PSI16.2.47 - Discontinuance of Schemes: Winding-Up - Prohibition on Amendment of Old Code Schemes - Funding Requirements

(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)

If there are no other objections to a concession, look at the scheme's funding position. If the scheme is self-administered consult the latest actuarial report and, if it is not very recent, ask for the subsequent accounts. If there is a current surplus, make sure that it will be dealt with in a suitable way (see PSIPart 20 Sections 6 and 8 PSI20.6.8) before approval is given under Chapter 1, Part XIV ICTA 1988. It is also important that the future funding rate is fixed at such a level that surpluses are not likely to arise.

With an insured scheme, the position depends on whether or not it is subject to the surplus legislation (see PSI20.3.3). If it is, proceed in the same manner as for a self- administered scheme. If it is not, contributions should be adjusted to take account of any surplus and you should ensure that the necessary corrective action is taken.

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