§ Mr. MitchellTo ask the Secretary of State for Social Security what plans she has for legislation to prevent banks appropriating pension scheme surpluses in their annual accounts. [2090]
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§ Mr. DenhamAny payment to employers of surplus pension fund assets can be made only where the following requirements are
the Inland Revenue approve the payment, which must satisfy paragraph 6(1) of Schedule 22 to the Taxes Act 1988.the trustees must be satisfied that the payment is in the interests of the members.where it is necessary for the employer's consent to be given, that consent shall be obtained.all current and future pensions in payment, including those accrued in the past must be increased annually in line with the Retail Prices Index or 5 per cent. whichever is the less.members have been properly notified of the proposal.Members have the right to make written representations to the Occupational Pensions Regulatory Authority (OPRA) against the trustees' proposal if they believe the statutory criteria have not been followed. OPRA will then decide whether the scheme has met the statutory conditions.
Failure to comply with the legislation lays the trustees open to sanction by OPRA, which can also order the employer to make restitution.
We have no plans to change these rules at present. We are currently evaluating the Pensions Act to see how it is working in practice.