Section 137 — Pensions Act 2004: Board to act as creditor of the employer

Board to act as creditor of the employer 137 1 Subsection (2) applies where there is an assessment period in relation to an eligible scheme.

2 During the assessment period, the rights and powers of the trustees or managers of the scheme in relation to any debt (including any contingent debt) due to them by the employer, whether by virtue of section 75 of the Pensions Act 1995 (c. 26) (deficiencies in the scheme assets) or otherwise, are exercisable by the Board to the exclusion of the trustees or managers.

3 Where, by virtue of subsection (2), any amount is paid to the Board in respect of such a debt, the Board must pay that amount to the trustees or managers of the scheme.