Pension Schemes Act 1993

24 Sufficiency of resources

(1) The Board must be satisfied that the resources of the scheme are sufficient—

(a) for meeting from time to time all claims in respect of guaranteed minimum pensions so far as falling to be met out of those resources, having regard to the expected extent of the scheme’s resources and its other liabilities at any time when claims may be expected to arise; and

(b) for paying state scheme premiums in respect of all persons at any time entitled to, or having accrued rights to, guaranteed minimum pensions under the scheme; and

(c) for meeting in full in the event of an immediate winding up—

(i) the liabilities accorded priority in accordance with section 23(2) and (3), and

(ii) the expenses of administration so far as those expenses are payable out of the resources of the scheme.

(2) Subsection (1) does not apply to public service schemes and the duties imposed on the Board by that subsection shall cease to subsist in relation to guaranteed minimum pensions for a member and the member’s widow or widower where a scheme has ceased by virtue of section 19 to be liable to provide those pensions.

(3) Regulations may provide for subsection (1) to have effect in prescribed cases—

(a) with the omission of paragraphs (b) and (c), or

(b) with the omission of either of those paragraphs, or

(c) with the substitution for both or either of those paragraphs of provisions specified in the regulations.

(4) In considering a scheme by reference to the considerations of subsection (1), the Board shall have regard to any investments held for the purposes of the scheme.