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Pension Schemes Act 2021 2021 c. 1 An Act to make provision about pension schemes. [11th February 2021] Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Propose a change(1) For the purposes of this Part, a benefit provided under a pension scheme is a “collective money purchase benefit” if— (a) the benefit is a qualifying benefit (see section 2), and (b) the scheme is a qualifying scheme (see sections 3 and 4). (2) In this Part “collective money purchase scheme” means— (a) a qualifying scheme, or (b) a section of a qualifying scheme (see sections 3(6) to (9) and 5), under which all of the benefits that may be provided are qualifying benefits. (3) In this Part— “single or connected employer scheme” means a collective money purchase scheme not used, or intended to be used, by any employers other than— a single employer, or two or more employers that are connected with each other; “unconnected multiple employer scheme” means a collective money purchase scheme used, or intended to be used, by two or more employers, some or all of which are not connected with each other.
Propose a change(1) A benefit provided under a pension scheme is a “qualifying benefit” if— (a) the benefit is provided out of the available assets of the scheme, (b) under the rules of the scheme, the rate or amount of the benefit is subject to periodic adjustments designed to achieve a balance between the value of the available assets of the scheme and the required amount, and (c) the benefit is not of a description specified in regulations made by the Secretary of State. (2) In subsection (1)— “the available assets of the scheme” means all the assets that— arise or derive from the payments made by or in respect of members of the scheme, and are available (subject to any deductions that fall to be made in respect of administration charges) for the provision of benefits to or in respect of the members of the scheme collectively; “the required amount” means the amount expected to be required, applying appropriate actuarial assumptions, for the purpose of providing benefits under the scheme to or in respect of the members of the scheme collectively. (3) Regulations under subsection (1)(c) are subject to affirmative resolution procedure. (4) Where a scheme is divided into sections, this section has effect as if— (a) the reference to the scheme in subsection (1)(a) were a reference to a section of the scheme, and (b) the other references to the scheme were references to that section of it.m,.
Propose a change(1) A pension scheme is a “qualifying scheme” if it meets the requirements in this section. (2) The scheme must be an occupational pension scheme established under an irrevocable trust .... (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) The scheme must not be a relevant public service pension scheme (see section 4). (5) The qualifying benefits provided under the scheme must consist of or include the payment of a pension. (6) If the scheme provides both qualifying benefits and other benefits, there must be appropriate separation of the qualifying benefits. (7) There is “appropriate separation” of qualifying benefits and other benefits if (and only if)— (a) the scheme is divided into sections, (b) none of the sections under which qualifying benefits are provided provides other types of benefit, (c) payments made by or in respect of members of the scheme for the purpose of providing qualifying benefits under a section of the scheme are allocated to that section, and (d) a proportion of the assets of the scheme is attributable to each section of the scheme and cannot be used for the purposes of any other section. (8) If the scheme provides a combination of qualifying benefits with different characteristics that is described in regulations made by the Secretary of State, there must be appropriate separation of those qualifying benefits. (9) There is “appropriate separation” of qualifying benefits with different characteristics if (and only if)— (a) the scheme is divided into sections, (b) each of the different types of qualifying benefit is provided under a different section, (c) payments made by or in respect of members of the scheme for the purpose of providing qualifying benefits under a section of the scheme are allocated to that section, and (d) a proportion of the assets of the scheme is attributable to each section of the scheme and cannot be used for the purposes of any other section. (10) Regulations under subsection (8) are subject to negative resolution procedure.
Propose a change(1) For the purposes of section 3(4) a pension scheme is a relevant public service pension scheme if it is— (a) a public service pension scheme within the meaning of the Pension Schemes Act 1993 (see section 1(1) of that Act), (b) a scheme under section 1 of the Public Service Pensions Act 2013 (new public service schemes), (c) a new public body pension scheme as defined in section 30 of that Act, or (d) a statutory pension scheme that is connected with a scheme referred to in paragraph (b) or (c). (2) In subsection (1)(d) “connected” and “statutory pension scheme” have the same meaning as in the Public Service Pensions Act 2013 (see sections 4(6) and 37 of that Act). (3) The reference to a pension in section 3(5) does not include income withdrawal or dependants' income withdrawal within the meaning of paragraphs 7 and 21 of Schedule 28 to the Finance Act 2004.
Propose a change(1) The Secretary of State may by regulations make provision about when a pension scheme is or is not divided into sections for the purposes of this Part. (2) The Secretary of State may by regulations provide that, where a collective money purchase scheme that is not divided into sections (an “undivided scheme”) becomes a collective money purchase scheme that is divided into sections, an authorisation previously granted in respect of the undivided scheme applies to any of those sections that— (a) is a collective money purchase scheme by reason of section 1(2)(b), and (b) satisfies conditions specified in the regulations. (3) For the purposes of this Part, where— (a) a qualifying scheme is divided into sections, and (b) each of those sections is a collective money purchase scheme by reason of section 1(2)(b), the qualifying scheme (taken as a whole) is to be treated as if it were not a collective money purchase scheme. (4) Regulations under subsection (1) are subject to negative resolution procedure. (5) Regulations under subsection (2) are subject to affirmative resolution procedure.
Propose a change(1) Schedule 1 contains amendments of definitions of “money purchase benefits” in— (a) Schedule 10A to the Building Societies Act 1986 (disclosures about directors, other officers and employees in notes to accounts); (b) the Pension Schemes Act 1993; (c) Part 1 of the Pensions Act 2008 (pension scheme membership for jobholders). (2) In section 32 of the Pensions Act 2011 (power to amend definitions of “money purchase benefits” in certain Acts)— (a) in subsection (1)— (i) for “purpose the” substitute purpose— (a) the ; (ii) at the end insert , or (b) section 2 of the Pension Schemes Act 2021 (collective money purchase benefits: meaning of “qualifying benefits”). ; (b) in subsection (2), at the end insert “ or by Schedule 1 to the Pension Schemes Act 2021 ”.
Propose a change(1) A person may not operate a collective money purchase scheme unless the scheme is authorised. (2) Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who breaches subsection (1). (3) If the Pensions Regulator becomes aware that a collective money purchase scheme is being operated without authorisation, it must notify the trustees of the scheme that the scheme is not authorised. (4) The notification must— (a) explain that the notification is a triggering event (see section 31), and (b) include an explanation of the trustees' duties under sections 31 to 45. (5) For the purposes of this section a person “operates” a collective money purchase scheme if, in relation to the scheme, the person accepts— (a) money paid by a member (or prospective member), or (b) money paid by an employer (or prospective employer) in respect of contributions, fees, charges or anything else except— (i) the costs of setting up the scheme, or (ii) costs relating to obtaining authorisation for the scheme.
