the Act (requirement to wind up schemes with sufficient assets to meet protected liabilities) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) for the words "(scheme rescue not possible but scheme has sufficient assets to meet the protected liabilities)" in paragraph (a) of subsection (2), there were substituted the words "(scheme rescue not possible in relation to a section of a segregated scheme but section has sufficient assets to meet the protected liabilities)";
(b) for the words "a scheme is wound up" in subsection (6), there were substituted the words "a section of a segregated scheme is wound up";
(c) for the words "winding up of a scheme" in subsection (11), there were substituted the words "winding up of a section of a segregated scheme"; and
(d) for the words "in relation to a scheme" in subsection (12), there were substituted the words "in relation to a section of a segregated scheme".
(3) Section 155 of the Act (treatment of closed schemes) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, for subsection (1), there were substituted the following subsection -
"(1) In this section "closed scheme" means a section of a segregated scheme which is, for the purposes of this Part, an eligible scheme which is authorised under section 153 to continue as a closed section of the scheme.".
(4) Section 157 of the Act (applications and notifications where closed schemes have insufficient assets) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (4), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Transfer notices and assumption of responsibility
12. - (1) Section 160 of the Act (transfer notice) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) for the words "required to assume responsibility for a scheme" in subsection (1), there were substituted the words "required to assume responsibility for a section of a segregated scheme";
(b) after subsection (2), there were inserted the following subsection -
"(2A) Where the trustees or managers of a section of a segregated scheme receive a transfer notice from the Board under subsection (2), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme."; and
(c) for subsection (6), there were substituted the following subsection -
"(6) The Board must give a copy of the transfer notice under subsection (2) to -
(a) the Regulator, and
(b) an insolvency practitioner acting in relation to the employer in relation to the section of the scheme in respect of which the transfer notice is issued.".
(2) Section 161 of the Act (effect of Board assuming responsibility for a scheme) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if -
(a) after the word "obligations" in paragraph (b) of subsection (2), there were inserted the words "to or in respect of members of that section"; and
(b) after the words "to or in respect of persons" in paragraph (a) of subsection (4), there were inserted the words "who are or were members of that section".
(3) Paragraph 1 of Schedule 6 to the Act (transfer of rights and liabilities to the Board) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, for the words "an occupational pension scheme", there were substituted the words "a section of a segregated multi-employer scheme".
The pension compensation provisions
13. - (1) Section 162 of the Act (the pension compensation provisions) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, in subsection (1) -
(a) for the words "in relation to a scheme", there were substituted the words "in relation to a section of a segregated scheme";
(b) after the word "members" in paragraphs (a) and (b), there were added the words "of that section";
(c) after the word "payable" in paragraph (c), there were added the words "to or in respect of members of that section"; and
(d) at the end of paragraph (d), there were added the words "payable to or in respect of members of that section".
(2) Section 163 of the Act (adjustments to be made where the Board assumes responsibility for a scheme) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, after the words "to any member" in paragraph (a) of subsection (2), there were inserted the words "of that section".
(3) Section 166 of the Act (duty to pay scheme benefits unpaid at assessment date etc) shall be modified in its application to a section of a segregated scheme to which regulation 2 applies so that it shall be read as if, for the words "assumes responsibility for a scheme" in subsection (1), there were substituted the words "assumes responsibility for a section of a segregated scheme with only one employer in relation to that section of the scheme".
PART 3SEGREGATED SCHEMES:MULTI-EMPLOYER SECTIONS WITHOUT REQUIREMENT FOR PARTIAL WIND UP ON WITHDRAWAL OF PARTICIPATING EMPLOYERApplication and effect 14. - (1) This paragraph applies to a multi-employer section of a segregated scheme the rules of which do not provide for the partial winding up of the section when an employer in relation to the section ceases to participate in the scheme in circumstances where - (a) an insolvency event occurs in relation to more than one of the employers in relation to the section at a time when those employers are the only employers in relation to that section; or
(b) the trustees or managers of the scheme become aware that more than one of the employers in relation to the section are unlikely to continue as a going concern and meet the requirements prescribed under subsection (1)(b) of section 129 of the Act (applications and notifications for the purposes of section 128) at a time when those employers are the only employers in relation to that section.
