7.—(1) If, on an application made to him in the prescribed form by an employee or by the persons competent to act in respect of an F91[occupational pension scheme, Personal Retirement Savings Account or automatic enrolment retirement savings system], the Minister is satisfied that—

(a) an employer (being in case the application is made by a person otherwise than in his capacity as the person competent so to act the employer of the applicant) has become insolvent,

(b) the date on which for the purposes of this Act the employer became insolvent is a day not earlier than the 22nd day of October, 1983, and

(c) on that day there remained unpaid relevant contributions remaining to be paid by the employer to the F91[occupational pension scheme, Personal Retirement Savings Account or automatic enrolment retirement savings system],

on the date on which the employer became insolvent, being a date not earlier than the said 22nd day of October the Minister shall, subject to this section, pay into the F91[assets of the occupational pension scheme, Personal Retirement Savings Account or automatic enrolment retirement savings system] out of the F92[the Social Insurance Fund] the sum which in his opinion is payable in respect of the unpaid relevant contributions.

(2) In this section “relevant contributions” means contributions falling to be paid by an employer in accordance with an F91[assets of the occupational pension scheme, Personal Retirement Savings Account or automatic enrolment retirement savings system], either on his own account or on behalf of an employee; provided that for the purposes of this section a contribution of any amount shall not be treated as falling to be paid on behalf of an employee unless a sum equal to that amount has been deducted from the pay of the employee by way of a contribution from him.

(3) F91[Subject to subsection (3A), the sum payable under this section in respect of unpaid contributions of an employer on his own account to an occupational pension scheme, Personal Retirement Savings Account or automatic enrolment retirement savings system] shall be the lesser of the following amounts—

(a) the balance of relevant contributions remaining unpaid on the date on which he became insolvent and payable by the employer on his own account to the F91[assets of the occupational pension scheme, Personal Retirement Savings Account or automatic enrolment retirement savings system] in respect of the period of twelve months ending on the day immediately preceding that date,

F93[(b) the amount certified by —

(i) an actuary,

(ii) where the employees concerned are employed or habitually employed in the State and the employer is an undertaking which is insolvent under the laws, regulations and administrative procedures of another Member State in accordance with Article 2(1) of the Directive, an actuary or person performing a similar task, or

(iii) where the employees concerned are employed or habitually employed in the State and the employer is an undertaking which is insolvent under the laws, regulations and administrative procedures of the United Kingdom, an actuary or person performing a similar task,

to be necessary for the purpose of meeting the liability of the scheme on dissolution to pay the benefits provided by the scheme or Personal Retirement Savings Account F94[…]to or in respect of the employees of the employer.]

F95[(3A) The sum payable under this section in respect of unpaid contributions—

(a) to an occupational pension scheme that is a defined benefit scheme (within the meaning of section 2 of the Pensions Act 1990), and

(b) that are contributions of an employer to that scheme on the employer’s own account, shall not exceed an amount calculated in accordance with the following formula:

(A(B/C)) - D

where—

"A" is the total remuneration paid by the employer to members of the scheme during the period of twelve months ending on the applicable day,

"B" is the total of the contributions paid by an employer on the employer’s own account to the scheme during the reference year,

"C" is the total remuneration paid by the employer to members of the scheme during the reference year, and

"D" is the total contributions paid by an employer on the employer’s own account to the scheme during the period of twelve months ending on the applicable day.]

(4) Any sum payable under this section in respect of unpaid contributions on behalf of an employee shall not exceed the amount deducted from the pay of the employee in respect of the employee’s contributions to the F91[occupational pension scheme, Personal Retirement Savings Account or automatic enrolment retirement savings system] during the period of twelve months ending on the day immediately preceding the date on which the employer became insolvent.

(5) The provisions of subsections (6), (7) and (8) of this section shall apply in a case where a relevant officer is either appointed or required to be appointed.

(6) Subject to subsection (8) of this section, the Minister shall not in a case which is a case referred to in subsection (5) of this section make any payment under this section in respect of unpaid relevant contributions until he has received a statement in the prescribed form from the relevant officer of the amount of relevant contributions which appear to have been unpaid on the date on which the employer became insolvent and to remain unpaid; and the relevant officer shall, on request made by the Minister provide him, as soon as reasonably practicable, with such a statement.

(7) Subject to subsection (8) of this section, an amount shall be taken to be payable under F91[subsection (3) or (3A)] or to have been deducted in the manner referred to in subsection (4) of this section, only if it is certified by the relevant officer as being so payable, or to have been so deducted.

(8) Where—

(a) a period of six months has elapsed since the application for a payment under this section was received by the Minister, but no such payment has been made,

(b) the Minister is satisfied that a payment under this section should be made, and

(c) it appears to the Minister that there is likely to be further delay before he receives a statement or certificate about the contributions in question,

then, the Minister may, if the applicant so requests or, if the Minister thinks fit, without such a request, make a payment under this section, notwithstanding the fact that no statement or certificate referred to in subsection (6) or (7) of this section has been received.

F95[(9) In this section—

“applicable day” means the day immediately preceding the date on which the employer became insolvent;

“automatic enrolment retirement savings system” means the retirement savings system established under the Automatic Enrolment Retirement Savings System Act 2024;

“member”, in relation to an occupational pension scheme, has the meaning it has in paragraph (a) of the definition of "member" in section 2 of the Pensions Act 1990;

“Personal Retirement Savings Account” has the meaning it has in section 91 of the Pensions Act 1990;

“reference year” means a period of twelve months that ends on the day that is twelve months before the applicable day.]