Commentary on Sections Summary Reconsideration of closed schemes Section 159: Closed schemes: further assessment periods
550.This section ensures that a closed scheme enters a further assessment period if an application is made or a notification is given under section 157. As a result, all the provision restricting the operation of a scheme during an assessment period (see sections 133 to 138) will apply.
551.Subsection (3) provides that a further assessment period begins in relation to closed schemes when the application is made or the notice is received (under section 157) by the trustees or managers of the scheme, and ends when the trustees or managers of the scheme receive a transfer notice from the Board as set out in section 160 or the conditions set out in section 154(5) (scheme sufficiently funded to meet protected liabilities) are met, whichever occurs first.
552.If the assessment period comes to an end because the conditions in section 154(5) are satisfied, the scheme continues as a closed scheme and the winding up of the scheme continues (subject to the fact that it may be unable to buy out its liabilities immediately). If the scheme subsequently becomes underfunded, a further application may be made or notification given under section 157 and a further assessment period will begin under section 159.