# The Pensions Regulator (Contribution Notices) (Sum Specified following Transfer) Regulations 2010, Regulation 2: Manner of determination of contribution notice sum


(1) This regulation applies where—
(a) the Regulator determines to issue a contribution notice under section 38 in relation to a transferee scheme in accordance with section 39A(2);
(b) the transferee scheme—
(i) is a scheme to which section 75 (deficiencies in the assets) of the 1995 Act does not apply, or
(ii) is a scheme to which that section applies but the liabilities of the scheme that would be taken into account for the purposes of that section do not relate to the members of the initial scheme; and
(c) the transfer of the members of the initial scheme is determined by the Regulator to amount to an act or failure to act falling within section 38(5).
(2) Subject to regulation 3, the sum specified by the Regulator in the contribution notice may be either the whole or a specified part of the amount calculated in accordance with the following provisions.
(3) Stage one of the calculation is to identify the attributable amount, being the amount of the baseline sum at the relevant time which, in the Regulator’s opinion, is attributable to the members transferred.
(4) Stage two of the calculation is to deduct from the attributable amount the amount of the aggregate cash value of the transfer credits and rights acquired in the transferee scheme by the members transferred, substituting zero if the calculation results in an amount less than zero.
(5) Where this regulation applies and the Regulator is satisfied that, otherwise than by virtue of the transfer, the act or failure to act falling within section 38(5) resulted in the amount of the baseline sum being less than it would otherwise have been, the Regulator may increase the baseline sum by such amount as the Regulator considers appropriate.
(6) For the purposes of this regulation—
(a) in estimating the baseline sum the Regulator is to disregard the reduction of the liabilities of the initial scheme brought about by the transfer; and
(b) the aggregate cash value of the transfer credits and rights acquired in the transferee scheme is the aggregate cash value which, in the Regulator’s opinion, those credits and rights held at the time of their acquisition.

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Source: https://www.legislation.gov.uk/ukdsi/2010/9780111493847/regulation/2 (the official version)
Page: https://openlegislation.uk/draft-pensions-regulator-contribution-notices-sum-specified-following-transfer-regulations-2010/regulation-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.