Propose a change(1) The trustees of a collective money purchase scheme may apply to the Pensions Regulator for authorisation. (2) An application must be made in the manner and form specified by the Pensions Regulator. (3) An application must include— (a) the scheme's viability report and viability certificate (see section 13), ... (aa) where the scheme is an unconnected multiple employer scheme— (i) the scheme’s business plan (see section 14A), (ii) the scheme’s latest accounts (if any), (iii) the latest accounts (if any) of the scheme proprietor (see section 14B), prepared and audited as individual accounts in accordance with the applicable requirements, and (iv) the latest accounts of any undertaking, other than an unincorporated association, that partly or wholly funds the scheme proprietor, prepared and audited as individual accounts in accordance with the applicable requirements, and (b) the scheme's continuity strategy (see section 17). (3A) For the purposes of subsection (3)(aa)(iii) and (iv) accounts of a scheme proprietor or (as the case may be) an undertaking are prepared and audited as individual accounts in accordance with the applicable requirements if the accounts are prepared and audited in accordance with the requirements of the law by which the scheme proprietor or the undertaking is governed, ignoring any provision of that law— (a) that relates to the preparation or audit of group accounts; (b) that provides for accounts to be prepared or audited differently (or not at all) if the scheme proprietor or the undertaking— (i) does not exceed a certain size (by reference to turnover, balance sheet total, number of employees or otherwise), or (ii) is a subsidiary of another entity. (3B) If (notwithstanding subsection (3A)(a) and (b)) the law by which a scheme proprietor or undertaking is governed does not impose any requirements in relation to the preparation of the accounts of the scheme proprietor or undertaking, or the audit of those accounts, subsection (3A) is to apply as if the scheme proprietor or undertaking were subject to the requirements of Part 15 (accounts), or (as the case may be) Part 16 (audit), of the Companies Act 2006 with any modifications necessary to take account of the nature and structure of the scheme proprietor or undertaking (and ignoring any provision of that Act that falls within subsection (3A)(a) or (b)). (3C) In subsection (3A)(a) “group accounts” means accounts prepared under— (a) section 399 of the Companies Act 2006, or (b) any corresponding or similar provision (including a provision of the law of a territory outside the United Kingdom). (4) The Secretary of State may by regulations— (a) specify other information that must be included in an application; (b) require a fee to be paid to the Pensions Regulator in respect of an application. (5) In considering an application, the Pensions Regulator may take into account any matters it considers appropriate, including— (a) additional information provided by the applicant, and (b) subsequent changes to the application or to any information provided by the applicant. (6) Regulations under subsection (4) are subject to negative resolution procedure.
Propose a change(1) Where an application is made for authorisation of a collective money purchase scheme under section 8, the Pensions Regulator must decide whether it is satisfied that the scheme meets the authorisation criteria. (2) The Pensions Regulator must make that decision within the period of six months beginning with the day on which the Pensions Regulator received the application. (3) The authorisation criteria are— (a) that the persons involved in the scheme are fit and proper persons (see section 11), (b) that the design of the scheme is sound (see section 12), (c) that the scheme is financially sustainable (see section 14), (ca) where the scheme is an unconnected multiple employer scheme, that— (i) the scheme has a single scheme proprietor (see section 14B), and (ii) the scheme proprietor meets the requirements set out in section 14C, (cb) where the scheme is an unconnected multiple employer scheme, that— (i) no person has carried out promotion or marketing of the scheme that is unclear or misleading without rectification (see section 14D(1)), and (ii) the scheme has adequate systems and processes for securing that promotion or marketing of the scheme is clear and not misleading (see section 14D(2) and (3)), (cc) where the scheme is an unconnected multiple employer scheme, that no trustee of the scheme— (i) promotes or markets the scheme, or (ii) acts as a chief financial officer of the scheme, (d) that the scheme has adequate systems and processes for communicating with members and others (see section 15), (e) that the systems and processes used in running the scheme are sufficient to ensure that it is run effectively (see section 16), ... (f) that the scheme has an adequate continuity strategy (see section 17) , and (g) where the scheme is an unconnected multiple employer scheme, that if— (i) a triggering event occurs in relation to the scheme, and (ii) the circumstances are such that the trustees of the scheme are not required to pursue continuity option 1 by virtue of section 34(3), the trustees will not be prevented from pursuing continuity option 3 if they consider it appropriate to do so (see sections 17A, 31 and 34). (3A) Subsection (3)(cb)(ii) does not apply if no person is carrying out promotion or marketing of the scheme. (4) If the Pensions Regulator is satisfied that the collective money purchase scheme meets the authorisation criteria, it must— (a) grant the authorisation, (b) notify the applicant of its decision, and (c) add the scheme to its list of authorised collective money purchase schemes (see section 26). (5) If the Pensions Regulator is not satisfied that the collective money purchase scheme meets the authorisation criteria, it must— (a) refuse to grant the authorisation, and (b) notify the applicant of its decision. (6) A notification under subsection (5)(b) must also include— (a) the reasons for the decision, and (b) details of the right of referral to the First-tier Tribunal or Upper Tribunal (see section 10). (7) In this Part— “promotion or marketing” of a scheme means any communication about the scheme for the purpose of inducing an employer (or prospective employer) to use, or continue to use, the scheme (whether or not that communication is accompanied by an offer of, or provision of, a benefit); “rectification”, in relation to promotion or marketing that is unclear or misleading, means that a clarification or correction is made in relation to the promotion or marketing as soon as practicable, (and related expressions are to be read accordingly).
Propose a change(1) Where the Pensions Regulator grants authorisation to an unconnected multiple employer scheme, but no person has operated the scheme within the commencement period— (a) the scheme’s authorisation is withdrawn, and (b) the Pensions Regulator must— (i) notify the trustees that the scheme is no longer authorised, and (ii) remove the scheme from the list of authorised collective money purchase schemes (see section 26). (2) The commencement period, in relation to a scheme, is the period of 24 months beginning with the day on which the Pensions Regulator received the application for authorisation of the scheme. (3) But if, before the end of that 24-month period, the trustees of the scheme satisfy the Pensions Regulator that they have good reason for needing an extension to the period, the Regulator may extend the commencement period by up to six weeks. (4) A notification to the trustees of an unconnected multiple employer scheme under section 9(4)(b) must state— (a) the date on which the commencement period ends, and (b) that if no person has operated the scheme by that date, the authorisation will be withdrawn. (5) If no person has operated an authorised unconnected multiple employer scheme before the beginning of the period of three months ending with the date on which the commencement period ends, the Pensions Regulator must send a second notification to the trustees of the scheme stating the matters specified in subsection (4)(a) and (b). (6) Section 7(5) (meaning of “operates”) applies for the purposes of this section.
Propose a change(1) If the Pensions Regulator refuses to grant authorisation to a collective money purchase scheme, the decision may be referred to the Tribunal by— (a) the trustees, or (b) any other person who appears to the Tribunal to be directly affected by the decision. (2) In this section “the Tribunal”, in relation to a reference under subsection (1), means— (a) the First-tier Tribunal, in any case where it is determined by or under Tribunal Procedure Rules that the First-tier Tribunal is to hear the reference; (b) the Upper Tribunal, in any other case.
