The Pension Protection Fund (Miscellaneous Amendments) Regulations 2007

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Pension Protection Fund (Entry Rules) Regulations 2005 (S.I. 2005/590) (“the Entry Rules Regulations”), the Pension Protection Fund (Compensation) Regulations 2005 (S.I. 2005/670) (“the Compensation Regulations”), Pension Protection Fund (Valuation) Regulations 2005 (S.I. 2005/672) (“the Valuation Regulations”) and the Pension Protection Fund (General and Miscellaneous Amendments) Regulations 2006 (S.I. 2006/580) (“the Miscellaneous Regulations”).

Regulation 2 amends the Entry Rules Regulations so that former approved superannuation funds will cease to be eligible schemes for the purposes of the Pension Protection Fund. It also amends regulation 2(l)(l) and (m) to provide for all decisions which fall to be made by the trustees or company in its capacity as trustee to be made by unanimous agreement of the trustees, or directors of that company, who are members of the scheme. A cross reference in paragraph 5(b) of the Schedule is also corrected.

Regulation 3 amends regulation 19(3) of the Compensation Regulations to correct a cross reference.

Regulation 4 amends the Valuation Regulations to add a new definition of “pre-6th April 1997 contract of insurance” and substitute a new definition of “relevant accounts”. It amends the prescribed date by which an eligible scheme, which becomes a registrable scheme before the commencement date, submits its initial actuarial valuation in accordance with section 179 of the Pensions Act 2004 (c.35) to within 15 months of the relevant time of the valuation or by no later than 31st March 2008, whichever is the earlier. It also amends the prescribed date by which the trustees or managers of an eligible scheme provide any subsequent actuarial valuation to the Board of the Pension Protection Fund, or the Pensions Regulator, to within 15 months of the relevant time of that valuation. It further provides for the amount representing the value of a pre-6th April 1997 contract of insurance to be excluded from the actuarial valuation of the assets and protected liabilities of an eligible scheme if, in the opinion of the appropriate person as defined in regulation 1(2) of the Valuation Regulations, there is insufficient information about that contract of insurance with which to conduct a valuation.

Regulation 5 amends provisions of the Miscellaneous Regulations which specify circumstances in which the Board is not required to recover overpayments of scheme benefits or compensation. Non-recovery of an amount is permitted in cases where its recovery would cause hardship and, in determining whether such grounds exist, the amendments made by this regulation provide that the Board may seek additional information and, having regard to the information before it, must make its determination as soon as is reasonably practicable.

Regulation 6 makes transitional provision in relation to the coming into force of the new definition of “relevant accounts” in the Valuation Regulations.

Regulation 7 makes revocations that are consequential on amendments made by regulations 2(3) and 5 of these Regulations.

These Regulations have only a negligible impact on the cost of business, charities or the voluntary sector. Publication of a full regulatory impact assessment is not necessary for such legislation.