6.—(1) In its application to a multi-employer scheme, Article 75 shall have effect in relation to each employer as if –
(a)the reference in Article 75(2)(a)(ii) to a time which falls before any relevant event in relation to the employer which occurs while the scheme is being wound up were a reference to a time which falls before relevant events have occurred in relation to all the employers;
(b)the reference in Article 75(2) to an amount equal to the difference being treated as a debt due from the employer were a reference to an amount equal to that employer’s share of the difference being treated as a debt due from that employer;
(c)the references in Article 75(3)(a)(i) and (b) to no relevant event of the kind there mentioned occurring in relation to the employer were references to no event of that kind occurring in relation to all the employers;
(d)the reference in Article 75(4)(a) to a relevant event (“the current event”) occurring in relation to the employer were a reference to a relevant event or an employment-cessation event occurring only in relation to that employer;
(e)the reference in Article 75(4) to an amount equal to the difference being treated as a debt due from the employer were –
(i)in a case where the difference is ascertained immediately before a relevant event occurs in relation to the employer, a reference to an amount equal to the employer’s share of the difference being treated as a debt due from the employer, and
(ii)in a case where the difference is ascertained immediately before an employment cessation event occurs in relation to the employer, a reference to an amount equal to the sum of the cessation expenses attributable to the employer and the employer’s share of the difference being treated as a debt due from the employer, and
(f)Article 75(4)(d) and (e) were omitted.
[F1(2) For the purposes of paragraph (1), an employer’s share of the difference is the liability share unless the conditions are met for it being one of the following—
(a)the scheme apportionment arrangement share;
(b)the regulated apportionment arrangement share;
(c)the withdrawal arrangement share, or
(d)the approved withdrawal arrangement share.
(3) Where—
(a)the withdrawal arrangement share applies, the modification of Article 75(4) in regulation 6C(2) shall apply when the withdrawal arrangement comes into force;
(b)the approved withdrawal arrangement share applies, the modification of Article 75(4) in regulation 7(6) shall apply when the approved withdrawal arrangement comes into force.
(4) For the purposes of calculating the liability proportion for the purposes of the liability share, the liabilities attributable to employment with any employer (“Employer A”) shall be determined by the trustees or managers, after consulting the actuary and Employer A, as follows—
(a)where a scheme apportionment arrangement (or before 6th April 2008, an exercise of a scheme apportionment rule) or a regulated apportionment arrangement has required certain liabilities to be apportioned to one or more employer in a particular way, those liabilities shall be so attributed;
(b)subject to sub-paragraph (c), where liabilities to or in respect of any member arose as a result of pensionable service with more than one employer, the liabilities attributable to Employer A in respect of any such member shall comprise only liabilities which arose during or as a result of pensionable service with Employer A (including any liabilities attributable to a transfer received by the scheme during that period or periods of pensionable service), and
(c)where any of the circumstances in paragraph (5) applies in respect of certain liabilities in respect of any member, those liabilities shall be attributable in accordance with the following sub-paragraphs applied in sequence—
(i)either—
(aa)if Employer A is the last employer of any member and the liabilities in respect of that member cannot be attributed to any employer, all of the liabilities to or in respect of any such member shall be attributable to Employer A, or
(bb)the liabilities in respect of any member which cannot be attributed to any employer shall be attributable in a reasonable manner to one or more employer (which may or may not include Employer A), or
(ii)if the trustees or managers are unable to determine whether or not Employer A is the last employer of any member and the liabilities in respect of that member cannot be attributed to any employer, the liabilities attributable to any such member shall not be attributable to any employer.
(5) The circumstances referred to in paragraph (4)(c) are—
(a)where the trustees or managers are unable to determine to whom liabilities in respect of any member should be attributed in accordance with paragraph (4)(b), paragraph (4)(c) shall apply in relation to those liabilities which cannot be attributed to any employer under paragraph (4)(b), or
(b)where the trustees or managers are able to determine to whom liabilities in respect of any member should be attributed in accordance with paragraph (4)(b), but to do so they expect disproportionate costs will be incurred by the scheme, paragraph (4)(c) shall apply in relation to those liabilities which cannot be attributed to any employer under paragraph (4)(b) except at disproportionate costs.