(2) This paragraph applies to a multi-employer section of a segregated scheme the rules of which do not provide for the partial winding up of the section where an employer in relation to the section ceases to participate in the scheme in circumstances where -
(a) an insolvency event occurs in relation to one or more of the employers in relation to the section of the scheme at a time when an insolvency event has occurred in relation to all other employers in relation to that section and, where applicable, an insolvency practitioner is still required by law to be appointed to act in relation to each of those employers; or
(b) the trustees or managers of the scheme become aware that one or more of the employers in relation to the section are unlikely to continue as a going concern and meet the requirements prescribed under subsection (1)(b) of section 129 of the Act (applications and notifications for the purposes of section 128) at a time when an insolvency event has occurred in relation to all other employers in relation to that section and, where applicable, an insolvency practitioner is still required by law to be appointed to act in relation to each of those employers.
(3) Except as otherwise provided in this Part, in the case of a multi-employer section of a segregated scheme to which this regulation applies -
(a) Part 2 of the Act, except Chapter 4, shall be read as if it contained the modifications provided for by this Part; and
(b) references in Part 2 of the Act, except in Chapter 4, to -
(i) "scheme rules" shall be read as if they were references to "scheme rules relating to the section";
(ii) "the scheme" shall be read as if they were references to "the section";
(iii) "the employer" shall be read as if they were references to "an employer in relation to the section"; and
(iv) "trustees or managers of the scheme" shall, in relation to a multi-employer section of a segregated scheme, be read as if they were references to "trustees or managers with ultimate responsibility for the administration of the section".
(4) Paragraph (3) shall not have effect in relation to section 174 of the Act (initial levy).
Notification of insolvency events, confirmation of scheme status etc.
15. - (1) Section 120 of the Act (duty to notify insolvency events in respect of employers) shall be modified so that it shall be read as if, in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies -
(a) for subsection (1), there were substituted the following subsection -
"(1) This section applies where, in the case of 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"), an insolvency event occurs in relation to any employer in relation to that section."; and
(b) after subsection (2), there were inserted the following subsection -
"(2A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from an insolvency practitioner under subsection (2), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(2) Section 122 of the Act (insolvency practitioner's duty to issue notices confirming status of scheme) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for subsection (1), there were substituted the following subsection -
"(1) This section applies where an insolvency event has occurred in relation to any employer in relation to a multi-employer section of a segregated scheme.";
(b) in subsection (2) -
(i) for the words "the employer", there were substituted the words "each employer";
(ii) after the words "a scheme rescue is not possible" in paragraph (a), there were inserted the words "in relation to the relevant section of the scheme"; and
(iii) after the words "a scheme rescue has occurred" in paragraph (b), there were inserted the words "in relation to the relevant section of the scheme";
(c) for the words "the employer" in paragraph (a) of subsection (3), there were substituted the words "an employer";
(d) in subsection (4) -
(i) for the words "the employer", there were substituted the words "an employer"; and
(ii) for the words "in relation to the scheme", there were substituted the words "in relation to the section";
(e) for the words "in relation to an occupational pension scheme" in paragraphs (a) and (b) of subsection (5), there were substituted the words "in relation to a multi-employer section of a segregated scheme";
(f) for the words "the employer" in subsection (6) there were substituted the words "an employer"; and
(g) after subsection (6), there were inserted the following subsection -
"(6A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice issued by an insolvency practitioner or former insolvency practitioner under subsection (6), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(3) Section 123 of the Act (approval of notices issued under section 120) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for subsection (1), there were substituted the following subsection -
"(1) This section applies where the Board receives a notice under section 122(6) ("the section 122 notice") in relation to an employer in relation to a multi-employer section of a segregated scheme at a time when the Board has previously received such a notice in relation to all the other employers in relation to that section of the scheme.";
(b) for subsection (2), there were substituted the following subsection -
"(2) The Board must determine whether to approve the section 122 notice received in relation to that employer."; and
(c) after subsection (4) there were inserted the following subsection -
"(4A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a determination notice issued by the Board under subsection (4), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(4) Section 124 of the Act (Board's duty where there is a failure to comply with section 122) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for the words "This section applies where in relation to an occupational pension scheme" at the beginning of subsection (1), there were substituted the words "This section applies where in relation to a section of a segregated scheme with at least two employers in relation to that section";
(b) for the words "the employer" in paragraphs (a) and (b) of subsection (1), there were substituted the words "an employer";
(c) in subsection (4) -
(i) for the words "the employer" in paragraph (d), there were substituted the words "an employer"; and
(ii) for the words "in relation to the employer, the employer" in paragraph (e), there were substituted the words "in relation to an employer, that employer"; and
(d) after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a notice issued by the Board under section 122 by virtue of this section, they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(5) Section 125 of the Act (binding notices confirming status of scheme) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if, after subsection (3), there were inserted the following subsection -
"(3A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (3) 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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Eligible schemes
16. - (1) Except as otherwise provided in this Part, for the purposes of Part 2 of the Act, except Chapter 4, as it applies in the case of a section of a multi-employer scheme to which paragraph (1) or (2) of regulation 14 applies, references to an "eligible scheme" shall be read as if they were references to a multi-employer section of a segregated scheme in circumstances where that section, if it were a scheme, would not be -
(a) a money purchase scheme; or
(b) a scheme which is a prescribed scheme or a scheme of a prescribed description under section 126(1)(b) of the Act.
