Provisions applying to closed schemes
Section 155: Treatment of closed schemes
534.This section makes provision in respect of the treatment of schemes that the Board has authorised to continue as closed schemes under section 154(3).
535.Although the scheme is no longer subject to an assessment period,subsection (2) states that the provisions set out in subsection (3) of this section apply to closed schemes at any time when the trustees or managers of a scheme are required to wind up or continue winding up.
536.A closed scheme is required to wind up/continue winding up unless and until an assessment period begins under section 159. The provisions which apply to a closed scheme include section 40(5) (Board to act as a creditor for a debt due by virtue of a contribution notice under section 38), and section 133 (restrictions on admission of new members, payment of contributions etc).
537.Subsection (4) states that regulations may require the trustees or managers of a closed scheme in relation to which the provisions mentioned in subsection (3) apply to comply with such requirements as may be prescribed when providing for the discharge of any liability to, or in respect of, a member of the scheme for pensions or other benefits. This could, for example, be used to prevent a scheme discharging those liabilities which would not be compensated were the Board to assume responsibility for the scheme (e.g. pensions which exceed the cap imposed by Schedule 7).
Section 156: Valuations of closed schemes
538.This section makes provision for regular valuations of closed schemes.
539.Subsection (1) enables regulations to require the trustees or managers of a closed scheme to obtain actuarial valuations of the scheme at certain intervals. This is in order that they can decide whether they should make an application to the Board requesting it to reconsider taking responsibility for the scheme.
540.Regulations and guidance will deal with how assets and liabilities are to be determined, calculated and verified in accordance with guidance issued by the Board. Subsection (4) provides for any provision of a scheme that limits the amount of its liabilities by reference to its assets to be disregarded when calculating the amount of the liabilities of a scheme for the purposes of this provision. Subsection (5) ensures that the trustees or managers are not required to obtain an actuarial valuation of the scheme while they are awaiting a final determination of their application to continue a closed scheme.
