Commentary on Sections Summary Circumstances in which Board assumes responsibility for eligible schemes Section 129: Applications and notifications for the purposes of section 128
409.This section is directly linked to section 128 and lays out the application and notification process for schemes whose employers cannot be subject to insolvency events as defined in section 121. It mirrors the regime for schemes whose employers are subject to insolvency events as defined in section 121.
410.Subsection (1) provides for the trustees or managers of an eligible scheme to make an application to the Board for it to assume responsibility for the scheme if they become aware that the employer in relation to the scheme is unlikely to continue as a going concern and requirements prescribed in regulations under subsection (1)(b) are met. This provision is intended to apply in cases where the employer cannot be subject to an insolvency event (as defined in section 121) are met. The Board must give a copy of the application under subsection (1) to the Regulator and the employer.
411.Subsection (4) also provides that the Regulator must issue a notice to the Board in circumstances where it becomes aware that an employer in relation to an eligible scheme is unlikely to continue as a going concern and the requirements prescribed in regulations under subsection (1)(b) are met. The Board must give a copy of this notice to the trustees or managers of the scheme and the employer.
412.Subsections (6) and (7) are intended to prevent both an application under subsection (1) and a notification under subsection (4) in relation to the same set of facts
413.Regulations will prescribe the form and content of notices under this section.