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Statutory Rules of Northern Ireland |
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You are here: BAILII >> Databases >> Statutory Rules of Northern Ireland >> The Pension Protection Fund (Closed Schemes) Regulations (Northern Ireland) 2007 No. 186 URL: http://www.bailii.org/nie/legis/num_reg/2007/20070186.html |
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Made | 20th March 2007 | ||
Coming into operation | 6th April 2007 |
(3) In these Regulations, in the case of a scheme which is a segregated scheme, where these Regulations apply to a section of a scheme which is for the purposes of Part III[2] of the Order a closed section, for "closed scheme" and "scheme" substitute "closed section" and "section".
(4) In these Regulations, any reference to a numbered Article is a reference to the Article of the Order bearing that number.
Applications and determination notices under Article 137
2.
—(1) An application to the Board for the purposes of Article 137(2) (closed schemes) shall be in writing and shall contain the following information—
(e) a description by the trustees or managers of the scheme of the steps they have taken to obtain a full buy-out quotation in respect of that scheme, and—
(f) where the Board does not already have the information, the name and address of each of the trustees or managers of that scheme.
(2) An application to the Board for the purposes of Article 137 shall be accompanied by evidence in the following form—
(3) A determination notice issued by the Board under Article 137(6) shall be in writing and shall contain the following information—
(e) the Board's determination to authorise or not to authorise the scheme to continue as a closed scheme, and
(f) where the Board has authorised the scheme to continue as a closed scheme, an explanation of the provisions of—
Obtaining of actuarial valuations of closed schemes
3.
—(1) In this regulation—
has been finally disposed of and the notice has not been revoked, varied or substituted;
(2) The effective date of the first Article 140 valuation shall—
(3) Any subsequent Article 140 valuation shall have an effective date which is not more than three years after the effective date of the previous Article 140 valuation.
(4) The trustees or managers of a closed scheme shall obtain any Article 140 valuation of the scheme within the period of 15 months after its effective date.
Valuation of the assets and liabilities of closed schemes
4.
For the purposes of Article 140—
shall be determined, calculated and verified in accordance with the provisions of the Schedule.
Prescribed qualifications for the purposes of Article 140
5.
For the purposes of the definition of "the actuary" contained in Article 140(6), a person with prescribed qualifications is—
Applications and notifications where closed schemes have insufficient assets
6.
—(1) Where the trustees or managers of a closed scheme are required under Article 141(1) to make an application to the Board for it to assume responsibility for the scheme, they must do so within six months of the time when they become aware that the value of the assets of the scheme is less than the amount of the protected liabilities in relation to the scheme.
(2) An application to the Board for the purposes of Article 141(1) shall be in writing and shall contain the following information—
(e) a statement by the trustees or managers of the scheme in respect of which the application is made that the value of the assets of the scheme is less than the amount of the protected liabilities in relation to the scheme and the date on which they became so aware;
(f) a statement by the trustees or managers of the scheme in respect of which the application is made whether or not they obtained advice from the appropriate person before they became aware that the value of the assets of the scheme is less than the amount of the protected liabilities in relation to the scheme;
(g) a statement by the trustees or managers of the scheme in respect of which the application is made of—
(h) where the Board does not already have the information, the name and address of each of the trustees or managers of that scheme.
(3) Where the Regulator becomes aware that the value of the assets of a closed scheme is less than the amount of the protected liabilities in relation to that scheme, the notice which the Regulator must give to the Board under Article 141(3) shall be in writing and shall contain the following information—
(e) a statement by the Regulator that it has become aware that the value of the assets of the scheme is less than the amount of the protected liabilities in relation to the scheme;
(f) the date on which the Regulator became aware that the value of the assets of the scheme is less than the amount of the protected liabilities in relation to the scheme, and
(g) where the Board does not already have the information, the name and address of each of the trustees or managers of that scheme.
