Commentary on Sections Summary Valuation of assets and liabilities Section 145: Binding valuations
485.This section provides for when a valuation becomes “binding” for the purposes of Chapter 3 of Part 2. By virtue of section 160(transfer notice), the Board cannot assume responsibility for a scheme until the valuation is binding.
486.Subsection (1) provides that the valuation only becomes binding once it is approved under section 144 and the period to review the approval of the valuation has expired, and any review, reconsideration or reference to the PPF Ombudsman of the approval of the valuation and any appeal against his decision has been completed.
487.Subsection (2) states that once a valuation has become binding it is conclusive for the purposes of establishing whether scheme assets are less than the protected liabilities for the purpose of section 127 or under section 128. Subsection (2) ensures that even where a binding valuation is obtained account can be taken of subsequent fraud compensation payments (see section 172) (relationship with fraud compensation regime).
488.Subsection (3) provides that the Board must notify the trustees or managers, the insolvency practitioner (or, if none, the employer) and the Regulator once the valuation becomes binding. Subsection (4) states that a notice under subsection (3) must be in the prescribed form, and contain the prescribed information, as set out in regulations.