(2) Paragraph (1) above shall not apply for the purposes of sections 174 to 181 of the Act (the levies).
Duty to assume responsibility for schemes
17. - (1) Section 127 of the Act (duty to assume responsibility for schemes following insolvency event) shall only have effect in relation to a multi-employer section of a segregated scheme in the circumstances described in regulation 14(1) and (2) and, for those purposes, shall be modified so that it shall be read as if -
(a) in its application to a multi-employer section of a segregated scheme to which paragraph (1) of regulation 14 applies -
(i) for subsection (1) there were substituted the following subsection -
"(1) This section applies where a qualifying insolvency event has occurred in relation to more than one of the employers in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme at a time when those employers are the only employers in relation to that section of the scheme.";
(ii) for subsection (3), there were substituted the following subsection -
"(3) For the purposes of this section, an insolvency event ("the current event") in relation to an employer in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme is a qualifying insolvency event if -
(a) it occurs simultaneously in relation to more than one employer at a time when those employers are the only employers in relation to the scheme,
(b) it occurs on or after the day appointed under section 126(2), and
(c) it -
(i) is the first insolvency event to occur in relation to that employer on or after that day, or
(ii) does not occur within an assessment period (see section 132) in relation to that section of the scheme which began before the occurrence of the current event."; and
(b) in its application to a multi-employer section of a segregated scheme to which paragraph (2) of regulation 14 applies -
(i) for subsection (1) there were inserted the following subsection -
"(1) This section applies where a qualifying insolvency event has occurred in relation to one or more of the employers in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme at a time when an insolvency event has occurred in relation to all other employers in relation to that section of 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"; and
(ii) for subsection (3), there were substituted the following subsection -
(2) Section 128 of the Act (duty to assume responsibility for schemes following application or notification) shall be modified so that it shall be read as if, in its application to a multi-employer section of a segregated scheme to which -
(a) paragraph (1) of regulation 14 applies, for subsection (1) there were substituted the following subsection -
"(1) This section applies where, in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme, the trustees or managers of the scheme -
(a) make an application under subsection (1) of section 129 ("a section 129 application") in relation to more than one employer in relation to that section of the scheme at a time when those employers are the only employers in relation to that section of the scheme, or
(b) receive a notification from the Board under subsection (5)(a) of that section ("a section 129 notification") in relation to more than one employer in relation that section of the scheme at a time when those employers are the only employers in relation to that section of the scheme.";
(b) paragraph (2) of regulation 14 applies, for subsection (1) there were substituted the following subsection -
"(1) This section applies where, in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme, the trustees or managers of the scheme -
(a) make an application under subsection (1) of section 129 ("a section 129 application") in relation to one or more of the employers in relation to that section of the scheme at a time when an insolvency event has occurred in relation to all other employers in relation to that section of 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, or
(b) receive a notification from the Board under subsection (5)(a) of that section ("a section 129 notification") in relation to one or more of the employers in relation to that section of the scheme at a time when an insolvency event has occurred in relation to all other employers in relation to that section of 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.".
