Section 60 Key conceptsI1

England, Wales and Scotland Not yet in force

(1)

“Superfund scheme” means a trust-based occupational pension scheme—

(a)

that has received a transfer of defined-benefit liabilities from another trust-based occupational pension scheme,

(b)

that is supported by a capital buffer, and

(c)

that is not supported by a substantive employer covenant,

or a trust-based occupational pension scheme that is managed or administered with a view to its becoming such a scheme.

(2)

A trust-based occupational pension scheme is “supported by a capital buffer” if a contract or other legally binding arrangement has been entered into under which assets that are not assets of the scheme—

(a)

must be held by a person in connection with the scheme, and

(b)

must, in specified circumstances, be made available to the trustees for the purpose of satisfying liabilities of the scheme.

(3)

“Capital buffer”, in relation to a trust-based occupational pension scheme, means assets that are the subject of a contract or other arrangement of the kind described in subsection (2) in relation to the scheme.

(4)

A trust-based occupational pension scheme is “not supported by a substantive employer covenant” if, based on the employer’s financial position, there is no realistic prospect of the employer being able to provide the trustees with material financial support for the purpose of satisfying liabilities of the scheme.

For that purpose the employer’s “financial position” means its financial position ignoring—

(a)

any capital buffer, and

(b)

any financial support which it may obtain from another person but to which it is not entitled.

(5)

“Superfund”, in relation to a superfund scheme, means the scheme together with—

(a)

any capital buffer, and

(b)

any arrangements in place for the management and administration of the scheme or any capital buffer.

(6)

“Superfund transfer” means a transfer of defined-benefit liabilities from a trust-based occupational pension scheme (whether or not itself a superfund scheme) to a superfund scheme.

Annotations

Commencement

I1: S. 60 not in force at Royal Assent, see s. 133(7)