Regulation 23 Fraud compensation

(1)

This paragraph applies to a scheme when all the following conditions are met—

(a)

the scheme has been authorised by the Regulator under section 5 of the Act;

(b)

there are one or more scheme funders and a triggering event within item 4 or 5 of the table in section 21(6) of the Act has occurred in relation to every scheme funder;

(c)

the scheme is pursuing continuity option 1; and

(d)

the trustees have submitted the implementation strategy to the Regulator.

(2)

Where paragraph (1) applies, the following enactments have effect in relation to the scheme with the following modifications—

(a)

in the 2004 Act, omit—

(i)

section 182(1)(c), (2) to (4), 6(a), (8) and (9) (insolvency of employers);

(ii)

the words “the later of” in section 182(6);

(iii)

the definition of “relevant event” in section 182(10);

(iv)

section 183 (board’s duties where employer unlikely to continue as a going concern);

(v)

section 185(5)(d) (board’s duty to give notice to the insolvency practitioner or the employer) and the “and” before it;

(vi)

paragraph 21 of Schedule 9 (issue of a notice under section 183);

(b)

in the Occupational Pension Schemes (Fraud Compensation Payments and Miscellaneous Amendments) Regulations 2005^f1—

(i)

omit regulation 2(1)(ka)^f2;

(ii)

in regulation 2(2), for “(ka)” substitute “(k)”;

(iii)

in regulation 5(3)—

(aa)

in sub-paragraph (c), for “employer” substitute “each scheme funder (as defined in section 39(1) of the Pension Schemes Act 2017)”;

(bb)

for sub-paragraph (e), substitute—

“(e)
the date the triggering event (as defined in section 39(1) of the Pension Schemes Act 2017) occurred;”;

(c)

in the Occupational Pension Schemes (Fraud Compensation Levy) Regulations 2006^f3—

(i)

in regulation 3(3)(b), after “member” insert “subject to paragraph (3A)”;

(ii)

after paragraph (3) insert—

“(3A)
In the case of a member of a scheme which is authorised under the Pension Schemes Act 2017^f4, the levy payable shall not exceed 30 pence per member.

(3B)
For the purposes of paragraph (3A), a scheme which is authorised under the Pension Schemes Act 2017 during the financial year ending with 31st March 2020 is treated as if it had been so authorised on 1st April 2019.”.

Annotations

Footnotes

f1: S.I. 2005/2184.
f2: Regulation 2(1)(ka) was inserted, and regulation 2(2) amended, by article 2 of the National Employment Savings Trust (Consequential Provisions) Order 2010 (S.I. 2010/9).
f3: S.I. 2006/558.
f4: 2017 c.17.