# The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005, Regulation 25: Reconsideration, closed schemes and requirement to wind up schemes with sufficient assets to meet protected liabilities

Extent: E+W+S+N.I.

(1) Section 151(8) of the Act (application for reconsideration) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if, in the definition of “protected benefits quotation”, for the words from ““protected benefits quotation”, in relation to a scheme, means” to the words “from the reconsideration time—”, there were substituted the following words—
““protected benefits quotation”, in relation to a section of a segregated scheme, means a quotation for one or more annuities from one or more insurers, being companies willing to accept payment in respect of the members of the section from the trustees or managers of the scheme, which would provide in respect of each member of the section from the reconsideration time—”.
(2) Section 152 of the Act (duty to assume responsibility following reconsideration) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—
(a) for subsection (2), there were substituted the following subsection—
“(2) The Board must assume responsibility in accordance with this Chapter for a multi-employer section of a segregated scheme if it is satisfied that the value of the assets of the section at the reconsideration time is less than the aggregate of—
(a) the amount quoted in the protected benefits quotation accompanying the application,
(b) the liabilities of the scheme as a whole at that time which are reasonably attributable to the section and which are not liabilities to, or in respect of, members of the scheme, and
(c) the estimated cost of winding up the section at that time.”;
(b) after subsection (3), there were inserted the following subsection—
“(3A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a determination notice from the Board under subsection (3), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).”; and
(c) after subsection (7), there were inserted the following subsection—
“(7A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (7), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).”.
(3) Section 153 of the Act (closed schemes) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—
(a) in subsections (2) and (5), for the words “a closed scheme”, there were substituted the words “a closed section of the scheme”; and
(b) after subsection (6), there were inserted the following subsection—
“(6A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a copy of a determination notice from the Board under subsection (6), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).”.
(4) Section 154 of the Act (requirement to wind up schemes with sufficient assets to meet protected liabilities) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if—
(a) in paragraph (a) of subsection (2), for the words “(scheme rescue not possible but scheme has sufficient assets to meet the protected liabilities)”, there were substituted the words “(scheme rescue not possible in relation to a multi-employer section of a segregated scheme but section has sufficient assets to meet the protected liabilities)”;
(b) in subsection (6), for the words “a scheme is wound up”, there were substituted the words “a multi-employer section of a segregated scheme is wound up”;
(c) in subsection (11), for the words “winding up of a scheme”, there were substituted the words “winding up of a multi-employer section of a segregated scheme”; and
(d) in subsection (12), for the words “in relation to a scheme”, there were substituted the words “in relation to a multi-employer section of a segregated scheme”.
(5) Section 155 of the Act (treatment of closed schemes) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if, for subsection (1), there were substituted the following subsection—
“(1) In this section “closed scheme” means a multi-employer section of a segregated scheme which is, for the purposes of this Part, an eligible scheme which is authorised under section 153 to continue as a closed section of the scheme.”.
(6) Section 157 of the Act (applications and notifications where closed schemes have insufficient assets) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if, after subsection (4), there were inserted the following subsection—
“(4A) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (4), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).”.
(7) Section 158 of the Act (duty to assume responsibility for closed schemes) shall be modified in its application to a section of a scheme to which regulation 14 applies so that it shall be read as if, after subsection (3A), there were inserted the following subsection–
“(3B) Where the trustees or managers of a multi-employer section of a segregated scheme receive a notice from the Board under subsection (3A), they must send a copy of that notice as soon as practicable to all the employers in relation to that section of the scheme and to the trustees or managers of each section of the scheme (if different).”.

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Source: https://www.legislation.gov.uk/uksi/2005/441/regulation/25 (the official version)
Page: https://openlegislation.uk/pension-protection-fund-multi-employer-schemes-modification-regulations-2005/regulation-25
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.