Member

Amendment 25, introduced by the noble Baroness, Lady Stedman-Scott, seeks to clarify what other situations, apart from wind-up, would be considered unsuitable for surplus release. Following these changes, surplus release will generally be possible from the same group of schemes from which it is currently possible—in short, private sector DB occupational pension schemes. However, for example, schemes with a Crown guarantee will not be eligible for surplus release, as under the current surplus release regime, although it is much narrower. As has been made clear, our changes relate to schemes in run-on rather than schemes in wind-up, as schemes in wind-up are subject to a separate regime under Section 76 of the Pensions Act 1995.