PART II

THE PENSIONS REGULATOR

Sanctions for avoidance of employer debt etc

Offence of avoidance of employer debt
54A
1
This Article applies in relation to an occupational pension scheme other than—
a
a money purchase scheme, or
b
a prescribed scheme or a scheme of a prescribed description.
2
A person commits an offence only if—
a
the person does an act or engages in a course of conduct that—
i
prevents the recovery of the whole or any part of a debt which is due from the employer in relation to the scheme under Article 75 of the 1995 Order (deficiencies in the scheme assets),
ii
prevents such a debt becoming due,
iii
compromises or otherwise settles such a debt, or
iv
reduces the amount of such a debt which would otherwise become due,
b
the person intended the act or course of conduct to have such an effect, and
c
the person did not have a reasonable excuse for doing the act or engaging in the course of conduct.
3
A reference in this Article to an act or course of conduct includes a failure to act.
4
This Article does not apply to a person if the act done, or course of conduct engaged in, by the person is in accordance with the person's functions as an insolvency practitioner in relation to another person.
5
For the purposes of this Article a reference to a debt due under Article 75 of the 1995 Order includes a contingent debt under that Article.
6
Accordingly, in the case of such a contingent debt, the reference in paragraph (2)(a) to preventing a debt becoming due is to be read as including a reference to preventing the occurrence of any of the events specified in Article 75(4C)(a) or (b) of the 1995 Order upon which the debt is contingent.
7
A person guilty of an offence under paragraph (2) is liable—
a
on summary conviction, to a fine not exceeding the statutory maximum;
b
on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine, or both.
8
Proceedings for an offence under paragraph (2) may be instituted only—
a
by the Regulator or the Department, or
b
by or with the consent of the Director of Public Prosecutions for Northern Ireland.
9
For the purposes of this Article and Articles 54B to 54D “
insolvency practitioner
”, in relation to a person, means—
a
a person acting as an insolvency practitioner, in relation to that person, in accordance with Article 3 of the Insolvency Order, or
b
an insolvency practitioner within the meaning of Article 105(9)(b) (persons of a prescribed description).
Arts. 54A, 54B and cross-heading inserted (1.10.2021) by Pension Schemes Act 2021 (c. 1), s. 131(2)(b), Sch. 8 para. 6(1); S.R. 2021/271, art. 2(3)(d) (with art. 3(1)(4))