- Latest available (Revised)
- Original (As made)
This is the original version (as it was originally made).
37.—(1) This Article applies to a trust scheme if—
(a)apart from this Article, power is conferred on any person (including the employer) to make payments to the employer out of funds which are held for the purposes of the scheme.
(b)the scheme is one to which Schedule 22 to the Taxes Act 1988(1) (reduction of pension fund surpluses in certain exempt approved schemes) applies, and
(c)the scheme is not being wound up.
(2) Where the power referred to in paragraph (1)(a) is conferred by the scheme on a person other than the trustees, it cannot be exercised by that person but may be exercised instead by the trustees; and any restriction imposed by the scheme on the exercise of the power shall, so far as capable of doing so, apply to its exercise by the trustees.
(3) The power referred to in paragraph (1)(a) cannot be exercised unless the requirements of paragraphs (4) and (in prescribed circumstances (5), and any prescribed requirements, are satisfied.
(4) The requirements of this paragraph are that—
(a)the power is exercised in pursuance of proposals approved under paragraph 6(1) of Schedule 22 to the Taxes Act 1988,
(b)the trustees are satisfied that it is in the interests of the members that the power be exercised in the manner so proposed,
(c)where the power is conferred by the scheme on the employer, the employer has asked for the power to be exercised, or consented to its being exercised, in the manner so proposed,
(d)the annual rates of the pensions under the scheme which commence or have commenced are increased by the appropriate percentage, and
(e)notice has been given in accordance with prescribed requirements of the scheme of the proposal to exercise the power.
(5) The requirements of this paragraph are that the Authority are of the opinion that—
(a)any requirements prescribed by virtue of paragraph (3) are satisfied, and
(b)the requirements of paragraph (4) are satisfied.
(6) In paragraph (4)—
(a)“annual rate” and “appropriate percentage” have the same meaning as in Article 54, and
(b)“pension” does not include—
(i)any guaranteed minimum pension (as defined in section 4(2) of the Pension Schemes Act) or any increase in such a pension under section 105 of that Act, or
(ii)any money purchase benefit (as defined in section 176(1) of that Act).
(7) This Article does not apply to any payment to which, by virtue of section 601(3) of the Taxes Act 1988(2), section 601(2) of that Act does not apply.
(8) If, where this Article applies to any trust scheme, the trustees purport to exercise the power referred to in paragraph (1)(a) by making a payment to which this Article applies without complying with the requirements of this Article, Articles 3 and 10 apply to any trustee who has failed to take all such steps as are reasonable to secure compliance.
(9) If, where this Article applies to any trust scheme, any person, other than the trustees, purports to exercise the power referred to in paragraph (1)(a) by making a payment to which this Article applies, Article 10 applies to him.
(10) Regulations may provide that, in prescribed circumstances, this Article does not apply to schemes falling within a prescribed class or description, or applies to them with prescribed modifications.
The Whole Order you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Order you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Order you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include: