Regulator Authorises Modification Of Scheme To Release Trapped Surplus

For only the second time in its history, the Pensions Regulator has exercised its power to authorise trustees of a pension scheme in wind-up to modify the scheme to allow a surplus to be paid to the scheme's employer. With an increasing number of schemes reaching an end game stage in which they are in surplus, it is possible that we may see the Regulator use this power more frequently in future. We take a look at the issues the Regulator considered before exercising its power.

The Pensions Regulator (TPR) has exercised its power to authorise a scheme trustee to modify a scheme in winding-up to allow the surplus to be paid to the scheme's employer(s). This is only the second occasion on which TPR has exercised this power.