This part of the website is about “excessive surpluses”. If you neither know, nor care, about this concept, I suggest you may wish to surf somewhere else. Or stay around if you want, noone is excluded.

The concept is that the funds held from time to time should be no higher than a prescribed maximum. This contrasts with the MFR legislation which came into force in 1997 (10 years later than excessive surpluses), where the minimum fund was prescribed.

The excessive surpluses controls came into force in April 1987, as one element of the Finance Act 1986. In the hope that it may be useful, I think it is worth recording the main features of what is currently in place. As I find it easier to “see” things in diagrams, that is my chosen format.

In November 2002. the Inland Revenue issued  consultative proposals for simplifying how they regulate occupational pensions. One big difference is that excessive surpluses will no longer be monitored. A further consultation document is expected in Autumn 2003, following which I intend to summarise the amended proposals.

If you do find anything wrong, please tell me about it.

However, I specifically refuse to guarantee that there are no errors, whether major or minor, in the following.

proceed at your own risk

Since this site was originally launched (2001), I had intended to update it from time to time. However, it looks like there may no updates worth recording.