RPSM04102022 - Technical Pages: Taxation: Authorised employer payments: Authorised surplus payments: Schemes subject to Pensions Act 1995 requirements on payments to employers

Schemes subject to Pensions Act 1995 requirements on payments to employers

[s177] [The Registered Pension Schemes (Authorised Surplus Payments) Regulations 2006 - SI 2006/574] 

Where a registered pension scheme is

• an occupational pension scheme, and
• not winding up, and
• also a scheme to which sections 37 of the Pensions Act 1995 applies

a surplus payment made to a sponsoring employer in accordance with the requirements of that section 37 will be an authorised surplus payment.

This is subject to a qualification regarding surplus payments solely in respect of the death of a member - see RPSM04102025.

Where a registered pension scheme is

• an occupational pension scheme, and
• winding-up, and
• also a scheme to which section 76 of the Pensions Act 1995 applies

a surplus payment made to a sponsoring employer in accordance with the requirements of that section 76 will be an authorised surplus payment.

This is subject to a qualification regarding surplus payments solely in respect of the death of a member - see RPSM04102025.

Sections 37 and 76 of the Pensions Act 1995 allow for surplus assets to be returned to an employer from schemes that are continuing or winding up, respectively. Certain conditions have to be met, such as conditions set out in the Occupational Pension Schemes (Payments to Employer) Regulations 2006 (SI 2006/ No 802).

Where a scheme is subject to Northern Ireland legislation, sections 37 and 76 of the Pensions Act 1995 should be construed as a reference to the corresponding enactment in Northern Ireland.