(3) Section 129 of the Act (applications and notifications for the purposes of section 128) shall be modified so that it shall be read as if, in its application to a multi-employer section of a segregated scheme to which -
(a) paragraph (1) of regulation 14 applies -
(i) for subsection (1) there were substituted the following subsection -
"(1) Where the trustees or managers of a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme become aware that -
(a) more than one employer in relation to that section of the scheme is unlikely to continue as a going concern at a time when those employers are the only employers in relation to that section of the scheme, 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 section under section 128.";
(ii) after subsection (1), there were inserted the following subsection -
"(1A) Where the trustees or managers of a multi-employer section of a segregated scheme make an application to the Board under subsection (1), they must issue a notice to that effect as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme."; and
(iii) after subsection (5), there were inserted the following subsection -
"(5A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (5), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.";
(b) paragraph (2) of regulation 14 applies -
(i) for subsection (1) there were substituted the following subsection -
"(1) Where the trustees or managers of a multi-employer section of a segregated scheme which is, for the Purposes of this Part, an eligible scheme become aware that -
(a) one or more employers in relation to that section of the scheme is unlikely to continue as a going concern at a time when an insolvency event has occurred in relation to all other employers in relation to that section of 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, 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 section under section 128.";
(ii) after subsection (1), there were inserted the following subsection -
"(1A) Where the trustees or managers of a multi-employer section of a segregated scheme make an application to the Board under subsection (1), they must issue a notice to that effect as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme."; and
(iii) after subsection (5), there were inserted the following subsection -
"(5A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (5), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Board's duty where application or notification received under section 129
18.Section 130 of the Act (Board's duty where application or notification received under section 129) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) after the words "a scheme rescue is not possible" in subsection (2), there were inserted the words "in relation to a multi-employer section of a segregated scheme";
(b) after the words "a scheme rescue has occurred" in subsection (3), there were inserted the words "in relation to that section";
(c) for the words "in relation to an occupational pension scheme" in paragraphs (a) and (b) of subsection (5), there were inserted the words "in relation to a multi-employer section of a segregated scheme";
(d) after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a section of a segregated scheme receive a copy of a notice from the Board under subsection (4), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme."; and
(e) after subsection (7), there were inserted the following subsection -
"(7A) Where the trustees or managers of a section of a segregated scheme receive a notice from the Board under subsection (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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Protected liabilities
19.Section 131 of the Act (protected liabilities) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if, for subsection (1), there were substituted the following subsection -
"(1) For the purposes of this Chapter the protected liabilities, in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme, at a particular time ("the relevant time") are -
(a) the cost of securing benefits for and in respect of members of the section which correspond to the compensation which would be payable, in relation to the section, in accordance with the pension compensation provisions (see section 162) if the Board assumed responsibility for the section in accordance with this Chapter,
(b) a portion of the liabilities of the scheme as a whole as calculated in the Board's valuation of the relevant section of the scheme under section 143, which are not liabilities to, or in respect of, members,
(c) the estimated cost of winding up the section.".
Assessment periods
20.Section 132 of the Act (assessment periods) shall be modified so that it shall be read as if, in its application to a multi-employer section of a segregated scheme to which -
(a) paragraph (1) of regulation 14 applies -
(i) in subsection (2) -
(aa) for the words "in relation to an eligible scheme", there were substituted the words "in relation to a multi-employer section of an eligible scheme which is, for the purposes of this Part, an eligible scheme";
(bb) for the words "the employer" there were substituted the words "an employer"; and
(cc) after the words "an assessment period", there were inserted the words "in relation to the section"; and
(ii) for the words "in relation to an eligible scheme, an application is made under section 129(1) or a notification is received under section 129(5)(a)" in subsection (4), there were substituted the words "in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme, an application is made under section 129(1) or a notification is received under section 129(5)(a) in respect of more than one employer at a time when those employers are the only employers in relation to that section of the scheme"; and
(b) paragraph (2) of regulation 14 applies -
(i) in subsection (2) -
(aa) for the words "in relation to an eligible scheme", there were substituted the words "in relation to a multi-employer section of an eligible scheme which is, for the purposes of this Part, an eligible scheme";
(bb) for the words "the employer", there were substituted the words "an employer"; and
(cc) after the words "as assessment period", there were inserted the words "in relation to a multi-employer section of an eligible scheme"; and
(ii) for the words "in relation to an eligible scheme, an application is made under section 129(1) or a notification is received under section 129(5(a)" in subsection (4), there were substituted the words "in relation to a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme, an application is made under section 129(1) or a notification is received under section 129(5)(a) in respect of one or more of the employers at a time when an insolvency event has occurred in relation to all other employers in relation to that section of 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.".
Directions
21.Section 134 of the Act (directions) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) in subsection (2) -
(i) for the words "the scheme's protected liabilities do not exceed its assets" there were substituted the words "the protected liabilities of the section do not exceed its assets"; and
(ii) for the words "in relation to the scheme" there were substituted the words "in relation to the segregated scheme in question"; and
(b) for the words "the trustees or managers" in paragraph (a)(i) of subsection (3), there were substituted the words "any trustees or managers".
Restrictions on winding up, discharge of liabilities etc and power to validate contraventions of section 135
22. - (1) Section 135 of the Act (restrictions on winding up, discharge of liabilities etc) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if, after subsection (2), there were inserted the following subsection -
"(2A) An employer in relation to a multi-employer section of a segregated scheme must not cease to participate in the scheme during an assessment period.".
(2) Section 136 of the Act (power to validate contraventions of section 135) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for the words "in relation to the employer, or if there is no such insolvency practitioner, the employer" in paragraph (d) of subsection (2), there were substituted the words "in relation to an employer, or if there is no such insolvency practitioner, that employer"; and
(b) after subsection (2), there were inserted the following subsection -
"(2A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a notice from the Board under subsection (2), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all employers in relation to the scheme.".
