Source: http://www.legislation.gov.uk/nisi/1995/3213/part/II/crossheading/winding-up
Timestamp: 2020-02-29 13:20:11
Document Index: 761665870

Matched Legal Cases: ['art 4', 'art. 73', 'Art. 73', 'Art. 73', 'Art. 73', 'Art. 73', 'Art. 73', 'Art. 73', 'art. 5', 'Art. 73', 'Art. 73', 'art. 5', 'Art. 73', 'art. 5', 'art 4', 'art. 73', 'art. 73', 'art. 73', 'Art. 75', 'Art. 75', 'Art. 75', 'Art. 75', 'Art. 76', 'art. 11', 'Art. 76', 'art. 2', 'Art. 76', 'art. 2', 'art. 76', 'art. 2', 'Art. 76', 'Art. 76', 'Art. 76', 'Art. 77', 'art. 11']

Changes over time for: Cross Heading: Winding up
The Pensions (Northern Ireland) Order 1995, Cross Heading: Winding up is up to date with all changes known to be in force on or before 29 February 2020. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes and effects yet to be applied to Part II Crossheading Winding-up:
[F1Preferential liabilities on winding upN.I.
(b )F2any liability for pensions or other benefits to the extent that the amount of the liability does not exceed the corresponding PPF liability, other than a liability within sub-paragraph (a);
“relevant pre-1997 contract of insurance” means a contract of insurance which was entered into before 6th April 1997 with a view to securing the whole or part of the scheme's liability for—
(9) Where, on the commencement of the winding up period, a member becomes a person to whom [F3Chapter 2 of Part 4ZA] of the Pension Schemes Act (early leavers: cash transfer sums and contribution refunds) applies, that Chapter applies in relation to him with such modifications as may be prescribed.
ends when the winding up of the scheme is completed.]
F3Words in art. 73(9) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 76 (with s. 87)
C1Art. 73 applied (24.7.2014) by The Pensions (2012 Act) (Transitional,ConsequentialandSupplementaryProvisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 15(4)
C2Art. 73 applied (24.7.2014) by The Pensions (2012 Act) (Transitional,ConsequentialandSupplementaryProvisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 14(5)
C3Art. 73 modified (24.7.2014) by The Pensions (2012 Act) (Transitional,ConsequentialandSupplementaryProvisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 10(2)
C4Art. 73 modified (24.7.2014) by The Pensions (2012 Act) (Transitional,ConsequentialandSupplementaryProvisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 12(2)
C5Art. 73 applied (24.7.2014) by The Pensions (2012 Act) (Transitional,ConsequentialandSupplementaryProvisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 13(2)
C6Art. 73 modified (6.4.2017) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(1), Sch. 20 para. 15(2) (with Sch. 20 paras. 9, 11); S.R. 2017/44, art. 5(b)
Operation of scheme during winding up periodN.I.
(a )F4must secure that any pensions or other benefits (other than money purchase benefits) paid to or in respect of a member are reduced, so far as necessary, to reflect the liabilities of the scheme to or in respect of the member which will be satisfied in accordance with Article 73, and
(b )F4may, for the purposes of sub-paragraph (a), take such steps as they consider appropriate (including steps adjusting future payments) to recover any overpayment or pay any shortfall.
(6) Where a person is entitled to a pension credit derived from another person's shareable rights under the scheme, paragraph (3) does not prevent the trustees or managers of the scheme discharging their liability in respect of the credit under Chapter 1 of Part V of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (sharing of rights under pension arrangements) by conferring appropriate rights under the scheme on that person.
[F5(6A) During the winding up period no right or entitlement of any member, or of any other person in respect of a member, to a benefit that is not a money purchase benefit is to be converted into, or replaced with, a right or entitlement to a money purchase benefit under the scheme rules.]
(b)to adjust the entitlement of a person ( “the survivor”) to a pension or other benefit under the scheme rules where—
(ii)the survivor's entitlement is to a pension or other benefit in respect of the member (whether arising on the date of that death or subsequently).
the Pensions (Northern Ireland) Order 2005 (requirement to wind up schemes with sufficient assets to meet protected liabilities) or otherwise), require any adjustment to a person's entitlement to be made with effect from the time the award takes effect;
(c)without prejudice to Articles 10(3) to (9), 73B(2) and 113, make provision about the consequences of breaching the requirements of the regulations.
F4mod. by SR 2005/363
F5Art. 73A(6A) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 64(1), 89(3)(b) (with s. 87)
C7Art. 73A modified (6.4.2017) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(1), Sch. 20 para. 15(4) (with Sch. 20 paras. 9, 11); S.R. 2017/44, art. 5(b)
C8Art. 73A modified (6.4.2017) by Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(1), Sch. 20 para. 15(2) (with Sch. 20 paras. 9, 11); S.R. 2017/44, art. 5(b)
Articles 73 and 73A: supplementaryN.I.
