Failure to comply with the requirements of section 37 or 76 of the 1995 Act: periods before the appointed dayE+W+S
37.—(1) Where the conditions specified in paragraph (2) are met neither—
(a)section 37 of the 1995 Act (payment of surplus to employer)(1); nor
(b)section 76 of that Act (excess assets on winding up)(2),
(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.
Commencement Information
I1Reg. 37 comes into force in accordance with reg. 1(1)
Section 37 was substituted by section 250 of the 2004 Act and was amended by section 130 of the 2008 Act.
Section 76 was amended by sections 319(1) and Schedule 12 to the 2004 Act and by S.I. 2006/745.