Commentary on Sections Summary Reconsideration Section 151: Application for reconsideration
509.Where the Board initially determines that there is a scheme failure but that the scheme is not sufficiently underfunded to satisfy the conditions in section 127(3)(a) or 128(2)(a), the scheme may apply for reconsideration under this section if it thinks that since the start of the assessment period it has become further underfunded. The application must be made within the “authorised period” mentioned in subsection (6).
510.Subsection (4) provides for any application for reconsideration to be in the prescribed form and contain the prescribed information. In addition the application must be accompanied by a protected benefits quotation in the prescribed form and audited scheme accounts for a period, determined by regulations under this section. A protected benefit quotation is defined in subsection (8) but basically it is a quote from an insurance company for annuities which would provide for each scheme member benefits equivalent to the lower of:
	the compensation payable if the Board assumes responsibility for their scheme, and
	their scheme benefits.
511.Subsection (5) provides that the application must be made within the authorised period.
512.Subsection (9) states that scheme accounts must include a statement of the assets of the scheme (excluding those in respect of money purchase benefits) as at the reconsideration time (see subsection (8)), and must be prepared in accordance with other prescribed requirements.
513.Subsection (10) provides that regulations and guidance under section 143 (Board’s obligation to obtain valuation of assets and protected liabilities) will apply to the scheme accounts for the purposes of this section, as they apply for the purposes of a valuation under that section.
514.Subsection (11) enables regulations to require that, where an asset of a prescribed description has been acquired during the assessment period, the value assigned to the asset as at the reconsideration time is to be determined, for the purposes of the scheme accounts, in the prescribed manner. Subsection (12) provides for regulations and any guidance for the purposes of defining how the cost of securing benefits corresponding to the compensation payable from the Pension Protection Fund will be determined, calculated and verified for the purpose of the protected benefits quotation. Subsection (13) also provides that no account is to be taken of winding up, when determining a person’s entitlement to scheme benefits for the purposes of the quotation.