{
  "url": "https://openlegislation.uk/occupational-pension-schemes-employer-debt-regulations-2005/regulation-6ZC",
  "json_url": "https://openlegislation.uk/occupational-pension-schemes-employer-debt-regulations-2005/regulation-6ZC.json",
  "legislation": "uksi/2005/678",
  "legislation_title": "The Occupational Pension Schemes (Employer Debt) Regulations 2005",
  "legislation_url": "https://openlegislation.uk/occupational-pension-schemes-employer-debt-regulations-2005",
  "path": "regulation/6ZC",
  "kind": "regulation",
  "number": "6ZC",
  "heading": "Employment-cessation events: exemptions",
  "text": "(1) There is a restructuring within this regulation if each of steps 1 to 4 in the following paragraphs are completed and the date on which there is a restructuring within this regulation is the date on which step 4 has been completed.\n(2) Each of steps 2 to 5 can only be carried out if the previous step has been completed.\n(3) Step 1 is for the exiting employer to write to the trustees or managers asking them to make a decision for the purposes of this regulation.\n(4) The exiting employer decides whether and when to carry out step 1.\n(5) Step 2 is for the trustees or managers to decide whether they are satisfied that the following four conditions are met—\n(a) the assets of the scheme are at least equal to the protected liabilities of the scheme,\n(b) either—\n(i) there are only one or two relevant members, or\n(ii) no more than 3% of the total number of scheme members in respect of whom defined benefits have accrued are relevant members,\n(c) the annual amount of accrued pension in respect of the relevant members does not exceed the maximum amount where—\n(i) the annual amount of accrued pension includes pensions in payment and pensions not in payment,\n(ii) the annual amount of accrued pensions in payment means the most recent payment of pension to each relevant member multiplied to produce an estimated annual amount,\n(iii) the annual amount of accrued pensions not in payment means the annual amount of pension to which each relevant member has accrued rights, and\n(iv) the maximum amount means—\n(aa) in the year commencing on 6th April 2010, £20,000, and\n(bb) in any subsequent year, £20,000 plus £500 for each year after the year commencing on 6th April 2010, and\n(d) if any restructurings within this regulation in relation to the scheme have occurred in the three years before step 4 is completed, those restructurings and the restructuring which occurs when step 4 is completed involve a combined total of—\n(i) no more than—\n(aa) five scheme members in respect of whom defined benefits have accrued, or\n(bb) 7.5% of the total number of scheme members in respect of whom defined benefits have accrued,\nwhichever is the higher, and\n(ii) no more than £50,000 of the annual amount of accrued pension as calculated for the purposes of sub-paragraph (c).\n(6) The trustees or managers must complete step 2—\n(a) without undue delay, and\n(b) using the figures contained in the most recent—\n(i) actuarial valuation under section 179 of the 2004 Act (valuations to determine scheme underfunding) for the assets and protected liabilities of the scheme, and\n(ii) scheme return within the meaning in section 65(2) of the 2004 Act (scheme returns: supplementary) for the number of members of the scheme.\n(7) Step 3 is for the trustees or managers to send—\n(a) the exiting employer, and\n(b) the receiving employer, unless the receiving employer has not yet been created,\ntheir decision in step 2 in writing.\n(8) The trustees or managers must complete step 3 without undue delay.\n(9) Step 4 is for—\n(a) the receiving employer to take over responsibility, under a legally enforceable agreement, for all of the exiting employer’s—\n(i) assets,\n(ii) employees, and\n(iii) scheme members, and\n(b) all of the exiting employer’s liabilities in relation to the scheme (as defined in regulation 6ZB(17)) to be—\n(i) taken over by the receiving employer under a legally enforceable agreement so that the receiving employer is responsible for them, or\n(ii) where it is impossible for the receiving employer to take over the exiting employer’s liabilities in relation to the scheme under a legally enforceable agreement, treated for all purposes as being the responsibility of the receiving employer.\n(10) The receiving employer decides whether to carry out step 4, but the receiving employer can only carry out step 4—\n(a) where the trustees or managers decided in step 2 that they are satisfied, and\n(b) within the 18 weeks, or such longer period up to a total of 36 weeks as the trustees or managers may choose, of the date of the written decision in step 3.\n(11) Step 5 is for the receiving employer and exiting employer to send the trustees or managers written confirmation—\n(a) that step 4 has been completed, and\n(b) of the date on which step 4 was completed.\n(12) The receiving employer and exiting employer must complete step 5 without undue delay.\n(13) In this regulation, “relevant members” means scheme members in respect of whom defined benefits accrued as a result of pensionable service with the exiting employer.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Regs. 6ZA-6ZD inserted (6.4.2010) by The Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations 2010 (S.I. 2010/725), regs. 1(2), 7"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2005/678/regulation/6ZC",
    "retrieved_at": "2026-10-29T05:04:11.283026+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}