Section 72 “Financial thresholds”I1

“The financial thresholds” means—

“The capital adequacy threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer is such that there is a very high likelihood that the liabilities of the scheme to and in respect of its members will be satisfied in full.

“The technical provisions threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer is greater than or equal to the scheme’s technical provisions.

“The protected liabilities threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer exceeds a specified percentage of the amount of the scheme’s protected liabilities.

“The scheme solvency threshold” is met in relation to a superfund on a given day if there is no material likelihood that the scheme will fail to satisfy all the liabilities to and in respect of members that it is required to satisfy during the 6 months beginning with that day.

In this section—

• “protected liabilities” has the same meaning as in Chapter 3 of Part 2 of the Pensions Act 2004 (see section 131 of that Act);

• “specified” means specified in regulations made by the Secretary of State;

• “technical provisions” has the same meaning as in section 222 of the Pensions Act 2004 (and a superfund scheme’s technical provisions are to be calculated for the purposes of this section in the same way as its technical provisions would be calculated for the purposes of that section).

The Secretary of State may by regulations make provision about how to determine whether any of the financial thresholds is met, including about—

Regulations under subsection (7) may confer a discretion.

Regulations under subsection (4) or (7) are subject to the affirmative procedure.