Section 42B — Pensions Act 2004: Financial penalty for failure to comply with a section 38 contribution notice

Financial penalty for failure to comply with a section 38 contribution notice 42B 1 This section applies where a contribution notice is issued to a person under section 38.

2 Section 88A (financial penalties) applies to the person if the person, without reasonable excuse, fails to pay the debt due by virtue of the contribution notice to—

a the trustees or managers of the scheme, or b the Board of the Pension Protection Fund (as the case may be), before the date specified in the contribution notice for the purposes of this subsection (see section 40(2A)).

3 The Regulator may not issue a warning notice to the person in respect of the imposition of a penalty under section 88A as it applies by virtue of subsection (2) if an application under section 41(7) has been made—

a in relation to the contribution notice, or b in relation to a contribution notice which is a corresponding contribution notice for the purposes of section 40(8), and the application has not been determined, withdrawn or abandoned.

4 In this section “ warning notice ” means a notice given as mentioned in section 96(2)(a).