Valuation of assets
23. - (1) Section 143 of the Act (Board's obligation to obtain valuation of assets and protected liabilities) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if, for the words "the scheme" in subsection (2), there were substituted the words "the relevant section of the scheme".
(2) Section 144 of the Act (approval of valuation) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for the words "obtains a valuation in respect of a scheme" in subsection (1), there were substituted the words "obtains a valuation in respect of the relevant section of the scheme";
(b) for the words "in relation to the employer or, if there is no such insolvency practitioner, the employer" in paragraph (b)(iii) of subsection (2), there were substituted the words "in relation to an employer or, if there is no such insolvency practitioner, that employer"; and
(c) after subsection (2), there were inserted the following subsection -
"(2A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a valuation from the Board under subsection (2), they must send a copy of that valuation as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(3) Section 145 of the Act (binding valuations) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for the words "in relation to a scheme" in subsection (2), there were substituted the words "in relation to the relevant section of the scheme"; and
(b) for the words "in relation to the employer or, if there is no such insolvency practitioner, the employer" in paragraph (c) of subsection (3), there were substituted the words "in relation to an employer or, if there is no such insolvency practitioner, that employer"; and
(c) after subsection (3), there were inserted the following subsection -
"(3A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (3) together with a copy of a binding valuation, they must send a copy of the notice and the binding valuation as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Refusal to assume responsibility for a scheme
24. - (1) Section 146 of the Act (schemes which become eligible schemes) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for subsection (1), there were substituted the following subsection -
"(1) Regulations may provide that where the Board is satisfied that any multi-employer section of a segregated scheme is not, for the purposes of this Part, an eligible scheme throughout such period as may be prescribed, the Board must refuse to assume responsibility for that section under this Chapter.";
(b) in subsection (2) -
(i) for the words "a scheme", there were substituted the words "a section of the scheme"; and
(ii) for the words "in relation to the employer or, if there is no such insolvency practitioner, the employer" in paragraph (b)(iii), there were substituted the words "in relation to an employer of, if there is no such insolvency practitioner, that employer";
(c) after subsection (2), there were inserted the following subsection -
"(2A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a withdrawal notice from the Board under subsection (2), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.";
(d) for the words "in relation to the employer or, if there is no such insolvency practitioner, the employer" in paragraph (c) of subsection (4), there were substituted the words "in relation to an employer or, if there is no such insolvency practitioner, that employer"; and
(e) after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (4) 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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(2) Section 147 of the Act (new schemes created to replace existing schemes) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for subsection (1), there were substituted the following subsection -
"(1) The Board must refuse to assume responsibility for a new multi-employer section of a segregated scheme ("the new section") under this Chapter where it is satisfied that -
(a) the new section was established during such period as may be prescribed,
(b) an employer in relation to the new section was, at the date of establishment of that section, also the employer in relation to another scheme ("the old scheme") or another section of the scheme ("the old section") established before the new section,
(c) a transfer or transfers of, or a transfer payment or transfer payments in respect of, any rights of members under the old scheme or the old section has or have been made to the new section, and
(d) the main purpose or one of the main purposes of establishing the new section and making the transfer or transfers, or transfer payment or transfer payments, was to enable those members to receive compensation under the pension compensation provisions in respect of their rights under the new section in circumstances where, in the absence of the transfer or transfers, regulations under section 146 would have operated to prevent such payments in respect of their rights under the old scheme or the old section.";
(b) for the words "in relation to the employer or, if there is no such insolvency practitioner, the employer" in paragraph (b)(iii) of subsection (2), there were substituted the words "in relation to an employer or, if there is no such insolvency practitioner, that employer";
(c) after subsection (2), there were inserted the following subsection -
"(2A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a withdrawal notice from the Board under subsection (2), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.";
(d) for the words in relation to the employer or, if there is no such insolvency practitioner, the employer" in paragraph (c) of subsection (4), there were substituted the words "in relation to an employer or, if there is no such insolvency practitioner, that employer"; and
(e) after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (4) 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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(3) Section 148 of the Act (withdrawal following issue of section 122(4) notice) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for the words "the employer" in paragraph (c) of subsection (5), there were substituted the words "any employer";
(b) after subsection (5), there were inserted the following subsection -
"(5A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a withdrawal notice issued by the Board under this section, they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.";
(c) for the words "the employer" in paragraph (c) of subsection (7), there were substituted the words "any employer"; and
(d) after subsection (7), there were inserted the following subsection -
"(7A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Reconsideration, closed schemes and requirement to wind up schemes with sufficient assets to meet protected liabilities
25. - (1) Section 151 of the Act (application for reconsideration) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if, in the definition of "protected benefits quotation" in subsection (8), for the words from ""protected benefits quotation" in relation to a scheme means" to the words "from the reconsideration time" there were substituted the following words -
""protected benefits quotation", in relation to a section of a segregated scheme, means a quotation for one or more annuities from one or more insurers, being companies willing to accept payment in respect of the members of the section from the trustees or managers of the scheme, which would provide in respect of each member of the section from the reconsideration time - ".
