The Pension Protection Fund (Reference of Reviewable Matters to the PPF Ombudsman) Regulations 2005

Explanatory Note

(This note is not part of the Regulations)

These Regulations provide for a reviewable matter to be referred to, and investigated and determined by, the Ombudsman for the Board of the Pension Protection Fund (“the PPF Ombudsman”) following a reconsideration decision given by the Reconsideration Committee of the Board of the Pension Protection Fund under regulation 14(1) or 18(1) of the Pension Protection Fund (Review and Reconsideration of Reviewable Matters) Regulations 2005 (S.I. 2005/669).

The Board of the Pension Protection Fund is established by section 107 of the Pensions Act 2004 (c. 35) (“the Pensions Act”) to provide compensation to members of certain occupational pension schemes in the event of insolvency of the scheme's sponsoring employer and where the pension scheme is underfunded at a certain level. The PPF Ombudsman is established by section 209 of the Pensions Act.

Regulation 2 provides for a reviewable matter to be referred to the PPF Ombudsman.

Regulation 3 provides a time limit of 28 days for making a reference of a reviewable matter.

Regulation 4 makes provision in respect of the form and content of a reference of a reviewable matter.

Regulation 5 requires the PPF Ombudsman to acknowledge in writing his receipt of a reference to each party to the reference and sets out those matters which must be included in the acknowledgement. Regulation 5 also makes provision for the PPF Ombudsman to notify any persons who may be significantly adversely affected by his determination in respect of the reference of specified matters including the fact that the reference has been made, the grounds on which it has been made, and the right to make written representations in respect of the reference or to request and attend an oral hearing.

Regulation 6 requires the PPF Ombudsman to investigate a reviewable matter referred to him and to remit the matter to the Board with directions about what, if any, action the Board should take for the purposes of giving effect to a determination of the PPF Ombudsman. Regulation 6 also provides a time limit of two months from the date on which his investigation is concluded for the PPF Ombudsman to reach and give his determinations, which may be extended.

Regulation 7 makes general provision in respect of the conduct of investigations by the PPF Ombudsman including. In particular, regulation 7 enables the PPF Ombudsman to investigate the reference on the basis of written evidence before him without holding an oral hearing, to obtain an expert opinion in connection with any question arising from a reference made to him, to require by notice in writing the production of documents to him by any person in connection with a reference and to give directions about the conduct of an oral hearing held by him in respect of a reference.

Regulation 8 provides for the making of written representations in respect of a reference, a time limit for making such representations and for notice to be given to specified persons of any written representations received. Regulation 8 also provides a right to request an oral hearing and to attend and be heard at such an oral hearing.

Regulation 9 makes provision for the applicant to deliver a supplementary statement in respect of a reference at any time during the course of the PPF Ombudsman's investigation of the reference.

Regulation 10 enables an applicant to withdraw or amend a reference or supplementary statement submitted by him in respect of such a reference with the consent of the PPF Ombudsman.

Regulation 11 provides for the notice and other formal requirements that must be complied with in cases where the PPF Ombudsman has decided that it is appropriate to hold an oral hearing in respect of a reviewable matter referred to him.

Regulation 12 makes general provision in respect of the attendance of witnesses at an oral hearing including provision for an oral hearing to be adjourned or for the hearing to be continued and the matter determined by the PPF Ombudsman where a party to the reference, a witness or other person notified of the date fixed for the hearing fails to attend that hearing.

Regulation 13 provides for an oral hearing to be held in public unless in the opinion of the PPF Ombudsman it is appropriate for such a hearing, or any part of it, to be held in private.

Regulation 14 enables a member of the Council of Tribunals to be present at an oral hearing held in respect of a reviewable matter referred to the PPF Ombudsman and to be present at any deliberations which take place immediately after such a hearing.

Regulation 15 makes provision for the PPF Ombudsman to pay reasonable costs to specified persons in specified circumstances. Regulation 15 also makes provision for the PPF Ombudsman to direct a person to pay the costs and expenses associated with the attendance of any person at an oral hearing if he is of the opinion that that person acted vexatiously or unreasonably in making, pursuing or resisting the reference.

Regulation 16 makes general provision about the reaching and giving of determinations and directions by the PPF Ombudsman including the PPF Ombudsman's powers on making a determination and giving directions. Regulation 16 also makes provision in respect of powers of the Board when dealing with a reviewable matter remitted to it by the PPF Ombudsman.

Regulation 17 makes provision for the PPF Ombudsman to combine references received in respect of the same reviewable matter and to make a single determination with directions in respect of all of them. Regulation 17 also enables the PPF Ombudsman to give one determination in respect of a reference made under these Regulations and a matter referred to him under regulations made under section 214 of the Act and to select one of a number of references as being representative of the interests involved in those references and give a single determination in respect of them. Regulation 17 also makes provision in respect of the binding effect of determinations and directions of the PPF Ombudsman.

Regulation 18 makes provision for an applicant or a person notified of a reference under regulation 5(1)(b) to appoint a person to act as his representative for the purposes of these Regulations. Regulation 18 also makes provision for the PPF Ombudsman to appoint a person to act as an applicant's representative in cases where the applicant dies, is a minor or is otherwise incapable of acting for himself.

Regulation 19 provides for restrictions on the use of information and documents provided for the purposes of an investigation.

Regulation 20 provides for the PPF Ombudsman to extend any period of time for doing an act under the Regulations except the time for making a reference in the case of a reviewable matter described in regulation 3(2) and the time for making his determinations as provided for in regulation 6.

Regulation 21 provides for the effect of any irregularities resulting from a failure to comply with these Regulations or any clerical errors in a determination made or direction given by the PPF Ombudsman. Regulation 21 also provides for the correction of any accidental errors occurring in any such document.

Regulation 22 makes provision for substituted service.

As these Regulations are made before the expiry of the period of six months beginning with the coming into force of the provisions 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. However, these Regulations have been made following consultation with the Council on Tribunals in accordance with section 8 of the Tribunals and Inquiries Act 1992 (c. 53).

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.