Part 4 provides for the necessary amendments to the Pensions Act to implement Article 17 of the IORPS directive. The substantive elements of Article 17 of the directive are provided for in section 35. The existing provisions of the Pensions Act require defined benefit pension schemes to satisfy a funding standard by maintaining sufficient assets to enable them discharge their accrued liabilities in the event of the scheme winding up. Where schemes do not satisfy the funding standard, the sponsors or trustees must submit a funding proposal to the Pensions Board to restore full funding within three years. This period can be extended at the discretion of the Pensions Board.

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