(4) Where the Board receives a notice from the Regulator to which paragraph (3) applies, the notice under Article 141(4) which the Board must give to the trustees or managers of the scheme in question shall be in writing and shall contain the following information—
(e) a statement that the Board received a notice from the Regulator under Article 141(3), the effect of that notice and the date on which it was given by the Regulator;
(f) the address for communications at which the Board may be contacted in respect of the giving of the notice, and
(g) whether the notice given by the Board contains any information which is restricted information under Article 179 (restricted information), and, if so, the nature of the restrictions.
Transitional provision for schemes with an assessment date before 1st April 2007
7.
—(1) In this regulation, "assessment date" means the date on which the assessment period in relation to a scheme or closed scheme, or (where there has been more than one such assessment period) the last one, began.
(2) In the case of a scheme or closed scheme with an assessment date before 1st April 2007, these Regulations shall have effect until 31st December 2007 as if for the definition of "relevant accounts" in paragraph 1 of the Schedule there were substituted—
Sealed with the Official Seal of the Department for Social Development on
20th March 2007
L.S.
John O'Neill
A senior officer of the Department for Social Development
(c) include a report by the auditor in writing as to whether or not in his opinion the requirements of paragraphs (a) and (b) are satisfied, and
(d) are prepared in respect of a period ending with the effective date of the valuation;
2.
There shall be excluded from the value of the closed scheme's assets—
3.
Subject to paragraph 6(3) and (4), where the Regulator issues a contribution notice or a financial support direction or makes a restoration order in relation to a scheme prior to the effective date of the valuation, any amount due under such a notice, direction or order shall be regarded as an asset of the scheme.
4.
Subject to paragraphs 2 and 6, in determining the value of the assets of a closed scheme for the purposes of an Article 140 valuation, the appropriate person shall adopt the value given of the assets of the scheme stated in the relevant accounts and that value shall be taken to be the value of those assets at the effective date.
5.
—(1) Subject to paragraph 6, in the case of protected liabilities the amount of a protected liability shall be the estimated cost of securing scheme benefits calculated in accordance with Schedule 6 to the Order (pension compensation provisions) to the member by means of an annuity purchased at the market rate at the effective date.
(2) Where paragraph 2(b) applies, the amount representing the value of a protected liability in respect of the benefits secured by a pre-6th April 1997 contract of insurance shall be excluded from the valuation of the scheme's protected liabilities.
6.
—(1) For the purposes of an Article 140 valuation, where for the purpose of giving effect to a pension sharing order or provision, arrangements are being made by the closed scheme for the transfer from it of any pension credit rights, until such time as the trustees or managers of the scheme to which the transfer is being made ("the receiving scheme") have received assets of the full amount agreed by them as consideration for the transfer, it shall be assumed—
(2) For the purposes of an Article 140 valuation, in the case of a pre-6th April 1997 contract of insurance, the value shall be—
(3) In the case of an asset to which paragraph 3 applies, the appropriate person shall adopt as the value of the asset the amount due to the closed scheme given in the notice, direction or order.
(4) For the purposes of an Article 140 valuation—
the appropriate person shall adjust the value of the asset contained in the notice, direction or order to the value recouped by the trustees or managers of the closed scheme before the effective date;
(c) if the appropriate person—
that the value of any asset set out in the relevant accounts, that is not excluded from the actuarial valuation, is substantially different at the effective date from that set out in the relevant accounts, then he shall adjust the value of the asset to the market value of the asset at the effective date, or
(d) where the appropriate person—
in accordance with any guidance issued by the Board in accordance with Article 140(3), that there exists an asset of the scheme which is not listed in the relevant accounts, and which is not excluded from the actuarial valuation, then he shall adopt such a value for the asset as he considers appropriate.
(5) The appropriate person shall not make an adjustment to the value of an interest in real property unless the adjustment reflects a more recent valuation given by a chartered surveyor in accordance with any relevant practice statements and guidance issued by the Royal Institution of Chartered Surveyors[7] current on the date the valuation is signed.