73B.—(1) Any action taken in contravention of Article 73A(3) [F6or (6A)] is void.
(3) For the purposes of paragraph (2), when determining whether Article 73A(3) [F7or (6A)] has been complied with paragraph (1) of this Article is to be disregarded.
(iii)in relation to a case where any liability of the scheme in respect of a member has been discharged by virtue of regulations under Article 119(4) of the Pensions (Northern Ireland) Order 2005 (power to make regulations permitting discharge of scheme's liabilities during an assessment period).
(7) But nothing in paragraph (6) prevents the winding up provisions applying in relation to a liability under [F8Chapter 1 of Part 4ZA] of the Pension Schemes Act (transfer values) which—
(b)paragraph (10) of Article 73 applies as it applies for the purposes of that Article.
F6Words in art. 73B(1) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 64(2), 89(3)(b) (with s. 87)
F7Words in art. 73B(3) inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), ss. 64(2), 89(3)(b) (with s. 87)
F8Words in art. 73B(7) substituted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(b), Sch. 4 para. 77 (with s. 87)
Discharge of liabilities by insurance, etc.N.I.
74.—[F9(1) This Article applies where an occupational pension scheme to which Article 73 applies is being wound up.]
(2) A liability to or in respect of a member of the scheme in respect of pensions or other benefitsF9. . . is to be treated as discharged (to the extent that it would not be so treated apart from this Article) if the trustees or managers of the scheme have, in accordance with prescribed arrangements, provided for the discharge of the liability in one or more of the ways mentioned in paragraph (3).
(b)by acquiring rights allowed under the rules of a personal pension scheme which satisfies prescribed requirements and the trustees or managers of which are able and willing to accept payment in respect of the member's accrued rights[F10 or pension credit rights],
(c)by purchasing one or more annuities which satisfy prescribed requirements from one or more[F11 insurers], being companies willing to accept payment in respect of the member from the trustees or managers,
[F9(e)by the payment of a cash sum in circumstances where prescribed requirements are met.]
(4) If the assets of the scheme are insufficient to satisfy in full the liabilities, as calculated in accordance with the[F9 scheme rules], in respect of pensions and other benefitsF9. . . , the reference in paragraph (2) to providing for the discharge of any liability in one or more of the ways mentioned in paragraph (3) is to applying any amount available, in accordance with Article 73, in one or more of those ways.
(a)to have effect in relation to so much of any liability as may be determined in accordance with the regulations,F9. . .
[F9(6) For the purposes of this Article—
and “scheme rules” has the same meaning as in the Pensions (Northern Ireland) Order 2005 (see Article 2 of that Order).]
F92005 NI 1
F101999 NI 11
F11SI 2002/1555
Deficiencies in the assetsN.I.
75.—[F12(1) This Article applies in relation to an occupational pension scheme other than a scheme which is—
(2 )F13 F14If—
(ii )F14before any relevant event in relation to the employer which occurs while the scheme is being wound up,
(i )F14no relevant event within paragraph (6A)(a) or (b) occurred in relation to the employer during the period beginning with (and including) the appointed day and ending with the commencement of the winding up of the scheme, or
(b )F14ending with the commencement of the winding up of the scheme,
(4 )F13 F14Where—
(a )F14immediately before a relevant event ( “the current event”) occurs in relation to the employer the value of the assets of the scheme is less than the amount at that time of the liabilities of the scheme,
(d )F14if the current event is within paragraph (6A)(a) or (b), either—
(e )F14no relevant event within paragraph (6A)(c) has occurred in relation to the employer during the period mentioned in sub-paragraph (d)(i),
(4A )F14 Where the current event is within paragraph (6A)(a) or (b), the debt under paragraph (4) is to be taken, for the purposes of the law relating to insolvency as it applies to the employer, to arise immediately before the occurrence of the current event.
(4B )F14 Paragraph (4C) applies if, in a case within paragraph (4)—
(4C )F14 Where this paragraph applies, the debt due from the employer under paragraph (4) is contingent upon—
(ii)any relevant event within paragraph (6A)(c) occurs in relation to the employer.]
(5) For the purposes of[F12 paragraphs (2) and (4)], the liabilities and assets to be taken into account, and their amount or value, must be determined, calculated and verified by a prescribed person and in the prescribed manner.