Propose a change(1) This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that the persons involved in a collective money purchase scheme are fit and proper persons (see section 9(3)(a)). (2) The Pensions Regulator must assess whether each of the following is a fit and proper person to act in relation to the scheme in the capacity mentioned— (a) a person who establishes the scheme; (b) a trustee; (ba) where the scheme is an unconnected multiple employer scheme, the scheme proprietor (see section 14B); (bb) where the scheme is an unconnected multiple employer scheme, a person who promotes or markets the scheme; (bc) where the scheme is an unconnected multiple employer scheme, a chief financial officer of the scheme; (bd) where the scheme is an unconnected multiple employer scheme, a chief investment officer of the scheme; (c) a person who (alone or with others) has power to appoint or remove a trustee; (d) a person who (alone or with others) has power to vary the provisions of the scheme; (e) a person acting in a capacity specified in regulations made by the Secretary of State. (3) In assessing whether a person is a fit and proper person to act in a particular capacity, the Pensions Regulator— (a) must take into account any matters specified in regulations made by the Secretary of State, and (b) may take into account such other matters as it considers appropriate, including matters relating to a person connected with that person. (4) Regulations under subsection (3)(a) may include provision requiring specified information to be provided to the Pensions Regulator. (5) For the purposes of this section, a person (“A”) is connected with another person (“B”) if— (a) A is an associate of B; (b) where B is a company, A is a director or shadow director of B or an associate of a director or shadow director of B; (c) A is a trustee of an occupational pension scheme established under a trust and— (i) the beneficiaries of the trust include B or an associate of B, or (ii) the provisions of the scheme confer a power that may be exercised for the benefit of B or an associate of B. (6) In this section— “associate” has the meaning given in section 435 of the Insolvency Act 1986; “director” and “shadow director” have the meaning given in section 251 of that Act. (7) Regulations under subsection (3)(a) are subject to affirmative resolution procedure. (8) Regulations under subsection (2)(e) are subject to negative resolution procedure.
Propose a change(1) This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that the design of a collective money purchase scheme is sound (see section 9(3)(b)). (2) In deciding whether the design of a collective money purchase scheme is sound, the Pensions Regulator must take into account— (a) the scheme's viability report and viability certificate (see section 13); (b) any matters specified in regulations made by the Secretary of State. (3) Regulations under subsection (2)(b) may include provision requiring specified information to be provided to the Pensions Regulator. (4) Regulations under subsection (2)(b) are subject to affirmative resolution procedure.
Propose a change(1) The trustees of a collective money purchase scheme must— (a) prepare a document explaining the design of the scheme and the reasons that they consider the design to be sound (a “viability report”), and (b) obtain a certificate from the scheme actuary certifying that, in the actuary's opinion, the design of the scheme is sound (a “viability certificate”). (2) The scheme actuary may not give a viability certificate unless satisfied that the scheme has rules that meet the requirements of section 18 and any regulations under that section. (3) The Secretary of State may by regulations— (a) specify information that must be included in a viability report, (b) specify other requirements with which a viability report must comply, (c) make provision about the content of a viability certificate, (d) specify matters to which the scheme actuary must have regard when providing a viability certificate, and (e) make provision about additional information or documents that must be prepared or obtained in connection with a viability report. (4) The trustees of a collective money purchase scheme must, at least once a year— (a) review the most recent viability report, (b) if appropriate, revise it, and (c) obtain a new viability certificate in respect of the report (or revised report). (5) If the most recent viability report becomes inaccurate or incomplete to any significant extent, the trustees must— (a) revise the report, and (b) obtain a new viability certificate in respect of the revised report. (6) The trustees must provide the Pensions Regulator with the information and documents listed in subsection (7)— (a) on applying for authorisation (see section 8), (b) within three months of the viability report being revised, and (c) at any other time, on request from the Pensions Regulator. (7) The information and documents to be provided are— (a) the most recent viability report; (b) the most recent viability certificate; (c) any additional information or documents specified or described in regulations under subsection (3)(e). (7A) Before providing a viability report to the Pensions Regulator in accordance with subsection (6)(a) the trustees of an unconnected multiple employer scheme must obtain the approval of the report by the scheme proprietor (see section 14B). (7B) The trustees of an unconnected multiple employer scheme must provide the scheme proprietor with any revised viability report— (a) within seven days of the viability report being revised, and (b) at any other time, on request from the scheme proprietor. (8) Regulations under subsection (3) are subject to affirmative resolution procedure.
Propose a change(1) This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that a collective money purchase scheme is financially sustainable (see section 9(3)(c)). (2) In order to be satisfied that a collective money purchase scheme is financially sustainable, the Pensions Regulator must be satisfied that the scheme has sufficient financial resources to meet the following costs— (a) the costs of setting up and running the scheme, and (b) in the event of a triggering event occurring— (i) the costs of complying with the duties under sections 31 to 45, and (ii) the costs of continuing to run the scheme for such period (which must be at least six months and no more than two years) as the Pensions Regulator thinks appropriate for the scheme. (3) In deciding whether it is satisfied that a scheme has sufficient financial resources to meet the costs mentioned in subsection (2), the Pensions Regulator must take into account any matters specified in regulations made by the Secretary of State. (3A) In deciding whether it is satisfied that an unconnected multiple employer scheme has sufficient financial resources to meet the costs mentioned in subsection (2), the Pensions Regulator must also take into account— (a) the liability of the scheme proprietor to provide funds to or in respect of the scheme for the purposes of meeting those costs (see section 14B), and (b) the financial resources of the scheme proprietor. (3B) In order to be satisfied that an unconnected multiple employer scheme is financially sustainable, the Pensions Regulator must also be satisfied that the business strategy relating to the scheme is sound. (3C) In deciding whether it is satisfied that the business strategy relating to an unconnected multiple employer scheme is sound, the Pensions Regulator— (a) must take into account— (i) the scheme’s business plan, and any supporting information and documents (see section 14A); (ii) the information and matters specified in Parts 1 and 2 of Schedule 1A; (iii) any additional information or documents specified in a Code for the purposes of this paragraph, and (b) may take into account the information specified in Part 3 of Schedule 1A. (4) Regulations under subsection (3) may include provision— (a) requiring specified information to be provided to the Pensions Regulator (including information about the financial resources of the scheme proprietor); (b) specifying requirements to be met by the scheme relating to its financing, such as requirements relating to assets, capital or liquidity. (5) Regulations under subsection (3) are subject to affirmative resolution procedure.
Propose a change(1) The scheme proprietor of an unconnected multiple employer scheme must prepare a business plan for the scheme. (2) A business plan must— (a) include the information specified in Part 1 of Schedule 1B, and any other information set out in a Code for the purposes of this paragraph, unless Part 2 of that Schedule provides otherwise, and (b) comply with the requirements specified in Part 2 of Schedule 1B, and any other requirements set out in a Code in relation to the information to be included in a business plan. (3) The scheme proprietor must, at least once a year— (a) review the most recent business plan, and (b) if appropriate, revise it within three months of the scheme proprietor concluding that it is appropriate to revise the plan. (4) The scheme proprietor must revise the most recent business plan at any time if— (a) there is any significant change to the information included in it, or (b) a triggering event (see section 31) has reduced the value of the financial resources of the scheme. (5) The business plan, and any revised business plan, must be approved by the trustees of the scheme. (6) The scheme proprietor or the trustees must provide the Pensions Regulator with the most recent business plan, and any supporting information or documents required by the Regulator— (a) on application for authorisation (see section 8), (b) where a revision is required as a result of a review under subsection (3), on completion of the revision, (c) where a revision is required under subsection (4), within three months of the plan being revised, and (d) at any other time, on request from the Pensions Regulator.
Propose a change(1) An unconnected multiple employer scheme has a single scheme proprietor (see section 9(3)(ca)(i)) if there is a person, but no more than one person, who meets all the criteria in subsection (2) in relation to the scheme. (2) The criteria are— (a) if the Pensions Regulator is considering an application for authorisation in relation to the scheme, that the person is liable to provide funds to or in respect of the scheme for the purposes of meeting— (i) some or all of the costs of setting up the scheme, and (ii) some or all of the costs relating to obtaining authorisation of the scheme, (b) that the person is liable to provide funds to or in respect of the scheme in circumstances where administration charges received from or in respect of members are not sufficient to cover the balance (if any) of the costs of setting up, and obtaining authorisation of, the scheme, and the costs of running it, (c) that the person is liable, in the event of a triggering event occurring in relation to the scheme, to provide funds to or in respect of the scheme for the purposes of meeting— (i) the costs of complying with the duties under sections 31 to 45 (see section 14(2)(b)(i)), and (ii) the costs of continuing to run the scheme for such period (which must be at least six months and no more than two years) as the Pensions Regulator thinks appropriate for the scheme (see section 14(2)(b)(ii)), and (d) that the person is responsible for making business decisions relating to the commercial activities of the scheme. (3) In this Part, “the scheme proprietor”, in relation to a scheme, means the person who meets all the criteria in subsection (2).
Propose a change(1) This section makes provision about the requirements that the scheme proprietor of an unconnected multiple employer scheme must meet in order for the scheme to meet the authorisation criterion mentioned in section 9(3)(ca)(ii). (2) The first requirement is that the scheme proprietor is a body corporate or a partnership that is a legal person under the law by which it is governed. (3) The second requirement is that the scheme proprietor is not a trustee of the scheme. (4) The third requirement is that the scheme proprietor had accounts prepared and audited as individual accounts in accordance with the applicable requirements at the time when it entered into the relationship or arrangement with the scheme by virtue of which it is the scheme proprietor. (5) The scheme proprietor is excepted from the third requirement if— (a) the scheme proprietor has deposited a proportion, set out in a Code, of the assets required to meet the costs mentioned in section 14(2) in a separate account in the name of the trustees with a deposit taker as defined in section 49(8A) of the Pensions Act 1995 (other responsibilities of trustees, etc.), or (b) the Pensions Regulator grants an exception from the requirement. (6) A scheme proprietor ceases to be excepted from the third requirement— (a) by virtue of subsection (5)(a), if any of the proportion of the assets referred to in that subsection is withdrawn from the account referred to in that subsection before the date on which the scheme proprietor provides accounts to the Pensions Regulator under this Part, or (b) by virtue of subsection (5)(b), if the Pensions Regulator withdraws an exception granted under that subsection. (7) The Pensions Regulator may only withdraw an exception under subsection (6)(b) if— (a) the Regulator has notified the scheme proprietor of its intention to withdraw the exception before the beginning of the period of two weeks ending with the day on which the exception is to be withdrawn (the “withdrawal day”), and (b) the scheme proprietor has not, by the withdrawal day, provided accounts to the Regulator under this Part. (8) In this section “body corporate” has the meaning given in section 1173(1) of the Companies Act 2006. (9) Subsections (3A) to (3C) of section 8 (where accounts are prepared and audited as individual accounts in accordance with the applicable requirements) apply for the purposes of this section.
Propose a change(1) Part 1 of Schedule 1C sets out the matters that the Pensions Regulator must take into account in deciding whether it is satisfied that no person has carried out promotion or marketing of an unconnected multiple employer scheme that is unclear or misleading without rectification (see section 9(3)(cb)(i)). (2) Part 2 of Schedule 1C sets out the matters that the Pensions Regulator must take into account in deciding whether it is satisfied that the scheme has adequate systems and processes for securing that promotion or marketing of the scheme is clear and not misleading (see section 9(3)(cb)(ii)). (3) In deciding whether it is satisfied that an unconnected multiple employer scheme has adequate systems and processes for securing that promotion or marketing of the scheme is clear and not misleading, the Pensions Regulator may take into account whether any promotion or marketing of the scheme has been unclear or misleading (whether or not it has been rectified).
Propose a change(1) This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that a collective money purchase scheme has adequate systems and processes for communicating with members and others (see section 9(3)(d)). (2) In order to be satisfied that a scheme has adequate systems and processes for communicating with members and others, the Pensions Regulator must be satisfied that the scheme has adequate systems and processes— (a) for providing information in relation to the scheme to persons falling within subsection (3); (b) for securing that information provided to those persons is correct and is not misleading. (3) A person falls within this subsection if the person is— (a) a member or prospective member of the scheme, or (b) a person who has survived a member of the scheme and has an entitlement to benefits, or a right to future benefits, under the scheme rules in respect of the member. (4) In making the decision, the Pensions Regulator— (a) must take into account any matters specified in regulations made by the Secretary of State, and (b) may take into account any communications made using the systems and processes referred to in subsection (2). (5) Regulations under subsection (4)(a) may among other things— (a) make provision about systems and processes used for assessing and improving the effectiveness of communications; (b) make provision requiring specified information to be provided to the Pensions Regulator. (6) Regulations under subsection (4)(a) are subject to affirmative resolution procedure.
Propose a change(1) This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that the systems and processes used in running a collective money purchase scheme are sufficient to ensure that it is run effectively (see section 9(3)(e)). (2) In deciding whether it is satisfied that the systems and processes used in running the scheme are sufficient for that purpose, the Pensions Regulator must take into account any matters specified in regulations made by the Secretary of State. (3) Regulations under subsection (2) may among other things— (a) make provision about the matters set out in subsection (4); (b) require specified information to be provided to the Pensions Regulator. (4) The matters referred to in subsection (3)(a) are— (a) features and functionality required of the IT systems used in running the scheme; (b) standards that those IT systems must meet (for example, in relation to quality and in relation to security of data); (c) the maintenance of those IT systems; (d) records management, risk management and resource planning; (e) processes relating to transactions and investment decisions; (f) processes relating to the appointment and removal of trustees; (g) processes relating to the professional development of trustees; (h) processes relating to the appointment, removal, roles and responsibilities of— (i) persons, other than the trustees, involved in running the scheme, and (ii) persons involved in providing services in relation to the scheme. (5) Regulations under subsection (2) are subject to affirmative resolution procedure.
