Part 3: The Pensions Regulator Sanctions for avoidance of employer debt etc Section 107: Sanctions for avoidance of employer debt etc S58D: Financial penalty for conduct risking accrued scheme benefits
Subsection (1) of new section 58D states that it applies to occupational pension schemes other than money purchase schemes or other schemes as prescribed.
	Subsection (2) enables the Regulator to issue a financial penalty under section 88A of the Pensions Act 2004 to a person for conduct risking accrued scheme benefits. The subsection provides that the Regulator can issue the penalty if the person was party to an act or deliberate failure to act which detrimentally affected in a material way the likelihood of accrued scheme benefits being received if:
the person knew or ought to have known that the act or failure to act would have that effect, and,
it was not reasonable for the person to act or fail to act in the way that the person did.
	Subsection (3) provides that the offence does not apply to a person who is acting in accordance with their function as an insolvency practitioner. "Insolvency practitioner" is defined in accordance with section 58A(9) of the Pensions Act 2004.
	Subsection (4) states that any reference in this section to accrued scheme benefits being received means benefits the rights to which have accrued by the relevant time being received by, or in respect of, the persons who were scheme members before that time.
	Subsection (5) outlines that in this section, the relevant time means: the end of the period of time during which the conduct producing the detrimental effect continued or, in any other case, the time of the conduct.
	Subsection (6) states that a reference in this section to rights which have accrued is to be read in accordance with sections 67A(6) and (7) of the Pensions Act 1995. Section 67 of the Pensions Act 1995 applies whenever a power to modify an occupational pension scheme is exercised to make a change which would, or might, adversely affect a member’s subsisting rights. Sections 67A(6) and (7) specifically consider subsisting rights. Subsisting right means any entitlement to benefits, or right to future benefits, which a member has at that time under the scheme rules. Sections 67A(6) and (7) also outline the meaning of subsisting rights in respect of the survivor of a scheme member, and where the pensionable service of a member of an occupational pension scheme is continuing.
	Subsection (7) provides that under this section benefits that may be received under Chapter 3 of Part 2 and section 286 of the Pensions Act 2004 are to be disregarded. These are respectively benefits received under the Pension Protection Fund and the Financial Assistance Scheme.
	Subsection (8) outlines that for this section, parties to an act or deliberate failure to act include persons who knowingly assist in the act.
	Subsection (9) provides that where the Regulator is of the opinion that a person was party to a series of acts or failures to act, and the requirements of subsection (2) are met in relation to the series, the series of acts or failures to act is to be regarded as an act or failure in relation to which the requirements of subsection (2) are met.