Part 3: The Pensions Regulator Contribution notices where avoidance of employer debt etc Section 103: Grounds for issuing a section 38 contribution notice S38E: Section 38 contribution notice: meaning of "employer resources test"
Subsection (1) of new section 38E, the "employer resources test", enables the Regulator to issue a contribution notice where it is of the opinion that:
	the act or failure to act reduced the value of the resources of the employer, and
	that reduction was a material reduction relative to the estimated section 75 debt in relation to the scheme.
	Subsection (2) provides regulation making powers to enable the Secretary of State to specify what constitutes the resources of the employer, and how the value of the employer’s resources is to be determined, calculated and verified.
	Subsection (3) sets out the meaning of "estimated section 75 debt".
	Subsection (4) provides that any actual debts due from the employer under section 75 of the Pensions Act 1995 at the relevant time are to be disregarded for the purpose of the test.
	Subsection (5) defines "the relevant time".