PART 11Payment of surplus funds to employer
Failure to comply with the requirements of section 37 or 76 of the 1995 Act: periods before the appointed dayI137
1
Where the conditions specified in paragraph (2) are met neither—
a
section 37 of the 1995 Act (payment of surplus to employer)72; nor
b
section 76 of that Act (excess assets on winding up)73,
(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.