Source: http://www.legislation.gov.uk/nisi/2005/255/part/II/crossheading/contribution-notices-where-avoidance-of-employer-debt
Timestamp: 2020-01-28 12:54:30
Document Index: 342762465

Matched Legal Cases: ['Art. 34', 'art. 34', 'art. 2', 'art. 34', 'art. 34', 'art. 2', 'art. 34', 'art. 2', 'art. 34', 'Art. 34', 'Art. 34', 'Art. 34', 'art. 2', 'Art. 34', 'art. 2', 'art. 2', 'art. 35', 'art. 2', 'Art. 35', 'art. 2', 'art. 35']

Changes over time for: Cross Heading: Contribution notices where avoidance of employer debt
Contribution notices where avoidance of employer debtN.I.
34 .F1—(1) This Article applies in relation to an occupational pension scheme other than—
(2) The Regulator may issue a notice to a person stating that the person is under a liability to pay the sum specified in the notice (a “contribution notice”)—
(3) The Regulator may issue a contribution notice to a person only if—
(a)the Regulator is of the opinion that the person was a party to an act or a deliberate failure to act which falls within paragraph (5),
[F2(d)the Regulator is of the opinion that it is reasonable to impose liability on the person to pay the sum specified in the notice, having regard to—
(ii)such other matters as the Regulator considers relevant, including (where relevant) the matters falling within paragraph (7).]
(4) But the Regulator may not issue a contribution notice, in such circumstances as may be prescribed, to a person of a prescribed description.
(5) An act or a failure to act falls within this paragraph if—
(a)the Regulator is of the opinion that [F3the material detriment test is met in relation to the act or failure (see Article 34A) or that] the main purpose or one of the main purposes of the act or failure was—
(i)to prevent the recovery of the whole or any part of a debt which was, or might become, due from the employer in relation to the scheme under Article 75 of the 1995 Order (deficiencies in the scheme assets), or
(ii)F4. . . to prevent such a debt becoming due, to compromise or otherwise settle such a debt, or to reduce the amount of such a debt which would otherwise become due,
(b)it is an act which occurred or a failure to act which first occurred—
(ii)before any assumption of responsibility for the scheme by the Board in accordance with Chapter 3 of Part III, and
(i)an act which occurred during the period of six years ending with the [F5giving of a warning notice in respect of] the contribution notice in question, or
(i)begins with the time when the act falling within paragraph (5) occurs or the failure to act falling within that paragraph first occurs, and
(ii)ends with the [F6giving of a warning notice in respect of] the contribution notice in question.
(7) [F7The matters within this paragraph are—]
(a)the degree of involvement of the person in the act or failure to act which falls within paragraph (5),
(b)the relationship which the person has or has had with the employer (including, where the employer is a company within the meaning of paragraph (11) of Article 4 of the Insolvency Order, whether the person has or has had control of the employer within the meaning of paragraph (10) of that Article),
(d)if the act or failure to act was a notifiable event for the purposes of Article 64 (duty to notify the Regulator of certain events), any failure by the person to comply with any obligation imposed on the person by paragraph (1) of that Article to give the Regulator notice of the event,
[F8(ea)the value of any benefits which directly or indirectly the person receives, or is entitled to receive, from the employer or under the scheme;
(eb)the likelihood of relevant creditors being paid and the extent to which they are likely to be paid;]
[F9(7A) In paragraph (7)(eb) “ relevant creditors ” means—
(b)creditors of any other person who has incurred a liability or other obligation (including one that is contingent or otherwise might fall due) to make a payment, or transfer an asset, to the scheme.]
(8) For the purposes of this Article references to a debt due under Article 75 of the 1995 Order include a contingent debt under that Article.
(9) Accordingly, in the case of such a contingent debt, the reference in paragraph (5)(a)(ii) to preventing a debt becoming due is to be read as including a reference to preventing the occurrence of any of the events specified in Article 75(4C)(a) or (b) of that Order upon which the debt is contingent.