(2) Section 152 of the Act (duty to assume responsibility following reconsideration) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for subsection (2), there were substituted the following subsection -
"(2) The Board must assume responsibility in accordance with this Chapter for a multi-employer section of a segregated scheme if it is satisfied that the value of the assets of the section at the reconsideration time is less than the aggregate of -
(a) the amount quoted in the protected benefits quotation accompanying the application,
(b) a proportion of the amount of the liabilities of the scheme as a whole at that time, as calculated in the valuation of the relevant section of the scheme referred to in subsection (4) of section 151, which are not liabilities to, or in respect of, members of the scheme,
(c) the estimated costs of winding up the section at that time.";
(b) after subsection (3), there were inserted the following subsection -
"(3A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a determination notice from the Board under subsection (3), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme."; and
(c) after subsection (7), there were inserted the following subsection -
"(7A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(3) Section 153 of the Act (closed schemes) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for the words "a closed scheme" in subsection (2), there were substituted the words "a closed section of the scheme";
(b) for the words "a closed scheme" in subsection (5), there were substituted the words "a closed section of the scheme"; and
(c) after subsection (6), there were inserted the following subsection -
"(6A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a determination notice from the Board under subsection (6), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(4) Section 154 of the Act (requirement to wind up schemes with sufficient assets to meet protected liabilities) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for the words "(scheme rescue not possible but scheme has sufficient assets to meet the protected liabilities)" in paragraph (a) of subsection (2), there were substituted the words "(scheme rescue not possible in relation to a multi-employer section of a segregated scheme but section has sufficient assets to meet the protected liabilities)";
(b) for the words "scheme is wound up" in subsection (6), there were substituted the words "a multi-employer section of a segregated scheme is wound up";
(c) for the words "winding up of a scheme" in subsection (11), there shall be substituted the words "winding up of a multi-employer section of a segregated scheme"; and
(d) for the words "in relation to a scheme" in subsection (12), there were substituted the words "in relation to a multi-employer section of a segregated scheme".
(5) Section 155 of the Act (treatment of closed schemes) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if, for subsection (1), there were substituted the following subsection -
"(1) In this section "closed scheme" means a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme which is authorised under section 153 to continue as a closed section of the scheme.".
(6) Section 157 of the Act (applications and notifications where closed schemes have sufficient assets) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if, after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (4), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Transfer notices and assumption of responsibility for a scheme
26. - (1) Section 160 of the Act (transfer notice) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) for the words "required to assume responsibility for a scheme" in subsection (1), there were substituted the words "required to assume responsibility for a multi-employer section of a segregated scheme";
(b) after subsection (2) there were inserted the following subsection -
"(2A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a transfer notice from the Board under subsection (2), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.";
(c) for subsection (6) there were substituted the following subsection -
"(6) The Board must give a copy of the transfer notice under subsection (2) to -
(a) the Regulator, and
(b) an insolvency practitioner acting in relation to every employer in relation to the section of the scheme in respect of which the transfer notice is issued.".
(2) Section 161 of the Act (effect of Board assuming responsibility for a scheme) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if -
(a) after the word "obligations" in paragraph (a) of subsection (2), there were inserted the words "to or in respect of members of that section"; and
(b) after the words "to or in respect of persons" in paragraph (a) of subsection (4), there were inserted the words "who are or were members of that section".
(3) Paragraph 1 of Schedule 6 to the Act (transfer of property, rights and liabilities to the Board) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if, for the words "an occupational pension scheme", there were substituted the words "a multi-employer section of a segregated multi-employer scheme".
The pension compensation provisions
27. - (1) Section 162 of the Act (the pension compensation provisions) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that subsection (1) shall be read as if -
(a) for the words "in relation to a scheme", there were substituted the words "in relation to a multi-employer section of a segregated scheme";
(b) after the word "members" in paragraphs (a) and (b), there were added the words "of that section";
(c) after the word "payable" in paragraph (c), there were added the words "to or in respect of members of that section";
(d) at the end of paragraph (d), there were added the words "payable to or in respect of members of that section".
