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The Pensions Regulator

Codes of practice

Codes of practice

Code of practice 02
Notifiable events

What is the notifiable events duty?

  1. The duty to notify requires written notice to the Pensions Regulator of events:
    • in respect of pension schemes (scheme-related events); and
    • in respect of employers, in relation to their pension schemes (employer-related events).
  2. The duty to notify falls on trustees, individually as well as collectively1, in respect of the former and employers in respect of the latter2.
  3. Notification is only required in respect of schemes which are eligible for entry to the Pension Protection Fund, and their related employers. In practice, the duty falls on pension schemes which are neither wholly defined contribution nor ineligible for the Pension Protection Fund by virtue of being in the public sector or other reasons3.

Purpose of notifiable events

  1. The purpose of notifiable events is to reduce the risk of the circumstances which may lead to compensation being payable from the Pension Protection Fund. Calls on the Pension Protection Fund will arise when, broadly speaking, an employer becomes insolvent and its scheme is underfunded. Notifiable events will provide an early warning of possible insolvency or underfunding giving the Pensions Regulator the opportunity to assist, or to intervene, before a call is made. A consequence of intervention will also be in many cases to improve the protection of scheme members' benefits.

1 Throughout this code any reference to trustees should be read as referring likewise to managers of non-trust based schemes which are eligible for entry to the Pension Protection Fund. In the case of corporate trustees it is the company which has the duty to notify.
2 The Department for Work and Pensions has the power, which it has not exercised, to make regulations to require other groups to notify, for example advisers to schemes or employers connected or associated with the employer in relation to the scheme.
3 See section 126(1)(a) and (b) of the Pensions Act 2004 and regulations made under that section.