Commentary on Sections Part 6 – Private Pensions Section 42: Unpaid scheme contributions
181.In the event that an employer becomes insolvent, the PSA 1993 enables scheme trustees or managers to claim an amount of any unpaid pension contributions from the Secretary of State, payable out of the National Insurance Fund. The contributions comprise those due from the employer either on his or her own account to fund benefits for, or in respect of, one or more employees, or on behalf of an employee, if a contribution has been deducted from wages.
182.This section amends the definitions in the PSA 1993, and the references to employees in the PSA 1993, to include workers and agency workers and so extend to them this protection for relevant scheme contributions to be paid from the National Insurance Fund in the event of an employer becoming insolvent.