Part 3: The Pensions Regulator Contribution notices where avoidance of employer debt etc Section 106: Sanctions for failure to comply with a contribution notice 42A Offence of failing to comply with a section 38 contribution notice
Subsection (4) of this section inserts new section 42A into the Pensions Act 2004.
	Subsection (1) of new section 42A states that this section applies where a contribution notice is issued to a person under section 38 of the Pensions Act 2004.
	Subsection (2) outlines the parameters of the offence, that if a person fails to comply with a contribution notice without a reasonable excuse, then they are guilty of an offence.
	Subsection (3) outlines that a person guilty of the offence is liable to a fine on summary conviction.
	Subsection (4) provides that proceedings for an offence may not be instituted if an application has been made under section 41(7) of the Pensions Act 2004, and the application has not been determined, withdrawn or abandoned. To note, section 41(7) allows for a person to apply to the Regulator for a reduction in the specified amount in a contribution notice issued under section 38 of the Pensions Act 2004, where a sum has been paid by the employer in respect of a debt under section 75 of the Pensions Act 1995, either to the trustees/managers of the scheme, or to the Board of the Pension Protection Fund.
	Subsection (5) provides that the proceedings of an offence under subsection (2) can only be commenced by the Regulator, Secretary of State, or by or with the consent of the Director of Public Prosecutions in England and Wales.