Power to make a resolution under s 251 ceased on 5 April 2011
Letter from the DWP dated 14 October 2010
Pensions Bill 2011 issued January 2011
Section 251 Pensions Act 2004 provides that the repayment of funds to a sponsoring employer will not be possible from most mainstream pension schemes unless the trustees put in place a resolution on such payments before 6 April 2011.
The Pensions Bill contains amendments to section 251 Pensions Act 2004 (which provides that certain payments from pension schemes to sponsoring employers will not be possible unless the trustees put in place a resolution on such payments). The amendments:
- extend the deadline for passing a resolution from 6 April 2011 to 6 April 2016;
- allow the power to pass a resolution to be exercised again once even if a resolution was already passed before 6 April 2011; and
clarify that the prohibition does not apply to scheme administration payments to employers and, potentially, does not apply to payments of surplus on winding up.