(6) Where an employer notifies the trustees or managers that a relevant transfer deduction shall apply to a departing employer’s liabilities—
(a)the departing employer’s liability share shall be reduced by the amount of the relevant transfer deduction, provided the relevant transfer liabilities and corresponding assets are transferred out during the period commencing with the applicable time and ending on the day that is 12 months later (“transfer out period”), and
(b)the liability share shall be calculated after the end of the transfer out period or if all transfers are completed on a date before the end of that period, after that date.
(7) For the purposes of paragraph (6), the relevant transfer deduction shall be determined by calculating the relevant transfer liabilities and the corresponding assets in accordance with regulation 5.
(8) The amount of the liabilities attributable to an employer under paragraph (4), the liability proportion, and the amount of the liability share shall be calculated and verified by the actuary in accordance with any relevant BAS standards and shall be certified by him in the form set out in Schedule 1.]
Textual Amendments
F1Reg. 6(2)-(8) substituted for reg. 6(2)-(5) (6.4.2008) by The Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations (Northern Ireland) 2008 (S.R. 2008/132), regs. 2(1), 6 (with reg. 2(3)-(8))
Commencement Information
6A.—(1) Where but for this regulation an employment-cessation event would have occurred in relation to an employer (“A”) and before, on, or as soon as possible and in any event within one month after, the cessation date A gives the trustees or managers of a relevant scheme (“the scheme”) a period of grace notice, A shall be treated for a period of grace as if he employed a person who is an active member of the scheme, but—
(a)if by the last day of the period of grace A does not employ a person who is an active member of the scheme, A shall be treated as if the period of grace had not applied;
(b)if at any time during the period of grace A no longer intends to employ any person who shall be an active member of the scheme, A must notify the trustees or managers of the scheme and A shall be treated as if the period of grace had not applied;
(c)if at any time during the period of grace A employs an active member of the scheme (whether before or after giving the period of grace notice), A shall be treated as if an employment-cessation event had not occurred in relation to him on the cessation date which applied to the period of grace notice, or
(d)if during the period of grace an insolvency event occurs in relation to A, A shall be treated as if the period of grace had not applied.
(2) Where in accordance with paragraph (1) an employer is treated for the period of grace as if he employed at least one person who is an active member of the scheme, he shall for the purposes of these Regulations be treated during that period as if he were an employer in relation to the scheme.
(3) For the purposes of this regulation, the following definitions shall apply—
“cessation date” means the date on which the employer ceases to employ at least one person who is an active member of the scheme and at least one other person who is not a defined contribution employer continues to employ at least one person who is an active member of the scheme;
“relevant scheme” means a scheme in relation to which A is not aware of any intention for it to become a frozen scheme during the period of grace;
“period of grace” means a period commencing on the cessation date and ending on the earlier of—
the day which is 12 months later, or
the day on which the employer employs a person who is an active member of the scheme;
“period of grace notice” means a notice in writing that an employer intends during the period of grace to employ at least one person who shall be an active member of the scheme.
Textual Amendments
6B.—(1) Before the trustees or managers of the scheme enter into a scheme apportionment arrangement, the funding test must be met in relation to it.
(2) Paragraph (1) shall not apply where—
(a)the employer’s scheme apportionment arrangement share will be higher than the liability share and the trustees or managers are satisfied that the employer is able to pay the scheme apportionment arrangement share, or
(b)at the date of the agreement the scheme had commenced winding-up, and the employer’s scheme apportionment arrangement share will be lower than his liability share and the trustees or managers are satisfied that—
(i)it is likely that the employer would be unable to pay the liability share if it applied, and
(ii)it is likely that the employer will be able to pay the scheme apportionment arrangement share.
Textual Amendments
6C.—(1) The trustees or managers may enter into a withdrawal arrangement, before, on or after the applicable time (which applies to an employment-cessation event), provided that—
(a)the funding test is met, and
(b)they are satisfied that at the date of the agreement, the guarantors have sufficient financial resources to be likely to be able to pay amount B that would arise on that date (or pay the likely amount B).
