264. Excess assets on winding up.

The following provisions apply to a trust scheme1 in any circumstances if:

  1.  

    (1)     it is a registered pension scheme2;

  2.  

    (2)     the scheme is being wound up; and

  3.  

    (3)     in those circumstances power is conferred on the employer3 or the trustees to distribute assets to the employer on a winding up4.

That power to distribute cannot be exercised unless the following requirements, and any requirements that may be prescribed, are satisfied5. The specified requirements are that:

  1.  

    (a)     the liabilities of the scheme have been fully discharged6;

  2.  

    (b)     where there is any power under the scheme, after the discharge of those liabilities,

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