(2) Section 163 of the Act (adjustments to be made where the Board assumes responsibility for a scheme) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if, after the words "to any member" in paragraph (a) of subsection (2), there were inserted the words "of that section".
(3) Section 166 of the Act (duty to pay scheme benefits unpaid at assessment date etc) shall be modified in its application to a multi-employer section of a segregated scheme to which paragraph (1) or (2) of regulation 14 applies so that it shall be read as if, for the words "assumes responsibility for a scheme" in subsection (1), there were substituted the words "assumes responsibility for a multi-employer section of a segregated scheme".
PART 4SEGREGATED SCHEMES:NON-SEGREGATED MULTI-EMPLOYER SECTIONS OF SEGREGATED SCHEMES WITH REQUIREMENT FOR PARTIAL WIND UP ON WITHDRAWAL OF PARTICIPATING EMPLOYERApplication and effect 28. - (1) This regulation applies to a non-segregated multi-employer section of a segregated scheme in circumstances where - (a) an insolvency event occurs in relation to an employer in relation to that section; or
(b) 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 subsection (1)(b) of section 129 of the Act (applications and notifications for the purposes of section 128).
(2) Where -
(a) in relation to an employer in relation to a section of a scheme to which this regulation applies, an event described in paragraph (1)(a) or (b) of this regulation occurs; and
(b) the requirement in the scheme rules relating to that section 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 of the section by reference to an employer in relation to the section ("the segregation requirement") would be triggered when an employer in relation to the section ceases to participate in the scheme,
the segregation requirement shall, in relation to the employer referred to in sub-paragraph (a) of this paragraph, be deemed to have been triggered immediately after the occurrence of the event described in paragraph (1)(a) or (b) and a segregated part of the section shall be deemed to have been created for and in respect of any period after the occurrence of that event where a withdrawal event within the meaning of section 149(2) of the Act has not occurred in relation to the segregated part.
(3) In this Part -
"non-segregated multi-employer section" means a multi-employer section of a segregated scheme where, under the scheme rules relating to that section, the trustees or managers of the scheme are required, in circumstances where an employer in relation to that section ceases to participate in the scheme, to segregate such part of the assets of the section as are 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 that employer; and "segregated part" means a section of a non-segregated multi-employer section which is created when a segregation requirement in the scheme rules relating to that multi-employer section of the scheme has been triggered. (4) Except as otherwise provided in this Part, in a case where this regulation applies -
(a) Part 2 of the Act, except Chapter 4, shall be read as if it contained the modifications provided for by this Part; and
(b) references in Part 2 of the Act, except in Chapter 4, to -
(i) "scheme rules" shall be read as if they were references to "rules of the scheme which apply to the segregated part";
(ii) "the scheme" shall be read as if they were references to "the segregated part";
(iii) "the employer" shall be read as if they were references to "the employer in relation to the segregated part"; and
(iv) "trustees or managers of the scheme" shall, in relation to a non-segregated multi-employer section of a segregated scheme, be read as if they were references to "trustees or managers with ultimate responsibility for the administration of the section".
(5) Paragraph (4) shall not have effect in relation to section 174 of the Act (initial levy).
Notification of insolvency events, confirmation of scheme status etc.
29. - (1) Section 120 of the Act (duty to notify insolvency events in respect of employers) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if -
(a) for subsection (1), there were substituted the following subsection -
"(1) This section 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 are required, 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 the section by reference to that employer ("the segregated part")."; and
(b) after subsection (2) there were inserted the following subsection -
"(2A) Where the trustees or managers of a segregated part of a multi-employer section of a segregated scheme to which this section applies receive a notice from an insolvency practitioner under subsection (2), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(2) Section 122 of the Act (insolvency practitioner's duty to issue notices confirming status of scheme) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if -
(a) for subsection (1), there were substituted the following subsection -
"(1) This section applies where an insolvency event has occurred in relation to an employer in relation to a multi-employer section of a segregated scheme and a segregated part of the section is created."; and
(b) in subsection (2) -
(i) after the words "a scheme rescue is not possible" in paragraph (a), there were inserted the words "in relation to the relevant segregated part of a multi-employer section of the scheme"; and
(ii) after the words "a scheme rescue has occurred" in paragraph (b), there were inserted the words "in relation to the relevant segregated part of a multi-employer section of the scheme";
(c) in subsection (4) -
(i) after the words "a scheme rescue is not possible" in paragraph (a), there were inserted the words "in relation to the relevant segregated part"; and
(ii) after the words "a scheme rescue has occurred" in paragraph (b), there were inserted the words "in relation to the relevant segregated part";
(d) for the words "in relation to an occupational pension scheme" in paragraphs (a) and (b) of subsection (5), there were substituted the words "in relation to a segregated part of a multi-employer section of a segregated scheme"; and
(e) after subsection (6), there were inserted the following subsection -