(2) When the withdrawal arrangement comes into force—
(a)the cessation employer’s share of the difference shall for the purposes of regulation 6(2) be the withdrawal arrangement share, and
(b)Article 75(4) shall apply as if amount B is treated as a debt due on the guarantee time and the guarantors who are party to the withdrawal arrangement shall be jointly liable unless the withdrawal arrangement provides that they shall be jointly and severally liable.
(3) A relevant transfer deduction shall apply to a withdrawal arrangement share provided any transfer or transfers of the cessation employer’s relevant transfer liabilities and corresponding assets are completed on or before the date which is 12 months after the employment-cessation event.
(4) Schedule 1A makes further provision in relation to withdrawal arrangements.
Textual Amendments
6D. Schedule 1B applies for the purposes of Article 64(2)(a) and(3)(a) of the 2005 Order (duty to notify the Regulator of certain events) so as to require notice of the events prescribed in that Schedule to be given to the Authority by the persons prescribed in relation to those events, unless the Authority direct otherwise.]
Textual Amendments
7.—(1) If a cessation employer notifies the Authority in writing that he proposes to enter into an arrangement under this regulation and proposes to seek the Authority’s approval of the arrangement, the Authority may issue directions that—
(a)a debt which may be treated as due under Article 75(4) is to be unenforceable for such period (“suspension period”) as the Authority may specify in the direction;
(b)the suspension period is to be extended by such further periods as it specifies, and
(c)if an approved withdrawal arrangement comes into force before the end of the suspension period, Article 75(4) is to apply with the modifications in paragraph (6).
(2) The Authority may not approve an arrangement under this regulation unless—
(a)the amount the cessation employer proposes to pay as his approved withdrawal arrangement share is less than amount A;
(b)the trustees have notified the Authority that the funding test is met, and
(c)the Authority are satisfied that it is reasonable to do so having regard to such matters as the Authority consider relevant which may include the following—
(i)the potential effect of the employment-cessation event on the method or assumptions used to calculate the scheme’s technical provisions;
(ii)the financial circumstances of the proposed guarantors;
(iii)the amount of the cessation employer’s share of the difference under the liability share;
(iv)the amount the cessation employer proposes to pay as its approved withdrawal arrangement share (and, where there is likely to be a relevant transfer deduction, an estimate of the amount that the cessation employer will pay if the transfer is completed), and
(v)the effect of the proposed arrangement on the security of members’ benefits under the scheme.
(3) Approval by the Authority of an arrangement—
(a)may be given subject to such conditions as the Authority consider appropriate, and
(b)is to be given in a notice issued by the Authority.
(4) An arrangement may be approved by the Authority in advance of an employment-cessation event occurring (see paragraph 6 of Schedule 1A) or following the occurrence of such an event.
(5) An arrangement may be approved by the Authority where a departing employer notifies the trustees that a relevant transfer deduction shall apply to the proposed approved withdrawal arrangement share, but such approval shall cease to be effective if the transfer or transfers of the cessation employer’s liabilities are not completed on or before the date which is 12 months after the employment-cessation event or within such a longer period as the Authority approve.
(6) If the Authority issue the directions referred to in paragraph (1) and an approved withdrawal arrangement comes into force before the end of the suspension period (referred to in that paragraph)—
(a)the cessation employer’s share of the difference shall for the purposes of regulation 6(2) be the approved withdrawal arrangement share, and
(b)Article 75(4) shall apply as if amount B is treated as a debt due from the guarantors at the guarantee time for which (if there is more than one guarantor) they are jointly, of if the approved withdrawal arrangement provides, jointly and severally liable.
(7) The Authority may issue a direction that amount B under an approved withdrawal arrangement is not to be treated as a debt due from the guarantors under Article 75(4) and any such direction must be issued—
(a)before the guarantee time, and
(b)if the Authority consider that the approved withdrawal arrangement is no longer required.
(8) The Authority may issue a notice that they consider amount B (or the balance remaining) under an approved withdrawal arrangement should be paid but they may not issue such a notice unless they consider that it is reasonable for the guarantors to be required to pay that amount at that time.
