Issuing a contribution notice or financial support direction—procedure
Issuing a contribution notice or financial support direction—procedure

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Issuing a contribution notice or financial support direction—procedure
  • Step 1—The Pensions Regulator becomes aware of trigger event
  • Step 2—The Case Team investigates
  • Step 3—The Case Team prepares and issues the Warning Notice
  • Preparing the Warning Notice
  • Content of the Warning Notice
  • Step 4—The parties make representations to the Case Team
  • Step 5—The Case Team reviews the representations made
  • Step 6—The Case Team refers the matter to the Determinations Panel
  • Step 7—The Determinations Panel holds a hearing
  • More...

Issuing a contribution notice or financial support direction—procedure

THIS PRACTICE NOTE APPLIES ONLY TO DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES

When exercising its functions the Determinations Panel of the Pensions Regulator undertakes two distinct sets of procedural stages that must be followed. These two sets of stages are called:

  1. the Standard Procedure

  2. the Special Procedure

As a ‘reserved regulatory function’ of the Pensions Regulator, the power to issue a contribution notice or a financial support direction can only be exercised by the Determinations Panel of the Pensions Regulator using the Standard Procedure. However, the Special Procedure is used where there may be a need to exercise the Regulator’s powers immediately to protect the members’ interests or scheme assets. This procedure does not apply to contribution notices and financial support directions. For more information on the Special Procedure, see The Pensions Regulator’s Determinations Panel—The Regulator’s procedures for exercising its functions.

The Standard Procedure has certain key stages which are set out in the Pensions Act 2004, s 96 (PeA 2004). The first of these stages is carried out by the Regulator’s Case Team (a team within the Regulator responsible for handling a case), while the later stages are carried out by the Panel.

The Regulator has published the following procedures which describe those stages in more detail:

  1. Case Team procedure

  2. Determinations Panel procedure

  3. Flowcharts summarising the Standard and Special Procedures

This Practice

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