(11) For the purposes of this Article “insolvency practitioner”, in relation to a person, means—
(a)a person acting as an insolvency practitioner, in relation to that person, in accordance with Article 3 of the Insolvency Order, or
(b)an insolvency practitioner within the meaning of Article 105(9)(b) (persons of a prescribed description).
[F10(12) Paragraph (13) applies if the Regulator is of the opinion that—
(13) The series of acts or failures to act is to be regarded as an act or failure to act falling within paragraph (5) (and, accordingly, the reference in paragraph (6)(b)(i) to the act or failure to act falling with paragraph (5) is to the first of the acts or failures to act in the series).]
[F11(14) In this Article “ a warning notice ” means a notice given as mentioned in Article 91(2)(a). ]
F2Art. 34(3)(d) substituted (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 103, 118(1)(2)(h)(3)(a)(iii)(vi)(b), Sch. 8 para. 7(2) (with Sch. 8 para. 15(1))
F3Words in art. 34(5)(a) inserted (15.12.2008 for certain purposes, otherwise 29.6.2009) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 103, 118(1)(2)(h)(3)(a)(ii)(vi)(b), Sch. 8 para. 2(1) (with Sch. 8 para. 15(1)); S.R. 2009/249, art. 2(a)(b)(ii)
F4Words in art. 34(5)(a)(ii) repealed (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 103, 116, 118(1)(2)(h)(3)(a)(iii)(vi)(b)(c), Sch. 8 para. 6, Sch. 10 Pt. 5 (with Sch. 8 para. 15(1))
F5Words in art. 34(5)(c)(i) substituted (7.6.2012) by Pensions Act (Northern Ireland) 2012 (c. 3), ss. 24(2), 34(3); S.R. 2012/233, art. 2(2)(g)
F6Words in art. 34(6)(b)(ii) substituted (7.6.2012) by Pensions Act (Northern Ireland) 2012 (c. 3), ss. 24(2), 34(3); S.R. 2012/233, art. 2(2)(g)
F7Words in art. 34(7) substituted (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 103, 118(1)(2)(h)(3)(a)(iii)(vi)(b), Sch. 8 para. 7(3)(a) (with Sch. 8 para. 15(1))
F8Art. 34(7)(ea)(eb) inserted (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 103, 118(1)(2)(h)(3)(a)(iii)(vi)(b), Sch. 8 para. 7(3)(b) (with Sch. 8 para. 15(1))
F9Art. 34(7A) inserted (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 103, 118(1)(2)(h)(3)(a)(iii)(vi)(b), Sch. 8 para. 7(4) (with Sch. 8 para. 15(1))
F10Art. 34(12)(13) added (15.12.2008 for certain purposes, otherwise 29.6.2009) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 103, 118(1)(2)(h)(3)(a)(iv)(vi)(b), Sch. 8 para. 8(1) (with Sch. 8 para. 15(2)); S.R. 2009/249, art. 2(a)(b)(ii)
F11Art. 34(14) added (7.6.2012) by Pensions Act (Northern Ireland) 2012 (c. 3), ss. 24(3), 34(3); S.R. 2012/233, art. 2(2)(g)
[F12Article 34 contribution notice: meaning of “material detriment test”N.I.
F12Arts. 34A, 34B inserted (15.12.2008 for certain purposes, otherwise 29.6.2009) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 103, 118(1)(2)(h)(3)(a)(ii)(vi)(b), Sch. 8 para. 2(2) (with Sch. 8 para. 15(1)); S.R. 2009/249, art. 2(a)(b)(ii)
Article 34 contribution notice issued by reference to material detriment test: defenceN.I.
34B—(1) This Article applies where—
(a) “ the relevant time ” means the time at which the act occurred or the failure to act first occurred;
(a) “ a warning notice ” means a notice given as mentioned in Article 91(2)(a);
(13) Regulations may amend this Article.]
The sum specified in an Article 34 contribution noticeN.I.
35 .F13—(1) The sum specified by the Regulator in a contribution notice under Article 34 may be either the whole or a specified part of the shortfall sum in relation to the scheme.
