Regulation 19
1.—(1) Where—
(a)a scheme in relation to which there is more than one employer is divided into two or more sections, and
(b)the provisions of the scheme are such that they meet conditions A and B,
Part IV of the Order and these Regulations shall apply as if each section of the scheme were a separate scheme.
(2) Condition A is that contributions payable to the scheme by an employer, or by a member in employment under that employer, are allocated to that employer’s section (or, if more than one section applies to the employer, to the section which is appropriate in respect of the employment in question).
(3) Condition B is that a specified part or proportion of the assets of the scheme is attributable to each section and cannot be used for the purposes of any other section.
(4) In their application to a scheme—
(a)which has been such a scheme as is mentioned in sub-paragraph (1);
(b)which is divided into two or more sections, at least one of which applies only to members who are not in pensionable service under the section;
(c)the provisions of which have not been amended so as to prevent conditions A and B being met in relation to two or more sections, and
(d)in relation to one or more sections of which those conditions have ceased to be met at any time by reason only of there being no members in pensionable service under the section and no contributions which are to be allocated to it,
Part IV of the Order and these Regulations shall apply as if the section in relation to which those conditions have ceased to be satisfied were a separate scheme.
(5) For the purposes of sub-paragraphs (1) to (4), any provisions of the scheme by virtue of which contributions or transfers of assets may be made to make provision for death benefits are disregarded.
(6) Where sub-paragraph (1) or (4) applies and, by virtue of any provisions of the scheme, contributions or transfers of assets to make provision for death benefits are made to a section (“the death benefits section”) the assets of which may only be applied for the provision of death benefits, the death benefits section shall be treated as if it were a separate scheme for the purpose of Part IV of the Order and these Regulations.
(7) For the purpose of this paragraph, any provisions of a scheme by virtue of which assets attributable to one section may on the winding up of the scheme or a section be used for the purposes of another section are disregarded.
(8) In their application in a case of the kind described in sub-paragraph (1) or (4), the forms set out in Schedule 1 are modified as follows—
(a)after “Name of scheme” there shall be added “and name of section”, and
(b)for “scheme” and “scheme's”, wherever else they occur, there shall be substituted “section” and “section's” respectively.
2. In the application of Article 208 (matters requiring agreement of the employer) to a scheme in relation to which there is more than one employer, references to the employer shall have effect as if they were references to a person nominated by the employers, or by the rules of the scheme, to act as the employers' representative for the purposes of the section or, if no such nomination is made—
(a)for the purposes of agreement to any of the matters mentioned in paragraph (1) of that Article, to all of the employers other than any employer who has waived his rights under that paragraph, and
(b)for the purposes of agreement to a modification of the scheme under paragraph (2) of that Article, to all of the employers.
3. In the application of Part IV of the Order and these Regulations to a scheme which has no active members, references to the employer have effect as if they were references to the person who was the employer immediately before the occurrence of the event after which the scheme ceased to have any such members.
4.—(1) This paragraph applies in the cases described in sub-paragraphs (2) and (3).
(2) The first case referred to in sub-paragraph (1) is where a scheme—
(a)has its main administration in the United Kingdom;
(b)applies to members in employment in the member States and members in employment outside the member States;
(c)is divided into two or more sections, and
(d)makes provision whereby—
(i)different sections of the scheme apply to members in employment in the member States and to members in employment outside the member States;
(ii)contributions payable to the scheme in respect of a member are allocated to the section applying to that member’s employment, and
(iii)a specified part or proportion of the assets of the scheme is attributable to each section and cannot be used for the purposes of any other section.
(3) The second case referred to in sub-paragraph (1) is where a scheme—
(a)has its main administration outside the member States;
(b)applies to members in employment in the United Kingdom and members in employment outside the United Kingdom;
(c)is divided into two or more sections, and
(d)makes provision whereby—
(i)different sections of the scheme apply to members in employment in the United Kingdom and to members in employment outside the United Kingdom;
(ii)contributions payable to the scheme in respect of a member are allocated to the section applying to that member’s employment, and
(iii)a specified part or proportion of the assets of the scheme is attributable to each section and cannot be used for the purposes of any other section.
(4) Subject to regulation 17, where this paragraph applies, Part IV of the Order and these Regulations shall apply as if each section of the scheme were a separate scheme.
5.—(1) This paragraph applies in the case described in sub-paragraph (2).
(2) The case referred to in sub-paragraph (1) is where a scheme either—
(a)satisfies the criteria in heads (a) and (b) of paragraph 4(2), but is not divided into sections in the manner described in heads (c) and (d) of that paragraph, or
(b)satisfies the criteria in heads (a) and (b) of paragraph 4(3), but is not divided into sections in the manner described in heads (c) and (d) of that paragraph,
and part of the scheme is or was treated as a separate scheme under section 611(3) of the Taxes Act 1988(1).
(3) Subject to regulation 17, where this paragraph applies, Part IV of the Order and these Regulations shall apply as if the separated parts of the scheme were separate schemes.
6.—(1) This paragraph applies where the trustees or managers of a scheme are authorised under Article 264 to accept contributions from European employers or approved under Article 265 to accept contributions from a particular European employer.
(2) Where this paragraph applies, and subject to sub-paragraphs (3) and (4), Part IV of the Order and these Regulations shall apply as if they were subject to the following modifications—
(a)in Article 203—
(i)in paragraph (1)(a) the words from “or, if they” to the end of the paragraph;
(ii)in paragraph (2) sub-paragraphs (c) and (d);
(iii)in paragraph (3) sub-paragraph (b) and the word “and” immediately preceding it;
(iv)in paragraphs (4), (6) and (7) the words “or report”, and
(v)in paragraph (5) the words “or reports”,
shall be omitted;
(b)in Article 205—
(i)in paragraph (1) for the words from “within the prescribed time” to the end there shall be substituted—
“(a)send a summary of the valuation to the Regulator within a reasonable period, and
(b)take such steps as are necessary to ensure that the statutory funding objective is met within two years after that date.”, and
(ii)paragraphs (2) to (6) shall be omitted;
(c)in Article 206(6)(b)(i) for “by the end of the period specified in the recovery plan” there shall be substituted “within two years after that date”;
(d)in Article 210(1)(d) the words from “with respect to” to the end shall be omitted;
(e)in regulations 6(2) and (3)(a), 7(2)(a), 9(1) and (2)(a) and 13 for “15 months” there shall be substituted “12 months”;
(f)in regulation 7(2) the words “or an actuarial report” shall be omitted;
(g)regulations 7(2)(c) and (5), 8, 9(2)(c) and 17(1)(a) and (e) to (i) shall be omitted;
(h)in regulation 10—
(i)in paragraph (2)—
(aa)for “five years”, in the first place where it occurs, there shall be substituted “two years”, and
(bb)the words from “or, in a case where” to the end shall be omitted, and
(ii)in paragraph (4) for “give effect to a recovery plan” there shall be substituted “comply with Article 205”, and
(i)in Schedule 1, in the first of the alternative statements in the form of certification of the adequacy of the rates of contributions for “by the end of the period specified in the recovery plan dated [dd/mm/yyyy]” there shall be substituted “within two years after the effective date of the last actuarial valuation”.
(3) In the case of a pre-23rd September 2005 scheme—
(a)Article 205 applies as if it were subject to the following modifications in place of the modifications in sub-paragraph (2)(b)—
(i)in paragraph (1) for the words from “they must, within the prescribed time” to the end there shall be substituted—
“they must—
(a)send a summary of the valuation to the Regulator within a reasonable period, and
(b)take such steps as are necessary to ensure that the statutory funding objective is met—
(i)if the valuation is the first valuation the trustees or managers have obtained under Article 203, by 22nd September 2008, and
(ii)in any other case, within two years after that date.”, and
(ii)paragraphs (2) to (6) shall be omitted, and
(b)these Regulations apply as if, in addition to the modifications in sub-paragraph (2)(e) to (i), paragraph 2(a)(i) of Schedule 4 were modified so that, after “this Schedule” there were inserted “and, without prejudice to any of those requirements, by reference to an effective date which is no later than 22nd September 2006”.
(4) In sub-paragraph (3), “pre-23rd September 2005 scheme” has the meaning given by Article 3 of the Pensions (2005 Order) (Commencement No. 7) Order (Northern Ireland) 2005(2).
7. Where such a guarantee has been given as is mentioned in regulation 17(1)(a)(ii) in respect of only part of a scheme, Part IV of the Order and these Regulations shall apply as if that part and the other part of the scheme were separate schemes.
8.—(1) In the case of a scheme under which—
(a)the rates of contributions payable by the employer are determined by the trustees or managers without the agreement of the employer, and
(b)no person other than the trustees or managers is permitted to reduce those rates or to suspend payment of contributions,
Article 208 and regulation 13 shall apply as if they were subject to the modifications set out in sub-paragraphs (2) and (3).
(2) The modifications of Article 208 are as follows—
(a)in the heading for “agreement of the employer” there shall be substituted “consultation or agreement”;
(b)in paragraph (1) for “obtain the agreement of the employer to” there shall be substituted “consult the employer regarding”;
(c)in paragraph (2) for the words before “(if the employer agrees)” there shall be substituted “After consulting the employer regarding any such matter, the trustees or managers may”;
(d)paragraph (5) shall be omitted, and
(e)in paragraph (6), for “(1), (4) or (5)” there shall be substituted “(1) or (4)”.
(3) The modifications of regulation 13 are as follows—
(a)in the heading for “obtaining employer’s agreement” there shall be substituted “consulting employer”, and
(b)for “obtain the agreement of the employer to” there shall be substituted “consult the employer regarding”.
