Law

Pension Schemes Act 2021

United Kingdom · statute

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In force since 2026-07-31, as the publisher states.

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Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 164 provisions
  1. Title and introductory text
  2. 1 Collective money purchase benefits and schemes
  3. 2 Qualifying benefits
  4. 3 Qualifying schemes
  5. 4 Qualifying schemes: supplementary
  6. 5 Schemes divided into sections
  7. 6 Amendment of definitions of “money purchase benefits” etc
  8. 7 Authorisation of collective money purchase schemes
  9. 8 Application for authorisation
  10. 9 Decision on application
  11. 9A Commencement of operation of an unconnected multiple employer scheme
  12. 10 Reference to Tribunal of refusal to grant authorisation
  13. 11 Fit and proper persons requirement
  14. 12 Scheme design requirement
  15. 13 Viability report
  16. 14 Financial sustainability requirement
  17. 14A Unconnected multiple employer schemes: financial sustainability requirement - business plan
  18. 14B Unconnected multiple employer schemes: scheme proprietor
  19. 14C Unconnected multiple employer schemes: scheme proprietor requirements
  20. 14D Unconnected multiple employer schemes: promotion or marketing requirement
  21. 15 Communication requirement
  22. 16 Systems and processes requirements
  23. 17 Continuity strategy requirement
  24. 17A Unconnected multiple employer schemes: ability to pursue continuity option 3
  25. 18 Calculation of benefits
  26. 19 Advice of scheme actuary
  27. 20 Actuarial valuations
  28. 21 Certificate that actuarial valuation prepared in accordance with scheme rules
  29. 22 Benefits adjustments
  30. 23 Powers of the Pensions Regulator
  31. 24 Rules about modifying schemes
  32. 25 Transfer rights
  33. 26 List of authorised schemes
  34. 26A Unconnected multiple employer schemes: requirement to submit annual accounts
  35. 27 Requirement to submit supervisory return
  36. 28 Duty to notify the Pensions Regulator of significant events
  37. 29 Risk notices
  38. 30 Withdrawal of authorisation
  39. 31 Triggering events
  40. 32 Triggering event periods
  41. 33 Notification of triggering events
  42. 34 Continuity options
  43. 35 When a decision to withdraw authorisation becomes final
  44. 36 Continuity option 1: discharge of liabilities and winding up
  45. 37 Continuity option 2: resolving triggering event
  46. 38 Continuity option 3: conversion to closed scheme
  47. 39 Implementation strategy
  48. 40 Approval of implementation strategy
  49. 41 Trustees' duties once implementation strategy approved
  50. 42 Prohibition on winding up except in accordance with continuity option 1
  51. 43 Periodic reporting requirements
  52. 44 Pause orders
  53. 45 Prohibition on increasing charges etc during triggering event period
  54. 46 Publication of information
  55. 47 Powers to extend definition of qualifying schemes
  56. 48 Minor and consequential amendments
  57. 49 Interpretation of Part 1
  58. 50 Index of defined expressions
  59. 51 Regulations
  60. 52 Collective money purchase benefits and schemes
  61. 53 Qualifying benefits
  62. 54 Qualifying schemes
  63. 55 Qualifying schemes: supplementary
  64. 56 Schemes divided into sections
  65. 57 Amendment of definitions of “money purchase benefits” etc
  66. 58 Authorisation of collective money purchase schemes
  67. 59 Application for authorisation
  68. 60 Decision on application
  69. 60A Failure of unconnected multiple employer schemes to commence operation
  70. 61 Reference to Tribunal of refusal to grant authorisation
  71. 62 Fit and proper persons requirement
  72. 63 Scheme design requirement
  73. 64 Viability report
  74. 65 Financial sustainability requirement
  75. 65A Unconnected multiple employer schemes: business plan
  76. 65B Unconnected multiple employer schemes: single scheme proprietor
  77. 65C Unconnected multiple employer schemes: scheme proprietor requirements
  78. 65D Unconnected multiple employer schemes: promotion or marketing requirement
  79. 66 Communication requirement
  80. 67 Systems and processes requirements
  81. 68 Continuity strategy requirement
  82. 68A Unconnected multiple employer schemes: ability to pursue continuity option 3
  83. 69 Calculation of benefits
  84. 70 Advice of scheme actuary
  85. 71 Actuarial valuations
