Commentary on Sections Summary Schedule 6: Transfer of Property, rights and liabilities to the Board
563.Schedule 6 makes additional provision to that made under section 161 in respect of the transfer of the property, rights and liabilities of an occupational pension scheme to the Board pursuant to a transfer notice issued under section 160.
564.Paragraph 2(1) states that property, rights and liabilities are to include property, rights and liabilities that would not otherwise be capable of being transferred, property situated anywhere in the UK or elsewhere, and rights and liabilities under the law of any part of the UK or any country or territory outside the UK. Contracts of employment between the trustees or mangers and an individual will not transfer, but are terminated on the day preceding receipt of the transfer notice by the trustees or managers of the scheme.
565.Paragraph 3 provides for any legal proceedings by or against any of the trustees or managers of the scheme, or applications to any authority which are pending immediately before the transfer to be continued by or against the Board. The liabilities transferred by section 161 do not include any liabilities in respect of an existing or future cause of action against the trustees or managers where they would have been personally liable to meet the claim and would not have been indemnified from the assets of the scheme. These will remain liabilities of the trustees or managers.
566.Paragraph 4 states that the transfer to the Board does not require consent from anyone. The transfer is binding in respect of all persons. Paragraph 5 provides that the transfer shall not give anyone power to terminate or amend any interest or right of the trustees or managers of the scheme.
567.Paragraph 6 provides that if there are any references in agreements etc to the trustees or mangers they shall continue to have effect after the transfer as if they referred to the Board.
568.Paragraph 7 provides that the Board will have to take all steps required so that foreign property, rights or liabilities are vested in it. Until this is effected under the relevant foreign law the trustees or managers will have to hold the relevant property or rights on behalf of the Board. They may also have to discharge a liability on behalf of the Board.