106 Sanctions for failure to comply with a contribution notice
(1) The Pensions Act 2004 is amended as follows.
(2) In section 40 (content and effect of a section 38 contribution notice)—
(a) after subsection (2) insert—
(2A) Without prejudice to subsections (3) and (7), the contribution notice must also specify a date for the purposes of sections 42A(2) and 42B(2) (sanctions for failure to comply with a contribution notice).
;
(b) in subsection (9), after paragraph (b) (and before the “and”) insert—
(ba) specifies the same date for the purposes of sections 42A(2) and 42B(2) as is specified in P's contribution notice,
.
(3) In section 41 (section 38 contribution notice: relationship with employer debt)—
(a) after subsection (8) insert—
(8A) An application under subsection (7) may not be made after—
(a) the date specified under section 40(2A) for the purposes of sections 42A(2) and 42B(2) (sanctions for failure to comply with a contribution notice), or
(b) if a different date has effect instead of that date (see subsections (10A) and (11B)), that different date.
;
(b) after subsection (10) insert—
(10A) Where an application under subsection (7) is made to the Regulator, the Regulator may, if it is of the opinion that it is appropriate to do so—
(a) change the date that has effect for the purposes of sections 42A(2) and 42B(2) (whether specified in the contribution notice or an earlier revised contribution notice), and
(b) specify the revised date in the revised contribution notice issued under subsection (9)(b) or, if the Regulator does not issue a revised contribution notice under subsection (9)(b), issue a revised contribution notice specifying the revised date.
;
(c) after subsection (11) insert—
(11A) Subsection (11B) applies where—
(a) P's contribution notice specifies that P is jointly and severally liable for the debt with other persons, and
(b) the Regulator issues a revised contribution notice to P under subsection (9)(b) or (10A)(b) specifying a revised date for the purposes of sections 42A(2) and 42B(2).
(11B) Where this subsection applies, the Regulator must—
(a) change the date that has effect for the purposes of sections 42A(2) and 42B(2) in the case of the contribution notices or revised contribution notices issued in respect of the debt to those other persons, and
(b) specify the revised date in the revised contribution notices issued to those other persons under subsection (11) or, if the Regulator does not issue revised contribution notices under subsection (11), issue revised contribution notices to those other persons specifying the revised date.
(4) After section 42 insert—
Offence of failing to comply with a section 38 contribution notice
42A (1) This section applies where a contribution notice is issued to a person under section 38.
(2) If the person, without reasonable excuse, fails to pay the debt due by virtue of the contribution notice to—
(a) the trustees or managers of the scheme, or
(b) the Board of the Pension Protection Fund (as the case may be),
before the date specified in the contribution notice for the purposes of this subsection (see section 40(2A)), the person is guilty of an offence.
(3) A person guilty of an offence under subsection (2) is liable—
(a) on summary conviction in England and Wales, to a fine;
(b) on summary conviction in Scotland, to a fine not exceeding level 5 on the standard scale.
(4) Proceedings for an offence under subsection (2) may not be instituted if an application under section 41(7) has been made—
(a) in relation to the contribution notice, or
(b) in relation to a contribution notice which is a corresponding contribution notice for the purposes of section 40(8),
and the application has not been determined, withdrawn or abandoned.
(5) Proceedings for an offence under subsection (2) may be instituted in England and Wales only—
(a) by the Regulator or the Secretary of State, or
(b) by or with the consent of the Director of Public Prosecutions.
(5) After section 42A (inserted by subsection (4)) insert—
Financial penalty for failure to comply with a section 38 contribution notice
42B (1) This section applies where a contribution notice is issued to a person under section 38.
(2) Section 88A (financial penalties) applies to the person if the person, without reasonable excuse, fails to pay the debt due by virtue of the contribution notice to—
(a) the trustees or managers of the scheme, or
(b) the Board of the Pension Protection Fund (as the case may be),
before the date specified in the contribution notice for the purposes of this subsection (see section 40(2A)).
(3) The Regulator may not issue a warning notice to the person in respect of the imposition of a penalty under section 88A as it applies by virtue of subsection (2) if an application under section 41(7) has been made—
(a) in relation to the contribution notice, or
(b) in relation to a contribution notice which is a corresponding contribution notice for the purposes of section 40(8),
and the application has not been determined, withdrawn or abandoned.
(4) In this section “warning notice” means a notice given as mentioned in section 96(2)(a).
(1) The Pensions Act 2004 is amended as follows.
(2) After section 58 insert—
Sanctions for avoidance of employer debt etc
Offence of avoidance of employer debt
58A (1) This section applies in relation to an occupational pension scheme other than—
(a) a money purchase scheme, or
(b) a prescribed scheme or a scheme of a prescribed description.
(2) A person commits an offence only if—
(a) the person does an act or engages in a course of conduct that—
(i) prevents the recovery of the whole or any part of a debt which is due from the employer in relation to the scheme under section 75 of the Pensions Act 1995 (deficiencies in the scheme assets),
(ii) prevents such a debt becoming due,
(iii) compromises or otherwise settles such a debt, or
(iv) reduces the amount of such a debt which would otherwise become due,
(b) the person intended the act or course of conduct to have such an effect, and
(c) the person did not have a reasonable excuse for doing the act or engaging in the course of conduct.
(3) A reference in this section to an act or course of conduct includes a failure to act.
(4) This section does not apply to a person if the act done, or course of conduct engaged in, by the person is in accordance with the person's functions as an insolvency practitioner in relation to another person.
(5) For the purposes of this section a reference to a debt due under section 75 of the Pensions Act 1995 includes a contingent debt under that section.
(6) Accordingly, in the case of such a contingent debt, the reference in subsection (2)(a) to preventing a debt becoming due is to be read as including a reference to preventing the occurrence of any of the events specified in section 75(4C)(a) or (b) of the Pensions Act 1995 upon which the debt is contingent.
(7) A person guilty of an offence under subsection (2) is liable—
(a) on summary conviction in England and Wales, to a fine;
(b) on summary conviction in Scotland, to a fine not exceeding the statutory maximum;
(c) on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine, or both.
(8) Proceedings for an offence under subsection (2) may be instituted in England and Wales only—
(a) by the Regulator or the Secretary of State, or
(b) by or with the consent of the Director of Public Prosecutions.
(9) For the purposes of this section and sections 58B to 58D “insolvency practitioner”, in relation to a person, means—
(a) a person acting as an insolvency practitioner, in relation to that person, in accordance with section 388 of the Insolvency Act 1986, or
(b) an insolvency practitioner within the meaning of section 121(9)(b) (persons of a prescribed description).
Offence of conduct risking accrued scheme benefits
58B (1) This section applies in relation to an occupational pension scheme other than—
(a) a money purchase scheme, or
(b) a prescribed scheme or a scheme of a prescribed description.
(2) A person commits an offence only if—
(a) the person does an act or engages in a course of conduct that detrimentally affects in a material way the likelihood of accrued scheme benefits being received (whether the benefits are to be received as benefits under the scheme or otherwise),
(b) the person knew or ought to have known that the act or course of conduct would have that effect, and
(c) the person did not have a reasonable excuse for doing the act or engaging in the course of conduct.
(3) A reference in this section to an act or a course of conduct includes a failure to act.
(4) A reference in this section to accrued scheme benefits being received is a reference to benefits the rights to which have accrued by the relevant time being received by, or in respect of, the persons who were members of the scheme before that time.
(5) In this section “the relevant time” means—
(a) in the case of an act, the time of the act,
(b) in the case of a failure to act—
(i) the time when the failure occurred, or
(ii) where the failure continued for a period of time, the end of that period, or
(c) in the case of a course of conduct, the time when the course of conduct ended.
(6) A reference in this section to rights which have accrued is to be read in accordance with section 67A(6) and (7) of the Pensions Act 1995 (reading any reference in those subsections to a subsisting right as a reference to a right which has accrued).
(7) For the purposes of this section the benefits that may be received under the following provisions of this Act are to be disregarded—
(a) Chapter 3 of Part 2 (the Board of the Pension Protection Fund: pension protection), and
(b) section 286 (the financial assistance scheme for members of certain pension schemes).
(8) This section does not apply to a person if the act done, or course of conduct engaged in, by the person is in accordance with the person's functions as an insolvency practitioner in relation to another person (see section 58A(9)).
(9) A person guilty of an offence under subsection (2) is liable—
(a) on summary conviction in England and Wales, to a fine;
(b) on summary conviction in Scotland, to a fine not exceeding the statutory maximum;
(c) on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine, or both.
(10) Proceedings for an offence under subsection (2) may be instituted in England and Wales only—
(a) by the Regulator or the Secretary of State, or
(b) by or with the consent of the Director of Public Prosecutions.
(3) After section 58B (inserted by subsection (2)) insert—
Financial penalty for avoidance of employer debt
58C (1) This section applies in relation to an occupational pension scheme other than—
(a) a money purchase scheme, or
(b) a prescribed scheme or a scheme of a prescribed description.
(2) Section 88A (financial penalties) applies to a person who was party to an act or deliberate failure to act the main purpose or one of the main purposes of which was—
(a) to prevent the recovery of the whole or any part of a debt which is due from the employer in relation to the scheme under section 75 of the Pensions Act 1995 (deficiencies in the scheme assets),
(b) to prevent such a debt becoming due,
(c) to compromise or otherwise settle such a debt, or
(d) to reduce the amount of such a debt which would otherwise become due,
if it was not reasonable for the person to act or fail to act in the way that the person did.
(3) This section does not apply where the Regulator is of the opinion that the person, in being a party to the act or failure, was acting in accordance with the person's functions as an insolvency practitioner in relation to another person (see section 58A(9)).
(4) For the purposes of this section a reference to a debt due under section 75 of the Pensions Act 1995 includes a contingent debt under that section.
(5) Accordingly, in the case of such a contingent debt, the reference in subsection (2) to preventing a debt becoming due is to be read as including a reference to preventing the occurrence of any of the events specified in section 75(4C)(a) or (b) of the Pensions Act 1995 upon which the debt is contingent.
(6) For the purposes of this section the parties to an act or deliberate failure to act include those persons who knowingly assist in the act or failure.
(7) If the Regulator is of the opinion that—
(a) a person was party to a series of acts or deliberate failures to act, and
(b) the requirements of subsection (2) are met in relation to the series,
the series of acts or failures to act is to be regarded as an act or failure to act in relation to which the requirements of subsection (2) are met.
Financial penalty for conduct risking accrued scheme benefits
58D (1) This section applies in relation to an occupational pension scheme other than—
(a) a money purchase scheme, or
(b) a prescribed scheme or a scheme of a prescribed description.
(2) Section 88A (financial penalties) applies to a person who was party to an act or deliberate failure to act that detrimentally affected in a material way the likelihood of accrued scheme benefits being received (whether the benefits are to be received as benefits under the scheme or otherwise), if—
(a) the person knew or ought to have known that the act or failure to act would have that effect, and
(b) it was not reasonable for the person to act or fail to act in the way that the person did.
(3) This section does not apply where the Regulator is of the opinion that the person, in being a party to the act or failure, was acting in accordance with the person's functions as an insolvency practitioner in relation to another person (see section 58A(9)).
(4) In this section a reference to accrued scheme benefits being received is a reference to benefits the rights to which have accrued by the relevant time being received by, or in respect of, the persons who were members of the scheme before that time.
(5) In this section “the relevant time” means—
(a) in the case of an act, the time of the act;
(b) in the case of a failure to act—
(i) the time when the failure to act occurred, or
(ii) where the failure continued for a period of time, the end of that period;
and, in the case of acts or failures to act forming part of a series, any reference in this subsection to an act or failure to act is a reference to the last of the acts or failures in that series.
(6) A reference in this section to rights which have accrued is to be read in accordance with section 67A(6) and (7) of the Pensions Act 1995 (reading any reference in those subsections to a subsisting right as a reference to a right which has accrued).
(7) In determining for the purposes of this section whether an act or failure to act has detrimentally affected in a material way the likelihood of accrued scheme benefits being received, the following provisions of this Act are to be disregarded—
(a) Chapter 3 of Part 2 (the Board of the Pension Protection Fund: pension protection), and
(b) section 286 (the financial assistance scheme for members of certain pension schemes).
(8) For the purposes of this section the parties to an act or deliberate failure to act include those persons who knowingly assist in the act or failure.
(9) If the Regulator is of the opinion that—
(a) a person was party to a series of acts or deliberate failures to act, and
(b) the requirements of subsection (2) are met in relation to the series,
the series of acts or failures to act is to be regarded as an act or failure to act in relation to which the requirements of subsection (2) are met.
108 Duty to notify the Regulator of certain events
(1) The Pensions Act 2004 is amended as follows.
(2) In section 69 (duty to notify the Regulator of certain events)—
(a) in subsection (7), for “section 10 of the Pensions Act 1995 (c. 26) (civil penalties)” substitute “ section 88A (financial penalties) ”;
(b) in subsection (8), for “That section” substitute “ Section 88A ”.
(3) In section 80 (offences of providing false or misleading information to the Regulator), in subsection (1)(a), after sub-paragraph (ii) insert—
(iia) section 69 (duty to notify the Regulator of certain events),
.
109 Duty to give notices and statements to the Regulator in respect of certain events
(1) The Pensions Act 2004 is amended as follows.
(2) After section 69 insert—
Duty to give notices and statements to the Regulator in respect of certain events
69A (1) Except where the Regulator otherwise directs, the appropriate person must—
(a) give notice to the Regulator of any notifiable event;
(b) give notice to the Regulator of any material change in, or in the expected effects of, a notifiable event;
(c) give notice to the Regulator if a notifiable event is not going to, or does not, take place.
(2) In subsection (1) “notifiable event” means a prescribed event in respect of the employer in relation to an eligible scheme.
(3) For the purposes of subsection (1) each of the following is “the appropriate person”—
(a) the employer in relation to the scheme,
(b) a person connected with the employer,
(c) an associate of the employer, and
(d) a person of a prescribed description.
(4) Regulations may make provision about the meaning of a “material change” for the purposes of this section.
(5) A notice under subsection (1) must be given to the Regulator—
(a) in the case of a notice under subsection (1)(a), as soon as reasonably practicable after the person giving it becomes aware of the notifiable event, subject to subsection (6),
(b) in the case of a notice under subsection (1)(b), as soon as reasonably practicable after the person giving it becomes aware of the material change, subject to subsection (6), or
(c) in the case of a notice under subsection (1)(c), as soon as reasonably practicable after the person giving it becomes aware that the notifiable event is not going to take place or (as the case may be) did not take place.
(6) Regulations may require a notice under subsection (1)(a) or (b) to be given before the beginning of the prescribed period ending with—
(a) the notifiable event in question, or
(b) the material change in question.
(7) A notice under subsection (1)(a) or (b) must be accompanied by a statement (an “accompanying statement”).
(8) An accompanying statement must contain prescribed information.
(9) The information that may be prescribed under subsection (8) includes, in particular—
(a) a description of the event,
(b) a description of any adverse effects of the event on the eligible scheme,
(c) a description of any steps taken to mitigate those adverse effects, and
(d) a description of any communication with the trustees or managers of the eligible scheme about the event.
(10) Where a person gives the Regulator a notice under subsection (1), the person must give a copy of the notice and any accompanying statement to the trustees or managers of the eligible scheme at the same time.
(11) A notice or accompanying statement under this section must be in writing.
(12) No duty to which a person is subject is to be regarded as contravened merely because of any information or opinion contained in a notice or accompanying statement under this section.
This is subject to section 311 (protected items).
(13) Section 88A (financial penalties) applies to a person who, without reasonable excuse, fails to comply with an obligation imposed on the person by this section.
(14) For the purposes of this section—
(a) section 249 of the Insolvency Act 1986 (connected persons) applies as it applies for the purposes of any provision of the first Group of Parts of that Act,
(b) section 435 of the Insolvency Act 1986 (associated persons) applies as it applies for the purposes of that Act, and
(c) section 229 of the Bankruptcy (Scotland) Act 2016 (associated persons) applies as it applies for the purposes of that Act.
(15) In this section—
“eligible scheme” has the meaning given by section 126;
“event” includes a failure to act.
(3) In section 80 (offences of providing false or misleading information to the Regulator), after subsection (1)(a)(iia) (inserted by section 108) insert—
(iib) section 69A (duty to give notices and statements to the Regulator in respect of certain events),
.
(1) The Pensions Act 2004 is amended as follows.
(2) After section 72 insert—
Interviews
72A (1) The Regulator may, by notice in writing, require any person to whom section 72(2) applies to attend before the Regulator, at a time and place specified in the notice, to answer questions and provide explanations on one or more matters specified in the notice that are relevant to the exercise of any of the Regulator's functions.
(2) A notice under subsection (1) must contain such other information as may be prescribed.
(3) In section 72 (provision of information), omit subsections (1A) and (1B).
(4) In section 77 (penalties relating to sections 72 to 75)—
(a) after subsection (1) insert—
(1A) A person who, without reasonable excuse, neglects or refuses—
(a) to attend before the Regulator as required under section 72A(1), or
(b) to answer a question or provide an explanation on a matter specified in the notice under section 72A(1), when so attending before the Regulator,
is guilty of an offence.
;
(b) in subsection (3), after “subsection (1)” insert “ , (1A) ”;
(c) in subsection (4), after “subsection (1)” insert “ , (1A) ”.
(1) Section 73 of the Pensions Act 2004 (inspection of premises) is amended as follows.
(2) In subsection (2)—
(a) after paragraph (da) insert—
(db) the Pension Schemes Act 2017;
(dc) Part 1 of the Pension Schemes Act 2021;
;
(b) in paragraph (e), for “(da)” substitute “ (dc) ”.
(3) After subsection (2) insert—
(2A) An inspector may, for the purposes of investigating whether the Regulator has grounds in the case of an occupational pension scheme for issuing—
(a) a contribution notice under section 38 (contribution notices where avoidance of employer debt),
(b) a financial support direction under section 43 (financial support directions),
(c) a contribution notice under section 47 (contribution notices where non-compliance with financial support direction),
(d) a restoration order under section 52 (restoration orders where transactions at an undervalue),
(e) a contribution notice under section 55 (contribution notice where failure to comply with restoration order), or
(f) a notice, direction or order under any corresponding provision in force in Northern Ireland,
at any reasonable time enter premises liable to inspection.
(4) After subsection (5) insert—
(5A) An inspector may, for the purposes of investigating whether the relevant provisions are being, or have been, complied with in the case of a scheme, at any reasonable time enter premises liable to inspection.
(5B) In subsection (5A), “the relevant provisions” means provisions contained in or made by virtue of—
(a) such provisions of the pensions legislation as may be prescribed;
(b) any provisions in force in Northern Ireland corresponding to the provisions so prescribed.
(5) In subsection (6) (premises liable to inspection)—
(a) in paragraph (b), omit the “or” at the end;
(b) after paragraph (c) insert—
(d) documents relevant to the administration of the business of the employer in relation to the scheme are being kept there,
(e) the administration of the business of the employer in relation to the scheme, or work connected with that administration, is being carried out there, or
(f) in the case of an occupational pension scheme other than a money purchase scheme, a prescribed scheme or a scheme of a prescribed description, documents relevant to a change in the ownership of the employer or of a significant asset of the employer are being kept there.
(6) After subsection (6) insert—
(6A) In the application of this section in relation to a provision mentioned in subsection (1), (2A), (3), (4) or (5A), references in this section to “employer” are to be read as having the meaning that it has for the purposes of the provision in question.
(6B) In this section a reference to an employer in relation to an occupational pension scheme includes a reference to a person who has been the employer in relation to the scheme.
(7) In subsection (7), for “this section,” substitute
this section—
“the pensions legislation” means any enactment contained in or made by virtue of—
(a) the Pension Schemes Act 1993,
(b) Part 1 or section 33 or 45 of the Welfare Reform and Pensions Act 1999,
(c) this Act,
(d) Schedule 18 to the Pensions Act 2014, or
(e) section 48 or 49 of the Pension Schemes Act 2015;
.
112 Fixed penalty notices and escalating penalty notices
After section 77 of the Pensions Act 2004 (penalties relating to sections 72 to 75) insert—
Fixed penalty notices
77A (1) The Regulator may issue a fixed penalty notice to a person if it considers that the person—
(a) has failed to comply with a notice under section 72 or 72A,
(b) has failed to comply with a requirement under section 75, or
(c) has prevented or hindered an inspector exercising any power under section 73, 74 or 75.
(2) A fixed penalty notice is a notice requiring the person to whom it is issued to pay a penalty within the period specified in the notice.
(3) The penalty—
(a) is to be determined in accordance with regulations, and
(b) must not exceed £50,000.
(4) A fixed penalty notice must—
(a) state the amount of the penalty;
(b) state the date by which the penalty must be paid, which must be at least 28 days after the date on which the notice is issued;
(c) state the period to which the penalty relates;
(d) specify the failure or conduct to which the penalty relates;
(e) state that the Regulator may issue an escalating penalty notice under section 77B if the person fails to comply with a notice under section 72 or 72A;
(f) notify the person to whom the notice is issued of the review process under section 43 of the Pensions Act 2008 and the right of referral to a tribunal under section 44 of that Act (as applied by subsection (5)).
(5) The following sections of the Pensions Act 2008 apply to a penalty notice under this section as they apply to a penalty notice under section 40 of that Act—
(a) section 42 (penalty notices: recovery);
(b) section 43 (review of penalty notices);
(c) section 44 (references to First-tier Tribunal or Upper Tribunal).
(6) This section does not apply in a case where section 40 of the Pensions Act 2008 or section 17 of the Pension Schemes Act 2017 applies.
Escalating penalty notices
77B (1) The Regulator may issue an escalating penalty notice to a person if it considers that the person has failed to comply with a notice under section 72 or 72A.
(2) But the Regulator may not issue an escalating penalty notice to a person if—
(a) the person has exercised the right of referral to a tribunal under section 44 of the Pensions Act 2008 (as applied by section 77A(5)) in respect of a fixed penalty notice issued under section 77A in relation to that notice under section 72 or 72A, and
(b) the reference has not been determined.
(3) An escalating penalty notice is a notice requiring a person to pay an escalating penalty if the person fails to comply with a notice under section 72 or 72A before a specified date.
(4) An escalating penalty is a penalty which is calculated by reference to a daily rate.
(5) The daily rate—
(a) is to be determined in accordance with regulations, and
(b) must not exceed £10,000.
(6) An escalating penalty notice must—
(a) specify the failure to which the penalty relates;
(b) state that, if the person fails to comply with the notice under section 72 or 72A before a specified date, the person will be liable to pay an escalating penalty;
(c) state the daily rate of the escalating penalty and the way in which the penalty is calculated;
(d) state the date from which the escalating penalty will be payable, which must not be earlier than the date specified in the fixed penalty notice under section 77A(4)(b);
(e) state that the escalating penalty will continue to be payable at the daily rate until the date on which the person complies with the notice under section 72 or 72A or such earlier date as the Regulator may determine;
(f) notify the person to whom the notice is issued of the review process under section 43 of the Pensions Act 2008 and the right of referral to a tribunal under section 44 of that Act (as applied by subsection (7)).
(7) The following sections of the Pensions Act 2008 apply to an escalating penalty notice under this section as they apply to an escalating penalty notice under section 41 of that Act—
(a) section 42 (penalty notices: recovery);
(b) section 43 (review of penalty notices);
(c) section 44 (references to First-tier Tribunal or Upper Tribunal).
(8) This section does not apply in a case where section 41 of the Pensions Act 2008 or section 18 of the Pension Schemes Act 2017 applies.
113 Provision of false or misleading information to Regulator
After section 80 of the Pensions Act 2004 (offences of providing false or misleading information) insert—
Financial penalty for providing false or misleading information to Regulator
80A (1) Section 88A (financial penalties) applies to a person who has knowingly or recklessly provided the Regulator with information which is false or misleading in a material particular, if the information was provided to the Regulator in the circumstances mentioned in subsection (2)(a), (b) or (c).
(2) The circumstances referred to in subsection (1) are—
(a) that the information was provided in purported compliance with a requirement under—
(i) section 62 (the register: duties of trustees or managers),
(ii) section 64 (duty of trustees or managers to provide scheme return),
(iii) section 69 (duty to notify the Regulator of certain events),
(iv) section 69A (duty to give notices and statements to the Regulator in respect of certain events),
(v) section 72 (provision of information),
(vi) section 72A (interviews),
(vii) section 75 (inspection of premises: powers of inspectors), or
(viii) regulations under section 11 of the Pensions Act 2008 (information about employers' duties to be given to the Regulator);
(b) that the information was provided in applying for registration of a pension scheme under section 2 of the Welfare Reform and Pensions Act 1999 (registration of stakeholder pension schemes);
(c) that the information was provided otherwise than as mentioned in paragraph (a) or (b) but in circumstances in which the person providing the information intends, or could reasonably be expected to know, that it would be used by the Regulator for the purpose of exercising its functions under—
(i) the Pensions Act 1995,
(ii) this Act,
(iii) the Pensions Act 2008,
(iv) Schedule 18 to the Pensions Act 2014,
(v) the Pension Schemes Act 2017, or
(vi) Part 1 of the Pension Schemes Act 2021.
114 Provision of false or misleading information to trustees or managers
After section 80A of the Pensions Act 2004 (inserted by section 113) insert—
Financial penalty for providing false or misleading information to trustees or managers
80B (1) This section applies in relation to an occupational pension scheme other than—
(a) a money purchase scheme, or
(b) a prescribed scheme or a scheme of a prescribed description.
(2) Section 88A (financial penalties) applies to a person who has knowingly or recklessly provided a trustee or manager of the scheme with information which is false or misleading in a material particular, if the information was provided to the trustee or manager of the scheme in the circumstances mentioned in subsection (3)(a) or (b).
(3) The circumstances referred to in subsection (2) are—
(a) that the information was provided in purported compliance with a requirement under—
(i) regulations under section 7 of the Superannuation Act 1972 (superannuation of persons employed in local government service and other persons selected by the Secretary of State),
(ii) regulations under section 113A of the Pension Schemes Act 1993 (power to require disclosure of information about transfers from one scheme to another),
(iii) section 22(2B)(c) of the Pensions Act 1995 (insolvency practitioner or official receiver to give notice of certain events to trustees of scheme),
(iv) section 26 of that Act (insolvency practitioner or official receiver to give information to trustees),
(v) regulations under section 47(9) of that Act (power to impose duties on employers, auditors and actuaries to disclose information), or
(vi) a direction under section 72B of that Act (directions by Regulator for facilitating winding up of scheme);
(b) that the information was provided otherwise than as mentioned in paragraph (a) but in circumstances in which the person providing the information intends, or could reasonably be expected to know, that it would be used by the trustee or manager who receives it in that person's capacity as a trustee or manager of the scheme.
After section 88 of the Pensions Act 2004 insert—
Financial penalties
Financial penalties
88A (1) Where the Regulator is satisfied that by reason of an act this section applies to a person, the Regulator may issue a notice to the person requiring the person to pay a penalty in respect of that act of an amount specified in the notice within a period specified in the notice.
(2) The amount of the penalty is to be an amount, not exceeding £1 million, determined by the Regulator.
(3) Regulations may amend subsection (2) by substituting a higher amount for the amount for the time being specified in subsection (2).
(4) The date on which the period specified in the notice ends must be at least 28 days after the date on which the notice is issued.
(5) The notice must specify the provision by virtue of which the penalty is imposed.
(6) Where—
(a) a penalty under this section may, apart from this subsection, be imposed on a body corporate, and
(b) the act in question was done with the consent or connivance of a director, manager, secretary or other similar officer of the body or a person purporting to act in any such capacity,
this section applies to that person.
(7) Where the affairs of a body corporate are managed by its members, subsection (6) applies in relation to the acts of a member in connection with the member's functions of management as to a director of a body corporate.
(8) Where—
(a) a penalty under this section may, apart from this subsection, be imposed on a Scottish partnership, and
(b) the act in question was done with the consent or connivance of a partner,
this section applies to that person.
(9) If the Regulator requires a person to pay a penalty under this section by virtue of subsection (6) or (8), it may not also require the body corporate or the Scottish partnership to pay a penalty under this section in respect of the same act.
(10) The Regulator may not issue a notice under this section to a person in relation to an act if—
(a) the person has been convicted of an offence in respect of the same act, or
(b) criminal proceedings for the offence have been instituted against the person in respect of the act and the proceedings have not been concluded.
(11) The Regulator may not issue a notice under this section to a person in respect of an act if the Regulator has required the person to pay a penalty under section 10 of the Pensions Act 1995 (civil penalties) in respect of the same act.
(12) In this section “act” includes omission.
Financial penalties: time for recovery
88B (1) Subsection (3) applies where—
(a) the Regulator is satisfied that section 88A applies to a person by virtue of section 58C or 58D (financial penalty for avoidance of employer debt etc),
(b) the Regulator issues a notice under section 88A requiring the person to pay a penalty in respect of the act or failure to act in question, and
(c) when the notice under section 88A is issued, the person is subject to one or more contribution notices issued under section 38 (contribution notices where avoidance of employer debt).
(2) Subsection (3) does not apply if, when the notice under section 88A is issued, a qualifying insolvency event has occurred in relation to the employer in relation to the scheme by reference to which the penalty under section 88A is imposed.
(3) The Regulator may not take any step to recover the penalty specified in the notice under section 88A (including accepting an amount offered in payment or part payment of the penalty) until after—
(a) the relevant date relating to the contribution notice or (as the case may be) the latest of the relevant dates relating to the contribution notices, or
(b) if sooner, the date on which a qualifying insolvency event occurs in relation to the employer in relation to the scheme by reference to which the penalty under section 88A is imposed.
(4) In this section—
“qualifying insolvency event” has the meaning given by section 127(3);
“the relevant date” means, in relation to a contribution notice issued under section 38—
the date specified under section 40(2A) for the purposes of sections 42A(2) and 42B(2), disregarding any date that has effect instead of that date by virtue of section 41(10A) or (11B), or
if sooner, the date on which the sum specified in the contribution notice is paid.
Financial penalties: recovery
88C (1) A penalty under section 88A is recoverable by the Regulator.
(2) In England and Wales, such a penalty is, if the county court so orders, recoverable under section 85 of the County Courts Act 1984 or otherwise as if it were payable under an order of that court.
(3) In Scotland, a notice to pay such a penalty is enforceable as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom in Scotland.
(4) The Regulator must pay into the Consolidated Fund a penalty recovered under this section.
In Schedule 8—
(a) Part 1 makes provision for Northern Ireland which corresponds to that made by sections 103 to 115;
(b) Part 2 contains minor and consequential amendments.
(1) The Pensions Act 2004 is amended as follows.
(2) After section 238 insert—
Pensions dashboards
Qualifying pensions dashboard service
238A (1) A pensions dashboard service is an electronic communications service by means of which information about pensions may be requested by, and provided to, an individual or a person authorised by the individual.
(2) “Qualifying pensions dashboard service” means a pensions dashboard service in relation to which prescribed requirements are satisfied.
(3) Requirements prescribed under subsection (2) may, in particular, relate to—
(a) what relevant and other information is to be provided, how it is to be provided and the circumstances in which it is to be provided;
(b) how the pensions dashboard service is to be established, maintained and operated.
(4) In subsection (3)(a) “relevant information” means—
(a) information of a prescribed description about—
(i) state pensions;
(ii) basic or additional retirement pensions;
(b) state pension information relating to the individual in question of such description as may be prescribed;
(c) information of a prescribed description about occupational or personal pension schemes or a prescribed description of occupational or personal pension schemes;
(d) information relating to the individual in question and particular occupational or personal pension schemes of such description as may be prescribed.
(5) Requirements prescribed under subsection (2) may, in particular—
(a) require the pensions dashboard service to comply with standards, specifications or technical requirements published from time to time by—
(i) the Secretary of State,
(ii) the Money and Pensions Service, or
(iii) a person specified or of a description specified in the regulations;
(b) require the provider of the pensions dashboard service to satisfy prescribed conditions;
(c) require the provider of the pensions dashboard service to be a person approved from time to time by—
(i) the Secretary of State,
(ii) the Money and Pensions Service, or
(iii) a person specified or of a description specified in the regulations;
(d) require the provider of the pensions dashboard service to provide, or not to provide, information, facilities or services specified or of a description specified in connection with the pensions dashboard service.
(6) Requirements prescribed under subsection (2) may include provision under which a determination may fall to be made by—
(a) the Secretary of State,
(b) the Money and Pensions Service, or
(c) a person specified or of a description specified in the regulations.
Qualifying pension dashboard service: further provision
238B (1) Requirements prescribed under section 238A(2) may make provision about—
(a) dealing with requests for information about pensions, including provision about the use of intermediaries;
(b) the involvement of the provider of a pensions dashboard service in the arrangements for dealing with requests for information about pensions.
(2) The provision made by virtue of subsection (1) may, in particular, require—
(a) the use of electronic communications;
(b) the use of facilities or services specified or of a description specified in the regulations;
(c) the provision of assistance in connection with the establishment, maintenance or management of such facilities or services;
(d) participation in, or compliance with, arrangements for establishing, maintaining or managing such facilities or services.
(3) The facilities and services for which provision may be made by virtue of subsection (2)(b) may include facilities or services with functions relating to—
(a) the transmission of information,
(b) verifying the identity of a person,
(c) identifying the occupational or personal pension scheme or schemes under which pensions are payable to or in respect of a particular individual,
(d) authenticating information transmitted by means of electronic communications, or
(e) ensuring the security of information transmitted by means of electronic communications.
(4) Regulations under subsection (2)(b) may impose requirements as regards a facility or service, including requirements about—
(a) compliance with standards, specifications or technical requirements published from time to time by—
(i) the Secretary of State,
(ii) the Money and Pensions Service, or
(iii) a person specified or of a description specified in the regulations;
(b) the provider of the facility or service being a person approved from time to time by—
(i) the Secretary of State,
(ii) the Money and Pensions Service, or
(iii) a person specified or of a description specified in the regulations.
(5) Regulations under subsection (2)(d) may, in particular, require the provider of the pensions dashboard service—
(a) to cooperate with the Money and Pensions Service or a person specified or of a description specified in the regulations;
(b) to coordinate activities with the Money and Pensions Service or a person specified or of a description specified in the regulations;
(c) to enable the Money and Pensions Service or a person specified or of a description specified in the regulations to monitor or audit compliance by the provider.
(6) Except as provided by subsection (7), regulations under section 238A(2) may provide for the processing of personal data in accordance with the regulations not to be in breach of—
(a) any obligation of confidence owed by the person processing the personal data, or
(b) any other restriction on the processing of personal data (however imposed).
(7) Regulations under section 238A(2) are not to be read as authorising or requiring such processing of personal data as would contravene the data protection legislation (but in determining whether particular processing of data would do so, take into account the power conferred or duty imposed by the provision of regulations in question).
Sections 238A and 238B: interpretation
238C (1) This section applies for the purposes of sections 238A and 238B.
(2) A reference to state pension information, in relation to an individual, is a reference to the information about that individual specified in—
(a) section 42(7) of the Child Support, Pensions and Social Security Act 2000, or
(b) section 38(7) of the Child Support, Pensions and Social Security Act (Northern Ireland) 2000.
(3) A reference to the Money and Pensions Service includes a reference to a person with whom arrangements are made under section 5(1), (2) or (3) of the Financial Guidance and Claims Act 2018.
(4) In sections 238A and 238B—
“additional retirement pension” means—
any additional pension or shared additional pension under—
the Social Security Contributions and Benefits Act 1992, or
the Social Security Contributions and Benefits (Northern Ireland) Act 1992, or
any graduated retirement benefit under—
sections 36 and 37 of the National Insurance Act 1965, or
sections 35 and 36 of the National Insurance Act (Northern Ireland) 1966;
“basic retirement pension” means any basic pension under—
the Social Security Contributions and Benefits Act 1992, or
the Social Security Contributions and Benefits (Northern Ireland) Act 1992;
“the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);
“electronic communications service” has the meaning given by section 32 of the Communications Act 2003;
“personal data” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);
“state pension” means any state pension under—
Part 1 of the Pensions Act 2014, or
Part 1 of the Pensions Act (Northern Ireland) 2015.
(3) In section 316 (Parliamentary control of subordinate legislation), in subsection (2) (affirmative resolution procedure), after paragraph (k) insert—
(ka) regulations under section 238A (qualifying pensions dashboard service);
.
(1) The Pensions Act 2004 is amended as follows.
(2) After section 238C of the Pensions Act 2004 (inserted by section 118) insert—
Information from occupational pension schemes
238D (1) Regulations may impose requirements on the trustees or managers of a relevant occupational pension scheme with respect to—
(a) providing pensions information by means of—
(i) a qualifying pensions dashboard service, or
(ii) the pensions dashboard service provided by the Money and Pensions Service;
(b) facilitating the provision of pensions information by means of—
(i) a qualifying pensions dashboard service, or
(ii) the pensions dashboard service provided by the Money and Pensions Service.
(2) In this section “pensions information” means, in relation to a relevant occupational pension scheme, such information as may be prescribed, which may include in particular—
(a) information relating to—
(i) the constitution of the scheme,
(ii) the administration and finances of the scheme,
(iii) the rights and obligations that arise or may arise under the scheme,
(iv) the pensions and other benefits an entitlement to which would be likely to accrue to a member, or be capable of being secured by a member, in respect of the rights that may arise under the scheme, and
(v) other matters relevant to occupational pension schemes in general or to occupational pension schemes of a description to which the scheme belongs;
(b) information as regards the position of an individual in relation to the scheme.
(3) Regulations under subsection (1) may, in particular, impose requirements about—
(a) the persons to whom pensions information must be provided;
(b) the circumstances in which pensions information must be provided;
(c) the steps to be taken before pensions information may be provided;
(d) the manner and form in which pensions information must be provided;
(e) the time within which pensions information must be provided;
(f) the way in which pensions information must be held.
(4) Regulations under subsection (1) may require the trustees or managers of a scheme to comply with standards, specifications or technical requirements published from time to time by—
(a) the Secretary of State,
(b) the Money and Pensions Service, or
(c) a person specified or of a description specified in the regulations.
(5) Regulations under subsection (1) may include provision under which a determination may fall to be made by—
(a) the Secretary of State,
(b) the Money and Pensions Service, or
(c) a person specified or of a description specified in the regulations.
(6) Regulations under subsection (1) may require the trustees or managers to provide prescribed information about their carrying out of requirements prescribed under this section to—
(a) the Regulator,
(b) the Money and Pensions Service, or
(c) a person specified or of a description specified in the regulations.
(7) In complying with requirements prescribed under this section, a trustee or manager of an occupational pension scheme must have regard to guidance issued from time to time by—
(a) the Secretary of State, or
(b) a person specified or of a description specified in the regulations.
Information from occupational pension schemes: further provision
238E (1) Regulations under section 238D(1) may make provision about—
(a) how pensions information is to be provided, including provision about the use of intermediaries;
(b) the involvement of the trustees or managers of a scheme in the arrangements for dealing with requests for information about pensions.
(2) The provision made by virtue of subsection (1) may, in particular, require—
(a) the use of electronic communications;
(b) the use of facilities or services specified or of a description specified in the regulations;
(c) the provision of assistance in connection with the establishment, maintenance or management of such facilities or services;
(d) participation in, or compliance with, arrangements for establishing, maintaining or managing such facilities or services.
(3) The facilities and services for which provision may be made by virtue of subsection (2)(b) may include facilities or services with functions relating to—
(a) the transmission of information,
(b) verifying the identity of a person,
(c) identifying the occupational or personal pension scheme or schemes under which pensions are payable to or in respect of a particular individual,
(d) authenticating information transmitted by means of electronic communications, or
(e) ensuring the security of information transmitted by means of electronic communications.
(4) Regulations under subsection (2)(b) may impose requirements as regards a facility or service, including requirements about—
(a) compliance with standards, specifications or technical requirements published from time to time by—
(i) the Secretary of State,
(ii) the Money and Pensions Service, or
(iii) a person specified or of a description specified in the regulations;
(b) the provider of the facility or service being a person approved from time to time by—
(i) the Secretary of State,
(ii) the Money and Pensions Service, or
(iii) a person specified or of a description specified in the regulations.
(5) Regulations under subsection (2)(d) may, in particular, require the trustees or managers—
(a) to cooperate with the Money and Pensions Service or other persons specified or of a description specified in the regulations;
(b) to coordinate activities with the Money and Pensions Service or other persons specified or of a description specified in the regulations.
(6) Except as provided by subsection (7), regulations under section 238D(1) may provide for the processing of personal data in accordance with the regulations not to be in breach of—
(a) any obligation of confidence owed by the person processing the personal data, or
(b) any other restriction on the processing of personal data (however imposed).
(7) Regulations under section 238D(1) are not to be read as authorising or requiring such processing of personal data as would contravene the data protection legislation (but in determining whether particular processing of data would do so, take into account the power conferred or duty imposed by the provision of regulations in question).
Sections 238D and 238E: interpretation
238F (1) This section has effect for the purposes of sections 238D and 238E.
(2) A reference to the Money and Pensions Service includes a reference to a person with whom arrangements are made under section 5(1), (2) or (3) of the Financial Guidance and Claims Act 2018.
(3) In sections 238D and 238E—
“the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);
“pensions dashboard service” means—
a pensions dashboard service within the meaning of section 238A, or
a pensions dashboard service within the meaning of Article 215A of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1));
“personal data” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);
“qualifying pensions dashboard service” means a pensions dashboard service that satisfies—
such requirements as may be prescribed by regulations under section 238A, or
such requirements as may be prescribed by regulations under Article 215A of the ;
“relevant occupational pension scheme” means an occupational pension scheme which is not a stakeholder pension scheme (as defined in section 1 of the Welfare Reform and Pensions Act 1999).
Compliance
238G (1) Regulations may make provision with a view to securing that the trustees or managers of a relevant occupational pension scheme comply with a provision of regulations under section 238D.
(2) The regulations may, among other things—
(a) provide for the Regulator to issue a notice (a “compliance notice”) to a person with a view to ensuring the person's compliance with a provision of regulations under section 238D;
(b) provide for the Regulator to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a provision of the regulations;
(c) provide for the Regulator to issue a notice (a “penalty notice”) imposing a penalty on a person where the Regulator is of the opinion that the person—
(i) has failed to comply with a compliance notice or third party compliance notice, or
(ii) has contravened a provision of regulations under section 238D;
(d) provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty;
(e) confer other functions on the Regulator.
(3) The regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention.
(4) But the amount of a penalty imposed under the regulations in respect of a failure or contravention must not exceed—
(a) £5,000, in the case of an individual, and
(b) £50,000, in any other case.
(5) In this section “relevant occupational pension scheme” has the meaning given by section 238F.
(3) In section 310 (admissibility of statements), in subsection (3)(b), after sub-paragraph (ai) (inserted by paragraph 11 of Schedule 7) insert—
(bi) section 238G (penalties for contravention of regulations under section 238D),
.
(4) In section 316 (Parliamentary control of subordinate legislation), in subsection (2) (affirmative resolution procedure), after paragraph (ka) (inserted by section 118) insert—
(kb) regulations under section 238D (information from occupational pension schemes);
(kc) regulations under section 238G (compliance with regulations under section 238D);
.
(5) In Schedule 1 (the Pensions Regulator), in Part 4 (proceedings and delegation etc), in paragraph 21(2), after paragraph (e) insert—
(ea) the power to issue a compliance notice under regulations under section 238G;
(eb) the power to issue a third party compliance notice under regulations under section 238G;
(ec) the power to issue a penalty notice under regulations under section 238G;
.
121 Information from personal and stakeholder pension schemes
(1) The Financial Services and Markets Act 2000 is amended as follows.
(2) After section 137FA insert—
FCA general rules: pensions dashboards
137FAA (1) The FCA must make general rules imposing requirements on specified authorised persons with respect to—
(a) providing pensions information by means of—
(i) a qualifying pensions dashboard service;
(ii) the pensions dashboard service provided by the Money and Pensions Service;
(b) facilitating the provision of pensions information by means of—
(i) a qualifying pensions dashboard service;
(ii) the pensions dashboard service provided by the Money and Pensions Service.
(2) In this section “pensions information” means, in relation to a personal or stakeholder pension scheme, information of a description specified in rules made by virtue of subsection (1), which may include in particular—
(a) information relating to—
(i) the constitution of the scheme,
(ii) the administration and finances of the scheme,
(iii) the rights and obligations that arise or may arise under the scheme,
(iv) the pensions and other benefits an entitlement to which would be likely to accrue to a member, or be capable of being secured by a member, in respect of the rights that may arise under the scheme, and
(v) other matters relevant to personal or stakeholder pension schemes in general or to personal or stakeholder pension schemes of a description to which the scheme belongs;
(b) information as regards the position of an individual in relation to the scheme.
(3) Rules made by virtue of subsection (1) may, in particular, impose requirements about—
(a) the persons to whom pensions information must be provided;
(b) the circumstances in which pensions information must be provided;
(c) the steps to be taken before pensions information may be provided;
(d) the manner and form in which pensions information must be provided;
(e) the time within which pensions information must be provided;
(f) the way in which pensions information must be held.
(4) Rules made by virtue of subsection (1) may require specified authorised persons to comply with standards, specifications or technical requirements published from time to time by—
(a) the Secretary of State,
(b) the Money and Pensions Service, or
(c) a person specified or of a description specified in the rules.
(5) Rules made by virtue of subsection (1) may include provision under which a determination may fall to be made by—
(a) the Secretary of State,
(b) the Money and Pensions Service, or
(c) a person specified or of a description specified in the rules.
(6) Rules made by virtue of subsection (1) may require specified authorised persons to provide information specified in the rules about their carrying out of requirements specified in the rules to—
(a) the FCA,
(b) the Money and Pensions Service, or
(c) a person specified or of a description specified in the rules.
(7) Rules made by virtue of subsection (1) may require specified authorised persons to have regard, in complying with requirements specified in the rules, to guidance issued from time to time by a person specified or of a description specified in the rules.
(8) In determining what provision to include in the rules, the FCA must have regard to any regulations that are for the time being in force under—
(a) section 238D of the Pensions Act 2004, or
(b) Article 215D of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)).
Pensions dashboards: further provision
137FAB (1) General rules made by virtue of section 137FAA(1) may make provision about—
(a) how pensions information is to be provided, including provision about the use of intermediaries;
(b) the involvement of specified authorised persons in the arrangements for dealing with requests for information about pensions.
(2) The provision made by virtue of subsection (1) may, in particular, require—
(a) the use of electronic communications;
(b) the use of facilities or services specified or of a description specified in the rules;
(c) the provision of assistance in connection with the establishment, maintenance or management of such facilities or services;
(d) participation in, or compliance with, arrangements for establishing, maintaining or managing such facilities or services.
(3) The facilities and services for which provision may be made by virtue of subsection (2)(b) may include facilities or services with functions relating to—
(a) the transmission of information,
(b) verifying the identity of a person,
(c) identifying the occupational or personal pension scheme or schemes (as defined in section 1 of the Pension Schemes Act 1993 or the Pension Schemes (Northern Ireland) Act 1993) under which pensions are payable to or in respect of a particular individual,
(d) authenticating information transmitted by means of electronic communications, or
(e) ensuring the security of information transmitted by means of electronic communications.
(4) Rules made by virtue of subsection (2)(b) may impose requirements as regards a facility or service, including requirements about—
(a) compliance with standards, specifications or technical requirements published from time to time by—
(i) the Secretary of State,
(ii) the Money and Pensions Service, or
(iii) a person specified or of a description specified in the rules;
(b) the provider of the facility or service being a person approved from time to time by—
(i) the Secretary of State,
(ii) the Money and Pensions Service, or
(iii) a person specified or of a description specified in the rules.
(5) Rules made by virtue of subsection (2)(d) may, in particular, require specified authorised persons—
(a) to cooperate with the Money and Pensions Service or a person specified or of a description specified in the rules;
(b) to coordinate activities with the Money and Pensions Service or a person specified or of a description specified in the rules.
(6) Except as provided by subsection (7), general rules made by virtue of section 137FAA(1) may provide for the processing of personal data in accordance with the rules not to be in breach of—
(a) any obligation of confidence owed by the person processing the personal data, or
(b) any other restriction on the processing of personal data (however imposed).
(7) General rules made by virtue of section 137FAA(1) are not to be read as authorising or requiring such processing of personal data as would contravene the data protection legislation (but in determining whether particular processing of data would do so, take into account the power conferred or duty imposed by the provision of the rules in question).
Sections 137FAA and 137FAB: supplementary
137FAC (1) Before the FCA publishes a draft of any general rules to be made by virtue of section 137FAA, it must consult—
(a) the Secretary of State, and
(b) the Treasury.
(2) Section 137FAA is not to be treated as requiring the FCA to make general rules by virtue of section 137FAA that come into force before regulations made under section 238D of the Pensions Act 2004 come into force.
(3) Section 137FAA is not to be treated as requiring the FCA to exercise the power to make general rules by virtue of section 137FAA in relation to every case to which the power extends.
(4) A reference in sections 137FAA and 137FAB to the Money and Pensions Service includes a reference to a person with whom arrangements are made under section 5(1), (2) or (3) of the Financial Guidance and Claims Act 2018.
(5) In sections 137FAA and 137FAB—
“the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);
“pensions dashboard service” means—
a pensions dashboard service within the meaning of section 238A of the Pensions Act 2004, or
a pensions dashboard service within the meaning of Article 215A of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1));
“personal data” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);
“personal pension scheme” means a personal pension scheme within the meaning of an order under section 22 (except in section 137FAB(3)(c));
“qualifying pensions dashboard service” means a pensions dashboard service that satisfies—
such requirements as may be prescribed by regulations under section 238A of the Pensions Act 2004, or
such requirements as may be prescribed by regulations under Article 215A of the ;
“specified authorised person” means an authorised person of a description specified in general rules made by virtue of section 137FAA;
“stakeholder pension scheme” has the meaning given by—
section 1 of the Welfare Reform and Pensions Act 1999, in relation to England and Wales and Scotland;
Article 3 of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)), in relation to Northern Ireland.
(3) In section 138F (notification of rules), in subsection (2) (rules not to be notified to the Bank of England), after “section” insert “ 137FAA, ”.
122 The Money and Pensions Service: the pensions guidance function
In the Financial Guidance and Claims Act 2018, after section 4 (specific requirements as to the pensions guidance function) insert—
Specific functions included in the pensions guidance function
4A (1) The single financial guidance body must provide a pensions dashboard service by means of which—
(a) information that the trustees or managers of a relevant occupational pension scheme are required to provide by—
(i) regulations under section 238D(1)(a)(ii) of the Pensions Act 2004, or
(ii) regulations under Article 215D(1)(a)(ii) of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)), and
(b) information that specified authorised persons are required to provide by general rules under section 137FAA(1)(a)(ii) of the Financial Services and Markets Act 2000,
may be requested by, and provided to, an individual or a person authorised by the individual.
(2) The single financial guidance body may, by means of its pensions dashboard service, provide information about—
(a) state pensions,
(b) basic and additional retirement pensions, and
(c) state pension information relating to an individual.
(3) The single financial guidance body may carry out other functions relating to pensions dashboard services, including functions for which provision is made by—
(a) regulations under section 238A of the Pensions Act 2004 or Article 215A of the Pensions (Northern Ireland) Order 2005 (qualifying pensions dashboard services),
(b) regulations under section 238D of the Pensions Act 2004 or Article 215D of the Pensions (Northern Ireland) Order 2005 (information from occupational pension schemes), or
(c) general rules under section 137FAA of the Financial Services and Markets Act 2000 (information from personal or stakeholder pension schemes).
(4) The functions of the single financial guidance body referred to in subsections (1) to (3) are part of its pensions guidance function.
(5) Subsections (1) to (4) are without prejudice to sections 3(4) and (8) and 4.
(6) In this section—
“pensions dashboard service” means—
a pensions dashboard service within the meaning of section 238A of the Pensions Act 2004, or
a pensions dashboard service within the meaning of Article 215A of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1));
“relevant occupational pension scheme” has the meaning given by—
section 238F of the Pensions Act 2004, in relation to England and Wales and Scotland, and
Article 215F of the Pensions (Northern Ireland) Order 2005, in relation to Northern Ireland;
“specified authorised person” has the meaning given by section 137FAC of the Financial Services and Markets Act 2000;
“state pension”, “basic retirement pension”, “additional retirement pension” and “state pension information” have the meaning given by section 238C of the Pensions Act 2004.
Schedule 10 contains—
(a) in Part 1, amendments of Part 3 of the Pensions Act 2004 (scheme funding), and
(b) in Part 2, minor and consequential amendments relating to the amendments mentioned in paragraph (a).
(1) The Pensions Act 1995 is amended as follows.
(2) After section 41 insert—
Climate change risk
41A (1) Regulations may impose requirements on the trustees or managers of an occupational pension scheme of a prescribed description with a view to securing that there is effective governance of the scheme with respect to the effects of climate change.
(2) The effects of climate change in relation to which provision may be made under subsection (1) include, in particular—
(a) risks arising from steps taken because of climate change (whether by governments or otherwise), and
(b) opportunities relating to climate change.
(3) The requirements which may be imposed by the regulations include, in particular, requirements about—
(a) reviewing the exposure of the scheme to risks of a prescribed description;
(b) assessing the assets of the scheme in a prescribed manner;
(c) determining, reviewing and (if necessary) revising a strategy for managing the scheme's exposure to risks of a prescribed description;
(d) determining, reviewing and (if necessary) revising targets relating to the scheme's exposure to risks of a prescribed description;
(e) measuring performance against such targets;
(f) preparing documents containing information of a prescribed description.
(4) Regulations under subsection (3)(b) may, in particular, require—
(a) that assets are assessed by reference to their exposure to risks of a prescribed description, and
(b) that an assessment includes determining the contribution of the assets of the scheme to climate change.
(5) The regulations may require the trustees or managers of the scheme to take into account—
(a) different ways in which the climate might change, and
(b) different steps that might be taken because of climate change.
(6) Regulations under subsection (5) may require the trustees or managers of the scheme to adopt prescribed assumptions as to future events, including assumptions about—
(a) the steps that might be taken for the purpose of achieving the Paris Agreement goal or other climate change goal, or
(b) the achievement of the Paris Agreement goal or other climate change goal.
(7) In complying with requirements imposed by the regulations, a trustee or manager must have regard to guidance prepared from time to time by the Secretary of State.
(8) In this section “the Paris Agreement goal” means the goal of holding the increase in the average global temperature to well below 2°C above pre-industrial levels referred to in Article 2(1)(a) of the agreement done at Paris on 12 December 2015.
Climate change risk: publication of information
41B (1) Regulations may require the trustees or managers of an occupational pension scheme of a prescribed description to publish information of a prescribed description relating to the effects of climate change on the scheme (which may include information about matters to which regulations under section 41A may relate).
(2) Regulations under subsection (1) may, among other things—
(a) require the trustees or managers to publish a document of a prescribed description;
(b) require information or a document to be made available free of charge;
(c) require information or a document to be provided in a form that is or by means that are prescribed or of a prescribed description.
(3) In complying with requirements imposed by the regulations, a trustee or manager must have regard to guidance prepared from time to time by the Secretary of State.
Sections 41A and 41B: compliance
41C (1) Regulations may make provision with a view to ensuring compliance with a provision of regulations under section 41A or 41B.
(2) The regulations may in particular—
(a) provide for the Authority to issue a notice (a “compliance notice”) to a person with a view to ensuring the person's compliance with a provision of regulations under section 41A or 41B;
(b) provide for the Authority to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a provision of regulations under section 41A or 41B;
(c) provide for the Authority to issue a notice (a “penalty notice”) imposing a penalty on a person where the Authority are of the opinion that the person—
(i) has failed to comply with a compliance notice or third party compliance notice, or
(ii) has contravened a provision of regulations under section 41A or 41B;
(d) provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty;
(e) confer other functions on the Authority.
(3) The regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention.
(4) But the amount of a penalty imposed under the regulations in respect of a failure or contravention must not exceed—
(a) £5,000, in the case of an individual, and
(b) £50,000, in any other case.
(3) In section 116 (breach of regulations), in subsection (3)(b), after “10” insert “ or under provision contained in regulations made by virtue of section 41C ”.
(4) In section 175 (Parliamentary control of orders and regulations)—
(a) in subsection (1), after “(2)” insert “ , (2A) ”;
(b) after subsection (2) insert—
(2A) A statutory instrument which contains the first regulations made by virtue of section 41A or 41C must not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
(1) The Pension Schemes Act 1993 is amended as follows.
(2) In section 95 (ways of taking right to cash equivalent), after subsection (6) insert—
(6ZA) The trustees or managers of the scheme may not use the cash equivalent in a way specified in subsection (2)(a), (b) or (d), (2A)(a), (b) or (d) or (3) unless prescribed conditions are satisfied.
(6ZB) The conditions that may be prescribed by regulations under subsection (6ZA) include (but are not limited to) conditions about—
(a) the member's employment or place of residence;
(b) providing the trustees or managers with information or evidence about the member's employment or place of residence;
(c) the member obtaining information or guidance about exercising the option conferred by subsection (1) from a prescribed person in a prescribed case;
(d) providing the trustees or managers with evidence that—
(i) the member has complied with a prescribed condition about obtaining such information or guidance from a prescribed person, or
(ii) the member is not subject to such a prescribed condition.
(6ZC) Regulations may make provision requiring the trustees or managers of a pension scheme to notify a member who makes an application under subsection (1) of conditions prescribed under subsection (6ZA).
(3) In section 98 (loss of right to cash equivalent), in subsection (2), for “99(2A)” substitute “ 99(2ZA) or (2A) ”.
(4) In section 99 (trustees' duties after exercise of option), after subsection (2) insert—
(2ZA) Subsection (2) does not apply if the trustees or managers have been unable to carry out what the member requires because a condition prescribed by regulations under section 95(6ZA) has not been satisfied.
(5) In section 99, after subsection (2ZA) (inserted by subsection (4))—
(2ZB) Subsection (2) does not apply if—
(a) the member was required by section 96(4) to give a transfer notice under section 101F(1) in addition to making an application, and
(b) the trustees or managers have been unable to carry out what the member required in the transfer notice under section 101F(1) because a condition prescribed by regulations under section 101F(5A) has not been satisfied.
(6) In section 101F (power to give transfer notice), after subsection (5) insert—
(5A) The trustees or managers of the scheme may not use the amount equal to the cash equivalent for an authorised purpose under subsection (2)(a) or (c) or (3) unless prescribed conditions are satisfied.
(5B) The conditions that may be prescribed by regulations under subsection (5A) include (but are not limited to) conditions about—
(a) the member's employment or place of residence;
(b) providing the trustees or managers with information or evidence about the member's employment or place of residence;
(c) the member obtaining information or guidance about exercising the right under subsection (1) from a prescribed person in a prescribed case;
(d) providing the trustees or managers with evidence that—
(i) the member has complied with a prescribed condition about obtaining such information or guidance from a prescribed person, or
(ii) the member is not subject to such a prescribed condition.
(5C) Regulations may make provision requiring the trustees or managers of a qualifying scheme to notify an eligible member who gives a transfer notice of conditions prescribed under subsection (5A).
(7) In section 101J (time for compliance with transfer notice), after subsection (2A) insert—
(2AA) Subsection (1) does not apply if the trustees or managers have been unable to carry out what the member requires because a condition prescribed by regulations under section 101F(5A) has not been satisfied.
(8) In section 101J, after subsection (2AA) (inserted by subsection (7))—
(2AB) Subsection (1) does not apply if—
(a) the member was required by section 101G(4) to make an application under section 95(1) in addition to giving a transfer notice, and
(b) the trustees or managers have been unable to carry out what the member required in the application under section 95(1) because a condition prescribed by regulations under section 95(6ZA) has not been satisfied.
126 Modification of provisions relating to pensionable service
(1) The amendments of the Pension Protection Fund (Compensation) Regulations 2005 (S.I. 2005/670) made by regulation 2(2) and (3) of the Pension Protection Fund (Pensionable Service) and Occupational Pension Schemes (Investment and Disclosure) (Amendment and Modification) Regulations 2018 (S.I. 2018/988) (“the 2018 Regulations”) are to be deemed always to have had effect.
(2) The amendment of the Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 (S.I. 2005/441) made by regulation 3 of the 2018 Regulations is to be deemed always to have had effect.
(1) In section 1 of the Welfare Reform and Pensions Act 1999 (meaning of “stakeholder pension scheme”), in subsection (5) (fourth condition: charge cap)—
(a) for “result in” substitute “ constitute ”;
(b) after “members” insert “ or the making of transfer payments with a view to acquiring rights or entitlements to pension benefits under different pension schemes ”.
(2) In Schedule 18 to the Pensions Act 2014 (power to restrict charges or impose requirements in relation to schemes), in paragraph 1(5), in the definition of “administration charge”—
(a) for “result in” substitute “ constitute ”;
(b) after “members” insert “ or the making of transfer payments with a view to acquiring rights or entitlements to pension benefits under different pension schemes ”.
(3) In section 113 of the Pension Schemes Act 1993 (disclosure of information about schemes to members etc)—
(a) in subsection (6)(b), after “the” insert “ other ”;
(b) in subsection (7), after “or” insert “ other ”.
(4) In section 137FA of the Financial Services and Markets Act 2000 (FCA general rules: disclosure of information about pension scheme transaction costs etc)—
(a) in subsection (3)(b), after “the” insert “ other ”;
(b) in subsection (4), after “or” insert “ other ”;
(c) in subsection (7), after “costs or” insert “ other ”.
In the Pension Schemes Act 2015, omit—
(a) sections 1 to 7 (Part 1: categories of pension scheme);
(b) sections 8 to 35 (Part 2: pension schemes providing collective benefits);
(c) sections 36, 37, 38(2), (3) and (5) to (7) and 39 to 45 (general changes to legislation about pension schemes);
(d) Schedule 1 (early leavers: revaluation of accrued benefits);
(e) in Schedule 2 (other amendments to do with Parts 1 and 2)—
(i) paragraphs 1 to 22;
(ii) paragraphs 25 to 29;
(iii) paragraphs 31 and 32;
(iv) paragraphs 34 and 35;
(v) paragraphs 37 to 51.
129 Further provision relating to pension schemes: Northern Ireland
Schedule 11 contains—
(a) in Part 1, provision for Northern Ireland corresponding to the provision made for England and Wales and Scotland in Schedule 10, and
(b) in Part 2, provision for Northern Ireland corresponding to the provision made for England and Wales and Scotland in sections 124 to 128.
(1) This Act extends to England and Wales and Scotland only, subject as follows.
(2) Subject to subsection (4), the following provisions extend to Northern Ireland only—
(a) Part 2;
(b) section 117 and Schedule 8;
(c) section 120 and Schedule 9;
(d) section 129 and Schedule 11.
(3) The following provisions extend to England and Wales, Scotland and Northern Ireland—
(a) section 126(2);
(b) this section and sections 131 and 132.
(4) An amendment or repeal contained in this Act has the same extent as the enactment to which it relates.
(1) This Act comes into force on such day as the Secretary of State may by regulations appoint, subject to subsections (2) and (3).
(2) Subject to subsection (3), the following provisions come into force on such day as the Department for Communities in Northern Ireland may by order appoint—
(a) Part 2;
(b) section 117 and Schedule 8;
(c) section 120 and Schedule 9;
(d) section 129 and Schedule 11.
(3) The following provisions come into force on the day on which this Act is passed—
(a) any provision of Part 1, 2 or 4 so far as it confers power to make regulations or is otherwise necessary for enabling the exercise of such a power on or after the day on which this Act is passed;
(b) any provision of Schedule 10 so far as it confers power to make regulations or is otherwise necessary for enabling the exercise of such a power on or after the day on which this Act is passed and section 123 so far as relating to that provision;
(c) any provision of Part 1 of Schedule 11 so far as it confers power to make regulations or is otherwise necessary for enabling the exercise of such a power on or after the day on which this Act is passed and section 129 so far as relating to that provision;
(d) section 130;
(e) this section;
(f) section 132.
(4) Regulations or orders under this section may appoint different days for different purposes.
(5) The Secretary of State may by regulations make transitional, transitory or saving provision in connection with the coming into force of a provision of this Act, other than a provision mentioned in subsection (2).
(6) The Department for Communities in Northern Ireland may by order make transitional, transitory or saving provision in connection with the coming into force of a provision mentioned in subsection (2).
(7) Regulations made by the Secretary of State under this section are to be made by statutory instrument.
(8) The power of the Department for Communities in Northern Ireland to make an order under subsection (2) or (6) is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).
Section 6
Building Societies Act 1986 (c. 53)
1 (1) Schedule 10A to the Building Societies Act 1986 (disclosures about directors, other officers and employees in notes to accounts) is amended as follows.
(2) In paragraph 1(2) (aggregate amount of director's remuneration), at the appropriate place insert—
“collective money purchase benefit” has the meaning given in section 1 of the Pension Schemes Act 2021;
.
(3) In that provision, in the definition of “money purchase benefits”—
(a) for “means retirement benefits” substitute
means—
(a) retirement benefits
;
(b) at the end insert
, and
(b) collective money purchase benefits;
.
(4) In paragraph 1A(1) (money purchase benefits), for “the definition” substitute “ paragraph (a) of the definition ”.
Pension Schemes Act 1993 (c. 48)
2 The Pension Schemes Act 1993 is amended as follows.
3 (1) Section 181(1) (general interpretation) is amended as follows.
(2) At the appropriate place insert—
“collective money purchase benefit” has the meaning given by section 1 of the Pension Schemes Act 2021;
.
(3) In the definition of “money purchase benefits”—
(a) for “means benefits” substitute
means—
(a) benefits
;
(b) at the end insert
, and
(b) collective money purchase benefits;
.
4 In section 181B(1) (money purchase benefits: supplementary), for “the definition” substitute “ paragraph (a) of the definition ”.
Pensions Act 2008 (c. 30)
5 The Pensions Act 2008 is amended as follows.
6 (1) Section 99 (interpretation of Part 1: pension scheme membership for jobholders) is amended as follows.
(2) At the appropriate place insert—
“collective money purchase benefit” has the meaning given by section 1 of the Pension Schemes Act 2021;
.
(3) In the definition of “money purchase benefits”—
(a) for “means benefits” substitute
means—
(a) benefits
;
(b) at the end insert
, and
(b) collective money purchase benefits;
.
7 In section 99A(1) (money purchase benefits: supplementary), for “the definition” substitute “ paragraph (a) of the definition ”.
Schedule 1A Unconnected Multiple Employer Schemes: Business Strategy
Section 14(3C)(a)(ii) and (b)
Part 1 Information which must be taken into account
1 The scheme’s latest accounts (if any).
2 The statement of investment principles (if any) prepared by the trustees of the scheme in accordance with section 35 of the Pensions Act 1995 (investment principles).
3 The latest accounts (if any) of the scheme proprietor provided to the Pensions Regulator under section 8 or section 26A.
4 The latest accounts of any undertaking, other than an unincorporated association, that partly or wholly funds the scheme proprietor, provided to the Pensions Regulator under section 8 or section 26A.
Part 2 Matters which must be taken into account
5 The structure of the scheme and its target market, including any plans to acquire or merge with other schemes.
6 The robustness and prudence of any assumptions in the scheme’s business plan (see section 14A) about membership, contributions, income and costs.
7 The planned expenditure of the scheme, the purpose of the expenditure, and how it will be funded.
8 The terms, security and affordability of loans and other funding provided to the scheme, and the identity of each lender or other funding provider.
9 Information about the market in which the scheme operates or is to operate.
10 The experience and professional competence of the individuals involved in running the scheme.
11 Where a business plan has been revised as a result of a significant change to the information included in it (see section 14A(4)), the circumstances that led to the significant change.
12 Any provision made by the trustees and the scheme proprietor to fund contingent liabilities in respect of the scheme.
Part 3 Information which may be taken into account
13 The scheme’s accounts, other than the latest accounts.
14 Any accounts of the scheme proprietor, and of any undertaking that partly or wholly funds the scheme proprietor, provided to the Pensions Regulator under section 8 or section 26A, other than the latest accounts.
Schedule 1B Unconnected Multiple Employer Schemes: Business Plan - Information and Requirements
Section 14A(2)
Part 1 Information which must be included in a business plan
General
1 The date by reference to which the information in the business plan is stated (the “effective date” of the plan) (see paragraph 26).
2 The period to which the business plan relates, to be no less than three years and no more than five years starting with the effective date of the plan.
3 In each case where estimates are provided in connection with a business plan—
(a) any assumptions used in reaching those estimates, and
(b) the circumstances in which, and the extent to which, the scheme’s actual membership, contributions, income and costs may vary from the estimates of those matters.
4 The name of the person who prepared the business plan.
5 A statement, signed by the trustees and the scheme proprietor, confirming—
(a) that the scheme proprietor considers the business plan to give a true and fair representation of the matters to which it relates, and
(b) that the business plan has been approved by the trustees.
Information about the scheme
6 The name by which the scheme is known.
7 The name under which the scheme is registered under Chapter 2 of Part 4 of the Finance Act 2004 (if the scheme is so registered).
8 Any trading or brand name under which the scheme is promoted or marketed (if different from the names referred to in paragraphs 6 and 7).
9 The date when the scheme was established.
10 The address of the scheme’s office most recently notified to HM Revenue and Customs in connection with the scheme’s registration under Chapter 2 of Part 4 of the Finance Act 2004 (if the scheme is so registered).
11 The name of—
(a) each trustee of the scheme, and
(b) the scheme proprietor.
12 The name and address of any scheme administrator (within the meaning given by section 270 of the Finance Act 2004).
13 The number of participating employers.
14 The number of members, broken down into active members, deferred members, pension credit members and pensioner members (within the meanings given in section 124(1) of the Pensions Act 1995).
15 In the three years ending with the effective date of the plan—
(a) the number of members joining the scheme,
(b) the number of members transferring from the scheme, and
(c) the number of members leaving the scheme.
16 The number given to the scheme when it was placed on the register of occupational and personal pension schemes compiled and maintained by the Pensions Regulator under section 59(1) of the Pensions Act 2004 (if the scheme has been so placed).
17 The reference number issued to the scheme by HM Revenue and Customs when the scheme was registered under Chapter 2 of Part 4 of the Finance Act 2004 (if the scheme is so registered).
18 The scheme’s objectives and its strategy for meeting them, including delivery milestones.
Information about the scheme proprietor
19 Details of the succession planning in place in the event that—
(a) any single undertaking that provides significant funding to the scheme proprietor ceases to do so, or
(b) two or more undertakings that provide funding to the scheme proprietor which collectively is significant cease to do so.
20 A description of the activities (if any) carried out by the scheme proprietor which do not relate directly to the scheme.
21 The identity of any regulator (other than the Pensions Regulator) that regulates activities carried out by the scheme proprietor.
22 In paragraph 21 “regulator” means—
(a) a person who has responsibility for, or oversight of, an area of activity by virtue of any legislation, or
(b) a person in a country or territory outside the United Kingdom which exercises functions of a public nature corresponding or similar to functions of a person referred to in sub-paragraph (a).
23 A declaration as to the overall competence of the scheme proprietor, with particular reference to the experience, knowledge and professional qualifications of the individuals performing the functions of the scheme proprietor in the exercise of a management or executive role, and plans to improve that competence by way of continuous professional development or otherwise.
Information following a triggering event
24 Where a triggering event has reduced the value of the financial resources of the scheme (see section 14A(4)(b)), the plans and timetable for restoring the scheme’s financial resources to a level likely to satisfy the Pensions Regulator that the scheme is financially sustainable.
Part 2 Requirements relating to a business plan
25 A business plan must be—
(a) in writing, and
(b) in the format set out in a Code.
26 The information in the business plan must be correct as at the later of—
(a) a date chosen by the scheme proprietor, but not earlier than six months before the date when the trustees of the scheme apply to the Pensions Regulator for authorisation,
(b) where a business plan has been revised as a result of a review under section 14A(3), the date the review was completed,
(c) where a business plan has been revised as a result of a significant change to the information included in it, the date on which the significant change occurred, and
(d) where a business plan has been revised as a result of a triggering event reducing the value of the financial resources of the scheme, the earlier of—
(i) one month after the date the triggering event occurred, and
(ii) such date as the Pensions Regulator may notify to the scheme proprietor for the purposes of this paragraph.
27 If a revised business plan is provided in accordance with section 14A(6)(b) or (c) the plan must—
(a) indicate the parts of it which have been revised, and
(b) include a new statement in accordance with paragraph 5.
28 Paragraph 29 applies if—
(a) a triggering event has occurred in relation to the scheme (see section 31),
(b) the trustees are pursuing continuity option 1 or 2 (see sections 36 and 37), and
(c) the Pensions Regulator has approved an implementation strategy relating to the scheme (see sections 39 and 40).
29 Where this paragraph applies, the Pensions Regulator may give notice to the scheme proprietor and the trustees of the scheme specifying that a revised business plan provided during the triggering event period (see section 32)—
(a) must state that the circumstances described in paragraph 28(a) to (c) exist, and
(b) need not—
(i) contain the information specified in Part 1 or set out in a Code as described in section 14A(2)(a), or
(ii) comply with any requirements set out in a Code as described in section 14A(2)(b).
Schedule 1C Unconnected Multiple Employer Schemes: Promotion or Marketing Requirement
Section 14D(1) and (2)
Part 1 No promotion or marketing that is unclear or misleading without rectification
Consistency
1 Whether information included in promotion or marketing of the scheme is consistent with the information included in—
(a) the document prepared by the scheme actuary under regulation 33(3)(b) (soundness of scheme design) of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025 (S.I. 2025/1313) for the purposes of the viability report that is the most recent viability report at the time of the promotion or marketing;
(b) the scheme’s investment strategy that is the most recent investment strategy at the time of the promotion or marketing;
(c) the summary, if any, published most recently in relation to the scheme at the time of the promotion or marketing, in accordance with regulation 29B(2)(a) of, and paragraph 1A of Schedule 11 to, the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 (S.I. 2013/2734) (scheme design statement).
Transparency
2 (1) Whether promotion or marketing of the scheme clearly and accurately explains, in accordance with any provision set out in a Code—
(a) how the rate or amount of benefits provided to members under the scheme is determined, including supporting illustrations of what individual members might receive;
(b) that performance of investments can fluctuate;
(c) that the expected value of the rights to benefits is not guaranteed;
(d) that the rate or amount of benefits provided to members under the scheme can fluctuate;
(e) what would happen if the scheme becomes unable to continue to operate;
(f) such other matters as may be set out in a Code.
(2) Whether promotion or marketing of the scheme provides—
(a) access to the summary, published most recently in relation to the scheme at the time of the promotion or marketing, in accordance with regulation 29B(2)(a) of, and paragraph 1A of Schedule 11 to, the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 (scheme design statement), or
(b) where such a summary has not been published at the time of the promotion or marketing, information about where the summary will be published and the expected date of publication.
Part 2 Promotion or marketing: systems and processes
Quality assurance
3 Whether there are quality assurance checks to ensure that promotion or marketing of the scheme is clear and not misleading.
Resource planning
4 Whether there are systems and processes for ensuring that there are sufficient individuals, with the relevant skills, knowledge, experience and capacity necessary to enable relevant functions to be carried out by or on behalf of the scheme—
(a) in a manner that secures that promotion or marketing of the scheme is clear and not misleading, and
(b) in accordance with the scheme’s systems and processes concerning promotion or marketing of the scheme.
Feedback and complaints
5 Whether there are systems and processes—
(a) for gathering feedback concerning promotion or marketing of the scheme;
(b) for directing complaints concerning promotion or marketing of the scheme to the correct channels for resolution;
(c) for evaluating feedback and complaints concerning promotion or marketing of the scheme and sharing such feedback and complaints with the scheme proprietor and the trustees of the scheme;
(d) for taking into account feedback and complaints concerning promotion or marketing of the scheme in the design of promotion or marketing of the scheme;
(e) for reporting to the scheme proprietor and the trustees as to how feedback and complaints have been taken into account in the design of promotion or marketing of the scheme.
Functionality of IT systems
6 Whether the IT systems used for the purposes of record-keeping in respect of promotion or marketing of the scheme have the necessary capacity and capability to record and manage all documents relating to promotion or marketing of the scheme (including all documents relating to feedback and complaints) in an accessible form, and to retain those documents for at least six years.
Risk management
7 Whether there are systems and processes for identifying, managing and monitoring risks in respect of promotion or marketing of the scheme.
Governance
8 Whether there are systems and processes—
(a) for the identification of roles and responsibilities in respect of the oversight of promotion or marketing of the scheme;
(b) for the appointment of persons with sufficient skills, knowledge and experience to carry out those roles;
(c) for setting clear objectives concerning promotion or marketing of the scheme and for monitoring whether those objectives are being met within the relevant timescales;
(d) for documenting and reporting to the scheme proprietor and the trustees of the scheme matters relating to the oversight of promotion or marketing of the scheme;
(e) for identifying and addressing any failures in the oversight of promotion or marketing of the scheme;
(f) for ensuring that all persons carrying out relevant functions in relation to the scheme are aware of the requirement that promotion or marketing of the scheme is clear and not misleading.
Interpretation of Part 2
9 In this Part “relevant functions” in relation to a scheme are—
(a) the development, production, provision or review of materials relating to promotion or marketing of the scheme,
(b) record-keeping in respect of promotion or marketing of the scheme,
(c) quality assurance activities in respect of promotion or marketing of the scheme, and
(d) any other functions, in respect of promotion or marketing of the scheme, set out in a Code.
Section 44
Consequences of a pause order
1 (1) If a pause order is made in relation to a collective money purchase scheme, any action taken in contravention of the order is void, except to the extent that the action is validated by an order under paragraph 3.
(2) If a pause order contains a direction under section 44(5)(b) that no further payments (or no further payments of a specified description) are to be made towards a scheme during the period for which the order has effect—
(a) any payments that are the subject of the direction and would otherwise be due to be made towards the scheme during that period are to be treated as if they do not fall due, and
(b) any obligation to make those payments (including any obligation under section 49(8) of the Pensions Act 1995 to pay amounts deducted corresponding to such payments) is to be treated as if it does not arise.
(3) If a pause order contains a direction under section 44(5)(d) (no payment of benefits or benefits of a specified description under the scheme rules) and an amount of benefit under the scheme rules was not paid as a result of the direction—
(a) the direction does not affect any entitlement to that benefit, and
(b) any benefit to which a member, or a person in respect of a member, remains entitled at the end of the period for which the pause order had effect is an amount that falls due to the member or (as the case may be) the person at the end of that period.
(4) If a pause order contains a direction under section 44(5)(e) (no transfers etc of members' rights) it does not prevent—
(a) a pension sharing order or provision having effect, or
(b) a pension earmarking order having effect in a case where—
(i) the order requires a payment to be made if a payment in respect of any benefits under the scheme becomes due to a person, and
(ii) a direction under section 44(5)(d) does not prevent the payment becoming due.
(5) In sub-paragraph (4)—
“pension sharing order or provision” means an order or provision falling within section 28(1) of the Welfare Reform and Pensions Act 1999 (activation of pension sharing);
“pension earmarking order” means—
an order under section 23 of the Matrimonial Causes Act 1973 (financial provision orders in connection with divorce etc) so far as it includes provision made by virtue of section 25B or 25C of that Act (powers to include provision about pensions),
an order under Part 1 of Schedule 5 to the Civil Partnership Act 2004 (financial provision in connection with dissolution, nullity or separation) so far as it includes provision made by virtue of paragraphs 25 and 26 of Part 6 of that Schedule (powers to include provision about pensions),
an order under section 12A(2) or (3) of the Family Law (Scotland) Act 1985 (powers in relation to pension lump sums when making a capital sum order),
an order under Article 25 of the Matrimonial Causes (Northern Ireland) Order 1978 (S.I. 1978/1045 (N.I. 15)) so far as it includes provision made by virtue of Article 27B or 27C of that Order (Northern Ireland powers corresponding to those mentioned in paragraph (a)), or
an order under Part 1 of Schedule 15 to the Civil Partnership Act 2004 (financial provision in connection with dissolution, nullity or separation: Northern Ireland) so far as it includes provision made by virtue of paragraphs 20 and 21 of Part 5 of that Schedule (powers to include provision about pensions).
(6) The Secretary of State may make regulations modifying any provision of—
(a) Chapter 1 of Part 4ZA of the Pension Schemes Act 1993 (transfer rights: general), or
(b) Chapter 2 of that Part (early leavers: cash transfer sums and contribution refunds),
in their application to a collective money purchase scheme in relation to which a pause order has effect containing a direction under section 44(5)(e) (no transfers etc of members' rights).
(7) Regulations under sub-paragraph (6) override any provision of the collective money purchase scheme, to the extent that there is a conflict.
(8) Disregarding sub-paragraph (1), if a pause order made in relation to a collective money purchase scheme is not complied with, section 10 of the Pensions Act 1995 (civil penalties) applies to any trustee of the scheme who has failed to take all reasonable steps to secure compliance.
(9) Sub-paragraph (8) does not apply in the case of non-compliance with a direction under section 44(5)(c) (direction that certain deducted payments are to be repaid by employer).
(10) In such a case, section 10 of the Pensions Act 1995 (civil penalties) applies to an employer who, without reasonable excuse, fails to repay an amount as required by the direction.
(11) Regulations under sub-paragraph (6) are subject to negative resolution procedure.
Period of effect etc of pause order
2 (1) A pause order must specify the period for which it has effect, which must not exceed three months.
(2) The Pensions Regulator may on one or more occasions by order extend the period for which the pause order has effect for a further three months.
(3) A pause order that is in effect at the end of the triggering event period ceases to have effect at the end of that period.
Validation of action in contravention of pause order
3 (1) If a pause order is made in relation to a collective money purchase scheme, the Pensions Regulator may by order validate action taken in contravention of the order.
(2) Any of the following persons may apply to the Regulator for an order under this paragraph validating particular action—
(a) the trustees of the scheme;
(b) any person directly affected by the action.
Notification of trustees, employers and members
4 (1) This paragraph applies where—
(a) a pause order is made in relation to a collective money purchase scheme,
(b) an order is made under paragraph 2(2) extending the period for which a pause order made in relation to a collective money purchase scheme has effect, or
(c) an order is made under paragraph 3 validating action taken in contravention of a pause order made in relation to a collective money purchase scheme.
(2) The Pensions Regulator must, as soon as reasonably practicable after the order has been made, notify the trustees of the scheme of the fact that the order has been made and of its effect.
(3) The Pensions Regulator may by order direct the trustees of the scheme to notify the following persons of the fact that the order has been made and of its effect—
(a) all of the members of the scheme or such members as are of a description specified in the order;
(b) all employers by which the scheme is used, or such employers as are of a description specified in the order;
(c) where the scheme is a single or connected employer scheme, all relevant former employers who, but for the pause order, would be liable to make payments towards the scheme, or such of them as are of a description specified in the order.
(4) The trustees must give the notification within the period and in the manner specified in the order under sub-paragraph (3).
(5) If the trustees of a scheme fail to comply with a direction to them contained in an order under sub-paragraph (3), section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee who has failed to take all reasonable steps to secure compliance.
Supplementary
5 (1) A pause order, or an order made under any of paragraphs 2, 3 and 4, may be made in relation to a collective money purchase scheme—
(a) in spite of any enactment or rule of law, or any rule of the scheme, that would otherwise operate to prevent the order being made, and
(b) without regard to any enactment, rule of law or rule of the scheme that would otherwise require, or might otherwise be taken to require, the implementation of any procedure or the obtaining of any consent, with a view to making the order.
(2) Sub-paragraph (1) does not have effect to authorise the Pensions Regulator to make an order as mentioned in that sub-paragraph if its doing so would be unlawful as a result of section 6(1) of the Human Rights Act 1998 (unlawful for public authority to act in contravention of a Convention right).
SCHEDULE 3 Collective money purchase benefits: minor and consequential amendments
Section 48
Pension Schemes Act 1993 (c. 48)
1 The Pension Schemes Act 1993 is amended as follows.
2 (1) Section 84 (basis of revaluation of accrued benefits) is amended as follows.
(2) In subsection (3), after “money purchase benefit” insert “ other than a collective money purchase benefit ”.
(3) After subsection (3A) insert—
(3AA) If any such benefit as is mentioned in section 83(1)(a) is a collective money purchase benefit, the benefit shall be revalued using the cash balance method.
3 In section 101AI (right to cash transfer sum and contribution refund: further provisions), in subsection (8)—
(a) in paragraph (a), at the end insert—
(xiii) regulations made under section 18(4) of or paragraph 1(6) of Schedule 2 to the Pension Schemes Act 2021;
(xiv) sections 34, 39, 41, 42 and 45 of the Pension Schemes Act 2021;
;
(b) in paragraph (b), at the end insert—
(xi) sections 18(7)(b), 34(5), 39(6), 41(6), 42(2) and 45(5) of and paragraph 1(7) of Schedule 2 to the Pension Schemes Act 2021.
4 In section 186 (Parliamentary control of orders and regulations), in subsection (3) (statutory instruments subject to affirmative resolution procedure), after paragraph (f) insert
, or
(g) regulations under section 99(2)(c), or
(h) regulations under section 99A(2)(b),
.
5 In Schedule 3 (methods of revaluing accrued pension benefits), in paragraph 3A (the cash balance method), for “cash balance benefit” substitute “ benefit ”.
Pensions Act 1995 (c. 26)
6 The Pensions Act 1995 is amended as follows.
7 In section 51 (annual increase in rate of pension), after subsection (1) insert—
(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate occupational pension scheme which is a money purchase scheme.
8 In section 75 (deficiencies in the assets of certain occupational pension schemes), after subsection (1) insert—
(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate occupational pension scheme which is a money purchase scheme.
9 In section 87 (schedules of payments to money purchase schemes), after subsection (1) insert—
(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section and section 88 as an occupational pension scheme which is a money purchase scheme.
10 In section 89 (application of further provisions to money purchase schemes), at the end insert—
(3) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate money purchase scheme.
Pensions Act 2004 (c. 35)
11 The Pensions Act 2004 is amended as follows.
12 In section 13 (improvement notices), in subsection (7), after paragraph (h) insert—
(i) Part 1 of the Pension Schemes Act 2021.
13 (1) Section 90 (codes of practice) is amended as follows.
(2) In subsection (2) (matters on which the Pensions Regulator must issue codes of practice), after paragraph (jb) insert—
(jc) the process for making an application under Part 1 of the Pension Schemes Act 2021 for authorisation of a collective money purchase scheme;
(jd) the matters that the Pensions Regulator expects to take into account in deciding whether it is satisfied that a pension scheme meets the authorisation criteria under that Part (see section 9 of the Pension Schemes Act 2021);
.
(3) In subsection (6), in the definition of “the pensions legislation”—
(a) omit the “or” at the end of paragraph (f);
(b) after paragraph (g) insert
, or
(h) Part 1 of the Pension Schemes Act 2021.
14 (1) Section 93(2) (regulatory functions of the Pensions Regulator) is amended as follows.
(2) In paragraph (pa)—
(a) after “strategy” insert “ for Master Trust scheme ”;
(b) omit the “and” at the end.
(3) After paragraph (pa) insert—
(pb) the power to give a direction under section 23(2) of the Pension Schemes Act 2021 (direction to obtain actuarial valuation or take other steps to remedy or mitigate failure in relation to a collective money purchase scheme),
(pc) the power to give a notice under section 29(1) or (4) of that Act (risk notices),
(pd) the power to give a direction under section 29(6) of that Act (direction to implement proposals in a resolution plan),
(pe) the power to give a direction under section 39(4) of that Act (direction to submit implementation strategy), and
.
15 In section 97(5) (special procedure: applicable cases), after paragraph (tf) insert—
(tg) the power under section 30 of the Pension Schemes Act 2021 to withdraw authorisation of a collective money purchase scheme;
(th) the power to make a pause order under section 44 of that Act;
(ti) the power to make an order under paragraph 2(2) of Schedule 2 to that Act extending the period for which a pause order has effect;
(tj) the power to make an order under paragraph 3 of that Schedule validating action taken in contravention of a pause order;
(tk) the power to make an order under paragraph 4(3) of that Schedule directing the notification of members or employers;
.
16 In section 126 (schemes eligible for pension protection), after subsection (1) insert—
(1A) Where a scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this Part as a separate money purchase scheme.
17 In section 249A (requirement for an effective system of governance), in subsection (3) (exceptions), after paragraph (e) insert—
(f) an authorised collective money purchase scheme within the meaning of Part 1 of the Pension Schemes Act 2021.
18 In section 254 (representative of non-European scheme to be treated as trustee), in subsection (3)—
(a) omit the “or” at the end of paragraph (d);
(b) after paragraph (e) insert
, or
(f) Part 1 of the Pension Schemes Act 2021.
19 In section 291 (duty of trustees or managers to act consistently with law of host member State), in subsection (4)—
(a) omit the “or” at the end of paragraph (d);
(b) after paragraph (e) insert
, or
(f) Part 1 of the Pension Schemes Act 2021.
20 In section 318 (general interpretation), in subsection (3)—
(a) in paragraph (a), after sub-paragraph (xiii) insert—
(xiv) regulations under section 18(4) of or paragraph 1(6) of Schedule 2 to the Pension Schemes Act 2021;
(xv) sections 34, 39, 41, 42 and 45 of the Pension Schemes Act 2021;
;
(b) in paragraph (b), after sub-paragraph (xi) insert—
(xii) sections 18(7)(b), 34(5), 39(6), 41(6), 42(2) and 45(5) of and paragraph 1(7) of Schedule 2 to the Pension Schemes Act 2021.
21 In Schedule 2 (the reserved regulatory functions), after Part 4A insert—
PART 4B Functions under Part 1 of the Pension Schemes Act 2021
44H The power to give a direction under section 23(2) (direction to obtain actuarial valuation or take other steps to remedy or mitigate failure in relation to a collective money purchase scheme).
44I The power to give a direction under section 29(6) (direction to implement proposals in a resolution plan).
44J The power under section 30 to withdraw authorisation of a collective money purchase scheme.
44K The power to give a direction under section 41(4) (direction to pursue a continuity option).
44L The power to make a pause order under section 44.
44M The power to make an order under paragraph 2(2) of Schedule 2 extending the period for which a pause order has effect.
44N The power to make an order under paragraph 3 of Schedule 2 validating action taken in contravention of a pause order.
44O The power to make an order under paragraph 4(3) of Schedule 2 directing the notification of members or employers.
Pensions Act 2008 (c. 30)
22 In section 31 of the Pensions Act 2008 (effect of freezing order, assessment period or pause order: qualifying schemes), in subsection (3) (meaning of “freezing event” and “relevant provision”)—
(a) in the definition of “freezing event”—
(i) omit the “or” at the end of each of paragraphs (a) and (b);
(ii) at the end of paragraph (c) insert
, or
(d) the making of a pause order under section 44 of the Pension Schemes Act 2021;
;
(b) in the definition of “relevant provision”, in paragraph (c), after “2017” insert “ or (as the case may be) section 44 of the Pension Schemes Act 2021 ”.
Pensions Act 2014 (c. 19)
23 The Pensions Act 2014 is amended as follows.
24 In section 54(2) (regulations subject to affirmative procedure), omit the “or” after paragraph (e) and at the end of paragraph (f) insert
, or
(g) the first regulations under paragraph 1 or 3 of that Schedule that make provision in relation to collective money purchase schemes within the meaning of Part 1 of the Pension Schemes Act 2021 (see section 1 of that Act).
25 (1) Schedule 18 (power to restrict charges or impose requirements in relation to schemes) is amended as follows.
(2) In paragraph 1(1) (power to restrict charges), in each of paragraphs (a) and (b), for “a member” substitute “ members ”.
(3) In paragraph 4 (interpretation), after sub-paragraph (2) insert—
(3) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this Schedule as a separate scheme.
Section 57
Building Societies Act 1986 (c. 53)
1 In Schedule 10A to the Building Societies Act 1986 (disclosures about directors, other officers and employees in notes to accounts), in paragraph 1(2), in the definition of “collective money purchase benefit” (inserted by Schedule 1 to this Act), after “section 1” insert “ or 52 ”.
Pension Schemes (Northern Ireland) Act 1993 (c. 49)
2 The Pension Schemes (Northern Ireland) Act 1993 is amended as follows.
3 (1) Section 176(1) (general interpretation) is amended as follows.
(2) At the appropriate place insert—
“collective money purchase benefit” has the meaning given by section 52 of the Pension Schemes Act 2021;
.
(3) In the definition of “money purchase benefits”—
(a) for “means benefits” substitute
means—
(a) benefits
;
(b) at the end insert
, and
(b) collective money purchase benefits;
.
4 In section 176B(1) (money purchase benefits: supplementary), for “the definition” substitute “ paragraph (a) of the definition ”.
Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.))
5 The Pensions (No. 2) Act (Northern Ireland) 2008 is amended as follows.
6 (1) Section 78 (interpretation of Part 1: pension scheme membership for jobholders) is amended as follows.
(2) At the appropriate place insert—
“collective money purchase benefit” has the meaning given by section 52 of the Pension Schemes Act 2021;
.
(3) In the definition of “money purchase benefits”—
(a) for “means benefits” substitute
means—
(a) benefits
;
(b) at the end insert
, and
(b) collective money purchase benefits;
.
7 In section 78A(1) (money purchase benefits: supplementary), for “the definition” substitute “ paragraph (a) of the definition ”.
SCHEDULE4A UNCONNECTED MULTIPLE EMPLOYER SCHEMES: BUSINESS STRATEGY
Section 65(3C)(a)(ii) and (b)
PART1 Information which must be taken into account
1 | The scheme’s latest accounts (if any).
2 | The statement of investment principles (if any) prepared by the trustees of the scheme in accordance with Article 35 of the Pensions (Northern Ireland) Order 1995 (investment principles).
3 | The latest accounts (if any) of the scheme proprietor provided to the Pensions Regulator under section 59 or section 77A.
4 | The latest accounts of any undertaking, other than an unincorporated association, that partly or wholly funds the scheme proprietor, provided to the Pensions Regulator under section 59 or section 77A.
PART2 Matters which must be taken into account
5 | The structure of the scheme and its target market, including any plans to acquire or merge with other schemes.
6 | The robustness and prudence of any assumptions in the scheme’s business plan (see section 65A) about membership, contributions, income and costs.
7 | The planned expenditure of the scheme, the purpose of the expenditure, and how it will be funded.
8 | The terms, security and affordability of loans and other funding provided to the scheme, and the identity of each lender or other funding provider.
9 | Information about the market in which the scheme operates or is to operate.
10 | The experience and professional competence of the individuals involved in running the scheme.
11 | Where a business plan has been revised as a result of a significant change to the information included in it (see section 65A(4)), the circumstances that led to the significant change.
12 | Any provision made by the trustees and the scheme proprietor to fund contingent liabilities in respect of the scheme.
PART3 Information which may be taken into account
13 | The scheme’s accounts, other than the latest accounts.
14 | Any accounts of the scheme proprietor, and of any undertaking that partly or wholly funds the scheme proprietor, provided to the Pensions Regulator under section 59 or section 77A, other than the latest accounts.
SCHEDULE4B UNCONNECTED MULTIPLE EMPLOYER SCHEMES: BUSINESS PLAN - INFORMATION AND REQUIREMENTS
Section 65A(2)
PART1 Information which must be included in a business plan
General
1 | The date by reference to which the information in the business plan is stated (the “effective date” of the plan) (see paragraph 26).
2 | The period to which the business plan relates, to be no less than three years and no more than five years starting with the effective date of the plan.
3 | In each case where estimates are provided in connection with a business plan— any assumptions used in reaching those estimates, and the circumstances in which, and the extent to which, the scheme’s actual membership, contributions, income and costs may vary from the estimates of those matters.
4 | The name of the person who prepared the business plan.
5 | A statement, signed by the trustees and the scheme proprietor, confirming— that the scheme proprietor considers the business plan to give a true and fair representation of the matters to which it relates, and that the business plan has been approved by the trustees.
Information about the scheme
6 | The name by which the scheme is known.
7 | The name under which the scheme is registered under Chapter 2 of Part 4 of the Finance Act 2004 (if the scheme is so registered).
8 | Any trading or brand name under which the scheme is promoted or marketed (if different from the names referred to in paragraphs 6 and 7).
9 | The date when the scheme was established.
10 | The address of the scheme’s office most recently notified to HM Revenue and Customs in connection with the scheme’s registration under Chapter 2 of Part 4 of the Finance Act 2004 (if the scheme is so registered).
11 | The name of— each trustee of the scheme, and the scheme proprietor.
12 | The name and address of any scheme administrator (within the meaning given by section 270 of the Finance Act 2004).
13 | The number of participating employers.
14 | The number of members, broken down into active members, deferred members, pension credit members and pensioner members (within the meanings given in Article 121(1) of the Pensions (Northern Ireland) Order 1995).
15 | In the three years ending with the effective date of the plan— the number of members joining the scheme, the number of members transferring from the scheme, and the number of members leaving the scheme.
16 | The number given to the scheme when it was placed on the register of occupational and personal pension schemes compiled and maintained by the Pensions Regulator under section 59(1) of the Pensions Act 2004 (if the scheme has been so placed).
17 | The reference number issued to the scheme by HM Revenue and Customs when the scheme was registered under Chapter 2 of Part 4 of the Finance Act 2004 (if the scheme is so registered).
18 | The scheme’s objectives and its strategy for meeting them, including delivery milestones.
Information about the scheme proprietor
19 | Details of the succession planning in place in the event that— any single undertaking that provides significant funding to the scheme proprietor ceases to do so, or two or more undertakings that provide funding to the scheme proprietor which collectively is significant cease to do so.
20 | A description of the activities (if any) carried out by the scheme proprietor which do not relate directly to the scheme.
21 | The identity of any regulator (other than the Pensions Regulator) that regulates activities carried out by the scheme proprietor.
22 | In paragraph 21 “regulator” means— a person who has responsibility for, or oversight of, an area of activity by virtue of any legislation, or a person in a country or territory outside the United Kingdom which exercises functions of a public nature corresponding or similar to functions of a person referred to in sub-paragraph (a).
23 | A declaration as to the overall competence of the scheme proprietor, with particular reference to the experience, knowledge and professional qualifications of the individuals performing the functions of the scheme proprietor in the exercise of a management or executive role, and plans to improve that competence by way of continuous professional development or otherwise.
Information following a triggering event
24 | Where a triggering event has reduced the value of the financial resources of the scheme (see section 65A(4)(b)), the plans and timetable for restoring the scheme’s financial resources to a level likely to satisfy the Pensions Regulator that the scheme is financially sustainable.
PART2 Requirements relating to a business plan
25 | A business plan must be— in writing, and in the format set out in a Code.
26 | The information in the business plan must be correct as at the later of— a date chosen by the scheme proprietor, but not earlier than six months before the date when the trustees of the scheme apply to the Pensions Regulator for authorisation, where a business plan has been revised as a result of a review under section 65A(3), the date the review was completed, where a business plan has been revised as a result of a significant change to the information included in it, the date on which the significant change occurred, and where a business plan has been revised as a result of a triggering event reducing the value of the financial resources of the scheme, the earlier of— one month after the date the triggering event occurred, and such date as the Pensions Regulator may notify to the scheme proprietor for the purposes of this paragraph.
27 | If a revised business plan is provided in accordance with section 65A(6)(b) or (c) the plan must— indicate the parts of it which have been revised, and include a new statement in accordance with paragraph 5.
28 | Paragraph 29 applies if— a triggering event has occurred in relation to the scheme (see section 82), the trustees are pursuing continuity option 1 or 2 (see sections 87 and 88), and the Pensions Regulator has approved an implementation strategy relating to the scheme (see sections 90 and 91).
29 | Where this paragraph applies, the Pensions Regulator may give notice to the scheme proprietor and the trustees of the scheme specifying that a revised business plan provided during the triggering event period (see section 83)— must state that the circumstances described in paragraph 28(a) to (c) exist, and need not— contain the information specified in Part 1 or set out in a Code as described in section 65A(2)(a), or comply with any requirements set out in a Code as described in section 65A(2)(b).
SCHEDULE4C UNCONNECTED MULTIPLE EMPLOYER SCHEMES: PROMOTION OR MARKETING REQUIREMENT
Section 65D(1) and (2)
PART1 No promotion or marketing that is unclear or misleading without rectification
Consistency
1 | Whether information included in promotion or marketing of the scheme is consistent with the information included in— the document prepared by the scheme actuary under regulation 33(3)(b) (viability report) of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations (Northern Ireland) 2026 for the purposes of the viability report that is the most recent viability report at the time of the promotion or marketing; the scheme’s investment strategy that is the most recent investment strategy at the time of the promotion or marketing; the summary, if any, published most recently in relation to the scheme at the time of the promotion or marketing, in accordance with regulation 29B(2)(a) of, and paragraph 1A of Schedule 9B to, the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014 (scheme design statement).
Transparency
2 | (1) Whether promotion or marketing of the scheme clearly and accurately explains, in accordance with any provision set out in a Code— (a) how the rate or amount of benefits provided to members under the scheme is determined, including supporting illustrations of what individual members might receive; (b) that performance of investments can fluctuate; (c) that the expected value of the rights to benefits is not guaranteed; (d) that the rate or amount of benefits provided to members under the scheme can fluctuate; (e) what would happen if the scheme becomes unable to continue to operate; (f) such other matters as may be set out in a Code. (2) Whether promotion or marketing of the scheme provides— (a) access to the summary, published most recently in relation to the scheme at the time of the promotion or marketing, in accordance with regulation 29B(2)(a) of, and paragraph 1A of Schedule 9B to, the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations (Northern Ireland) 2014 (scheme design statement), or (b) where such a summary has not been published at the time of the promotion or marketing, information about where the summary will be published and the expected date of publication.
PART2 Promotion or marketing: systems and processes
Quality assurance
3 | Whether there are quality assurance checks to ensure that promotion or marketing of the scheme is clear and not misleading.
Resource planning
4 | Whether there are systems and processes for ensuring that there are sufficient individuals, with the relevant skills, knowledge, experience and capacity necessary to enable relevant functions to be carried out by or on behalf of the scheme— in a manner that secures that promotion or marketing of the scheme is clear and not misleading, and in accordance with the scheme’s systems and processes concerning promotion or marketing of the scheme.
Feedback and complaints
5 | Whether there are systems and processes— for gathering feedback concerning promotion or marketing of the scheme; for directing complaints concerning promotion or marketing of the scheme to the correct channels for resolution; for evaluating feedback and complaints concerning promotion or marketing of the scheme and sharing such feedback and complaints with the scheme proprietor and the trustees of the scheme; for taking into account feedback and complaints concerning promotion or marketing of the scheme in the design of promotion or marketing of the scheme; for reporting to the scheme proprietor and the trustees as to how feedback and complaints have been taken into account in the design of promotion or marketing of the scheme.
Functionality of IT systems
6 | Whether the IT systems used for the purposes of record-keeping in respect of promotion or marketing of the scheme have the necessary capacity and capability to record and manage all documents relating to promotion or marketing of the scheme (including all documents relating to feedback and complaints) in an accessible form, and to retain those documents for at least six years.
Risk management
7 | Whether there are systems and processes for identifying, managing and monitoring risks in respect of promotion or marketing of the scheme.
Governance
8 | Whether there are systems and processes— for the identification of roles and responsibilities in respect of the oversight of promotion or marketing of the scheme; for the appointment of persons with sufficient skills, knowledge and experience to carry out those roles; for setting clear objectives concerning promotion or marketing of the scheme and for monitoring whether those objectives are being met within the relevant timescales; for documenting and reporting to the scheme proprietor and the trustees of the scheme matters relating to the oversight of promotion or marketing of the scheme; for identifying and addressing any failures in the oversight of promotion or marketing of the scheme; for ensuring that all persons carrying out relevant functions in relation to the scheme are aware of the requirement that promotion or marketing of the scheme is clear and not misleading.
Interpretation of Part 2
9 | In this Part “relevant functions” in relation to a scheme are— the development, production, provision or review of materials relating to promotion or marketing of the scheme, record-keeping in respect of promotion or marketing of the scheme, quality assurance activities in respect of promotion or marketing of the scheme, and any other functions, in respect of promotion or marketing of the scheme, set out in a Code.
Section 95
Consequences of a pause order
1 (1) If a pause order is made in relation to a collective money purchase scheme, any action taken in contravention of the order is void, except to the extent that the action is validated by an order under paragraph 3.
(2) If a pause order contains a direction under section 95(5)(b) that no further payments (or no further payments of a specified description) are to be made towards a scheme during the period for which the order has effect—
(a) any payments that are the subject of the direction and would otherwise be due to be made towards the scheme during that period are to be treated as if they do not fall due, and
(b) any obligation to make those payments (including any obligation under Article 49(8) of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) to pay amounts deducted corresponding to such payments) is to be treated as if it does not arise.
(3) If a pause order contains a direction under section 95(5)(d) (no payment of benefits or benefits of a specified description under the scheme rules) and an amount of benefit under the scheme rules was not paid as a result of the direction—
(a) the direction does not affect any entitlement to that benefit, and
(b) any benefit to which a member, or a person in respect of a member, remains entitled at the end of the period for which the pause order had effect is an amount that falls due to the member or (as the case may be) the person at the end of that period.
(4) If a pause order contains a direction under section 95(5)(e) (no transfers etc of members' rights) it does not prevent—
(a) a pension sharing order or provision having effect, or
(b) a pension earmarking order having effect in a case where—
(i) the order requires a payment to be made if a payment in respect of any benefits under the scheme becomes due to a person, and
(ii) a direction under section 95(5)(d) does not prevent the payment becoming due.
(5) In sub-paragraph (4)—
“pension sharing order or provision” means an order or provision falling within Article 25(1) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)) (activation of pension sharing);
“pension earmarking order” means—
an order under Article 25 of the Matrimonial Causes (Northern Ireland) Order 1978 (S.I. 1978/1045 (N.I. 15)) so far as it includes provision made by virtue of Article 27B or 27C of that Order (powers to include provision about pensions),
an order under Part 1 of Schedule 15 to the Civil Partnership Act 2004 (financial provision in connection with dissolution, nullity or separation: Northern Ireland) so far as it includes provision made by virtue of paragraphs 20 and 21 of Part 5 of that Schedule (powers to include provision about pensions),
an order under section 23 of the Matrimonial Causes Act 1973 (financial provision orders in connection with divorce etc) so far as it includes provision made by virtue of section 25B or 25C of that Act (powers to include provision about pensions),
an order under Part 1 of Schedule 5 to the Civil Partnership Act 2004 (financial provision in connection with dissolution, nullity or separation) so far as it includes provision made by virtue of paragraphs 25 and 26 of Part 6 of that Schedule (powers to include provision about pensions), or
an order under section 12A(2) or (3) of the Family Law (Scotland) Act 1985 (powers in relation to pension lump sums when making a capital sum order).
(6) The Department may make regulations modifying any provision of—
(a) Chapter 1 of Part 4ZA of the Pension Schemes (Northern Ireland) Act 1993 (transfer rights: general), or
(b) Chapter 2 of that Part (early leavers: cash transfer sums and contribution refunds),
in their application to a collective money purchase scheme in relation to which a pause order has effect containing a direction under section 95(5)(e) (no transfers etc of members' rights).
(7) Regulations under sub-paragraph (6) override any provision of the collective money purchase scheme, to the extent that there is a conflict.
(8) Disregarding sub-paragraph (1), if a pause order made in relation to a collective money purchase scheme is not complied with, Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to any trustee of the scheme who has failed to take all reasonable steps to secure compliance.
(9) Sub-paragraph (8) does not apply in the case of non-compliance with a direction under section 95(5)(c) (direction that certain deducted payments are to be repaid by employer).
(10) In such a case, Article 10 of the Pensions (Northern Ireland) Order 1995 (civil penalties) applies to an employer who, without reasonable excuse, fails to repay an amount as required by the direction.
(11) Regulations under sub-paragraph (6) are subject to negative resolution.
Period of effect etc of pause order
2 (1) A pause order must specify the period for which it has effect, which must not exceed three months.
(2) The Pensions Regulator may on one or more occasions by order extend the period for which the pause order has effect for a further three months.
(3) A pause order that is in effect at the end of the triggering event period ceases to have effect at the end of that period.
Validation of action in contravention of pause order
3 (1) If a pause order is made in relation to a collective money purchase scheme, the Pensions Regulator may by order validate action taken in contravention of the order.
(2) Any of the following persons may apply to the Regulator for an order under this paragraph validating particular action—
(a) the trustees of the scheme;
(b) any person directly affected by the action.
Notification of trustees, employers and members
4 (1) This paragraph applies where—
(a) a pause order is made in relation to a collective money purchase scheme,
(b) an order is made under paragraph 2(2) extending the period for which a pause order made in relation to a collective money purchase scheme has effect, or
(c) an order is made under paragraph 3 validating action taken in contravention of a pause order made in relation to a collective money purchase scheme.
(2) The Pensions Regulator must, as soon as reasonably practicable after the order has been made, notify the trustees of the scheme of the fact that the order has been made and of its effect.
(3) The Pensions Regulator may by order direct the trustees of the scheme to notify the following persons of the fact that the order has been made and of its effect—
(a) all of the members of the scheme or such members as are of a description specified in the order;
(b) all employers by which the scheme is used, or such employers as are of a description specified in the order;
(c) where the scheme is a single or connected employer scheme, all relevant former employers who, but for the pause order, would be liable to make payments towards the scheme, or such of them as are of a description specified in the order.
(4) The trustees must give the notification within the period and in the manner specified in the order under sub-paragraph (3).
(5) If the trustees of a scheme fail to comply with a direction to them contained in an order under sub-paragraph (3), Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties) applies to a trustee who has failed to take all reasonable steps to secure compliance.
Supplementary
5 (1) A pause order, or an order made under any of paragraphs 2, 3 and 4, may be made in relation to a collective money purchase scheme—
(a) in spite of any statutory provision or rule of law, or any rule of the scheme, that would otherwise operate to prevent the order being made, and
(b) without regard to any statutory provision, rule of law or rule of the scheme that would otherwise require, or might otherwise be taken to require, the implementation of any procedure or the obtaining of any consent, with a view to making the order.
(2) Sub-paragraph (1) does not have effect to authorise the Pensions Regulator to make an order as mentioned in that sub-paragraph if its doing so would be unlawful as a result of section 6(1) of the Human Rights Act 1998 (unlawful for public authority to act in contravention of a Convention right).
SCHEDULE 6 Collective money purchase benefits: minor and consequential amendments for Northern Ireland
Section 99
Pension Schemes (Northern Ireland) Act 1993 (c. 49)
1 The Pension Schemes (Northern Ireland) Act 1993 is amended as follows.
2 (1) Section 80 (basis of revaluation of accrued benefits) is amended as follows.
(2) In subsection (3), after “money purchase benefit” insert “ other than a collective money purchase benefit ”.
(3) After subsection (3A) insert—
(3AA) If any such benefit as is mentioned in section 79(1)(a) is a collective money purchase benefit, the benefit shall be revalued using the cash balance method.
3 In section 97AI (right to cash transfer sum and contribution refund: further provisions), in subsection (7)—
(a) in paragraph (a), at the end insert—
(xii) regulations made under section 69(4) of or paragraph 1(6) of Schedule 5 to the Pension Schemes Act 2021;
(xiii) sections 85, 90, 92, 93 and 96 of the Pension Schemes Act 2021;
;
(b) in paragraph (b), at the end insert—
(x) sections 69(7)(b), 85(5), 90(6), 92(6), 93(2) and 96(5) of and paragraph 1(7) of Schedule 5 to the Pension Schemes Act 2021.
4 In section 181 (Assembly, etc. control of regulations and orders), in subsection (2) (regulations and orders subject to confirmatory procedure), after “20B(5)” insert “ , 95(2)(c), 95A(2)(b) ”.
5 In Schedule 2 (methods of revaluing accrued pension benefits), in paragraph 3A (the cash balance method), for “cash balance benefit” substitute “ benefit ”.
Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))
6 The Pensions (Northern Ireland) Order 1995 is amended as follows.
7 In Article 51 (annual increase in rate of pension), after paragraph (1) insert—
(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated for the purposes of this Article as a separate occupational pension scheme which is a money purchase scheme.
8 In Article 75 (deficiencies in the assets of certain occupational pension schemes), after paragraph (1) insert—
(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated for the purposes of this Article as a separate occupational pension scheme which is a money purchase scheme.
9 In Article 85 (schedules of payments to money purchase schemes), after paragraph (1) insert—
(1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated for the purposes of this Article and Article 86 as an occupational pension scheme which is a money purchase scheme.
10 In Article 87 (application of further provisions to money purchase schemes), at the end insert—
(3) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated for the purposes of this Article as a separate money purchase scheme.
Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1))
11 The Pensions (Northern Ireland) Order 2005 is amended as follows.
12 In Article 2 (general interpretation), in paragraph (4)—
(a) in sub-paragraph (a), after head (ix) insert—
(x) regulations made under section 69(4) of or paragraph 1(6) of Schedule 5 to the Pension Schemes Act 2021;
(xi) sections 85, 90, 92, 93 and 96 of the Pension Schemes Act 2021;
;
(b) in sub-paragraph (b), after head (vii) insert—
(viii) sections 69(7)(b), 85(5), 90(6), 92(6), 93(2) and 96(5) of and paragraph 1(7) of Schedule 5 to the Pension Schemes Act 2021.
13 In Article 9 (improvement notices), in paragraph (7)—
(a) omit the “or” at the end of sub-paragraph (f);
(b) after sub-paragraph (g) insert
, or
(h) Part 2 of the Pension Schemes Act 2021.
14 (1) Article 85 (codes of practice) is amended as follows.
(2) In paragraph (2) (matters on which the Pensions Regulator must issue codes of practice), after sub-paragraph (j) insert—
(ja) the process for making an application under Part 2 of the Pension Schemes Act 2021 for authorisation of a collective money purchase scheme;
(jb) the matters that the Regulator expects to take into account in deciding whether it is satisfied that a pension scheme meets the authorisation criteria under that Part (see section 60 of the Pension Schemes Act 2021);
.
(3) In paragraph (6), in the definition of “the pensions legislation”—
(a) omit the “or” at the end of sub-paragraph (e);
(b) after sub-paragraph (f) insert
, or
(g) Part 2 of the Pension Schemes Act 2021.
15 In Article 88(2) (regulatory functions of the Pensions Regulator)—
(a) omit the “and” at the end of sub-paragraph (p);
(b) after sub-paragraph (p) insert—
(pa) the power to give a direction under section 74(2) of the Pension Schemes Act 2021 (direction to obtain actuarial valuation or take other steps to remedy or mitigate failure in relation to a collective money purchase scheme),
(pb) the power to give a notice under section 80(1) or (4) of that Act (risk notices),
(pc) the power to give a direction under section 80(6) of that Act (direction to implement proposals in a resolution plan),
(pd) the power to give a direction under section 90(4) of that Act (direction to submit implementation strategy), and
.
16 In Article 92(5) (special procedure: applicable cases), after sub-paragraph (ta) insert—
(tb) the power under section 81 of the Pension Schemes Act 2021 to withdraw authorisation of a collective money purchase scheme;
(tc) the power to make a pause order under section 95 of that Act;
(td) the power to make an order under paragraph 2(2) of Schedule 5 to that Act extending the period for which a pause order has effect;
(te) the power to make an order under paragraph 3 of that Schedule validating action taken in contravention of a pause order;
(tf) the power to make an order under paragraph 4(3) of that Schedule directing the notification of members or employers;
.
17 In Article 110 (schemes eligible for pension protection), after paragraph (1) insert—
(1A) Where a scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated for the purposes of this Part as a separate money purchase scheme.
18 In Article 226A (requirement for an effective system of governance), in paragraph (3) (exceptions), after sub-paragraph (d) insert—
(e) an authorised collective money purchase scheme within the meaning of Part 2 of the Pension Schemes Act 2021.
19 In Article 231 (representative of non-European scheme to be treated as trustee), in paragraph (3)—
(a) omit the “or” at the end of sub-paragraph (d);
(b) after sub-paragraph (e) insert
, or
(f) Part 2 of the Pension Schemes Act 2021.
20 In Article 267 (duty of trustees or managers to act consistently with law of host EEA State), in paragraph (4)—
(a) omit the “or” at the end of sub-paragraph (d);
(b) after sub-paragraph (e) insert
, or
(f) Part 2 of the Pension Schemes Act 2021.
21 In Schedule 2 (the reserved regulatory functions), after Part 4 insert—
PART 4A Functions under Part 2 of the Pension Schemes Act 2021
44A The power to give a direction under section 74(2) (direction to obtain actuarial valuation or take other steps to remedy or mitigate failure in relation to a collective money purchase scheme).
44B The power to give a direction under section 80(6) (direction to implement proposals in a resolution plan).
44C The power under section 81 to withdraw authorisation of a collective money purchase scheme.
44D The power to give a direction under section 92(4) (direction to pursue a continuity option).
44E The power to make a pause order under section 95.
44F The power to make an order under paragraph 2(2) of Schedule 5 extending the period for which a pause order has effect.
44G The power to make an order under paragraph 3 of Schedule 5 validating action taken in contravention of a pause order.
44H The power to make an order under paragraph 4(3) of Schedule 5 directing the notification of members or employers.
Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.))
22 (1) Section 31 of the Pensions (No. 2) Act (Northern Ireland) 2008 (effect of freezing order or assessment period: qualifying schemes) is amended as follows.
(2) In the heading, for “or assessment period” substitute “ , assessment period or pause order ”.
(3) In subsection (3) (meaning of “freezing event” and “relevant provision”)—
(a) in the definition of “freezing event”—
(i) omit the “or” at the end of paragraph (a);
(ii) at the end of paragraph (b) insert
, or
(c) the making of a pause order under section 95 of the Pension Schemes Act 2021;
;
(b) in the definition of “relevant provision”, after paragraph (b) insert—
(c) in relation to a pause order, provision contained in the order or the provision made with respect to the order by section 95 of the Pension Schemes Act 2021.
Pensions Act (Northern Ireland) 2015 (c. 5 (N.I.))
23 The Pensions Act (Northern Ireland) 2015 is amended as follows.
24 In section 51(4) (regulations subject to confirmatory procedure), omit the “or” after paragraph (e) and at the end of paragraph (f) insert
, or
(g) the first regulations under paragraph 1 or 3 of that Schedule that make provision in relation to collective money purchase schemes within the meaning of Part 2 of the Pension Schemes Act 2021 (see section 52 of that Act).
25 (1) Schedule 18 (power to restrict charges or impose requirements in relation to schemes) is amended as follows.
(2) In paragraph 1(1) (power to restrict charges), in each of paragraphs (a) and (b), for “a member” substitute “ members ”.
(3) In paragraph 4 (interpretation), after sub-paragraph (2) insert—
(3) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 2 of the Pension Schemes Act 2021 (see section 52(2)(b) of that Act) is to be treated for the purposes of this Schedule as a separate scheme.
SCHEDULE 7 The Pensions Regulator: minor and consequential amendments
Section 116
Pensions Act 1995 (c. 26)
1 In section 10 of the Pensions Act 1995 (civil penalties), after subsection (9) insert—
(10) The Authority may not require a person to pay a penalty under this section in respect of an act or omission if the Authority have issued a notice to the person under section 88A of the Pensions Act 2004 (financial penalties) in respect of the same act or omission.
Pensions Act 2004 (c. 35)
2 The Pensions Act 2004 is amended as follows.
3 In section 38B (section 38 contribution notice issued by reference to material detriment test: defence), in subsection (12), for paragraph (b) substitute—
(b) a reference to a party to an act or failure to act includes a reference to a person who knowingly assists in the act or failure;
.
4 In section 75 (inspection of premises: powers of inspectors), in subsection (1)—
(a) after “subsection (1),” insert “ (2A), ”;
(b) for “(3) or (4)” substitute “ (3), (4) or (5A) ”.
5 (1) Section 76 (inspection of premises: supplementary) is amended as follows.
(2) In subsection (3)(a)—
(a) after “virtue of”, in the second place it occurs, insert “ section 77A, 77B or 88A of this Act, ”;
(b) for “either of them” substitute “ any of those provisions ”.
(3) In subsection (9)—
(a) after “(1),” insert “ (2A), ”;
(b) for “(3) or (4)” substitute “ (3), (4) or (5A) ”.
6 In section 78 (warrants), in subsection (1)(c)(iii)—
(a) after “virtue of”, in the first place it occurs, insert “ section 77A, 77B or 88A of this Act, ”;
(b) for “either of them” substitute “ any of those provisions ”.
7 (1) Section 80 (offences of providing false or misleading information) is amended as follows.
(2) In subsection (1)(a), after sub-paragraph (iii) insert—
(iiia) section 72A (interviews),
.
(3) In subsection (1)(c), for “under this Act or the Pensions Act 1995 (c. 26)” substitute
under—
(i) the Pensions Act 1995,
(ii) this Act,
(iii) the Pensions Act 2008,
(iv) Schedule 18 to the Pensions Act 2014,
(v) the Pension Schemes Act 2017, or
(vi) Part 1 of the Pension Schemes Act 2021
.
8 In section 90 (codes of practice), in subsection (2)—
(a) in paragraph (aa), after “test” insert “ , the employer insolvency test or the employer resources test ”;
(b) after paragraph (b) insert—
(ba) the discharge of the duties imposed by section 69A (duty to give notices and statements to the Regulator in respect of certain events);
.
9 (1) Section 96 (the Regulator's standard procedure in relation to its regulatory functions) is amended as follows.
(2) In subsection (1A)(b), after “test” insert “ , the employer insolvency test or the employer resources test ”.
(3) In subsection (1B)—
(a) in paragraph (a), after “38B,” insert “ 38D or 38F (as the case may be) ”;
(b) in paragraph (b), for “subsection (2) of that section” substitute “ section 38B(2), 38D(2) and (3) or 38F(2) (as the case may be) ”.
10 In section 256 (no indemnification for fines or civil penalties), in subsection (1)(b), after “virtue of” insert “ section 77A, 77B or 88A of this Act, ”.
11 (1) Section 310 (admissibility of statements) is amended as follows.
(2) In subsection (3)(b)—
(a) after “financial penalty” insert “ on a relevant ground ”;
(b) after “virtue of—” insert—
(ai) section 88A (financial penalties),
;
(c) for sub-paragraph (i) (and the “or” following it) substitute—
(i) section 168 of the Pension Schemes Act 1993 (breach of regulations),
(ia) section 10 of the Pensions Act 1995 (civil penalties),
(ib) paragraph 10 of Schedule 17 to the Pensions Act 2014 (penalties for contravention of regulations etc),
(ic) paragraph 3 of Schedule 18 to that Act (penalties for contravention of regulations etc),
;
(d) for sub-paragraph (ii) substitute—
(ii) section 164 of the Pension Schemes (Northern Ireland) Act 1993 (c. 49) (breach of regulations),
(iii) Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (civil penalties),
(iv) Article 83A of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)) (financial penalties),
(v) Article 215G of that Order (penalties for contravention of regulations under Article 215D),
(vi) paragraph 10 of Schedule 17 to the Pensions Act (Northern Ireland) 2015 (c. 5 (N.I.)) (penalties for contravention of regulations etc), or
(vii) paragraph 3 of Schedule 18 to that Act (penalties for contravention of regulations etc).
(3) After subsection (3) insert—
(3A) For the purposes of this section a financial penalty is payable on a relevant ground if it is payable otherwise than under—
(a) section 88A as it applies by virtue of—
(i) section 80A (financial penalty for providing false or misleading information to Regulator), or
(ii) section 80B (financial penalty for providing false or misleading information to trustees or managers), or
(b) Article 83A of the Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1)) as it applies by virtue of—
(i) Article 75A of that Order (financial penalty for providing false or misleading information to Regulator), or
(ii) Article 75B of that Order (financial penalty for providing false or misleading information to trustees or managers).
(4) In subsection (4), in the definition of “information requirement”, after paragraph (c) insert—
("ca) section 72A (requirement to attend interview etc);
.
12 (1) Section 316 (Parliamentary control of subordinate legislation) is amended as follows.
(2) In subsection (2) (regulations and orders subject to affirmative procedure), after paragraph (za) insert—
(zaa) regulations under section 38E(2)(a) (section 38 contribution notice: constitution of resources of employer);
(zab) regulations under section 38E(2)(b) (section 38 contribution notice: valuation of resources of employer);
.
(3) In subsection (2), after paragraph (zb) insert—
(zc) regulations under section 58A(1) (offence of avoidance of employer debt: power to except certain schemes);
(zd) regulations under section 58B(1) (offence of conduct risking accrued scheme benefits: power to except certain schemes);
(ze) regulations under section 58C(1) (financial penalty for avoidance of employer debt: power to except certain schemes);
(zf) regulations under section 58D(1) (financial penalty for conduct risking accrued scheme benefits: power to except certain schemes);
(zg) regulations under section 73(5B)(a) (inspection of premises: power to specify provisions by reference to which there may be inspection);
(zh) regulations under section 88A(3) (financial penalties: power to amend maximum amount of penalty);
.
13 (1) In Schedule 1 (the Pensions Regulator), in Part 4 (proceedings and delegation etc), paragraph 21(2) is amended as follows.
(2) After paragraph (d) insert—
(da) the power to issue a notice under section 72A;
(db) the power to issue a fixed penalty notice under section 77A;
(dc) the power to issue an escalating penalty notice under section 77B;
(dd) the power to require payment of a penalty under section 88A;
.
(3) After paragraph (o) insert—
(p) the power to issue a fixed penalty notice under section 17 of the Pension Schemes Act 2017;
(q) the power to issue an escalating penalty notice under section 18 of that Act.
14 In Schedule 2 (the reserved regulatory functions), after paragraph 41 insert—
41A The power to require a person to pay a penalty under section 88A.
Pensions Act 2008 (c. 30)
15 The Pensions Act 2008 is amended as follows.
16 In section 40 (fixed penalty notices), in subsection (1)—
(a) omit the “or” after paragraph (c);
(b) after paragraph (d) insert
, or
(e) a notice issued under section 72A of that Act (interviews), so far as relevant to the exercise of any of its functions under or by virtue of this Part.
17 In section 41 (escalating penalty notices), in subsection (1)—
(a) omit the “or” after paragraph (c);
(b) after paragraph (d) insert
, or
(e) a notice issued under section 72A of that Act (interviews), so far as relevant to the exercise of any of its functions under or by virtue of this Part.
Pension Schemes Act 2017 (c. 17)
18 The Pension Schemes Act 2017 is amended as follows.
19 (1) Section 17 (fixed penalty notice for failure to comply with request for information) is amended as follows.
(2) In the title, at the end insert “ etc ”.
(3) In subsection (1)—
(a) for “with a” substitute
with—
(a) a
;
(b) after “Part” insert
, or
(b) a notice issued under section 72A of that Act (interviews), so far as relevant to the exercise of any of the Regulator's functions under or by virtue of this Part
.
20 (1) Section 18 (escalating penalty notice for failure to comply with request for information) is amended as follows.
(2) In the title, at the end insert “ etc ”.
(3) In subsection (1)—
(a) for “with a” substitute
with—
(a) a
;
(b) after “notice”)” insert
, or
(b) a notice issued under section 72A of that Act (interviews), so far as relevant to the exercise of any of the Regulator's functions under or by virtue of this Part (a “section 72A notice”)
.
(4) In subsection (2)(a), after “72 notice” insert “ or the section 72A notice ”.
(5) In subsection (3), after “72 notice” insert “ or a section 72A notice ”.
(6) In subsection (6)—
(a) in paragraph (b), after “notice” insert “ or the section 72A notice ”;
(b) in paragraph (e), after “notice” insert “ or the section 72A notice ”.