The Pensions Regulator

Notifiable events

.

.

About the framework

The principal purpose of the notifiable events framework is to give the Pensions Regulator early warning of possible calls on the Pension Protection Fund.

There are two circumstances which, when combined, may lead to compensation being payable from the Pension Protection Fund:

• when a sponsoring employer becomes insolvent (or, to be more precise, suffers a qualifying insolvency event); and
• when the funding level of the scheme sponsored by the employer is below the Pension Protection Fund buy-out level (i.e. the level of scheme funding which would be required to provide scheme members with the amount of compensation to be offered by the Pension Protection Fund).

The notifiable events framework is intended to provide early warning of each of these circumstances. View a diagram that illustrates this framework.

How is the framework implemented?

There are three main components of the notifiable events framework under section 69 of the Pensions Act 2004:

1. The events which are to be notified - these are in regulations made by the Department for Work and Pensions.
2. The exceptions to the duty to notify - these are in directions issued by the Pensions Regulator.
3. Practical guidance on the notifiable events framework and the standard of conduct and practice expected of trustees and employers in complying - this is in the Pensions Regulator's code of practice on notifiable events.

.

.