(6 )F14 In calculating the value of any liabilities for those purposes, a provision of the scheme[F12 rules] which limits the amount of its liabilities by reference to the amount of its assets is to be disregarded.[F12 In this paragraph “scheme rules” has the same meaning as in the Pensions (Northern Ireland) Order 2005 ( “the 2005 Order”) (see Article 2 of that Order).]
[F12(6A) For the purposes of this Article, a relevant event occurs in relation to the employer in relation to an occupational pension scheme if and when—
(b)the trustees or managers of the scheme make an application under paragraph (1) of Article 113 of the 2005 Order or receive a notice from the Board of the Pension Protection Fund ("the Board") under paragraph (5)(a) of that Article, or
this Article has effect as if that resolution had never been passed and any debt which arose under this Article by virtue of the passing of that resolution shall be treated as if it had never arisen.]
(7) This Article does not prejudice any other right or remedy which the trustees or managers may have in respect of a deficiency in the scheme's assets.
(8) A debt due by virtue only of this Article shall not be regarded as a preferential debt for the purposes of the Insolvency (Northern Ireland) Order 1989F15.
Para. (9) rep. by 2005 NI 1
(10) Regulations may modify this Article as it applies in prescribed circumstances.
F122005 NI 1
F13mod. by 2005 NI 1
F14mod. by SR 2005/168
C9Art. 75 applied (24.7.2014) by The Pensions (2012 Act) (Transitional,ConsequentialandSupplementaryProvisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 21(3)
C10Art. 75 applied (24.7.2014) by The Pensions (2012 Act) (Transitional,ConsequentialandSupplementaryProvisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 23(2)
C11Art. 75 excluded (24.7.2014) by The Pensions (2012 Act) (Transitional,ConsequentialandSupplementaryProvisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 19(1)
C12Art. 75 applied (24.7.2014) by The Pensions (2012 Act) (Transitional,ConsequentialandSupplementaryProvisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 20(4)
[F16Deficiencies in the assets: multi-employer schemesN.I.
Article 122(3) (power to extend for the purposes of this Part the meaning of “employer”).]
Excess assets on winding upN.I.
76.—(1) This Article applies to a trust scheme in any circumstances if—
[F17(a)it is a registered pension scheme under section 153 of the Finance Act 2004,]
(c)in those circumstances, power is conferred on the employer or the trustees to distribute assets to the employer on a winding up.
(2) The power referred to in paragraph (1)(c) cannot be exercised unless the requirements of paragraphs (3) and (in prescribed circumstances) (4), and any prescribed requirements, are satisfied.
(c)F18. . . and
(4) The requirements of this paragraph are that the Authority are of the opinion that—
(a)any requirements prescribed by virtue of paragraph (2) are satisfied, and
(b)the requirements of paragraph (3) are satisfied.
(5) F19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) If, where this Article applies to any trust scheme, the trustees purport to exercise the power referred to in paragraph (1)(c) without complying with the requirements of this Article,[F20 Article 10 applies] to any of them who have failed to take all such steps as are reasonable to secure compliance.
(7) If, where this Article applies to any trust scheme, any person other than the trustees purports to exercise the power referred to in paragraph (1)(c) without complying with the requirements of this Article, Article 10 applies to him.
(8) Regulations may provide that, in prescribed circumstances, this Article does not apply to schemes falling within a prescribed class or description, or applies to them with prescribed modifications.
F17Art. 76(1)(a) substituted (6.4.2006) by Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), art. 11(5)
F18Art. 76(3)(c) (but not the word "and" immediately following it) repealed (6.4.2006) by Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), arts. 1(2), 290(1), 291, Sch. 10 para. 56(a), Sch. 11; S.R. 2006/95, art. 2(c), Sch. Pt. 3
F19Art. 76(5) repealed (6.4.2006) by Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), arts. 1(2), 290(1), 291, Sch. 10 para. 56(b), Sch. 11; S.R. 2006/95, art. 2(c), Sch. Pt. 3
F20Words in art. 76(6) substituted (6.4.2006) by Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), arts. 1(2), 290(1), Sch. 10 para. 56(c); S.R. 2005/543, art. 2(6), Sch. Pt. 6
C13Art. 76 applied (with modifications) (6.4.2006) by S.R. 2006/161, regs. 12(2), 18
C14Art. 76 excluded (6.4.2006) by S.R. 2006/161, reg. 12(1)
C15Art. 76 excluded (24.7.2014) by The Pensions (2012 Act) (Transitional,ConsequentialandSupplementaryProvisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 36(1)(b)
Excess assets remaining after winding up: power to distributeN.I.
77. F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F21Art. 77 revoked (6.4.2006) by Taxation of Pension Schemes (Consequential Amendments) Order 2006 (S.I. 2006/745), art. 11(6)
Arts. 78 - 84 rep. by 2005 NI 1