# The Occupational Pension Schemes (Payments to Employers) Regulations 1996, Regulation 4: Notice of proposed payment from surplus


(1) For the purposes of section 37 of the 1995 Act (which sets out the requirements which must be satisfied before a power to make payments to the employer out of funds held for the purposes of a scheme may be exercised) the prescribed requirements as to notice referred to in subsection (4)(e) of that section are set out in paragraphs (2) to (5).
(2) The trustees must take all reasonable steps to ensure that each member is given two written notices in accordance with the following provisions of this regulation.
(3) The first notice must be given after proposals to reduce or eliminate a surplus have been approved under paragraph 6(1) of Schedule 22 to the Taxes Act. It must —
(a) inform the member as to —
(i) how it is proposed that the surplus shall be reduced or eliminated, by reference to the ways permitted under paragraph 3(3) of that Schedule; and
(ii) whether the requirements of section 37(4) of the 1995 Act are satisfied;
(b) invite the member, if he wishes, to make written representations in relation to the proposals to the trustees before a specified date (which is not earlier than two months from the date on which the first notice is given);
(c) advise the member —
(i) that a second notice will be given to him if the trustees intend to proceed with the proposals; and
(ii) that no payment may be made to the employer in accordance with the proposals until at least 3 months after the date on which the second notice is given.
(4) The second notice must be given after the date specified in accordance with paragraph (3)(b) and at least 3 months before the power is exercised. It must —
(a) contain the information referred to in paragraph (3)(a), including any modifications to the proposals; and
(b) advise the member that he may make written representations to the Authority before a specified date (which is not earlier than 3 months from the date on which the second notice is given) if he considers that any of the requirements of section 37(4) of the l995 Act are not satisfied.
(5) For the purposes of paragraph (2) —
(a) a notice shall be treated as having been given to a member if it has been sent to him by post either at the address at which he was last known to be living or, in the case of an active member, at an address at which he is known to be currently employed; and
(b) notices are not required to be given where a member has no known address or where correspondence sent to a member’s last known address has been returned.

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Source: https://www.legislation.gov.uk/uksi/1996/2156/regulation/4 (the official version)
Page: https://openlegislation.uk/occupational-pension-schemes-payments-to-employers-regulations-1996/regulation-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.