Regulation 5 Amendment of the Pension Protection Fund (Valuation) Regulations

The Pension Protection Fund (Valuation) Regulations (Northern Ireland) 2005^f1 are amended in accordance with paragraphs (2) to (9).

In regulation 1(2) (interpretation)—

After regulation 2 (provision of actuarial valuation to determine scheme underfunding) insert—

“Article 127 determination

2A.

(1)

This regulation applies where the Board is making an Article 127 determination in respect of an eligible scheme.

(2)

The Board must determine the value of the assets and protected liabilities of that scheme—

(a)

by using the information contained in the most recent Article 162 valuation or an appropriate alternative actuarial valuation;

(b)

by updating that information in accordance with the statement issued by the Board under Article 127(5C) of the Order; and

(c)

in accordance with regulations 3(a) and (c), 4, 6(1)(a) and (2), and 7(1) to (4)(c).

(3)

In this regulation—

• “an appropriate alternative actuarial valuation” means a written valuation of the scheme’s assets and liabilities prepared and signed by the actuary;

• “the actuary” means—

  1. (a)

     the actuary appointed under Article 47(1)(b) of the 1995 Order (professional advisers) in relation to the scheme; or

  2. (b)

     a person who is a Fellow of the Institute and Faculty of Actuaries.”.

In regulation 3^f4 (excluded assets)—

In regulation 4 (contribution notices, financial support directions and restoration orders) after “prior to the date that” insert “the determination is made or”.

In regulation 6(1)(a)^f5 (valuation of protected rights) after “Article 127” insert “determination or Article 127”.

In regulation 7 (alternative valuation of assets and protected liabilities in specific cases)—

After regulation 7 insert—

“Application of these regulations to applications for reconsideration and by closed schemes

7A.

(1)

Regulations 2A, 3(a) and (c), 4, 6(1)(a) and (2), and 7(1) to (4)(c) apply in relation to an Article 136 determination and an Article 142 determination as they apply in relation to an Article 127 determination.

(2)

In the application of regulation 2A to Article 136 determinations and Article 142 determinations, the reference in paragraph (2)(a) to the most recent Article 162 valuation is to be read as a reference to the most recent Article 127 or Article 162 valuation.

(3)

Regulations 3 to 7 apply in relation to an Article 136(10A) valuation as they apply in relation to an Article 127 valuation.

(4)

In the application of regulations 5 and 7 to Article 136(10A) valuations—

(a)

the references to “relevant accounts” are to be read as references to “audited scheme accounts” as defined in Article 135(8)^f6 of the Order; and

(b)

the references to “appropriate person” are to be read as references to “person who is a Fellow of the Institute and Faculty of Actuaries”.”.

After regulation 9 (form and content of Article 127 valuation and notice) insert—

“Form and content of Article 127A notice of determination

9A.

Where an Article 127 determination becomes binding, the notice which the Board must issue under Article 127A(4) shall be in writing and shall contain the following information—

(a)

the name or type of notice issued;

(b)

the date on which the notice is issued;

(c)

the name, address and pension scheme registration number of the scheme in respect of which the notice is issued;

(d)

a statement that the Article 127 determination has become binding;

(e)

the name of the employer in relation to the scheme in respect of which the notice is issued;

(f)

whether the notice issued by the Board contains any restricted information and, if so, the nature of the restriction.”.