Duty to assume responsibility for closed schemes

Pensions Bill – in a Public Bill Committee at 9:30 am on 27th April 2004.

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No. NC14, to move the following Clause:—

'(1) Where the trustees or managers of a closed scheme—

(a) make an application under subsection (1) of section [applications and notifications where closed schemes have insufficient assets], or

(b) receive a notice from the Board under subsection (4) of that section,

the Board must assume responsibility for the scheme in accordance with this Chapter if the value of the assets of the scheme at the relevant time was less than the amount of the protected liabilities at that time.

(2) In subsection (1) the reference to the assets of the scheme is a reference to those assets excluding any assets representing the value of any rights in respect of money purchase benefits under the scheme.

(3) For the purposes of determining whether the condition in subsection (1) is satisfied, the Board must, as soon as reasonably practicable, obtain an actuarial valuation (within the meaning of section 112(3)) of the scheme as at the relevant time.

(4) Subject to subsection (6), the following provisions apply in relation to a valuation obtained under subsection (3) as they apply in relation to a valuation obtained under section 112—

(a) subsections (4) to (6) and (8) of that section;

(b) section 113 (approval of valuation), other than subsection (2)(b) (iii) (duty to give copy of approved valuation to employer's insolvency practitioner);

(c) section 114 (binding valuations), other than subsection (3)(b) (duty to give copy of binding valuation to employer's insolvency practitioner).

(5) In the application of section 114 by virtue of subsection (4), subsection (2) of that section applies as if the reference to section 100(2)(a) included a reference to subsection (1) of this section.

(6) In this section—

''closed scheme'' has the same meaning as in section [treatment of closed schemes required to wind up];

''the relevant time'' means the time immediately before the application mentioned in subsection (1)(a) was made, or (as the case may be) the notice mentioned in subsection (1)(b) was received, by the trustees or managers of the scheme.'.—[Malcolm Wicks.]

Brought up, read the First and Second time, and added to the Bill.