Commentary on Sections Summary Reconsideration of closed schemes Section 158: Duty to assume responsibility for closed schemes
546.This section sets out the Board’s duty to assume responsibility for a closed scheme when the appropriate application or notification under section 157 is made and where at the “relevant time” (as defined in subsection (8)) the assets were less than the protected liabilities.
547.Subsection (1) states that where the trustees or managers of a scheme make an application under section 157, or receive a notice from the Board under section 157(4), the Board must assume responsibility for the scheme if the value of the assets was less than the value of the protected liabilities at the relevant time. Subsection (2) states that in relation to subsection (1) any reference to assets excludes any assets in relation to money purchase benefits. Subsection (3) provides that the Board must obtain an actuarial valuation (within the meaning of section 143) of the scheme, as soon as it possibly can, in order to determine whether the conditions in subsection (1) are satisfied.
548.Subsections (4) to (6) deal with requirements with which the valuation must comply and apply many of the provisions relating to an actuarial valuation under section 143.
549.Subsection (7) ensures that once an application is made or notification is given under section 157 no further application/notification need be considered if it is made before the existing one is determined.