Part 3: The Pensions Regulator Sanctions for avoidance of employer debt etc Section 107: Sanctions for avoidance of employer debt etc S58B: Offence of conduct risking accrued scheme benefits
Subsection (1) of new section 58B states that this section applies to occupational pension schemes other than money purchase schemes and other schemes as prescribed.
	Subsection (2) provides that a person commits an offence under this section only if:
the person does an act or engages in a course of conduct that detrimentally affects in a material way the likelihood of accrued scheme benefits being received,
the person knew or ought to have known that the act or course of conduct would have that effect, and
the person did not have a reasonable excuse for doing the act or engaging in the course of conduct.
	Subsection (3) sets out that a reference in this section to an act or a course of conduct includes a failure to act.
	Subsection (4) states that any reference in this section to accrued scheme benefits being received means benefits the rights to which have accrued by the relevant time being received by, or in respect of, the persons who were scheme members before that time.
	Subsection (5) defines "the relevant time" for the purposes of this section as the end of the period of time during which the conduct producing the detrimental effect continued or, in any other case, the time of the conduct.
	Subsection (6) states that a reference in this section to rights which have accrued is to be read in accordance with sections 67A(6) and (7) of the Pensions Act 1995. Section 67 of the Pensions Act 1995 applies whenever a power to modify an occupational pension scheme is exercised to make a change which would, or might, adversely affect a member’s subsisting rights. Sections 67A(6) and (7) outline the meaning of subsisting rights. Subsisting rights means any entitlement to benefits, or right to future benefits, which a member has at that time under the scheme rules. Sections 67A(6) and (7) also outline the meaning of subsisting rights in respect of the survivor of a scheme member, and where the pensionable service of a member of an occupational pension scheme is continuing.
	Subsection (7) provides that under this section, benefits that may be received under Chapter 3 of Part 2 and section 286 of the Pensions Act 2004 are to be disregarded. These are respectively benefits received under the Pension Protection Fund and the Financial Assistance Scheme.
	Subsection (8) provides that the offence does not apply to a person who is acting in accordance with their function as an insolvency practitioner. "Insolvency practitioner" is defined in accordance with section 58A(9) of the Pensions Act 2004.
	Subsection (9) provides details of the sanction that a person guilty of an offence under this section is liable for. Subsection (9)(a) provides that on summary conviction in England and Wales, a person is liable to a fine. Subsection (9)(b) provides that in Scotland, a person is liable to a fine not exceeding the statutory maximum. Subsection (9)(c) provides that on conviction on indictment, a person is liable to imprisonment for a term not exceeding seven years, a fine, or both.
	Subsection (10) states that proceedings for an offence under this section may be instituted in England and Wales only by the Regulator or the Secretary of State, or by or with the consent of the Director of Public Prosecutions.