OpenLegislation

Section 38 Power to defer winding up.I1I2C1C2

England, Wales and Scotland

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

If, apart from this section, the rules of a trust scheme would require the scheme to be wound up, the trustees may determine—

(a)

F1that the scheme is not for the time being to be wound up but that no new members are to be admitted to it, or

(b)

that the scheme is not for the time being to be wound up but that no new members, except pension credit members, are to be admitted to it.

(2)

Where the trustees make a determination under subsection (1), they may also determine—

(a)

that no further contributions are to be paid towards the scheme F2(other than those due to be paid before the determination is made), or

(b)

that no F3...benefits are to accrue to, or in respect of, members of the scheme;

F4...

(2A)

F5Subsection (2) does not authorise the trustees to determine—

(a)

where there are accrued rights or pension credit rights to any benefit, that the benefit is not to be increased, or

(b)

where the power conferred by that subsection is exercisable by virtue of a determination under subsection (1)(b), that members of the scheme may not acquire pension credit rights under it.

(3)

This section does not apply to—

(a)

a money purchase scheme, or

(b)

a scheme falling within a prescribed class or description.

(4)

F6This section also does not apply in relation to a trust scheme where the trustees are required to wind up, or continue the winding up, of the scheme under section 154(1) of the Pensions Act 2004 (requirement to wind up certain schemes with sufficient assets to meet protected liabilities).

Annotations

Textual amendments

F1

S. 38(1)(a)(b) substituted for words (1.12.2000) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 12 para. 50(2); S.I. 2000/1047, art. 2(2)(d) Sch. Pt. 4

F2

Words in s. 38(2)(a) inserted (9.12.2005) by Pensions Act 2004 (c. 35), s. 322(1), Sch. 12 para. 50(2)(a); S.I. 2005/3331, art. 2(2), Sch. Pt. 2

F3

Word in s. 38(2)(b) repealed (9.12.2005) by Pensions Act 2004 (c. 35), s. 322(1), Sch. 12 para. 50(2)(b), Sch. 13; S.I. 2005/3331, art. 2(2), Sch. Pt. 2

F4

Words in s. 38(2) repealed (1.12.2000) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 12 para. 50(3), Sch. 13 Pt. III; S.I. 2000/1047, art. 2(2)(d) Sch. Pt. 4

F5

S. 38(2A) inserted (1.12.2000) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 12 para. 50(4); S.I. 2000/1047, art. 2(2)(d) Sch. Pt. 4

F6

S. 38(4) inserted (9.12.2005) by Pensions Act 2004 (c. 35), s. 322(1), Sch. 12 para. 50(3); S.I. 2005/3331, art. 2(2), Sch. Pt. 2

Modifications

C1

S. 38 excluded (6.4.1997) by The Occupational Pension Schemes (Winding Up) Regulations 1996 (S.I. 1996/3126), regs. 1(1), 10 (as amended (6.4.2005) by S.I. 2005/678, reg. 1(2), Sch. 2 para. 2; and (6.4.2016) by S.I. 2016/200, arts. 1(2), 9(3))

C2

S. 38 applied (6.4.1997) by The Occupational Pension Schemes(Winding Up) Regulations 1996 (S.I. 1996/3126), regs. 1(1), 12(3) (with reg. 1(2))

Commencement

I1

S. 38 in force at 6.4.1996 for specified purposes by S.I. 1996/778, art. 2(5)(a), Sch. Pt. V

I2

S. 38 in force at 6.4.1997 in so far as not already in force by S.I. 1997/664, art. 2(3), Sch. Pt. 3