You should tick one option only from the following categories to define the structure of your scheme. Options a), b) and c) are all structures that apply purely to multi-employer schemes:
- A requirement to segregate on cessation of participation of an employer
- Discretion to segregate on cessation of participation of an employer
- Non-segregated scheme to which neither a) nor b) applies.
Where the rules provide for an option to segregate in some circumstances and a requirement to segregate in other circumstances, you should tick a).
The categories a), b) and c) reflect those set out in paragraphs 74 and 75 of the Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 or regulations 74 and 75 of the Pension Protection Fund (Multi-employer Schemes (Modification) Regulations (Northern Ireland) 2005.
A multi-employer scheme is one which has more than one employer which employs members of the scheme. Where a company has ceased to employ members of the scheme, it will remain an employer unless one of the conditions a) to d) in the Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 has been met.
Centralised schemes for non-associated employers
The Board of the Pension Protection Fund has the discretion to decide whether a scheme will be treated as a centralised scheme for non-associated employers.
If you're uncertain whether your scheme falls into this category, you should consult the scheme's advisers. The Board of the Pension Protection Fund may distinguish between sections of schemes and the treatment will not apply to sections where the employers are associated (including through a permanent community of interest).
Evidence to be supplied could include, for example, relevant parts of the trust deed and rules, scheme booklets, and any booklets for employers. The Board of the Pension Protection Fund reserves the right to request further information in this respect.
Examples of centralised schemes for non-associated employers are:
- industry-wide pension schemes which are usually sponsored by a professional or trade association and available only to employers in a particular industry; or
- schemes established on a commercial basis (eg by a life office) that are open for any employer to participate.