7.
An Article 140 valuation shall be verified by the Board if it is satisfied that the valuation was prepared in accordance with these Regulations and any guidance issued by the Board in accordance with Article 140(3).
(c) showing separately, in the case of investments in each category, investments in the United Kingdom and investments outside the United Kingdom, and, in the case of cash investments mentioned in head (b)(vii) to (x), investments where the company operating the unit trust or managed fund is, and where it is not, a company registered in the United Kingdom.
(2) Where the assets include insurance policies which are specifically allocated to the provision of benefits for, and which provide all the benefits payable under the scheme to, particular members or other persons in respect of particular members or both, those policies must be included in the statement and there must be a note of the existence of such policies but that entry need not include their market value or an estimate.
(3) Where the assets—
a note that heads (a) and (b) apply must be included in the statement, but that entry need not include the market value or an estimate of value of those assets.
3.
Where any assets or liabilities are denominated in currencies other than sterling, a conversion of those assets into sterling and an explanation of the basis on which they have been converted.
4.
Particulars of any investment (other than in UK Government securities) in which more than 5 per cent. of the total value of the net assets of the scheme is invested, and if any such investment is an insurance policy, a statement of its main characteristics.
5.
Where the scheme has employer-related investments, within the meaning of Article 40(2)[8] of the 1995 Order (restriction on employer-related investments), a statement—
6.
In respect of every other amount shown in the accounts other than the amounts referred to in paragraph 7, a statement of the corresponding amount for the scheme year previous to the accounting period, except in a case where regulation 2 of the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations (Northern Ireland) 1997[10] (requirement of trustees or managers to obtain documents) is complied with by the trustees or managers of a scheme for the first time.
7.
The total amount of the purchases and the total amount of the sales of investments during the accounting period.
8.
A statement whether the accounts have been prepared in accordance with the Statement of Recommended Practice, the guidelines "Financial Reports of Pension Schemes" published by the Pensions Research Accountants Group[11] or another organisation approved for this purpose by the Accounting Standards Board[12], current at the end of the accounting period and, if not, an indication of where there are any material departures from those guidelines.
[2] Part III is modified in its application to multi-employer schemes by S.R. 2005 No. 91 as amended by S.R. 2005 Nos. 194 and 357back
[3] The Faculty of Actuaries can be contacted at Faculty of Actuaries, MacLaurin House, 18 Dublin Street, Edinburgh EH1 3PPback
[4] The Institute of Actuaries can be contacted at Institute of Actuaries, Staple Inn Hall, High Holborn, London WC1V 7QJback
[5] Article 75 was amended by Article 248 of the Pensions (Northern Ireland) Order 2005 and is modified in its application to multi-employer schemes by S.R. 2005 No. 168 as amended by S.R. 2005 No. 387back
[6] The definition of "pension credit rights" was inserted by paragraphs 50(3) of Schedule 9 to the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11))back
[7] The Royal Institution of Chartered Surveyors can be contacted at RICS Contact Centre, Surveyor Court, Westwood Way, Coventry CV4 8JEback
[8] Article 40 was amended by paragraph 45 of Schedule 10 to the Pensions (Northern Ireland) Order 2005, Article 152(2) of S.I. 2001/3649 and Article 26 of S.I. 2004/355back
[9] S.R. 2005 No. 569; regulation 13 was amended by regulation 7(3) of S.R. 2006 No. 141back
[10] S.R. 1997 No. 40; relevant amending Regulations are S.R. 2000 No. 107 and S.R. 2005 No. 421back
[11] Copies of this guidance can be obtained from Croner CCH Group Limited, 145 London Road, Kingston-upon-Thames, Surrey KT2 6SRback
[12] The Accounting Standards Board can be contacted at 5th floor, Aldwych House, 71-91 Aldwych, London WC2B 4HNback