{
  "url": "https://openlegislation.uk/pension-schemes-act-2026/section-74",
  "json_url": "https://openlegislation.uk/pension-schemes-act-2026/section-74.json",
  "legislation": "ukpga/2026/22",
  "legislation_title": "Pension Schemes Act 2026",
  "legislation_url": "https://openlegislation.uk/pension-schemes-act-2026",
  "path": "section/74",
  "kind": "section",
  "number": "74",
  "heading": "Capital buffer: permitted release to other persons",
  "text": "(1) A person that is a party to the capital buffer arrangement in relation to an operating superfund must ensure, so far as it is in their power to do so, that the capital buffer arrangement does not permit the release of the capital buffer to a person other than the trustees of the superfund scheme except in accordance with subsection (2) or (3).\n(2) The capital buffer arrangement may permit the release of the whole capital buffer if—\n(a) the superfund scheme has satisfied all of its liabilities to and in respect of its members, or\n(b) an insurer buyout has taken effect in relation to the superfund scheme.\n(3) The capital buffer arrangement may permit the release of an amount of the capital buffer to the extent that the release is a permitted profit extraction.\n(4) “Permitted profit extraction”, in relation to a superfund, means a release of the capital buffer—\n(a) that takes place at a time when the capital adequacy threshold is exceeded to an extent, and has been exceeded for a period of time, specified in regulations made by the Secretary of State,\n(b) that is made to a person of a description specified in the regulations, and\n(c) in relation to which any other requirements specified in the regulations are met (which may include a requirement for the Regulator’s consent),\nand for the purposes of paragraph (a) the capital adequacy threshold is “exceeded” if and to the extent that the total value of the assets of the scheme and the capital buffer is greater than the amount required in order for that threshold to be met.\n(5) A person commits an offence if they cause or permit the capital buffer to be released (to any extent)—\n(a) to a person other than the trustees of the superfund scheme, and\n(b) otherwise than in accordance with the capital buffer arrangement.\n(6) A person guilty of an offence under subsection (5) is liable—\n(a) on summary conviction in England and Wales, to a fine;\n(b) on summary conviction in Scotland, to a fine not exceeding the statutory maximum;\n(c) on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine or both.\n(7) Section 88A of the Pensions Act 2004 (civil penalties) applies to a person who causes or permits the capital buffer to be released (to any extent)—\n(a) to a person other than the trustees of the superfund scheme, and\n(b) otherwise than in accordance with the capital buffer arrangement\n(but see subsection (10) of that section, which prevents a penalty from being imposed in respect of an act where the person has been convicted of an offence in respect of the same act, or where proceedings for such an offence are ongoing).\n(8) Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who breaches subsection (1).\n(9) Regulations under subsection (4) are subject to the affirmative procedure.",
  "extent": "E+W+S",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "I",
      "label": "I1",
      "text": "S. 74 in force at Royal Assent for specified purposes, see s. 133(1)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2026/22/section/74",
    "retrieved_at": "2026-10-29T08:41:23.531539+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}