- Latest available (Revised)
- Original (As enacted)
This is the original version (as it was originally enacted).
(1)If, in the case of an occupational pension scheme which is not a money purchase scheme, the value at the applicable time of the scheme’s liabilities exceeds the value of its assets, then an amount equal to the excess shall be treated as a debt due from the employer to the trustees of the scheme.
(2)If—
(a)a relevant insolvency event occurs in relation to the employer; and
(b)the debt mentioned in subsection (1) has not been discharged at the time that event occurs,
then, for the purposes of the law relating to winding up, bankruptcy or sequestration as it applies in relation to the employer, that debt shall be taken to arise immediately before that time.
(3)In this section—
“the applicable time” means—
if the scheme is being wound up before a relevant insolvency event occurs in relation to the employer, any time when it is being wound up before such an event occurs; and
otherwise, immediately before the relevant insolvency event occurs; and
“the employer” means the employer of persons of the description or category of employment to which the scheme relates.
(4)For the purposes of this section a relevant insolvency event occurs in relation to the employer—
(a)in England and Wales—
(i)where the employer is a company, when it goes into liquidation, within the meaning of section 247(2) of the [1986 c. 45.] Insolvency Act 1986; or
(ii)where the employer is an individual, at the commencement of his bankruptcy, within the meaning of section 278 of that Act; or
(b)in Scotland—
(i)where the employer is a company, at the commencement of its winding up, within the meaning of section 129 of that Act; or
(ii)where the employer is a debtor within the meaning of the [1985 c. 66.] Bankruptcy (Scotland) Act 1985, on the date of sequestration as defined in section 12(4) of that Act.
(5)The value of a scheme’s assets and liabilities for the purposes of subsection (1) shall be determined in accordance with regulations and such regulations may provide that, in calculating the value of the scheme’s liabilities, any provision of the scheme which limits the amount of its liabilities by reference to the amount of its assets is to be disregarded.
(6)This section is without prejudice to any other right or remedy which the trustees may have in respect of the deficiency in the scheme’s assets.
(7)A debt due by virtue only of this section shall not be regarded—
(a)as a preferential debt for the purposes of the [1986 c. 45.] Insolvency Act 1986, nor
(b)as a preferred debt for the purposes of the [1985 c. 66.] Bankruptcy (Scotland) Act 1985.
(8)The provisions of this section and of any regulations made under section 153(5) modifying this section override any provision of a scheme to the extent that it conflicts with this section or those regulations.
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: