The Pensions Regulator’s winding-up powers—in practice

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

The Pensions Regulator’s winding-up powers—in practice
Powers to wind up schemes
Section 11 orders in practice—overview
Section 11 orders issued where scheme no longer required
The Liberal Headquarters 1924 Pension Fund (May 2010)
Farr Group Limited Pension Plan (October 2008)
Section 11 orders issued to protect the interests of the generality of the members of the scheme
Handley Ash Retirement Benefits Scheme (March 2019)
Prudential Corporate Pension Trustee Limited (May 2010)
Derfshaw Limited Retirement Benefits Scheme (March 2009)

More...

Tartan Company Pension Scheme (March 2009)
M4 Data Limited Money Purchase Scheme (March 2008)
Holden & Brooke Limited Pension Scheme (July 2007)
Kenya Local Authorities Superannuation Fund (July 2007)
National Staff Side Pension Scheme (1972) (July 2007)
B.S.E. Genex Company Limited Staff Insurance Scheme (January 2007)
J O Walker & Company plc Pension and Life Assurance Scheme (March 2006)
Polestar Pension Scheme (October 2011)
Refusal to issue a section 11 order
Sanpark Data Pension Fund (December 2006)

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.

Powers to wind up schemes

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:

•
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

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