UK Offence Report

The Occupational Pension Schemes (Deficiency on Winding Up etc.) Regulations 1996

UK Statutory Instrument 1996 No. 3128 — creates 1 criminal offence.

1offences created
0recorded in force
0revoked
Made
11 December 1996
In force from
Not determined
Extent
Not stated
Subject
Corporate, financial services, company law, employment, charity, electoral and tax
Made under
Pensions Act 1995

Explanatory note

(This note is not part of the Regulations) — published with the instrument by the department that made it. © Crown copyright, reused under the Open Government Licence v3.0.

These Regulations concern the treatment under section 75 of the Pensions Act 1995 (c. 26) (“the Act”) of a deficit in the assets of occupational pension schemes as a debt owed by the employer to the trustees or managers of the scheme. Section 75 replaces section 144 of the Pension Schemes Act 1993 (c. 48) and these Regulations replace the Occupational Pension Schemes (Deficiency on Winding Up etc.) Regulations 1994 (S.I. 1994/895) (“the former Regulations”). Regulation 1 deals with citation and commencement. Generally, the Regulations take effect from 6th April 1997, although regulation 1 applies from 19th December 1996 and regulation 6 applies as respects the intervening period. The regulations will not apply where an employer became insolvent or, in the case of money purchase schemes, criminal loss took place before 6th April 1997. They will not apply to any schemes that began to wind up earlier than 19th December 1996. Regulation 2 describes the terms used in the Regulations and identifies the two Actuarial Guidance Notes (GNs) that will be used in connection with the calculation of any debt. Regulations 3 to 6 apply to schemes which are not money purchase schemes. Regulation 3 provides for the calculation of liabilities and assets of schemes to be on the same basis as for the Minimum Funding Requirement and provides that where a valuation reveals a deficit, the actuary should complete a certificate as set out in Schedule 1 to the Regulations. Regulation 4 modifies section 75 for schemes with more than one employer. It modifies the time when a debt arises under section 75 and requires the whole of any deficiency to be divided up amongst the employers. Where a multi-employer scheme is divided up into separate sections, each section is to be treated as a separate scheme. Regulation 5 modifies section 75 and the Regulations for schemes that have no active members so that former employers are treated as employers in certain circumstances. Regulation 6 modifies the application of section 75 in respect of employers who ceased to participate in the scheme between 19th December 1996 and 6th April 1997. Regulations 7 to 9 apply section 75 to money purchase schemes with modifications. Regulation 7 makes provision so that where any money purchase scheme has suffered a reduction in its assets through an offence prescribed for the purposes of section 81(1)(c) of the Act and unallocated assets are insufficient to bear the loss, it is treated as a debt from the employer. Regulations 8 and 9 make similar provision for money purchase schemes with more than one employer or no active members to that made by regulations 4 and 5. Regulation 10 exempts certain schemes from section 75. Regulation 11 and Schedule 2 make special provision for schemes that have members in United Kingdom and non United Kingdom employment or have a partial government guarantee or schemes all the benefits provided by which (other than salary-related death benefits) are money purchase benefits. Regulation 12 enables trustees of trust schemes to modify them so as to apportion deficit in a multi-employer scheme in different proportions from those which otherwise apply under the Regulations. Regulation 13 revokes the former Regulations in respect of cases covered by these Regulations and saves arrangements under regulation 4 of the former Regulations. An assessment of the compliance cost for employers of the measures arising from the Pensions Act 1995, including Regulations, has been placed in the libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, the Adelphi, 1-11 John Adam Street, London WC2N 6HT.

Offences created by this instrument

What Parliament said about it

Hansard was searched for this instrument by name and returned nothing. That is the ordinary outcome: an instrument laid under the negative procedure is usually never debated, and becomes law without a word said about it in either House.

How Parliament handled it

Parliament's Statutory Instruments service records procedure from May 2017 onwards, and this instrument predates it. That is a limit of the source, not a statement that nothing happened.

Check the source