(4) Where the power of the trustees or managers to determine the rates of contributions payable by the employer without the employer’s agreement is subject to conditions, the modifications provided for in sub-paragraphs (2) and (3) have effect only in circumstances where the conditions are satisfied.
(5) In the case of a scheme under which the rates of contributions payable by the employer are determined by the actuary without the agreement of the employer, Article 206(6) shall apply as if it required that, in addition to the matters specified there, the actuary’s certificate must state that the rates shown in the schedule of contributions are not lower than the rates he would have provided for if he, rather than the trustees or managers of the scheme, had the responsibility of preparing or revising the schedule, the statement of funding principles and any recovery plan.
(6) In the case to which sub-paragraph (5) applies, regulation 10(6) and Schedule 1 apply as if the form of certification of the adequacy of the rates of contributions shown in the schedule of contributions included an additional statement that—
“I also certify that the rates of contributions shown in this schedule are not lower than I would have provided for had I had responsibility for preparing or revising the schedule, the statement of funding principles and any recovery plan.”.
(7) Where the power of the actuary to determine the rates of contributions payable by the employer without the employer’s agreement is subject to conditions, the modifications provided for in sub-paragraphs (5) and (6) have effect only in circumstances where the conditions are satisfied.
9. Where a scheme is exempt from the application of Article 47(1)(b) of the 1995 Order (requirement to appoint a scheme actuary) by virtue of regulations made under paragraph (5) of that Article, Part IV of the Order and these Regulations shall apply as if references to the actuary were to an actuary authorised by the trustees or managers to provide such valuations and certifications as may be required under that Part and these Regulations.
10.—(1) This paragraph applies in the case of a scheme which—
(a)had fewer than 100 members on the effective date of its last actuarial valuation;
(b)is not exempted from the application of Part IV of the Order by regulation 17(1), and
(c)is not a scheme in relation to which the application of that Part of the Order is modified by paragraph 6.
(2) Where this paragraph applies—
(a)Article 203(1)(a) shall apply as if it required the trustees or managers of the scheme to obtain an actuarial valuation the effective date of which is not more than three years after that of the last such valuation, and an actuarial report for any intervening year at any time in which the scheme had 100 or more members, and
(b)Article 203(3) shall apply as if—
(i)all but sub-paragraph (b) were omitted, and
(ii)that sub-paragraph required that the effective date of any actuarial report must be an anniversary of the effective date of the last actuarial valuation.
11.—(1) In circumstances where the actuary considers that, because of the possibility of significant changes in the value of the assets of the scheme or in the scheme’s technical provisions since the effective date of the last actuarial valuation, he is unable to certify the schedule of contributions in the terms set out in sub-paragraph (b) of Article 206(6), that sub-paragraph shall apply as if it provided for a statement that the rates shown in that schedule are such that—
(a)where the statutory funding objective was not met on the effective date of the last actuarial valuation, the statutory funding objective could have been expected on that date to be met by the end of the period specified in the recovery plan, or
(b)where the statutory funding objective was met on the effective date of the last actuarial valuation, the statutory funding objective could have been expected on that date to continue to be met for the period for which the schedule is to be in force.
(2) In circumstances where the statutory funding objective was met on the effective date of the last actuarial valuation but the actuary considers that, having regard to—
(a)the rates of contributions payable towards the scheme since that date, or
(b)the rates of contributions payable since that date taken together with the possibility of significant changes in the value of the assets of the scheme or in the scheme’s technical provisions,
he is unable to certify the schedule of contributions in the terms set out in sub-paragraph (b)(ii) of Article 206(6), that sub-paragraph shall apply as if it provided for a statement that the rates shown in that schedule are such that the statutory funding objective could have been expected on that date to be met by the end of the period for which the schedule is to be in force.
(3) In the case to which sub-paragraph (1) applies, regulation 10(6) and Schedule 1 apply as if for the alternative statements in the form of certification of the adequacy of the rates of contributions shown in the schedule of contributions there were substituted—
“the statutory funding objective could have been expected on [insert effective date of valuation on which the schedule is based] to be met by the end of the period specified in the recovery plan.
the statutory funding objective could have been expected on [insert effective date of valuation on which the schedule is based] to continue to be met for the period for which the schedule is to be in force.”.
(4) In the case to which sub-paragraph (2) applies, regulation 10(6) and Schedule 1 apply as if for the alternative statements in the form of certification of the adequacy of the rates of contributions shown in the schedule of contributions there were substituted—
“the statutory funding objective could have been expected on [insert effective date of valuation on which the schedule is based] to be met by the end of the period for which the schedule is to be in force.”.
(5) Where paragraph 6 applies, sub-paragraphs (1) and (3) of this paragraph apply as if the references to the period specified in the recovery plan were to the period of two years from the effective date of the last actuarial valuation.
Section 611 is repealed by Part 3 of Schedule 42 to the Finance Act 2004 (c. 12) with effect from 6th April 2006