(2) Subject to paragraph (3), the shortfall sum in relation to a scheme is—
(a)in a case where, at the relevant time, a debt was due from the employer to the trustees or managers of the scheme under Article 75 of the 1995 Order (deficiencies in the scheme assets), the amount which the Regulator estimates to be the amount of that debt at that time, and
(b)in a case where, at the relevant time, no such debt was due, the amount which the Regulator estimates to be the amount of the debt under Article 75 of the 1995 Order which would become due if—
(i)paragraph (2) of that Article applied, and
(ii)the time designated by the trustees or managers of the scheme for the purposes of that paragraph were the relevant time.
(3) Where the Regulator is satisfied that the act or failure to act falling within Article 34(5) resulted—
(a)in a case falling within sub-paragraph (a) of paragraph (2), in the amount of the debt which became due under Article 75 of the 1995 Order being less than it would otherwise have been, or
(b)in a case falling within sub-paragraph (b) of paragraph (2), in the amount of any such debt calculated for the purposes of that sub-paragraph being less than it would otherwise have been,
the Regulator may increase the amounts calculated under paragraph (2)(a) or (b) by such amount as the Regulator considers appropriate.
(4) For the purposes of this Article “the relevant time” means [F14(subject to paragraph (4A))]—
(a)in the case of an act falling within paragraph (5) of Article 34, the time of the act, or
(b)in the case of a failure to act falling within that paragraph—
[F15(4A) In the case of a series of acts or failures to act, “the relevant time” is determined by reference to whichever of the acts or failures in the series is, in the Regulator's opinion, most appropriate.]
F13mod. by SR 2005/378
F14Words in art. 35(4) inserted (15.12.2008 for certain purposes, otherwise 29.6.2009) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 103, 118(1)(2)(h)(3)(a)(iv)(vi)(b), Sch. 8 para. 8(2)(a) (with Sch. 8 para. 15(2)); S.R. 2009/249, art. 2(a)(b)(ii)
F15Art. 35(4A) inserted (15.12.2008 for certain purposes, otherwise 29.6.2009) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 103, 118(1)(2)(h)(3)(a)(iv)(vi)(b), Sch. 8 para. 8(2)(b) (with Sch. 8 para. 15(2)); S.R. 2009/249, art. 2(a)(b)(ii)
[F16Article 34 contribution notice: transfer of members of the schemeN.I.
(a) the Regulator is of the opinion that in relation to a scheme (“ the initial scheme ”) in relation to which Article 34 applies—
F16Arts. 35A, 35B inserted (15.12.2008) by Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13), ss. 103, 118(1)(2)(h)(3)(a)(v)(vi)(b), Sch. 8 para. 9 (with Sch. 8 para. 15(3) and transitional provision in Sch. 8 para. 16(1) for art. 35B(8)(10)(a))
Article 35A: supplementalN.I.
35B—(1) In Article 35A a “ transferee scheme ”, in relation to any time, means any work-based pension scheme—
(b)without prejudice to Article 287(3), make consequential provision applying with modifications any provision of this Order which relates to contribution notices under Article 34.]
36 .F17—(1) This Article applies where a contribution notice is issued to a person under Article 34.
F17mod. by SR 2005/378
Article 34 contribution notice: relationship with employer debtN.I.
37 .F18—(1) This Article applies where a contribution notice is issued to a person ( “P”) under Article 34 and condition A or B is met.
(2) Condition A is met if, at the time at which the contribution notice is issued, there is a debt due under Article 75 of the 1995 Order (deficiencies in the scheme assets) from the employer—
(c)whether contribution notices have been issued to other persons as a result of the same act or failure to act falling within paragraph (5) of Article 34 as the act or failure as a result of which P's contribution notice was issued,
F18mod. by SR 2005/378
Article 34 contribution notice: clearance statementsN.I.
38 .F19—(1) An application may be made to the Regulator under this Article for the issue of a clearance statement within sub-paragraph (a), (b) or (c) of paragraph (2) in relation to circumstances described in the application.
F19mod. by SR 2005/378