Section 10 Restrictions on exercise of power to pay surplusI1

England, Wales and Scotland

(1)

Section 37 of the Pensions Act 1995 (restrictions on power to pay surplus to employer) is amended in accordance with subsections (2) to (5).

(2)

After subsection (2) insert—

“(2A)

The power referred to in subsection (1)(a) may be exercised only so far as permitted by, and only in accordance with, regulations.

(2B)

Regulations must be made under subsection (2A)—

(a)

prohibiting the making of a payment unless an actuary of a prescribed description (“the relevant actuary”) is satisfied that prescribed conditions are met in relation to the value of the scheme’s assets and the amount of its liabilities,

(b)

making provision about the basis (or bases) on which the value of the scheme’s assets and the amount of its liabilities are to be determined for that purpose,

(c)

requiring the relevant actuary to give a certificate before a payment is made, and

(d)

requiring members of the scheme to be notified in relation to a payment before it is made.

(2C)

The provision that may be made by regulations under subsection (2A) includes provision—

(a)

about other conditions that must be met in order for the making of a payment to be permitted;

(b)

about the giving of certificates by the relevant actuary, including about the form and content of a certificate;

(c)

prohibiting the making of a payment without the employer’s consent;

(d)

in relation to a superfund scheme (within the meaning of Part 3 of the Pension Schemes Act 2026)—

(i)

prohibiting the making of a payment in all circumstances;

(ii)

prohibiting the making of a payment without the Authority’s consent.

(2D)

The power referred to in subsection (1)(a) may not be exercised if there is a freezing order in force in relation to the scheme under section 23 of the Pensions Act 2004.”

(3)

Omit subsections (3) and (4).

(4)

In subsection (6)(a), for “the requirements of this section” substitute “subsection (2A)”.

(5)

In subsection (8)—

(a)

omit “in prescribed circumstances”;

(b)

after “modifications,” insert “in prescribed circumstances or”.

(6)

In section 76 of the Pensions Act 1995 (excess assets on winding up), for subsection (8) substitute—

“(8)

Regulations may provide that this section does not apply, or applies with prescribed modifications, in prescribed circumstances or to schemes of a prescribed description.”

(7)

In section 175 of the Pensions Act 1995 (parliamentary control of orders and regulations)—

(a)

in subsection (1), for “(2), (2A) and (3)” substitute “(2) to (3)”;

(b)

in subsection (2A), after “section” insert “37(2A),”;

(c)

after subsection (2A) insert—

“(2B)

Any provision that may be made by regulations or an order under this Act subject to the procedure described in subsection (1) may instead be made by regulations subject to the procedure described in subsection (2).”

Annotations

Commencement

I1: S. 10 in force at Royal Assent for specified purposes, see s. 133(1)