- Latest available (Revised)
- Original (As made)
This is the original version (as it was originally made). This item of legislation is currently only available in its original format.
10. After regulation 6D of the Employer Debt Regulations (notifiable events)(1), insert—
6E.—(1) A flexible apportionment arrangement takes effect on the date on which both—
(a)the conditions in paragraph (2) are met; and
(b)an employment-cessation event—
(i)has occurred in relation to the leaving employer before the date on which the conditions in paragraph (2) are met;
(ii)would have occurred in relation to the leaving employer if regulation 6ZA(7) had not applied; or
(iii)would have occurred in relation to the leaving employer if the scheme had not become a frozen scheme.
(2) The conditions are that—
(a)subject to paragraph (4), the funding test is met;
(b)one or more replacement employers—
(i)take over responsibility under a legally enforceable agreement for all the liabilities in relation to the scheme (within the meaning given in regulation 6ZB(17)) of the leaving employer as those liabilities stand immediately before the flexible apportionment arrangement takes effect, taking into account any reduction mentioned in paragraph (5)(c); or
(ii)where it is impossible for the replacement employer(s) to take over responsibility for those liabilities under a legally enforceable agreement, are treated for all purposes as being responsible for those liabilities;
(c)the following persons consent in writing—
(i)the trustees or managers of the scheme;
(ii)the leaving employer; and
(iii)all the replacement employers referred to in sub-paragraph (b);
(d)the leaving employer is not in a period of grace in accordance with regulation 6A;
(e)the requirements set out in paragraph (5) are met for any payment of any part of a debt—
(i)due as a result of the employment-cessation event referred to in paragraph (1)(b)(i); or
(ii)that would have been due as a result of the employment-cessation event referred to in paragraph (1)(b)(ii) that would have occurred if regulation 6ZA(7) had not applied;
(f)the scheme is not—
(i)in an assessment period; or
(ii)being wound up; and
(g)the trustees or managers of the scheme are satisfied that an assessment period is unlikely to begin in relation to the scheme within the period of 12 months beginning with the date on which a flexible apportionment arrangement takes effect.
(3) Where a flexible apportionment arrangement takes effect in accordance with paragraph (1)(b)(i), section 75(4) of the 1995 Act is modified so that no amount is to be treated as a debt due to the trustees or managers of the scheme as a result of the employment-cessation event.
(4) The funding test does not have to be met where—
(a)the funding test is met for a different flexible apportionment arrangement;
(b)the time when the flexible apportionment arrangement takes effect is or will be, in the opinion of the trustees or managers of the scheme, the same as or similar to the time when the different flexible apportionment arrangement takes effect; and
(c)the trustees or managers of the scheme are satisfied that the funding test would be met if it was carried out again.
(5) The requirements referred to in paragraph (2)(e) are—
(a)the payment (which in this paragraph means the payment referred to in paragraph (2)(e)) is made to the trustees or managers of the scheme by or on behalf of the leaving employer;
(b)the payment is in addition to any amount that is required to be paid under the schedule of contributions;
(c)the trustees or managers of the scheme decide to make a reduction of the liabilities in relation to the scheme (within the meaning given in regulation 6ZB(17)) of the leaving employer as a result of the payment; and
(d)the reduction of those liabilities relates to the amount of the payment.
(6) The trustees or managers of the scheme may require the leaving employer or the replacement employers (or both) to pay all or part of the costs which the trustees or managers of the scheme have incurred by virtue of this regulation.
(7) In this regulation—
“the leaving employer” means an employer—
in relation to a multi-employer scheme;
in respect of whom a relevant event has not occurred; and
who—
employs at least one active member of the scheme in respect of whom defined benefits are accruing; or
used to employ at least one such active member;
“replacement employer” means an employer who, on the date on which the flexible apportionment arrangement takes effect—
is an employer in relation to the same multi-employer scheme as the leaving employer;
either—
is employing at least one active member of the scheme in respect of whom defined benefits are accruing; or
used to employ at least one such active member and no amount was treated as a debt due to the trustees or managers of the scheme when the last such active member ceased to be employed; and
is an employer in respect of whom a relevant event has not occurred.”.
Regulation 6D was inserted by S.I. 2008/731.
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: