Pension Funds Act, 1956 (Act No. 24 of 1956)Chapter IV : Documents to be Deposited with Registrar15H. Use of contents of any surplus accounts to fund deficits |
| (1) | If a fund has credit balances in the member surplus account or the employer surplus account and the fund is found to have a deficit following an actuarial valuation, including a valuation carried out for the purpose of distributing assets on liquidation of the fund, such credit balances shall be reduced in the same proportion by the amount of the deficit: Provided that no credit balance may be reduced by more than the amount to which the account was in credit. |
| (2) | If the deficit exceeds the credit balances the member surplus account and the employer surplus account, these credit balances shall be applied in fill to reduce the deficit and shall be reduced to zero. |