The following Pensions guidance note provides comprehensive and up to date legal information covering:
THIS PRACTICE NOTE ONLY APPLIES TO OCCUPATIONAL PENSION SCHEMES
This Practice Note looks at examples of:
where the Pensions Regulator (the Regulator) has issued an order directing or authorising the winding-up of an occupational pension scheme under the Pensions Act 1995 (PA 1995), s 11(1) (a ‘section 11 order’) and the reasoning of the Determinations Panel of the Regulator for issuing the order in each case
where the Determinations Panel has refused to issue a section 11 order
In practice, it should only rarely be necessary for the Regulator to exercise its powers to wind up a scheme, and the Regulator is unlikely to make a section 11 order without a compelling case being made to it. Alternatively, it may in exceptional circumstances be necessary to apply to the court for directions to wind up a scheme.
Under section 11(1) of PA 1995, the Regulator may, by order, direct or authorise an occupational pension scheme to be wound up if it is satisfied that:PA 1995, s 11(1)
the scheme, or any part of it, ought to be replaced by a different scheme (PA 1995, s 11(1)(a))
the scheme is no longer required (PA 1995, s 11(1)(b)), or
it is necessary in order to protect the interests of the generality of the members of the scheme that the scheme be wound up (PA 1995, s 11(1)(c))
However, under section 11(2) of the PA 1995, the Regulator may not make such an order under the first two grounds above (ie under PA 1995, s 11(1)(a) or (b)) unless it is satisfied that the winding-up of the scheme:PA
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