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United Kingdom Statutory Instruments |
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You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Pension Protection Fund (Contributions Equivalent Premium) Regulations 2007 No. 834 URL: http://www.bailii.org/uk/legis/num_reg/2007/20070834.html |
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| Made | 13th March 2007 | ||
| Laid before Parliament | 16th March 2007 | ||
| Coming into force | 6th April 2007 |
(3) In these Regulations, references to a scheme include, in the case of a segregated scheme, any section of the scheme.
(4) This regulation, in so far as it relates to regulations 2 to 4, 6 and 8, and regulations 2 to 4, 6 and 8 apply to England and Wales, and Scotland.
(5) This regulation, in so far as it relates to regulations 5, 7 and 9, and regulations 5, 7 and 9 apply to Northern Ireland.
Liability to pay a CEP incurred before an assessment period begins
2.
—(1) For the purposes of section 135(4)(b)(ii) of the 2004 Act (restrictions on winding up, discharge of liabilities etc), a prescribed liability is a liability of the trustees or managers of the scheme to pay a CEP which—
(2) A scheme incurs a liability to pay a CEP before the assessment date if, before that date, the trustees or managers of the scheme were required, or elected, to pay a CEP and had not discharged that liability before the assessment date.
(3) Where paragraph (1) applies, the trustees or managers of the scheme may discharge the prescribed liability to pay a CEP during the scheme's assessment period.
Liability to pay a CEP incurred during an assessment period
3.
—(1) For the purposes of section 135(4)(b)(ii) of the 2004 Act, a prescribed liability is a liability of the trustees or managers of the scheme to pay a CEP which is incurred during the assessment period.
(2) A scheme incurs a liability to pay a CEP on, or after, the assessment date if, on that date or during the assessment period, the trustees or managers of the scheme elect to pay a CEP.
Amendment of the Contracting-out Regulations - Great Britain
4.
The Contracting-out Regulations[11] are amended as follows—
(b) in regulation 52 (payment of a contributions equivalent premium), after paragraph (1)[13], insert—
Amendment of the Contracting-out Regulations (NI) - Northern Ireland
5.
The Contracting-out Regulations (NI)[15] are amended as follows—
(b) in regulation 52 (payment of a contributions equivalent premium), after paragraph (1)[17], insert—
Circumstances in which a CEP ceases to be payable by the Board of the Pension Protection Fund - Great Britain
6.
—(1) For the purposes of section 56(8)(b) of the 1993 Act (provisions supplementary to s. 55), the prescribed requirement where a CEP in respect of an earner ceases to be payable is that the earner is entitled to compensation under Schedule 7 to the 2004 Act (pension compensation provisions).
(2) But paragraph (1) does not apply where the earner's entitlement to compensation is under paragraph 20 of Schedule 7 to the 2004 Act (compensation in respect of scheme right to transfer payment or contribution refund).
Circumstances in which a CEP ceases to be payable by the Board of the Pension Protection Fund - Northern Ireland
7.
—(1) For the purposes of section 52(9)(b) of the 1993 NI Act (provisions supplementary to s. 51), the prescribed requirement where a CEP in respect of an earner ceases to be payable is that the earner is entitled to compensation under Schedule 6 to the 2005 Order (pension compensation provisions).
(2) But paragraph (1) does not apply where the earner's entitlement to compensation is under paragraph 20 of Schedule 6 to the 2005 Order (compensation in respect of scheme right to transfer payment or contribution refund).
Deduction of a CEP from compensation payable - Great Britain
8.
Where a CEP is payable by the Board of the Pension Protection Fund by virtue of a transfer under section 161 of the 2004 Act (effect of Board assuming responsibility for a scheme), section 61 of the 1993 Act[18] (deduction of contributions equivalent premium from refund of scheme contributions) shall be modified as if after subsection (11) there were inserted—
(13) The Board shall be entitled to deduct from the compensation payable to the earner an amount equal to so much of the premium as is attributable to any actual reductions of primary Class 1 contributions.
(14) The Board—
(15) Where the period taken into account in calculating the amount referred to in subsection (13) does not coincide with that in respect of which the compensation is payable, the amount that shall be deducted under that subsection shall be determined by reference to so much of that amount and of the compensation as are referable to the same period.".
Deduction of a CEP from compensation payable - Northern Ireland
9.
Where a CEP is payable by the Board of the Pension Protection Fund by virtue of a transfer under Article 145 of the 2005 Order (effect of Board assuming responsibility for a scheme), section 57 of the 1993 NI Act[19](deduction of contributions equivalent premium from refund of scheme contributions) shall be modified as if after subsection (11) there were inserted—
(11B) The Board shall be entitled to deduct from the compensation payable to the earner an amount equal to so much of the premium as is attributable to any actual reductions of primary Class 1 contributions.
