Part 2

The Board of the Pension Protection Fund
Chapter 3

Pension protection

The fund

Pension Protection Fund
173
1
The Pension Protection Fund shall consist of—
a
property and rights transferred to the Board under section 161(2)(a),
b
contributions levied under section 174 or 175 (initial and pension protection levies),
ba
interest paid by virtue of section 181A (interest for late payment of pension protection levy),
c
money borrowed by the Board under section 115 for the purposes of this Chapter,
d
any income or capital gain credited under subsection (2),
e
any amount paid to the Board by virtue of section 139 (repayment of loans to trustees or managers and payment of interest),
f
amounts recovered under section 163(4)(a) or by virtue of section 168(2)(e) (overpayments),
g
any amount paid to the Board in respect of a debt due to the Board under section 40(7) by virtue of a contribution notice under section 38,
h
any property transferred or amounts paid to the Board as required by a restoration order under section 52,
i
any amount paid to the Board in respect of a debt due to the Board under section 56(7) by virtue of a contribution notice under section 55,
j
amounts transferred from the Fraud Compensation Fund under section 187 (fraud compensation transfer payments), and
k
amounts of a prescribed description (other than amounts paid, directly or indirectly, to the Board by the Crown).
2
The Board must credit to the Pension Protection Fund any income or capital gain arising from the assets in the Fund.
3
The following are to be paid or transferred out of the Pension Protection Fund—
a
any sums required to meet liabilities transferred to the Board under section 161(2)(a),
b
any sums required to make payments in accordance with the pension compensation provisions or Chapter 1 of Part 3 of the Pensions Act 2008,
c
any sums required for the repayment of, and the payment of interest on, money within subsection (1)(c),
d
any sums required to make loans under section 139 (loans to trustees or managers),
e
any sums required to make payments under section 163(4)(b) (underpayments during the assessment period),
f
any sums required to make payments under section 166 (payment of unpaid scheme benefits etc),
g
any sums required to discharge liabilities under section 169 or 170 (discharge of liabilities in respect of compensation or money purchase benefits),
h
any sums required to meet any liabilities arising from obligations imposed on the Board by a restoration order under section 52,
i
any property (other than sums) required to meet any liabilities—
i
transferred to the Board as mentioned in paragraph (a) and arising from obligations imposed by a restoration order under section 52, or
ii
arising from obligations imposed on the Board by such an order,
j
any sums required to meet expenditure incurred by virtue of section 161(5) and paragraph 7 of Schedule 6 (expenditure associated with transfer of property, rights and liabilities to the Board), and
k
sums required for prescribed purposes.
4
No other amounts are to be paid or transferred out of the Pension Protection Fund.
5
In subsection (1) (other than paragraph (d)) and subsection (3) (other than paragraph (c)) any reference to a provision ... is to be read as including a reference to any provision in force in Northern Ireland corresponding to that provision.
Pt. 2 modified (8.3.2005 for specified purposes, 6.4.2005 in so far as not already in force) by The Pension Protection Fund (Partially Guaranteed Schemes) (Modification) Regulations 2005 (S.I. 2005/277), regs. 1(1), 2-11
Pt. 2 modified in part (9.3.2005 for specified purposes, 1.4.2005 for specified purposes, 6.4.2005 in so far as not already in force (except ch. 4)) by The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 (S.I. 2005/441), regs. 1, 2-60, 71, 72
S. 173(1)(c)-(e)(g)(i)(3)(b)-(d)(h)(i) in force at 6.4.2005 by S.I. 2005/275, art. 2(7), Sch. Pt. 7
S. 173(1)(b) in force at 20.6.2005 for specified purposes (in so far as it relates to section 174 of the Act (initial levy)) by S.I. 2005/1436, art. 2(2)(a)
S. 173(2)(4)(5) in force at 20.6.2005 by S.I. 2005/1436, art. 2(2)(a)
S. 173(3)(k) in force for the purpose only of conferring power to make regulations (1.6.2005); and for all other purposes (30.6.2005) by S.I. 2005/1436, art. 2(3)
Pt. 2 applied in part (with modifications) (20.7.2005 for specified purposes, 1.9.2005 for specified purposes, 5.12.2005 for specified purposes) by The Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986), regs. 1(1), 4, Sch. 1
S. 173(1)(b) in force at 1.4.2006 in so far as not already in force by S.I. 2006/560, art. 2(2), Sch. Pt. 2
S. 173(1)(a)(f)(3)(a)(e)-(g)(j) in force at 6.4.2006 by S.I. 2006/560, art. 2(3), Sch. Pt. 3
S. 173(1)(ba) inserted (26.2.2010) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 10 para. 4; S.I. 2010/467, art. 2(b)
Pt. 2 applied in part (with modifications) (20.7.2005 for specified purposes, 1.9.2005 for specified purposes, 5.12.2005 for specified purposes) by The Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986), regs. 1(1), 4, Sch. 1 (as amended (17.7.2008) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/1903), regs. 1, 5(2), 13; (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 5, 18; (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 5, 15)
Words in s. 173(3)(b) inserted (6.4.2011) by Pensions Act 2008 (c. 30), ss. 123(2)(a), 149(1); S.I. 2011/664, art. 2(3), Sch. Pt. 2
Words in s. 173(5) repealed (6.4.2011) by Pensions Act 2008 (c. 30), ss. 123(2)(b), 149(1), Sch. 11 Pt. 4; S.I. 2011/664, art. 2(3), Sch. Pt. 2
Pt. 2 modified in part (9.3.2005 for specified purposes, 1.4.2005 for specified purposes, 6.4.2005 in so far as not already in force (except Ch. 4)) by The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 (S.I. 2005/441), regs. 1, 2-60, 71, 72 (as amended (23.7.2012) by The Pension Protection Fund (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/1688), regs. 1(2), 2(1)-(19); (24.1.2013) by The Pension Protection Fund (Miscellaneous Amendments) (No. 2) Regulations 2012 (S.I. 2012/3083), regs. 1(2)(b), 2 (with reg. 10))
Pt. 2 modified (8.3.2005 for specified purposes, 6.4.2005 in so far as not already in force) by The Pension Protection Fund (Partially Guaranteed Schemes) (Modification) Regulations 2005 (S.I. 2005/277), regs. 1(1), 2-11 (as amended (8.3.2010) by The Pension Protection Fund and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/196), regs. 1, 2(3)-(5); (30.4.2013) by The Pension Protection Fund, Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2013 (S.I. 2013/627), regs. 1(1), 8(4)(5))
Pt. 2 applied in part (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 42(1), 53, 57 (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1)); coming into force immediately after s. 29 of 2011 c. 19 - see S.I. 2014/1683, art. 2