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STATUTORY INSTRUMENTS
2006 No. 1934
FAMILY LAW, ENGLAND AND WALES
PENSIONS, ENGLAND AND WALES
CIVIL PARTNERSHIP, ENGLAND AND WALES
The Dissolution etc. (Pension Protection Fund) Regulations 2006
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Made |
17th July 2006 | |
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Laid before Parliament |
18th July 2006 | |
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Coming into force |
8th August 2006 | |
The Lord Chancellor makes the following Regulations in exercise of the powers conferred by paragraphs 32, 35 and 36 of Schedule 5 to the Civil Partnership Act 2004[1]:
Citation, commencement and interpretation
1.
—(1) These Regulations may be cited as the Dissolution etc. (Pension Protection Fund) Regulations 2006 and shall come into force on 8th August 2006.
(2) In these Regulations—
(a) a reference to "the Act" is a reference to the Civil Partnership Act 2004;
(b) a reference to "Schedule 5" is a reference to Schedule 5 to the Act;
(c) a reference to a paragraph by number alone is a reference to the paragraph so numbered in Schedule 5;
(d) "a modified pension attachment order" means an order—
(i) to which paragraph 31(1) applies which has effect in accordance with paragraph 31(3); or
(ii) which includes provision made by virtue of paragraph 25(2), as modified by regulation 4 of these Regulations, in relation to entitlement to PPF compensation; and
(e) expressions defined in paragraphs 30(3) and 37 have the meanings given to them in those paragraphs.
Modification of paragraph 25(4)
2.
Paragraph 25(4) is modified so that, in relation to a modified pension attachment order, it applies as if—
(a) the reference to payment by the person responsible for the arrangement is a reference to payment by the Board; and
(b) a reference to the civil partner with pension rights is a reference to the civil partner entitled to PPF compensation.
Modification of orders made in pursuance of paragraph 25(5)
3.
—(1) This regulation applies in relation to an order under Part 1 of Schedule 5 if—
(a) it includes provision made by virtue of paragraph 25(5) which requires the civil partner with pension rights to exercise his right of commutation under an occupational pension scheme to any extent; and
(b) before the requirement is complied with the Board has assumed responsibility for the scheme as mentioned in paragraph 37(2).
(2) The order is to have effect from the time when the trustees or managers of the scheme receive the transfer notice as if—
(a) references in the order to the trustees or managers of the scheme were references to the Board; and
(b) references in the order to any pension or lump sum to which the civil partner with pension rights is or may become entitled under the scheme were references to any PPF compensation to which that person is or may become entitled in respect of the pension or lump sum.
Variation and appeal of pension sharing or pension attachment orders
4.
—(1) This regulation applies where—
(a) the court makes—
(i) a pension sharing order in respect of a person's shareable rights under an occupational pension scheme; or
(ii) an order which includes provision made by virtue of paragraph 25(2) or (5) in relation to such a scheme;
(b) the Board subsequently assumes responsibility for the scheme as mentioned in paragraph 37(2); and
(c) the court intends to exercise any of the powers referred to in paragraph 34(2).
(2) Where this regulation applies, the following provisions of Schedule 5 are modified so that they apply as if—
(a) after paragraph 16(1) there were inserted—
Modification of the Dissolution etc (Pensions) Regulations 2005
5.
The Dissolution etc (Pensions) Regulations 2005[2] are modified so that, in relation to a modified pension attachment order, they apply as if—
(a) after regulation 7 there were inserted—
"
Pension attachment: discharge of liability of the Board
7A.
—(1) This regulation applies where—
(a) the Board has assumed responsibility for a pension arrangement as mentioned in paragraph 37(2) of Schedule 5;
(b) the Board has given notice that it has so assumed responsibility to members and beneficiaries of the pension arrangement in compliance with regulation 3(6) of the Pension Protection Fund (Provision of Information) Regulations 2005[3].
(2) Where—
(a) any of the events set out in regulation 6(2) have occurred; and
(b) the other civil partner has not, before receiving the notice referred to in (1)(b) above, given notice of that event to the person responsible for the pension arrangement in accordance with regulation 6(3),
the other civil partner shall, within 14 days of the event, give notice of it to the Board.
(3) Paragraph (4) applies where it is not reasonably practicable for the Board to make a payment to the other civil partner as required by the order because—
(a) of the inaccuracy of the particulars supplied by the other civil partner under rule 2.70 for any purpose mentioned in regulation 4(3)(c); or
(b) the other civil partner has failed to give notice that the particulars have ceased to be accurate.
(4) Where this paragraph applies, the Board—
(a) may instead make the payment due to the other civil partner to the civil partner entitled to PPF compensation; and
(b) shall then be discharged of liability to the other civil partner to the extent of that payment.
(5) Where an event set out in regulation 6(2)(b) has occurred and, because the other civil partner has failed to give notice in accordance with paragraph (2), the Board makes a payment to the other civil partner as required by the order—
(a) its liability to the civil partner entitled to PPF compensation shall be discharged to the extent of that payment; and
(b) the other civil partner shall, within 14 days of the payment being made, make a payment to the civil partner entitled to PPF compensation to the extent of that payment.
(6) In this regulation, "the Board" has the meaning given in paragraph 37 of Schedule 5 and "PPF compensation" has the meaning given in paragraph 30(3) of that Schedule."; and
(b) in regulation 8, for "or 7" there were substituted ",7 or 7A".
Falconer of Thoroton,C
Date 17th July 2006
EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations provide for the following modifications.
Modifications of Schedule 5 to the Civil Partnership Act 2004 to allow for cases where a pension attachment order has been made and the Board of the Pension Protection Fund becomes involved with the pension arrangement in question.
Modification of orders including a provision made by virtue of paragraph 25(5) of Schedule 5 (order requiring a civil partner to exercise a right of commutation) to enable the order to be enforced in respect of compensation paid by the Pension Protection Fund.
Modifications of Schedule 5 in order to allow the court to exercise certain of its powers on an application to vary or an appeal in relation to a pension attachment or a pension sharing order notwithstanding the fact that the Board has assumed responsibility for the pension arrangement in question.
Modification of the Dissolution etc (Pensions) Regulations 2005 to provide for notices of change of circumstances in relation to pension attachment orders to be given to the Board where appropriate and for the Board to be discharged from liability in circumstances where payments cannot be made to the correct party or are made in error due to lack of or incorrect information.
The Pension Protection Fund was established by the Pensions Act 2004 (c.35) ("the Pensions Act"). It pays compensation to members of certain pension schemes when a qualifying insolvency event in relation to the employer occurs and where there are insufficient assets in the pension scheme to cover the levels of compensation which would be payable by the Pension Protection Fund under the Pensions Act 2004.
Notes:
[1]
2004 c.33.back
[2]
S.I. 2005/2920.back
[3]
S.I. 2005/674.back
ISBN
0 11 074866 2
| © Crown copyright 2006 |
Prepared
26 July 2006
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URL: http://www.bailii.org/uk/legis/num_reg/2006/20061934.html