The Transport Act 2000 (Civil Aviation Authority Pension Scheme) Order 2001

10. TREATMENT OF DEFICIENCY AND SURPLUS

10.1  If any actuarial investigation under Clause 12 reveals the existence of a deficiency in the CAA Section, the Employers shall make to the CAA Section for the account of the CAA Section an annual deficiency contribution of such an amount as shall be certified by the Actuary to be required to make good the deficiency over such period determined by the Sponsoring Section Employer, but being a period not greater than that required in accordance with Part I of the Pensions Act 1995(1) which are relevant to the amount and circumstances of the deficit.

10.2—(a) Subject as provided in paragraph (c) below, if any actuarial investigation under Clause 12 reveals the existence of a disposable surplus in the CAA Section on a basis prescribed for the purposes of sections 602 and 603 of and Schedule 22 to the Taxes Act(2), the Trustees shall arrange for the reduction or elimination of the surplus in a way or ways prescribed in that Act for the purpose of such provisions and selected by the Sponsoring Section Employer.

(b) Subject as provided in paragraph (c) below, after making the arrangements described in (a) above (or where the provisions of (a) above do not apply), if any actuarial investigation under Clause 12 reveals a disposable surplus on a basis other than as described in (a) above, the Sponsoring Section Employer may make arrangements for the reduction or elimination of the surplus in one or more of the following ways which are recommended by the Actuary and acceptable to the Board of Inland Revenue for the purposes of this Rule:

(i) arrangements to provide that the amount or the outstanding term of any existing annual deficiency contribution to the CAA Section be reduced to such extent that the reduction in the capital value at the valuation date of the outstanding payments of the deficiency contribution does not exceed but may be less than the amount of the disposable CAA Section surplus; and

(ii) arrangements to provide for a reduction in the contributions of Members or any of them and an augmentation of any of the benefits provided by the CAA Section or for either such reduction or such augmentation.

(c) This Rule 10.2 shall be operated in such a way as to comply with the relevant provisions of Part I of the Pensions Act 1995.

10.3  The disposal surplus or any balance which remains after carrying out such (if any) arrangements as have been made under paragraphs (a) or (b) of Rule 10.2 shall be retained in the CAA Section and the contributions of the Employers to the CAA Section may, subject always to the relevant provisions of Part I of the Pensions Act 1995, be reduced to the extent certified by the Actuary to be required to dispose of such surplus, or the said balance or such part of it as the Sponsoring Section Employer may decide by annual sums over a period not exceeding forty years from the date of valuation.

10.4  The Trustees shall also operate this Rule 10 if required to do so in order to satisfy the provisions of Schedule 22 to the Taxes Act.

(1)

1995 c. 26.

(2)

Schedule 22 was amended by the Taxation of Chargeable Gains Act 1992 (c. 12), section 290(1) and Schedule 10, paragraph 14(1) and (60).