C1C3C2 PART IIITHE BOARD OF THE PENSION PROTECTION FUND

Annotations:
Modifications etc. (not altering text)

C3CHAPTER 3PENSION PROTECTION

Reconsideration

Duty to assume responsibility following reconsideration136

1 F1

This Article applies where an application is made in respect of a scheme in accordance with Article 135.

F91A

Paragraph (2) applies where the application is accompanied by a protected benefits quotation.

2 F2

F1The Board must assume responsibility for the scheme in accordance with this Chapter if it is satisfied that the value of the assets of the scheme at the reconsideration time is less than the aggregate of—

a

the amount quoted in the protected benefits quotation accompanying the application,

b

the amount at that time of the liabilities of the scheme which are not liabilities to, or in respect of, members of the scheme, and

c

the estimated costs of winding up the scheme at that time.

F112A

Paragraph (2B) applies where—

a

the application is accompanied by evidence in the prescribed form which shows that the trustees or managers of the scheme have taken all reasonable steps to obtain a protected benefits quotation but were unable to do so, and

b

the Board is satisfied that that is the case.

2B

The Board must assume responsibility for the scheme in accordance with this Chapter if it is satisfied that the value of the assets of the scheme at the reconsideration time is less than the amount of the protected liabilities at that time.

3

Where the Board makes a determination for the purposes of paragraph (2) F3or (2B), it must issue F4a notice to that effect (a “determination notice”) and give a copy of that notice to—

a

the trustees or managers of the scheme, and

b

the Regulator.

F84

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5 F2

But where the Board is satisfied of the matters mentioned in paragraph (2) F7or (2B), it is not required to assume responsibility for the scheme F6under that paragraph until the determination notice issued under paragraph (3) becomes binding.

6

For the purposes of paragraph (5) a determination notice is not binding until—

a

the period within which the issue of the notice may be reviewed by virtue of Chapter 6 has expired, and

b

if the issue of the notice is so reviewed—

i

the review and any reconsideration,

ii

any reference to the PPF Ombudsman in respect of the issue of the notice, and

iii

any appeal against his determination or directions,

has been finally disposed of and the notice has not been revoked, varied or substituted.

7

Where a determination notice issued under paragraph (3) becomes binding, the Board must as soon as reasonably practicable give a notice to that effect together with a copy of the binding notice to—

a

the trustees or managers of the scheme, and

b

the Regulator.

F58

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9

The Board may—

a F2

for the purposes of paragraph (2), obtain its own valuation of the assets of the scheme as at the reconsideration time (within the meaning of Article 135), and

b F2

for the purposes of paragraph (2)(b), obtain its own valuation of the liabilities of the scheme as at that time;

and where it does so, paragraphs (9)(b), (10) and (11) of Article 135 apply in relation to the valuation as they apply in relation to the scheme accounts (within the meaning of that Article).

10

F12Where paragraph (2) applies, regulations under paragraph (4) of Article 127, and guidance under paragraph (6) of that Article, apply for the purposes of this Article in relation to the estimated costs within paragraph (2)(c) as they apply for the purposes of Article 127 in relation to protected liabilities within Article 115(1)(c).

F1010A

The Board may, for the purposes of paragraph (2B), obtain its own valuation of the assets of the scheme and the protected liabilities of the scheme as at the reconsideration time (within the meaning of Article 135).

10B

A valuation under paragraph (10A) must be prepared in accordance with such requirements as may be prescribed.

10C

Article 127(3) to (6) applies in relation to a determination under paragraph (2B) and a valuation under paragraph (10A) as it applies in relation to a determination under Article 127(2)(a) and an actuarial valuation obtained under Article 127(2)(b).

10D

In the application of Article 127 by virtue of paragraph (10C)—

a

references to the relevant time are to be read as references to the reconsideration time (within the meaning of Article 135), and

b

references to the pre-approval period are to be read as references to the period which begins immediately after the reconsideration time, and ends immediately before the Board first issues a determination notice under this Article.

11 F2

In this Article references to the assets of the scheme do not include assets representing the value of any rights in respect of money purchase benefits under the scheme rules.

12

This Article is subject to Articles 130 and 131 (refusal to assume responsibility for a scheme).