Changes To Law On Pension Scheme Surpluses Announced

The Government has announced changes to the law on pension scheme surpluses that will be included in its forthcoming Pension Schemes Bill. It has also clarified its thinking on some related areas of pensions policy. Here we take a look at the key changes and consider what difference they will make to pension scheme trustees and sponsoring employers.

The Government has announced changes to the law on pension scheme surpluses. Its response to the "Options for Defined benefit schemes" consultation also clarifies current Government thinking on some related areas of pensions policy.

Key points announced in relation to surpluses are:

• the Government will introduce a new power for trustees to modify scheme rules to allow for "surplus sharing" where existing scheme rules do not allow for this. It will be up to trustees to decide whether to use this power and to negotiate with employers as to how members should benefit from surplus extraction;