Commentary on Sections Summary Circumstances in which Board assumes responsibility for eligible schemes Section 131: Protected liabilities
419.This section explains how the “protected liabilities” of a scheme at any time are to be determined. The basic rule is that the Board will not assume responsibility for a scheme unless the assets of the scheme are insufficient to meet the protected liabilities at least equal to the value of compensation offered by the Pension Protection Fund.
420.Protected liabilities are:
	the cost of providing benefits equivalent to the compensation which would be payable by the Board in respect of the scheme, out of the Pension Compensation Fund, if it assumed responsibility for the scheme;
	any non-pension liabilities of the scheme;
	the estimated cost of winding up the scheme.