"(6A) Where the trustees or managers of a segregated part of a multi-employer section of a segregated scheme receive a copy of a notice from an insolvency practitioner or former insolvency practitioner under subsection (6), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(3) Section 123 of the Act (approval of notices issued under section 122) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if -
(a) for subsection (1), there were substituted the following subsection -
"(1) This section applies where the Board receives a notice under section 122(6) ("the section 122 notice") in relation to an employer in relation to a segregated part of a multi-employer section of a segregated scheme."; and
(b) after subsection (4) there were inserted the following subsection -
"(4A) Where the trustees or managers of a segregated part of a multi-employer section of a segregated scheme receive a copy of a determination notice issued by the Board under subsection (4), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(4) Section 124 of the Act (Board's duty where there is a failure to comply with section 122) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if -
(a) for the words "in relation to an occupational pension scheme" in subsection (1), there were substituted the words "in relation to a segregated part of a multi-employer section of a segregated scheme"; and
(b) after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a segregated part of a multi-employer section of a segregated scheme receive a copy of a notice issued by the Board under section 122 by virtue of this section, they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
(5) Section 125 of the Act (binding notices confirming status of scheme) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if, after subsection (3), there were inserted the following subsection -
"(3A) Where the trustees or managers of a segregated part of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (3) 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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Eligible schemes
30. - (1) Except as otherwise provided in this Part, for the purposes of Part 2 of the Act, except Chapter 4, as it applies in the case of a segregated part to which regulation 28 applies, references to an "eligible scheme" shall be read as if they were references to a segregated part of a multi-employer section of a segregated scheme in circumstances where that segregated part, if it were a scheme, would not be -
(a) a money purchase scheme; or
(b) a scheme which is a prescribed scheme or a scheme of a prescribed description under section 126(1)(b) of the Act.
(2) Paragraph (1) shall not apply for the purposes of sections 174 to 181 of the Act (the levies).
Duty to assume responsibility for schemes
31. - (1) Section 127 of the Act (duty to assume responsibility for schemes following insolvency event) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if, after the words "at the relevant time" in paragraph (a) of subsection (2), there were inserted the words "as determined by the Board's valuation of the section as a whole under section 143".
(2) Section 128 of the Act (duty to assume responsibility for schemes following application or notification) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if, after the words from "at the relevant time" in paragraph (a) of subsection (2), there were inserted the words "as determined by the Board's valuation of the section as a whole under section 143".
(3) Section 129 of the Act (applications and notifications for the purposes of section 128) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if -
(a) after subsection (1), there were inserted the following subsection -
"(1A) Where the trustees or managers of a segregated part of a multi-employer section of a segregated scheme make an application to the Board under subsection (1), they must issue a notice to that effect as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme."; and
(b) after subsection (5), there were inserted the following subsection -
"(5A) Where the trustees or managers of a segregated part of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (5), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Board's duty where application or notification received under section 129
32.Section 130 of the Act (Board's duty where application or notification received under section 129) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if -
(a) after the words "a scheme rescue is not possible" in subsection (2), there were inserted the words "in relation to a segregated part of a multi-employer section of a segregated scheme";
(b) after the words "a scheme rescue has occurred" in subsection (3), there were inserted the words "in relation to that segregated part";
(c) after subsection (4), there were inserted the following subsection -
"(4A) Where the trustees or managers of a segregated part of a multi-employer section of a segregated scheme receive a copy of a notice from the Board under subsection (4), they must send a copy of that notice as soon as practicable to the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.";
(d) for the words "in relation to an occupational pension scheme" in paragraphs (a) and (b) of subsection (5), there were substituted the words "in relation to a segregated part of a multi-employer section of a segregated scheme"; and
(e) after subsection (7), there were inserted the following subsection -
"(7A) Where the trustees or managers of a segregated part of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (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 the trustees or managers of each section of the scheme (if different) and to all the employers in relation to the scheme.".
Protected liabilities
33.Section 131 of the Act (protected liabilities) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if, for subsection (1), there were substituted the following subsection -
"(1) Except as otherwise provided, for the purposes of this Chapter the protected liabilities, in relation to a segregated part which is, for the purposes of this Part, an eligible scheme, at a particular time ("the relevant time") are -
(a) the cost of securing benefits for and in respect of members of the segregated part of a multi-employer section of a segregated scheme which correspond to the compensation whi |
