PSI20.6.10 - Funding and Surpluses: Surpluses - General - Unallocated or Contingency Funds

(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)

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Any scheme, including money purchase schemes, may maintain an unallocated account of up to 5% of its total liabilities (as determined on the statutory basis, Pension Scheme Surpluses (Valuation) Regulations 1987) throughout its lifetime. There are no restrictions upon the uses to which an unallocated fund may be put other than the fundamental requirement that all benefits provided by a scheme should be clearly specified in the rules and should be within approvable limits.