Propose a change(1) This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that a collective money purchase scheme has an adequate continuity strategy (see section 9(3)(f)). (2) A document addressing how the interests of members of the scheme are to be protected if a triggering event (see section 31) occurs in relation to the scheme (a “continuity strategy”) must be prepared by— (a) where the scheme is a single or connected employer scheme, the trustees of the scheme; (b) where the scheme is an unconnected multiple employer scheme, the scheme proprietor. (3) A continuity strategy must include a section setting out the levels of administration charges that apply in relation to members of the scheme. (4) It must set out those levels of charges in the manner specified in regulations made by the Secretary of State. (5) A continuity strategy must— (a) contain such other information as may be specified in regulations made by the Secretary of State, and (b) be prepared in accordance with regulations made by the Secretary of State. (6) The trustees of a single or connected employer scheme must— (a) keep the continuity strategy under review, and (b) revise it if appropriate. (6A) The scheme proprietor of an unconnected multiple employer scheme must— (a) keep the continuity strategy under review, and (b) revise it if appropriate. (6B) The continuity strategy of an unconnected multiple employer scheme, and any revisions to it, must be approved by the trustees of the scheme. (7) The continuity strategy must be provided to the Pensions Regulator in accordance with subsection (7A)— (a) where the scheme is a single or connected employer scheme, by the trustees; (b) where the scheme is an unconnected multiple employer scheme, by the scheme proprietor. (7A) The continuity strategy must be provided— (a) on application for authorisation (see section 8), (b) within three months of the continuity strategy being revised, and (c) at any other time, on request from the Pensions Regulator. (8) In deciding whether a continuity strategy is adequate, the Pensions Regulator must take into account any matters specified in regulations made by the Secretary of State. (9) Regulations under subsection (8) may include provision requiring specified information to be provided to the Pensions Regulator. (10) Regulations under this section are subject to affirmative resolution procedure.
Propose a change(1) This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that, unless required to pursue continuity option 1 by virtue of section 34(3), the trustees of an unconnected multiple employer scheme would not be prevented from pursuing continuity option 3 whenever they consider it appropriate to do so, should a triggering event occur in relation to the scheme (see section 9(3)(g)). (2) In deciding whether it is satisfied that the trustees of the scheme would not be so prevented, the Pensions Regulator must take into account whether there would be any constraints or fetters on the trustees when deciding whether to pursue continuity option 3, should a triggering event occur. (3) For the purposes of subsection (2) the circumstances in which there would be a constraint or fetter on the trustees when deciding whether to pursue continuity option 3 include where, before making the decision, the trustees would be required to— (a) obtain the consent of employers, the scheme proprietor, members of the scheme, or any other person, or (b) consult with any person other than employers, the scheme proprietor and members of the scheme.
Propose a change(1) A collective money purchase scheme must have rules about how the rate or amount of benefits provided under the scheme is to be determined. (2) The rules must include— (a) rules for determining the available assets of the scheme and their value, (b) rules for determining the required amount, and (c) rules about how the rate or amount of benefits provided under the scheme is to be adjusted from time to time, including rules about when adjustments are to take effect. (3) In this section “the available assets of the scheme” and “the required amount” have the meaning given in section 2(2). (4) The Secretary of State may by regulations make provision about the matters mentioned in subsections (1) and (2), including provision about the methods and assumptions to be used. (5) Regulations under subsection (4) making provision about the determination of the required amount may, among other things, make provision about— (a) how past or proposed adjustments to the rate or amount of benefits provided under the scheme are to be treated; (b) assumptions to be made about future adjustments to the rate or amount of such benefits. (6) Regulations under subsection (4) may, among other things— (a) provide for alternative methods and assumptions; (b) require or enable the trustees to decide which methods and assumptions are to be used; (c) specify matters that the trustees must take into account, or principles they must follow, in making such decisions. (7) Regulations under subsection (4)— (a) may make provision applying in relation to rights under the scheme that have already accrued; (b) override the rules of the scheme to the extent that the rules conflict with the regulations. (8) Regulations under subsection (4) are subject to affirmative resolution procedure.
Propose a change(1) The trustees of a collective money purchase scheme must obtain the advice of the scheme actuary before making a decision as to the methods and assumptions to be used in determining the matters mentioned in section 18(1) and (2). (2) The Secretary of State may by regulations specify requirements with which the scheme actuary must comply when advising the trustees in accordance with subsection (1). (3) Regulations under subsection (2) may, among other things, require the scheme actuary to have regard to guidance that is prepared, and from time to time revised, by a person specified or described in the regulations. (4) Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee who fails to take all reasonable steps to comply with subsection (1). (5) The first regulations under subsection (2) are subject to affirmative resolution procedure. (6) Subsequent regulations under subsection (2) are subject to negative resolution procedure.
Propose a change(1) The trustees of a collective money purchase scheme must obtain actuarial valuations in accordance with this section and regulations under subsection (5). (2) In this Part “actuarial valuation” means a report prepared and signed by the scheme actuary setting out— (a) the available assets of the scheme and their value; (b) the required amount; (c) whether an adjustment to the rate or amount of benefits provided under the scheme is required and, if so, the amount of the adjustment. (3) In this section “the available assets of the scheme” and “the required amount” have the meaning given in section 2(2). (4) A scheme actuary preparing an actuarial valuation in pursuance of a provision of this Part must determine the matters mentioned in subsection (2) in accordance with the scheme rules. (5) The Secretary of State may by regulations make provision about actuarial valuations, including— (a) provision about when actuarial valuations must be prepared; (b) provision about the date by reference to which a determination must be made; (c) provision about information and statements that an actuarial valuation must contain; (d) provision requiring the trustees to obtain an actuarial valuation from the scheme actuary within a period specified or described in the regulations; (e) provision requiring the trustees to send an actuarial valuation received by them to the Pensions Regulator within a period specified or described in the regulations. (6) In a case that is not the subject of regulations under subsection (5)(a), the trustees must obtain— (a) an actuarial valuation in which the date by reference to which the available assets of the scheme are determined (“the effective date”) falls within the period of one year beginning with the day on which the scheme was established, and (b) subsequent actuarial valuations in which the effective date is not more than one year after the effective date of the previous actuarial valuation. (7) In a case that is not the subject of regulations under subsection (5)(b), the required amount must be determined by reference to the effective date. (8) Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee who fails to take all reasonable steps to comply with this section. (9) Nothing in this section affects a power or duty of the trustees of a collective money purchase scheme to obtain actuarial valuations on other occasions. (10) The first regulations under subsection (5) are subject to affirmative resolution procedure. (11) Subsequent regulations under subsection (5) are subject to negative resolution procedure.
Propose a changeA scheme actuary who prepares an actuarial valuation in pursuance of a provision of this Part must certify that the matters mentioned in section 20(2) have been determined in accordance with the scheme rules.
