Failure to comply with the requirements of section 37 or 76 of the 1995 Act: periods before the appointed dayE+W+S
This section has no associated Explanatory Memorandum
37.—(1) Where the conditions specified in paragraph (2) are met neither—
(a)section 37 of the 1995 Act (payment of surplus to employer)(); nor
(b)section 76 of that Act (excess assets on winding up)(),
(as the case may be) apply in respect of a payment from scheme funds made to the employer in relation to the scheme.
(2) The conditions specified in this paragraph are that—
(a)the trustees of a trust scheme have exercised a power under the scheme rules to make a payment to the employer out of funds held for the purposes of the scheme and that payment was made to the employer before the appointed day;
(b)at the time that the payment was made to the employer the scheme included—
(i)cash balance benefits; or
(ii)pensions derived from money purchase or cash balance benefits;
(c)no benefits other than those specified in sub-paragraph (b), money purchase benefits and death benefits secured by insurance policies or annuity contracts; and
(d)the trustees of the scheme treated the scheme as if it were a money purchase scheme and for that reason did not comply with the requirements—
(i)for schemes not in winding up, of section 37 of the 1995 Act; or
(ii)for schemes in winding up, of section 76 of that Act,
before exercising the power to make a payment to the employer.