s.69Adoption of a new pension plan
69
Section 69Part 11 — Sales, Transfers and New Plans

Adoption of a new pension plan

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Where a pension plan is established or utilised by an employer to be a successor to an existing pension plan, the rights of members under section 63(2) shall not arise and the assets and liabilities of the existing plan shall be transferred to the new plan.
The benefits and rights under the original pension plan in respect of employment before the establishment of the new pension plan shall be carried forward and included in the new pension plan.
Subsection (2) applies whether or not the assets and liabilities of the original pension plan are consolidated with those of the new pension plan.
An administrator shall not transfer assets from the pension fund of the original pension plan to the pension fund of the new pension plan without the prior consent of the Director or contrary to the prescribed terms and conditions.
The Director shall not approve a transfer of assets that does not protect the pension benefits and any other benefits and rights of the members, former members and claimants of the original pension plan.
The Director may, by order, require a transferee to return to the pension fund assets, with interest at a rate calculated in accordance with the regulations, transferred to that person by the administrator without the prior consent of the Director or transferred contrary to the prescribed terms or conditions.
Subject to section 72, an order for return of assets under subsection (6), may be enforced in the same manner as a judgment of the Grand Court for the payment of a sum of money.
An administrator who contravenes this section, commits an offence and is liable on summary conviction to a fine of fifty thousand dollars or five per cent of the assets transferred whichever is greater and this fine shall be paid by the administrator and shall not be charged to the pension plan.

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