Article 38 Power to defer winding up

(1)

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

F1(a)

that 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 paragraph (1), this may also determine—

(a)

that no further contributions are to be paid towards the schemeF2 (other than those due to be paid before the determination is made), or

(b)

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

. . . .

(2A)

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

(3)

This Article does not apply to—

(a)

a money purchase scheme, or

(b)

a scheme falling within a prescribed class or description.

(4)

This Article 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 Article 138(1) of the Pensions (Northern Ireland) Order 2005 (requirement to wind up certain schemes with sufficient assets to meet protected liabilities).

Article 38 Power to defer winding up

Annotations

Textual amendments

Notes on the whole Order

Textual amendments