Regulation 3 Payments falling outside section 37 or 76 of the Pensions Act 1995
A payment made by an occupational pension scheme to a sponsoring employer which does not satisfy paragraph (2) or (3) of regulation 2 is an authorised surplus payment if it satisfies the following conditions.
Condition A
The rules of the scheme permit such a payment to be made.
Condition B
The rules of the scheme contain a limit, calculated other than by reference to the size of the member’s fund, on the maximum amount of benefits that may be paid to, or in respect of, members of the scheme.
Condition C
If the scheme is being wound up, the liabilities of the scheme have been fully discharged including any tax that may be due and there is a surplus of assets over liabilities.
Condition D
If the scheme is not being wound up, the requirements set out in section 37 of the 1995 Act would have been met if the scheme had been one to which the section applied.
This paragraph is subject to paragraph (2).
A payment made by an occupational pension scheme to a sponsoring employer solely in respect of the death of a member is an authorised surplus payment if it satisfies the conditions in paragraph (1) and—
in a case where the deceased member’s fund was an alternatively secured pension fund, it satisfies conditions E and F, and
in other cases, it satisfies condition F.
Condition E
The scheme administrator has been unable to identify any dependants of the deceased member.
Condition F
The member was not connected to the sponsoring employer at the date of his death.