Propose a change(1) This section applies where an adjustment to the rate or amount of benefits provided under a collective money purchase scheme is required in accordance with the scheme rules. (2) The trustees must as soon as is reasonably practicable report in writing to the Pensions Regulator if the adjustment— (a) is not made in accordance with the most recent actuarial valuation, or (b) does not take effect in accordance with the scheme rules. (3) A report under subsection (2) must— (a) explain why the adjustment was not made in accordance with the most recent actuarial valuation or (as the case may be) does not take effect in accordance with the scheme rules; (b) contain such other information as the Secretary of State may specify in regulations. (4) Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee who fails to take all reasonable steps to comply with this section. (5) Regulations under subsection (3)(b) are subject to negative resolution procedure.
Propose a change(1) The powers conferred by this section are exercisable where it appears to the Pensions Regulator (as a result of a report made to it or otherwise) that the trustees of a collective money purchase scheme have without good reason— (a) failed to comply with a requirement imposed by or under this Part to obtain an actuarial valuation, or (b) failed to secure that any adjustment to the rate or amount of benefits provided under the scheme which is required in accordance with the scheme rules— (i) is made in accordance with the most recent actuarial valuation, and (ii) takes effect in accordance with the scheme rules. (2) The Pensions Regulator may direct the trustees— (a) to obtain an actuarial valuation; (b) to take such other steps as the Pensions Regulator considers appropriate to remedy or mitigate the failure. (3) A direction under subsection (2)(a) must— (a) specify the period within which the valuation is to be obtained; (b) specify the date by reference to which the matters to be set out in the actuarial valuation are to be determined; (c) contain such other information as the Secretary of State may specify in regulations. (4) In exercising a power conferred by this section, the Pensions Regulator must comply with any requirements specified in regulations made by the Secretary of State. (5) Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee who fails to take all reasonable steps to comply with a direction under this section. (6) Regulations under this section are subject to negative resolution procedure. (7) The powers conferred by this section are in addition to any powers exercisable by the Pensions Regulator under any other enactment.
Propose a change(1) The Pensions Act 1995 is amended as follows. (2) In section 67 (the subsisting rights provisions)— (a) after subsection (1) insert— (1A) Any exercise of such a power to make a prohibited modification is void. ; (b) in subsection (2)(a)(i), after “if the modification is a protected modification,” insert “ or the scheme is a collective money purchase scheme within the meaning of Part 1 of the Pension Schemes Act 2021, ”; (c) in subsection (2)(a)(ii), for “if it is not” substitute “ if sub-paragraph (i) does not apply ”; (d) in subsection (3) omit paragraph (b) and the “or” before it; (e) after subsection (3) insert— (3A) Regulations may provide for cases in which the subsisting rights provisions do not apply. (3) In section 67A (the subsisting rights provisions: interpretation), in subsection (1), before “ “regulated modification”” insert— “prohibited modification” . (4) After subsection (1) of that section insert— (1A) “Prohibited modification” means a modification of an occupational pension scheme which on taking effect would or might result in any subsisting right of— (a) a member of the scheme, or (b) a survivor of a member of the scheme, which is not a right or entitlement to money purchase benefits becoming, or being replaced with, a right or entitlement to collective money purchase benefits under the scheme rules. (5) In subsection (3) of that section— (a) after “a modification” insert “ , other than a prohibited modification, ”; (b) for paragraph (a) substitute— (a) on taking effect would or might result in a relevant transformation of any subsisting right of a member of the scheme or a survivor of a member of the scheme (see subsection (3A)), ; (c) in paragraph (b), after “rules” insert “ , other than a pension that is a collective money purchase benefit ”; (d) omit the words following paragraph (c). (6) After subsection (3) of that section insert— (3A) For the purposes of subsection (3)(a), there is a relevant transformation of a subsisting right where— (a) a subsisting right that is not a right or entitlement to money purchase benefits becomes, or is replaced with, a right or entitlement to money purchase benefits under the scheme rules, (b) a subsisting right that is a right or entitlement to money purchase benefits other than collective money purchase benefits becomes, or is replaced with, a right or entitlement to collective money purchase benefits under the scheme rules, or (c) a subsisting right that is a right or entitlement to collective money purchase benefits becomes, or is replaced with, a right or entitlement to money purchase benefits other than collective money purchase benefits under the scheme rules. (3B) For the purposes of subsection (3A), the reference in the definition of “money purchase benefits” in section 181(1) of the Pension Schemes Act 1993 to the widow, widower or surviving civil partner of a member of an occupational pension scheme is to be read as including any other survivor of the member. (7) In subsection (4) of that section, after “a modification” insert “ , other than a prohibited modification, ”. (8) In subsection (9) of that section— (a) in paragraph (a), after sub-paragraph (xiii) insert— (xiv) regulations made 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.
Propose a change(1) Chapter 1 of Part 4ZA of the Pension Schemes Act 1993 (transfer rights: general) is amended as follows. (2) In section 93 (scope of Chapter 1)— (a) in subsection (7) (crystallisation events), in paragraph (b), after “money purchase benefits” insert “ other than collective money purchase benefits ”; (b) after subsection (10) insert— (10A) 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 as a separate scheme for the purposes of this Chapter. (3) In section 97 (calculation of cash equivalents), after subsection (3) insert— (3ZA) Where, in the case of an application from a member under section 95 that relates to money purchase benefits that are collective money purchase benefits, regulations under section 99(2)(c) provide for a period longer than 6 months, subsection (3)(b) is to be read as if the reference to 6 months were a reference to that longer period. (4) In section 99 (trustees' duties after exercise of option), in subsection (2) (period in which to carry out what the member requires)— (a) omit the “and” at the end of paragraph (a); (b) in paragraph (b), after “money purchase benefits” insert “ other than collective money purchase benefits ”; (c) at the end of paragraph (b) insert , and (c) in the case of an application which relates to money purchase benefits that are collective money purchase benefits, within 6 months beginning with the date of the application or such longer period beginning with that date as may be prescribed. (5) After section 99 insert— Trustees' further duties: collective money purchase benefits 99A (1) If the trustees receive an application under section 95 relating to money purchase benefits that are collective money purchase benefits— (a) they must give the member notice in writing of the cash equivalent that relates to those benefits, and (b) they must not without the written consent of the member enter into an agreement with a third party to use the member's cash equivalent in a way specified in section 95(2) before the end of the period mentioned in subsection (2). (2) The period referred to in subsection (1)(b) is— (a) the period of 3 weeks beginning with the day after the day on which the notice is given, or (b) such other period as may be specified in regulations. (3) Any action taken in contravention of subsection (1)(b) is void. (6) In section 100B (meaning of “scheme rules”: occupational pension schemes), in subsection (2)— (a) in paragraph (a), at the end insert— (xv) regulations made under section 18(4) of or paragraph 1(6) of Schedule 2 to the Pension Schemes Act 2021; (xvi) sections 34, 39, 41, 42 and 45 of the Pension Schemes Act 2021; ; (b) in paragraph (b), at the end 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.
Propose a change(1) The Pensions Regulator must maintain and publish a list of authorised collective money purchase schemes. (2) The list— (a) must identify each authorised collective money purchase scheme by name, and (b) may include any other information that the Pensions Regulator considers appropriate.