  86. 72 Certificate that actuarial valuation prepared in accordance with scheme rules
  87. 73 Benefits adjustments
  88. 74 Powers of the Pensions Regulator
  89. 75 Rules about modifying schemes
  90. 76 Transfer rights
  91. 77 List of authorised schemes
  92. 77A Unconnected multiple employer schemes: annual accounts
  93. 78 Requirement to submit supervisory return
  94. 79 Duty to notify the Pensions Regulator of significant events
  95. 80 Risk notices
  96. 81 Withdrawal of authorisation
  97. 82 Triggering events
  98. 83 Triggering event periods
  99. 84 Notification of triggering events
  100. 85 Continuity options
  101. 86 When a decision to withdraw authorisation becomes final
  102. 87 Continuity option 1: discharge of liabilities and winding up
  103. 88 Continuity option 2: resolving triggering event
  104. 89 Continuity option 3: conversion to closed scheme
  105. 90 Implementation strategy
  106. 91 Approval of implementation strategy
  107. 92 Trustees' duties once implementation strategy approved
  108. 93 Prohibition on winding up except in accordance with continuity option 1
  109. 94 Periodic reporting requirements
  110. 95 Pause orders
  111. 96 Prohibition on increasing charges etc during triggering event period
  112. 97 Publication of information
  113. 98 Powers to extend definition of qualifying schemes
  114. 99 Minor and consequential amendments
  115. 100 Interpretation of Part 2
  116. 101 Index of defined expressions
  117. 102 Regulations
  118. 103 Grounds for issuing a section 38 contribution notice
  119. 104 Reasonableness of issuing a contribution notice
  120. 105 Determination of sum specified in a contribution notice
  121. 106 Sanctions for failure to comply with a contribution notice
  122. 107 Sanctions for avoidance of employer debt etc
  123. 108 Duty to notify the Regulator of certain events
  124. 109 Duty to give notices and statements to the Regulator in respect of certain events
  125. 110 Interviews
  126. 111 Inspection of premises
  127. 112 Fixed penalty notices and escalating penalty notices
  128. 113 Provision of false or misleading information to Regulator
  129. 114 Provision of false or misleading information to trustees or managers
  130. 115 Financial penalties
  131. 116 Minor and consequential amendments
  132. 117 The Pensions Regulator: Northern Ireland
  133. 118 Qualifying pensions dashboard service
  134. 119 Information from occupational pension schemes
  135. 120 Pensions dashboards: Northern Ireland
  136. 121 Information from personal and stakeholder pension schemes
  137. 122 The Money and Pensions Service: the pensions guidance function
  138. 123 Funding of defined benefit schemes
  139. 124 Climate change risk
  140. 125 Exercise of right to cash equivalent
  141. 126 Modification of provisions relating to pensionable service
  142. 127 Administration charges
  143. 128 Pension Schemes Act 2015: repeals
  144. 129 Further provision relating to pension schemes: Northern Ireland
  145. 130 Extent
  146. 131 Commencement
  147. 132 Short title
  148. SCHEDULE 1 Money purchase benefits
  149. Schedule 1A Unconnected Multiple Employer Schemes: Business Strategy
  150. Schedule 1B Unconnected Multiple Employer Schemes: Business Plan - Information and Requirements
  151. Schedule 1C Unconnected Multiple Employer Schemes: Promotion or Marketing Requirement
  152. SCHEDULE 2 Pause orders
  153. SCHEDULE 3 Collective money purchase benefits: minor and consequential amendments
  154. SCHEDULE 4 Money purchase benefits: Northern Ireland
  155. SCHEDULE4A UNCONNECTED MULTIPLE EMPLOYER SCHEMES: BUSINESS STRATEGY
  156. SCHEDULE4B UNCONNECTED MULTIPLE EMPLOYER SCHEMES: BUSINESS PLAN - INFORMATION AND REQUIREMENTS
  157. SCHEDULE4C UNCONNECTED MULTIPLE EMPLOYER SCHEMES: PROMOTION OR MARKETING REQUIREMENT
  158. SCHEDULE 5 Pause orders: Northern Ireland
  159. SCHEDULE 6 Collective money purchase benefits: minor and consequential amendments for Northern Ireland
  160. SCHEDULE 7 The Pensions Regulator: minor and consequential amendments
  161. SCHEDULE 8 The Pensions Regulator: Northern Ireland
  162. SCHEDULE 9 Pensions dashboards: Northern Ireland
  163. SCHEDULE 10 Funding of defined benefit schemes
  164. SCHEDULE 11 Further provision relating to pension schemes: Northern Ireland

Proposed changes to this act

No one has proposed a change to this act yet.

