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

Closed schemes and requirements to wind up schemes with sufficient assets

41.—(1) Article 137 (closed schemes) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if –

(a) in paragraph (1) for “(scheme rescue not possible but scheme has sufficient assets to meet the protected liabilities)” there were substituted “(scheme rescue not possible in relation to a segregated part of a multi-employer section of a segregated scheme but segregated part has sufficient assets to meet the protected liabilities)”;

(b) in paragraph (2) for “a closed scheme” there were substituted “a closed section of a scheme”;

(c) in paragraph (5) for “a closed scheme” there were substituted “a closed section of a scheme”;

(d) after paragraph (6) there were inserted the following paragraph –

“(6A) 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 paragraph (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.”; and

(e) in paragraph (7) for the definition of “full buy-out quotation” there were substituted the following definition –

““full buy-out quotation”, in relation to a segregated part of a multi-employer 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 members of the segregated part from the trustees or managers of the scheme) which would provide in respect of each of those members, from a relevant date, benefits in accordance with the member’s entitlement or accrued rights, including pension credit rights, under the scheme rules (other than entitlement or rights in respect of money purchase benefits).”.

(2) Article 138 (requirement to wind up schemes with sufficient assets to meet 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 –

(a) in paragraph (2)(a) for “(scheme rescue not possible but scheme has sufficient assets to meet the protected liabilities)” there were substituted “(scheme rescue not possible in relation to a segregated part of a multi-employer section of a segregated scheme but segregated part has sufficient assets to meet the protected liabilities)”;

(b) in paragraph (6) for “a scheme is wound up” there were substituted “a segregated part of a multi-employer section of a segregated scheme is wound up”;

(c) in paragraph (11) for “winding up of a scheme” there were substituted “winding up of a segregated part of a multi-employer section of a segregated scheme”; and

(d) in paragraph (12) for “in relation to a scheme” there were substituted “in relation to a segregated part of a multi-employer section of a segregated scheme”.

(3) Article 139 (treatment of closed schemes) 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 paragraph (1) there were substituted the following paragraph –

“(1) In this Article “closed scheme” means a segregated part of a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme which is authorised under Article 137 to continue as a closed section of the scheme.”; and

(b) in paragraph (2) after “The provisions mentioned in paragraph (3)” there were inserted “as they apply to a segregated part of a multi-employer section of a segregated scheme”.

(4) Article 140 (valuations of closed schemes) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if –

(a) in paragraphs (1) and (2)(a) for “closed schemes” there were substituted “a closed segregated part of a multi-employer section of a segregated scheme”; and

(b) in paragraph (5) for “a closed scheme” there were substituted “a closed segregated part of a multi-employer section of a segregated scheme”.

(5) Article 141 (applications and notifications where closed schemes have insufficient assets) shall be modified in its application to a segregated part to which regulation 28 applies so that it shall be read as if after paragraph (4) there were inserted the following paragraph –

“(4A) 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 paragraph (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.”.