'(1) This section applies where a contribution notice is issued to a person under section [Contribution notices where avoidance of employer debt] and condition A or B is met.
(2) Condition A is met if, at the time at which the contribution notice is issued, there is a debt due under section 75 of the Pensions Act 1995 (c. 26) (''the 1995 Act'') (deficiencies in the scheme assets) from the employer—
(a) to the trustees or managers of the scheme, or
(b) where the Board of the Pension Protection Fund has assumed responsibility for the scheme under Chapter 3 of Part 2 (pension protection), to the Board.
(3) Condition B is met if, after the contribution notice is issued but before the whole of the debt due by virtue of the notice is recovered, a debt becomes due from the employer to the trustees or managers of the scheme under section 75 of the 1995 Act.
(4) The Regulator may issue a direction to the trustees or managers of the scheme not to take any or any further steps to recover the debt due to them under section 75 of the 1995 Act pending the recovery of all or a specified part of the debt due to them by virtue of the contribution notice.
(5) If the trustees or managers fail to comply with a direction issued to them under subsection (4), section 10 of the 1995 Act (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure compliance.
(6) Any sums paid—
(a) to the trustees or managers of the scheme in respect of any debt due to them by virtue of the contribution notice, or
(b) to the Board in respect of any debt due to it by virtue of the contribution notice,
are to be treated as reducing the amount of the debt due to the trustees or managers or, as the case may be, to the Board under section 75 of the 1995 Act.
(7) For the purposes of this section—
(a) references to a debt due under section 75 of the 1995 Act include a contingent debt under that section, and
(b) references to the amount of such a debt include the amount of such a contingent debt.'.—[Malcolm Wicks.]
Brought up, read the First and Second time, and added to the Bill.