The following Pensions guidance note provides comprehensive and up to date legal information covering:
The requirements for a scheme to enter the PPF are:
the scheme must be an eligible scheme—see: What schemes are eligible? below
a qualifying insolvency event must occur in relation to a scheme employer—see: What is a qualifying insolvency event? below, or
the employer is unlikely to continue as a going concern and it meets the conditions in SI 2005/590, reg 7—see: Alternative route to PPF entry, below
the insolvency practitioner in relation to the employer must confirm that a scheme rescue is not possible—see: Duty of insolvency practitioner to issue notices confirming status of scheme (section 122 notices), and
the assets of the scheme must be less than the 'protected liabilities' (broadly, the benefits that would be payable to members by the PPF)—see: Protected liabilities, below
The statutory provisions regarding the eligibility of schemes for entry into the PPF are contained in:
sections 120–168 of the Pensions Act 2004 (PeA 2004)
the Pension Protection Fund (Entry Rules) Regulations 2005, SI 2005/590 (the Entry Regs)
Eligible schemes include defined benefit occupational pension schemes or the defined benefit section of a hybrid scheme (ie a scheme that has both defined benefit and defined contribution sections).
Schemes that are not eligible for entry into the PPF include:
money purchase schemes
schemes in winding
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