Chapter 7 – Miscellaneous
Backdating the winding up of eligible schemes
Section 219: Backdating the winding up of schemes
787.This section enables the winding up of a scheme to be backdated to before the date of the qualifying insolvency event (see section 127 (duty to assume responsibility for schemes following an insolvency event)) or the date of a notification or application under section 129 (applications and notifications for the purposes of section 128).
788.This may be done provided that the winding up begins before the following:
when a scheme failure notice or a withdrawal notice under section 122(2) becomes binding; or
when a notice from an insolvency practitioner that he cannot confirm whether a scheme rescue is not possible or has occurred, has become binding in a case where section 148 does not apply (e.g. because the Board has previously withdrawn under section 147); or
when a withdrawal notice under section 148 becomes binding.
789.Subsection (4) provides that the Regulator may direct persons to take steps necessary as a result of the backdating of the winding up and any failure to comply with a direction will render that person subject to a civil penalty (section 10 of the Pensions Act 1995 (civil penalties).
Section 220: Pension sharing
790.Subsection (1) provides that regulations may modify Part 2 where there has been a pension sharing order against a member of an eligible scheme. Regulations will deal with where a member’s shareable rights (his accrued rights) have been reduced so as to give a former spouse a pension credit which will be provided by the scheme.
791.Regulations will also deal with where a pension sharing order has been made before the Board assumes responsibility for a scheme, but takes effect after that date. The Board will have to provide pension compensation in respect of the person entitled to the pension credit (who becomes a member of the scheme). The Board will be responsible for implementing the pension sharing order and regulations will be made using the power in subsection (2) to deal with this. These regulations will amend Chapter 1 of Part 4 of the Welfare Reform and Pensions Act 1999.
