Explanatory note

These Regulations make provision relating to various requirements under sections 153, 156 and 157 of the Pensions Act 2004 (c.35) (“the Act”) in relation to closed schemes.

Regulation 2 makes provision in respect of applications to the Board of the Pension Protection Fund (“the Board”) under section 153 of the Act for authority for a scheme to continue as a closed scheme in circumstances where the trustees or managers of the scheme are unable to obtain a full buy-out quotation. It also makes provision in respect of the form and content of determination notices issued by the Board under section 153.

Regulation 3 provides that the trustees or managers of closed schemes must obtain an initial actuarial valuation under section 156 of the Act of the scheme's assets, full scheme liabilities and protected liabilities within a prescribed period. It also provides that such trustees or managers must obtain section 156 actuarial valuations at least every three years after the initial such valuation.

Regulation 4 and the Schedule provide for how the assets, full scheme liabilities and the protected liabilities in relation to a closed scheme, and their amount or value, are to be determined, calculated and verified in accordance with section 156 of the Act.

Regulation 5 prescribes the qualifications required of a person conducting an actuarial valuation under section 156 of the Act.

Regulation 6 sets out the time limit for making applications to the Board under section 157 of the Act in circumstances where a closed scheme has insufficient assets. It also makes provision in respect of the form and content of applications and notifications to the Board under that section, and in respect of the form and content of notifications given by the Board under that section.

Regulation 7 makes transitional provision in relation to the coming into force of the definition of “relevant accounts”.

As these Regulations are made before the expiry of the period of six months beginning with the coming into force of the provisions of the Act by virtue of which they are made, the requirement for the Secretary of State to consult such persons as he considers appropriate does not apply. However, a consultation exercise has nevertheless taken place.

A Regulatory Impact Assessment has not been prepared for this instrument as it has only a negligible impact on the costs of business, charities or voluntary bodies.