The Pension Protection Fund (Statement of Investment Principles) Regulations 2005

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision relating to a statement of investment principles which the Board of the Pension Protection Fund is required to prepare, review and if necessary revise in accordance with section 114 of the Pensions Act 2004 (c. 35).

The Board of the Pension Protection Fund is established by section 107 of the Pensions Act 2004 to provide compensation for members of certain occupational pension schemes in the event of the insolvency of the scheme’s sponsoring employer and where the pension scheme is underfunded at a certain level.

Regulation 2 prescribes the intervals at and the occasions on which the statement is to be reviewed and if necessary revised.

Regulation 3 prescribes the requirements with which the Board must comply before it prepares or revises a statement.

Regulation 4 makes provision as to the form and content of the statement.

As these Regulations are made before the expiry of the period of six months beginning with the coming into force of the provisions of the Pensions Act 2004 by virtue of which they are made, the requirement for the Secretary of State to consult such persons as he considers appropriate does not apply.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.