Propose a change(1) The trustees of an authorised unconnected multiple employer scheme must send the scheme’s accounts to the Pensions Regulator. (2) The accounts must be sent to the Regulator no later than two months after they are obtained by the trustees. (3) The scheme proprietor of an authorised unconnected multiple employer scheme must send to the Pensions Regulator— (a) its accounts prepared and audited as individual accounts in accordance with the applicable requirements, and (b) if the scheme proprietor is partly or wholly funded by an undertaking other than an unincorporated association (“relevant undertaking”), the accounts of that undertaking prepared and audited in accordance with the applicable requirements. (4) The accounts of the scheme proprietor and any relevant undertaking must be sent to the Regulator— (a) no later than nine months after the end of the financial year to which they relate, or (b) if an item 4A, 4B or 7A triggering event occurs in relation to the scheme (see section 31) and the Pensions Regulator gives notice to the scheme proprietor requiring that accounts be sent early, within such shorter period after the end of the financial year to which they relate as is specified in the notice. (5) In subsection (4) “financial year” in relation to a scheme proprietor or a relevant undertaking is to be interpreted in accordance with— (a) the requirements of the law referred to in section 8(3A), or (b) where no such meaning is given to “financial year” in those requirements, the Companies Act 2006. (6) Subsections (3A) to (3C) of section 8 (where accounts are prepared and audited as individual accounts in accordance with the applicable requirements) apply for the purposes of this section. (7) Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with a requirement imposed by or under this section.
Propose a change(1) The Pensions Regulator may by notice require the trustees of a collective money purchase scheme to submit a supervisory return. (2) The Secretary of State may make regulations setting out the information that the Pensions Regulator may require in a supervisory return. (3) The notice must specify— (a) the information required to be included in the return, (b) the manner and form in which the return must be submitted, and (c) the period (of at least 28 days) within which the return must be submitted. (4) The trustees of a collective money purchase scheme may not be required to submit a supervisory return more than once in any 12 month period. (5) Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee who fails to submit a supervisory return when required to do so. (6) Regulations under subsection (2) are subject to negative resolution procedure.
Propose a change(1) Where a person mentioned in subsection (2) becomes aware of the fact that a significant event has occurred in relation to an authorised collective money purchase scheme, the person must (subject to subsections (6) and (7)) give notice of that fact, in writing, to the Pensions Regulator as soon as reasonably practicable. (2) The persons are— (a) a trustee of the scheme; (b) an employer in relation to the scheme; (ba) where the scheme is an unconnected multiple employer scheme, the scheme proprietor; (bb) where the scheme is an unconnected multiple employer scheme, a person who promotes or markets the scheme; (bc) where the scheme is an unconnected multiple employer scheme, a chief financial officer of the scheme; (bd) where the scheme is an unconnected multiple employer scheme, a chief investment officer of the scheme; (c) a person who (alone or with others) has power to appoint or remove a trustee; (d) a person who (alone or with others) has power to vary the provisions of the scheme; (e) a person who provides legal, financial or actuarial advice in relation to the scheme; (f) a person who manages the scheme administration services; (g) a person acting in a capacity specified in regulations made by the Secretary of State. (3) The Secretary of State must make regulations setting out the events that constitute significant events for the purposes of this section. (4) The Secretary of State may by regulations specify further information that is to be provided by a person required to give notice under this section. (5) Except as provided by subsections (6) and (7), the disclosure of information under this section does not breach— (a) any obligation of confidence owed by the person making the disclosure, or (b) any other restriction on the disclosure of information (however imposed). (6) This section does not require a disclosure of information if the disclosure would contravene the data protection legislation (but in determining whether a disclosure of information would do so, take into account the duty imposed by this section). (7) A person is not required by this section to disclose anything in respect of which a claim to legal professional privilege (or, in Scotland, to confidentiality of communications) could be maintained in legal proceedings. (8) Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with a requirement imposed by or under this section. (9) The first regulations under subsection (3) are subject to affirmative resolution procedure. (10) Subsequent regulations under subsection (3), and regulations under subsection (2)(g) or (4), are subject to negative resolution procedure.
Propose a change(1) The Pensions Regulator may give a risk notice to the trustees of a collective money purchase scheme if the Regulator considers that— (a) there is an issue of concern in relation to the scheme, and (b) the scheme will breach the authorisation criteria, or is likely to breach them, if the issue is not resolved. (1A) Where the scheme is an unconnected multiple employer scheme the Pensions Regulator may give a risk notice to the scheme proprietor if the Regulator considers that— (a) there is an issue of concern in relation to the scheme, and (b) the scheme will breach the authorisation criteria, or is likely to breach them, if the issue is not resolved. (2) A risk notice is a notice that requires the trustees of the scheme or (as the case may be) the scheme proprietor to submit to the Pensions Regulator a plan (a “resolution plan”) setting out proposals for resolving the issue of concern. (3) A risk notice must— (a) identify the issue of concern; (b) specify the date by which the resolution plan is to be submitted. (4) If the Pensions Regulator is not satisfied that the proposals in a resolution plan are likely to be adequate to resolve the issue of concern, the Regulator may give a further notice to the trustees or the scheme proprietor requiring them to submit a revised plan by a date specified in the notice. (4A) Where risk notices relating to the same issue of concern have been issued to the trustees of the scheme and the scheme proprietor, the reference in subsection (4) to the proposals in a resolution plan is to be read as a reference to the proposals in the resolution plans of the trustees and the scheme proprietor taken together. (5) The trustees or (as the case may be) the scheme proprietor must implement the proposals in a resolution plan if the Pensions Regulator— (a) is satisfied that the proposals are likely to be adequate to resolve the issue of concern (whether alone or together with the proposals in another resolution plan relating to the same issue of concern), and (b) notifies the trustees or the scheme proprietor accordingly. (6) The Pensions Regulator may direct the trustees or the scheme proprieto to comply with the requirement imposed by subsection (5). (7) Where the trustees or the scheme proprietor are required by subsection (5) to implement the proposals in a resolution plan, the trustees or (as the case may be) the scheme proprietor must— (a) submit to the Pensions Regulator, before the end of a period specified in regulations made by the Secretary of State, a report setting out what progress they are making in implementing the proposals (a “progress report”); (b) submit further progress reports to the Pensions Regulator at intervals specified by the Pensions Regulator. (8) Resolution plans and progress reports must be provided in the manner and form specified by the Pensions Regulator. (9) A reference to a resolution plan in subsections (4) to (8) includes a reference to a resolution plan as revised under subsection (4). (10) The Secretary of State may by regulations— (a) specify information that a risk notice must contain; (b) provide that the date referred to in subsection (3)(b) or (4) must fall before the end of a period specified in the regulations. (11) Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee or a scheme proprietor who fails to comply with— (a) a notice under subsection (1) , (1A or (4), (b) a direction under subsection (6), or (c) a requirement imposed by subsection (7). (12) Regulations under this section are subject to negative resolution procedure.
