Summary

Distribution of surplus in insolvent company's pension fund.

Facts

Application by liquidator of company in voluntary winding up with a deficiency of £2 million as to company's powers as sole trustee of the pension fund to alter the rules by ensuring that a surplus of £505,000 in the fund might be paid over to the company.

Held

Rule 14 (ii) was in terms inconsistent with the company retaining any right to change the rules in winding up. Section 11(3) Social Security Act 1990 precluded an employer from taking or receiving any surplus until provision was made for the limited price indexing of pensions had been satisfied.