§ Mr. TynanTo ask the Secretary of State for Work and Pensions what guidance he has issued to(a) the trustees and (b) the administrators of occupational pension schemes where, on winding-up, the remaining assets of the scheme are insufficient to cover SERPS liabilities for some members. [148977]
§ Malcolm WicksSection 74 of the Pensions Act 1995 sets out the provisions on overriding scheme rules so as to enable the trustees of a scheme to discharge their liabilities to members for pensions and other benefits even if the those pensions and benefits are not fully secured. When an occupational pension scheme is winding up, it ceases to contract-out and its trustees must secure members contracted-out rights.
104WThe Inland Revenue manual CA15 (Cessation of Contracted-out Pension Schemes) contains guidance on securing contracted-out rights. CA15 is available via the Inland Revenue website at: www.Inlandrevenue.gov.uk. Inland Revenue writes to scheme administrators making them aware of the guidance once the scheme has ceased to contract-out. Also, when they are informed that a scheme is no longer contracted-out, the Inland Revenue sends form CA7992 to scheme trustees. This gives general guidelines on securing the liabilities, and the options that are available.
No guidance has been issued by the Department for Work and Pensions on this subject.