43.— The Principal Act is amended in section 59 by inserting the following subsections after subsection (2):

“(3) The trustees of a scheme may, at any time, notwithstanding anything contained in the rules of the scheme and without the consent of the members—

(a) make one or more payments on behalf of the scheme to a policy or contract of assurance approved by the Board under section 53B whereby all sums payable under such policy or contract will as and when received by the trustees, be held by them upon trust for the purposes of the scheme,

(b) discharge the liability of the scheme for some or all of the benefits payable to or in respect of a person—

(i) receiving benefits under the scheme, or

(ii) who has reached normal pensionable age,

by making on behalf of that person, one or more than one payment to a policy or contract of assurance approved by the Board under section 53B.

(4) If, in any proceedings brought against a trustee of a scheme for breach of trust in relation to the performance by him or her of a function conferred under subsection (3), it appears to the court hearing the case that the trustee is or may be liable in respect of the breach of trust but that he or she acted honestly and reasonably and that having regard to all of the circumstances of the case he or she ought fairly to be excused for the breach of trust, the court may relieve him or her in whole or in part from his or her liability on such terms as the court deems appropriate.”.