s.68Continuation of benefits under successor employer
68
Section 68Part 11 — Sales, Transfers and New Plans

Continuation of benefits under successor employer

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Where an employer who contributes to a pension plan sells, assigns or otherwise disposes of all or part of that employer's business or all or part of the assets of that employer's business, and a member of the pension plan as a result becomes an employee of the successor employer and becomes a member of the pension plan provided by the successor employer, that member —
continues to be entitled to the benefits provided under the employer's pension plan in respect of employment in the Islands up to the date of the completion of the sale, assignment or disposition without further accrual;
is entitled to credit in the pension plan of the successor employer for the period of membership in the employer's pension plan, for the purpose of determining eligibility for membership in or entitlement to benefits under the pension plan of the successor employer; and
is entitled to credit in the employer's pension plan for the period of employment with the successor employer for the purpose of determining entitlement to benefits under the employer's pension plan.
Paragraph (a) of subsection (1) does not apply if the successor employer assumes responsibility for the accrued pension benefits of the employer's pension plan and the pension plan of the successor's employer shall be deemed to be a continuation of the employer's plan with respect to any benefits or assets transferred.
Where a transaction described in subsection (1) takes place, the employment of the employee shall be deemed, for the purposes of this Act, not to be terminated by reason of the transaction.
Subject to subsection (5), where a transaction described in subsection (1) occurs and the successor employer assumes responsibility in whole or in part for the benefits provided under the employer's pension plan, a transfer of assets shall be made from the pension fund related to the employer's pension plan to the pension fund related to the plan provided by the successor employer in accordance with the prescribed terms and conditions.
The Director shall not approve a transfer of assets that does not —
protect the pension benefits and any other benefits of the members and former members of the employer's pension plan; or
that does not meet the prescribed requirements and qualifications.
No transfer shall be made under subsection (4) without the prior consent of the Director.
The Director may, by order, require a transferee to return to the pension fund, with interest at a rate to be prescribed, assets transferred without the prior consent required by subsection (5).
Subject to section 72, an order for return of assets under subsection (7) may be enforced in the same manner as a judgment of the Grand Court for the payment of a sum of money.
In this section — "successor employer" means the person who acquires the business or the assets of the employer.

Defined Terms

successor employer

Cross References