New Clause 46 - Meaning of ''financial support''

Pensions Bill – in a Public Bill Committee at 2:45 pm on 27th April 2004.

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'(1) For the purposes of section [Financial support directions] (financial support directions), ''financial support'' for a scheme means one or more of the arrangements falling within subsection (2) the details of which are approved in a notice issued by the Regulator.

(2) The arrangements falling within this subsection are—

(a) an arrangement whereby, at any time when the employer is a member of a group of companies, all the companies who are members of the group are jointly and severally liable for the employer's pension liabilities in relation to the scheme;

(b) an arrangement whereby, at any time when the employer is a member of a group of companies, a company which meets prescribed requirements and is the holding company of the group is liable for the employer's pension liabilities in relation to the scheme;

(c) an arrangement which meets prescribed requirements and whereby additional financial resources are provided to the scheme;

(d) such other arrangements as may be prescribed.

(3) In subsection (2), ''the employer's pension liabilities'' in relation to a scheme means—

(a) the liabilities for any amounts payable by or on behalf of the employer towards the scheme (whether on his own account or otherwise) in accordance with a schedule of contributions under section 184, and

(b) the liabilities for any debt which is or may become due to the trustees or managers of the scheme from the employer whether by virtue of section 75 of the Pensions Act 1995 (c. 26) (deficiencies in the scheme assets) or otherwise.'.—[Malcolm Wicks.]

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