Propose a change(1) If the Pensions Regulator stops being satisfied that an authorised collective money purchase scheme meets the authorisation criteria, it may decide to withdraw the scheme's authorisation. (2) A warning notice under the standard procedure or a determination notice under the special procedure given in relation to a decision under subsection (1) must— (a) explain that the issue of the notice is a triggering event (see section 31), and (b) include an explanation of the trustees' duties under sections 31 to 45. (3) On withdrawal of a scheme's authorisation, the Pensions Regulator must— (a) notify the trustees that the scheme is no longer authorised, and (b) remove the scheme from the list of authorised collective money purchase schemes. (4) In this Part— “determination notice” has the meaning given in section 98(2)(a) of the Pensions Act 2004; “special procedure” has the meaning given in section 98 of that Act; “standard procedure” has the meaning given in section 96 of that Act; “warning notice” has the meaning given in section 96(2)(a) of that Act.
Propose a change(1) A triggering event occurs in relation to a collective money purchase scheme if an event within the second column of the triggering events table occurs in relation to it, subject to subsection (2). (2) An event within any of items 4 to 10 of the triggering events table is not a triggering event in relation to a collective money purchase scheme if it occurs within an existing triggering event period for the scheme (see section 32). (3) A triggering event occurs on the date specified in relation to the event in the third column of the triggering events table. (4) For the purposes of this Part “the triggering events table” is— Item | Triggering event | Date event occurs 1. | The Pensions Regulator issues a warning notice under the standard procedure in respect of a decision to withdraw the scheme's authorisation. | The date on which the notice is issued. 2. | The Pensions Regulator issues a determination notice under the special procedure in respect of a decision to withdraw the scheme's authorisation. | The date on which the notice is issued. 3. | The Pensions Regulator gives a notification under section 7(3) (scheme not authorised). | The date on which the notification is given. 4. | Where the scheme is a single or connected employer scheme, an insolvency event occurs in relation to an employer or a relevant former employer. | The date on which the insolvency event occurs. 4A. | Where the scheme is an unconnected multiple employer scheme, an insolvency event occurs in relation to the scheme proprietor. | The date on which the insolvency event occurs. 4B. | Where the scheme is an unconnected multiple employer scheme and the scheme proprietor is a person or body of a kind that meets requirements prescribed under section 129(1)(b) of the Pensions Act 2004, the scheme proprietor becomes unlikely to continue as a going concern. | The earlier of— the date on which the scheme proprietor notifies the Pensions Regulator of that fact, and the date on which the trustees become aware of that fact. 5. | Where the scheme is a single or connected employer scheme, an employer or a relevant former employer becomes unlikely to continue as a going concern, where the employer or relevant former employer is a person or body of a kind that meets the requirements prescribed under section 129(1)(b) of the Pensions Act 2004 | The earlier of— the date on which the employer or relevant former employer notifies the Pensions Regulator of that fact, and the date on which the trustees become aware of that fact. 6. | A person who has power to do so under the provisions of the scheme decides that the scheme should be wound up. | The date of the decision. 7. | An event occurs that is required or permitted by the provisions of the scheme to result in the winding up of the scheme. | The date on which the event occurs. 7A. | Where the scheme is an unconnected multiple employer scheme, the scheme proprietor decides to end the relationship or arrangement with the scheme by virtue of which it is the scheme proprietor. | The date of the decision. 7B. | Where the scheme is an unconnected multiple employer scheme, the scheme proprietor ends the relationship or arrangement with the scheme by virtue of which it is the scheme proprietor. | The earlier of— the date on which the scheme proprietor notifies the Pensions Regulator of that fact, and the date on which the trustees become aware of that fact. 8. | A person who has power to do so under the provisions of the scheme decides that the scheme should become a closed scheme. | The date of the decision. 9. | An event occurs that is required or permitted by the provisions of the scheme to result in the scheme becoming a closed scheme. | The date on which the event occurs. 10. | Where the scheme is an unconnected multiple employer scheme, the trustees decide that the scheme is at risk of failure and so it is necessary for one of the continuity options to be pursued (see section 34). | The date of the decision. (4A) An unconnected multiple employer scheme is to be taken to permit the trustees of the scheme to make the decision referred to in item 10 of the table, to the extent that it would not otherwise do so. (5) In this Part— “item 1 triggering event” means an event falling within item 1 of the triggering events table (and similar references using other item numbers are to be read accordingly); “relevant former employer”, in relation to a single or connected employer scheme, means a person who has ceased to be an employer in relation to the scheme but who— is subject to an actual or contingent obligation to contribute financially to the scheme, whether by making contributions towards the costs of running the scheme or otherwise, or has power to take a decision about the operation of the scheme, either alone or with other persons who are or have been employers in relation to the scheme. (6) In this section “closed”, in relation to a collective money purchase scheme, means closed to new contributions or new members (or both).
Propose a change(1) For the purposes of this Part, a “triggering event period” for a collective money purchase scheme is a period— (a) starting with the date on which a triggering event occurs in relation to the scheme, and (b) ending with the earliest of the dates given by subsection (2). (2) The dates are— (a) the date on which the trustees receive from the Pensions Regulator— (i) notification under section 37(4) that the Regulator is satisfied that the triggering event has been resolved, or (ii) notification under section 38(4) that the Regulator is satisfied that preparations for conversion to a closed scheme are complete and that the conversion will resolve the relevant events; (b) the date on which the scheme is wound up; (c) in the case of an item 1 or 2 triggering event (notice in respect of a decision to withdraw authorisation), the date on which it becomes clear that authorisation is not to be withdrawn. (3) For the purposes of subsection (2)(c), it becomes clear that authorisation is not to be withdrawn— (a) in the circumstances set out in relation to the event in the second column of the table in subsection (4), and (b) on the date given in relation to those circumstances in the third column of that table. (4) The table is— Triggering event | Circumstances | Date Item 1 (issue of warning notice under the standard procedure) | 1 The Pensions Regulator makes a determination not to withdraw the scheme's authorisation, and 2 there is no referral of the determination to the Tribunal within the time period allowed for doing so. | The date of the Pensions Regulator's determination. Item 2 (issue of determination notice under the special procedure) | 1 On a review under section 99 of the Pensions Act 2004, the Pensions Regulator makes a determination that the scheme's authorisation should not be withdrawn, and 2 there is no referral of the determination to the Tribunal within the time period allowed for doing so. | The date of the Pensions Regulator's determination. Item 1 or 2 | 1 On a referral to the Tribunal of a determination by the Pensions Regulator, the Tribunal makes a determination the effect of which is that the scheme's authorisation should not be withdrawn, and 2 either— (a) no appeal is brought against the Tribunal's determination within the time period allowed for doing so, or (b) an appeal is brought within that time period but is later withdrawn. | The date of the Tribunal's determination. Item 1 or 2 | The effect of an appeal against a determination by the Tribunal is that the scheme's authorisation should not be withdrawn. | The date on which the appeal is finally disposed of. (5) In this section “the Tribunal” has the meaning given in— (a) section 96(7) of the Pensions Act 2004, in a case where the standard procedure applies; (b) section 99(13) of that Act, in a case where the special procedure applies.
Propose a change