The Pension Protection Fund (Miscellaneous Amendments) Regulations 2009

Amendment of the Pension Protection Fund (General and Miscellaneous Amendments) Regulations 2006

5.—(1) The Pension Protection Fund (General and Miscellaneous Amendments) Regulations 2006(1) are amended in accordance with this regulation.

(2) For regulation 3 (power to treat death in service lump sum benefits as having become payable before the assessment date), substitute—

“Power to treat benefits as having become payable before the assessment date

3.— (1) Where this regulation applies, the benefits referred to in paragraph (3) are treated, for the purposes of section 163(2) of the Act (adjustments to be made where the Board assumes responsibility for a scheme), as having become payable before the assessment date.

(2) This regulation applies where—

(a) a member of an eligible scheme died before the commencement of the assessment period in relation to the scheme; and

(b) during the period mentioned in section 163(2)(a) of the Act, a person became entitled under the scheme rules to a benefit referred to in paragraph (3) in respect of that member.

(3) The benefits referred to in this paragraph are—

(a) a death benefit which is calculated and paid by the trustees or managers of the eligible scheme on or after the assessment date but before the date the trustees or managers receive the transfer notice in respect of that scheme; and

(b) a contribution refund within the meaning of section 101AB(4) of the 1993 Act (right to cash transfer sum and contribution refund).”.

(3) For the heading to regulation 4 (power to pay death in service lump sum benefits), substitute—

“Power to treat benefits as having arisen before the assessment date”.

(4) In regulation 4(b), for “death in service lump sum benefit” substitute “death benefit or a contribution refund (within the meaning of section 101AB(4) of the 1993 Act)”.

(5) After regulation 4, insert—

“Power to pay certain transfer payments and contribution refunds

4A.— (1) The Board must pay 90% of the rights described in paragraph (2) in the circumstances prescribed in paragraph (3).

(2) The rights are—

(a) any transfer payment; and

(b) any payment in respect of a refund of contributions,

to which a member of the scheme was entitled immediately before the commencement of the assessment period.

(3) The circumstances are that—

(a) the Board assumes responsibility for a scheme in accordance with Chapter 3 of Part 2 of the Act;

(b) the circumstances and conditions prescribed in—

(i) regulation 16(1) of the Entry Rules Regulations (restrictions on winding up, discharge of liabilities etc)(2); or

(ii) regulation 2 of the Pension Protection Fund (Hybrid Schemes) (Modification) Regulations 2005 (discharge of liabilities in respect of money purchase benefits during the assessment period)(3),

were met in respect of the rights;

(c) the rights remained unpaid at the time the transfer notice was received by the trustees or managers of the scheme; and

(d) the member sends the Board a written request to make a payment in respect of the rights.”.

(1)

S.I. 2006/580.

(2)

Regulation 16(1) was amended by S.I.s 2005/993 and 2224.

(3)

S.I. 2005/449.