(9) In forming an opinion for the purposes of paragraph (8), the Authority must have regard to such matters as they consider relevant including—
(a)whether the guarantors have taken reasonable steps to comply with the approved withdrawal arrangement;
(b)whether the guarantors have complied with their obligations under Schedule 1B, and
(c)the guarantors’ financial circumstances.
(10) Where the Authority consider that an arrangement no longer requires to be continued in force, they may issue a notice to the parties to that effect.
(11) Schedule 1A makes further provision in relation to approved withdrawal arrangements.]
Textual Amendments
F3Regs. 7, 7A substituted for regs. 7-7B (6.4.2008) by The Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations (Northern Ireland) 2008 (S.R. 2008/132), regs. 2(1), 8 (with reg. 2(3)-(8))
7A.—(1) The conditions which apply to a regulated apportionment arrangement are as follows—
(a)the arrangement applies to a trust scheme where—
(i)the trustees are of the opinion that there is a reasonable likelihood of an assessment period commencing in relation to the scheme within the following 12 months, or
(ii)an assessment period has already commenced in relation to the scheme and has not come to an end;
[F4(b)where an assessment period has not already commenced, each of the following persons agrees to the arrangement—
(i)the trustees of the scheme, and either
(ii)where the employer’s liability share is increased, the employer, or
(iii)where the employer’s liability share is reduced, any remaining employer to whom all or part of the amount that would have been the employer’s liability share is being apportioned;]
(c)the arrangement and any amendments to the arrangement are approved by the Authority by a notice of approval, and
(d)the Board of the Pension Protection Fund does not object to the arrangement.
(2) A notice of approval is a confirmation, issued by the Authority, that in their opinion in the circumstances described in the application it would be reasonable to issue a notice of approval.]
Textual Amendments
F3Regs. 7, 7A substituted for regs. 7-7B (6.4.2008) by The Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations (Northern Ireland) 2008 (S.R. 2008/132), regs. 2(1), 8 (with reg. 2(3)-(8))
F37B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F3Regs. 7, 7A substituted for regs. 7-7B (6.4.2008) by The Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations (Northern Ireland) 2008 (S.R. 2008/132), regs. 2(1), 8 (with reg. 2(3)-(8))
8.—(1) Where Article 75 and these Regulations (apart from this regulation) apply to a scheme in relation to which there is more than one employer they shall apply to each of the following sections or parts of that scheme as if the section or part were a separate scheme—
(a)a section of a segregated scheme with one employer in relation to the section;
(b)a section of a segregated scheme with more than one employer in relation to the section;
(c)a death benefits section of a segregated scheme;
(d)a frozen section of a segregated scheme.
(2) For the purposes of paragraph (1)—
(a)subject to sub-paragraph (b), a “segregated scheme” means a scheme in relation to which there is more than one employer and which is divided into 2 or more sections where—
(i)any contributions payable to the scheme by an employer in relation to the scheme or by a member are allocated to that employer’s section, if more than one section applies to an employer to the section to which the employment relates, and any contributions to that employer’s or member’s section, and
(ii)a specified proportion of the assets of the scheme is attributable to each section of the scheme and cannot be used for the purposes of any other section;
(b)when determining whether a scheme is a segregated scheme there shall (for that purpose) be disregarded any provisions of the scheme which—
(i)permit contributions or transfers of assets to be used to provide death benefits;
(ii)permit any assets of a section of a scheme to be used for the purpose of another section in the event of the winding-up of the scheme or a section;
(c)a “death benefits section of a segregated scheme” shall mean a section—
(i)which provides death benefits only, and
(ii)to which contributions or transfers of assets may only be made for the purpose of providing death benefits;
(d)a “frozen section of a segregated scheme” shall mean a section—
(i)which applies only to members who are no longer in pensionable service in relation to the section (and a period of grace notice has not been given under regulation 6A and a period of grace under that regulation is not in progress), and
(ii)where the scheme rules have not been amended to prevent the scheme from otherwise being a segregated scheme.]
Textual Amendments