PSI16.2.20 - Discontinuance of Schemes: Winding-Up - Surplus on Winding-Up

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

[Pn14.7]

The money available may be more than sufficient to provide the actual or accrued benefits of all classes of member. The rules may therefore provide for augmentation up to the maximum approvable if the employees concerned had left service on the date winding-up commenced (see Part 13). If any surplus remains after all the scheme’s liabilities have been met, it should be dealt with in accordance with PSI20.9.12-24. The trustees of a centralised scheme for associated employers should share any surplus between the participating employers in accordance with the scheme rules. They will usually be advised by a Life Office or consulting actuary about how to make this division. The surplus cannot be paid to some third party (such as a charity) but it may in some circumstances be transferred to another approved scheme which the members of the wound-up scheme have joined (see PSI20.9.5-10).

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