(11C) The Board—
(11D) Where the period taken into account in calculating the amount referred to in subsection (11B) does not coincide with that in respect of which the compensation is payable, the amount that shall be deducted under that subsection shall be determined by reference to so much of that amount and of the compensation as are referable to the same period.".
Signed by authority of the Secretary of State for Work and Pensions.
James Purnell
Minister of State, Department for Work and Pensions
13th March 2007
[2] 1993 c.49. Section 52(2) was amended by Part 3 of Schedule 5 to the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) and paragraph 64(2) of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671). Section 52(8) and (9) was added by paragraph 7(3) of Schedule 10 to the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)). Section 178(1) was amended by Parts 3 and 4 of Schedule 5 to the Pensions (Northern Ireland) Order 1995. Section 52(7) was added by paragraph 64(3) of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 and is cited for the meaning given there to "prescribed". Section 176(1) is cited for the meaning given there to "modifications".back
[3] See section 52(7) of the Pension Schemes (Northern Ireland) Act 1993.back
[4] 2004 c.35. Part 2 of the Pensions Act 2004 is modified in its application to partially guaranteed schemes by S.I. 2005/277, in its application to multi-employer schemes by S.I. 2005/441 (as amended by S.I. 2005/993 and 2113) and in its application to hybrid schemes by S.I. 2005/993. Section 318(1) is cited for the meaning given there to "prescribed" and "regulations".back
[5] Section 185(1) was amended by paragraph 46 of Schedule 3 to, and paragraph 80(a) of Schedule 5 to, the Pensions Act 1995.back
[6] S.I. 2005/255 (N.I. 1). Part 3 of the Pensions (Northern Ireland) Order 2005 is modified in its application to partially guaranteed schemes by S.R. 2005 No. 55, in its application to hybrid schemes by S.R. 2005 No. 84 and in its application to multi-employer schemes by S.R. 2005 No. 91 (as amended by S.R. 2005 Nos. 194 and 357).back
[9] Section 55 was amended by section 141(1) of, and paragraph 50 of Schedule 5 to, the Pensions Act 1995 and paragraph 7(1) of Schedule 2 to the Welfare Reform and Pensions Act 1999 (c.30) and S.I. 2005/2050.back
[10] Section 51 was amended by Article 138(1) of, and paragraph 42 of Schedule 3 to, the Pensions (Northern Ireland) Order 1995, paragraph 63 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999, paragraph 7(2) of Schedule 2 to the Welfare Reform and Pensions Act 1999 and S.I. 2005/3029.back
[11] Part 6 was amended by S.I. 1997/786, 1998/1397, 2002/681, 2005/2050 and 3377 and 2006/778. See also section 1(2) of, and Schedule 2 to, the Social Security Contributions (Transfer of Functions, etc.) Act 1999.back
[12] Regulation 51(1) was substituted with regulation 51(1) to (1C) by S.I .2002/681.back
[13] Regulation 52(1) was amended by S.I. 2002/681.back
[14] The functions of the Commissioners of Inland Revenue ("the former Commissioners") were transferred to the Commissioners for Her Majesty's Revenue and Customs by section 5 of the Commissioners for Revenue and Customs Act 2005 (c.11). See also section 50 of that Act in relation to the construction of references to the former Commissioners in other enactments.back
[15] Part 6 was amended by S.R. 1997 No. 160, 1998 No. 208 and 2005 No. 433, and S.I. 2002/681, 2005/3029 and 3377 and 2006/778. See also Article 3(2) of, and Schedule 2 to, the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999.back
[16] Regulation 51(1) was substituted with regulation 51(1) to (1C) by S.I .2002/681.back
[17] Regulation 52(1) was amended by S.I. 2002/681.back
[18] Section 61 was amended by paragraph 55 of Schedule 5 to the Pensions Act 1995, paragraph 5(2) of Schedule 5 to the Child Support, Pensions and Social Security Act 2000 (c.19) and paragraph 12 of Schedule 12 to the Pensions Act 2004.back
[19] Section 57 was amended by paragraph 47 of Schedule 3 to the Pensions (Northern Ireland) Order 1995, paragraph 66 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999, paragraph 6(2) of Schedule 5 to the Child Support, Pensions and Social Security Act 2000 and paragraph 8 of Schedule 10 to the Pensions (Northern Ireland) Order 2005.back
