The Occupational Pension Schemes (Pensions Compensation Board Limit on Borrowing) Regulations 1996

Statutory Instruments

1996 No. 1976

PENSIONS

The Occupational Pension Schemes (Pensions Compensation Board Limit on Borrowing) Regulations 1996

Made

25th July 1996

Coming into force

1st August 1996

Whereas a draft of these Regulations was laid before Parliament in accordance with the provisions of section 175(2)(b) of the Pensions Act 1995(1) and approved by resolution of each House of Parliament:

Now, therefore, the Secretary of State for Social Security, in exercise of the powers conferred upon him by sections 78(6) and 124(1) of the Pensions Act 1995(2), and of all other powers enabling him in that behalf, by this instrument, which is made before the end of the period of 6 months beginning with the coming into force of the provisions of Part I of that Act by virtue of which they are made(3), hereby makes the following Regulations:—

Citation and commencement

1.  These Regulations may be cited as the Occupational Pension Schemes (Pensions Compensation Board Limit on Borrowing) Regulations 1996 and shall come into force on 1st August 1996.

Limit on borrowing

2.  The aggregate amount outstanding in respect of the principal of any money borrowed by the Pensions Compensation Board under section 78(5) of the Pensions Act 1995 must not exceed £15 million.

Signed by authority of the Secretary of State for Social Security.

Oliver Heald

Parliamentary Under-Secretary of State,

Department of Social Security

25th July 1996

Explanatory Note

(This note is not part of the Regulations)

The Pensions Compensation Board is established under section 78 of the Pensions Act 1995. Section 78(5) enables the Board to borrow such sums as they may require for exercising any of their functions. Section 78(6) provides that the aggregate amount outstanding in respect of the principal of any money borrowed must not exceed the prescribed amount. These Regulations provide that the prescribed amount shall be £15 million.

As these Regulations are made before the expiry of the period of 6 months beginning with the coming into force of the provisions of Part I of the Act by virtue of which they are made, the requirement for the Secretary of State to consult such persons as he considers appropriate does not apply.

These Regulations do not impose any costs on business.

(1)

1995 c. 26.

(2)

Section 124(1) is cited because of the meaning ascribed to “prescribed” and “regulations”.

(3)

See section 120(2)(c) of the Pensions Act 1995. This provides that the requirement to consult does not apply where regulations are made before the end of 6 months beginning with the coming into force of the provisions of Part I of the Pensions Act 1995 by virtue of which they are made.