164 provisions

33 Notification of triggering events

(1) If a triggering event listed in the first column of the table in subsection (2) occurs in relation to a collective money purchase scheme, each person specified in relation to the event in the second column of that table must (subject to subsections (12) and (13)) notify the Pensions Regulator of the occurrence of the event. (2) The table is— Event | Specified person Item 4 triggering event (an insolvency event occurs in relation to an employer or a relevant former employer) | The employer or relevant former employer. A trustee who is aware of the event. Item 4A triggering event (an insolvency event occurs in relation to the scheme proprietor) | The scheme proprietor. A trustee who is aware of the event. Item 4B triggering event (a scheme proprietor becomes unlikely to continue as a going concern, where the scheme proprietor is a person or body of a kind that meets the requirements prescribed under section 129(1)(b) of the Pensions Act 2004) | The scheme proprietor. A trustee who is aware of the event. Item 5 triggering event (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 employer or relevant former employer. A trustee who is aware of the event. Item 6 triggering event (a person decides that the scheme should be wound up) | The person who made the decision. A trustee who is aware of the event (if not the person who made the decision). Where the scheme is a single or connected employer scheme, an employer who is aware of the event (if not the person who made the decision). Where the scheme is an unconnected multiple employer scheme, the scheme proprietor (if not the person who made the decision) if they are aware of the event. Item 7 triggering event (an event occurs that is required or permitted by the provisions of the scheme to result in the winding up of the scheme) | A trustee who is aware of the event. Where the scheme is a single or connected employer scheme, an employer who is aware of the event. Where the scheme is an unconnected multiple employer scheme, the scheme proprietor if they are aware of the event. Item 7A triggering event (scheme proprietor decides to end relationship or arrangement) | The scheme proprietor. A trustee who is aware of the event. Item 7B triggering event (scheme proprietor ends relationship or arrangement) | The scheme proprietor. A trustee who is aware of the event. Item 8 triggering event (a person decides that the scheme should become a closed scheme) | The person who made the decision. A trustee who is aware of the event (if not the person who made the decision). Where the scheme is a single or connected employer scheme, an employer who is aware of the event (if not the person who made the decision). Where the scheme is an unconnected multiple employer scheme, the scheme proprietor if they are aware of the event. Item 9 triggering event (an event occurs that is required or permitted by the provisions of the scheme to result in the scheme becoming a closed scheme) | A trustee who is aware of the event. Where the scheme is a single or connected employer scheme, an employer who is aware of the event. Where the scheme is an unconnected multiple employer scheme, the scheme proprietor if they are aware of the event. Item 10 triggering event (trustees decide that it is necessary to pursue continuity option). | The trustees. The scheme proprietor if they are aware of the event. (3) If a triggering event occurs in relation to a single or connected employer scheme, a trustee who is aware of the event must (subject to subsections (5), (6), (12) and (13)) give the required notification to each employer or relevant former employer. (3A) If a triggering event occurs in relation to an unconnected multiple employer scheme, a trustee who is aware of the event must (subject to subsections (5A), (6), (12) and (13)) give the required notification to each employer and the scheme proprietor. (4) In this section “the required notification”, in relation to a triggering event, means notification of— (a) the occurrence of the event, and (b) such other matters relating to the event as may be specified in regulations made by the Secretary of State. (5) In the case of an item 4 or 5 triggering event, subsection (4)(a) does not apply as regards notification of the employer or relevant former employer in respect of whom the event occurs. (5A) In the case of an item 4A, 4B, 7A or 7B triggering event, subsection (4)(a) does not apply as regards notification of the scheme proprietor. (6) In the case of an item 6 or 8 triggering event, subsection (4)(a) does not apply as regards notification of the person who decided that the scheme— (a) should be wound up, or (b) (as the case may be) should become a closed scheme. (7) If an item 4 or 5 triggering event occurs in relation to a single or connected employer scheme, each employer or relevant former employer in respect of whom the event occurs must (subject to subsections (12) and (13)) give the required notification to the trustees. (7A) If an item 4A or 4B triggering event occurs in relation to an unconnected multiple employer scheme, the scheme proprietor must (subject to subsections (12) and (13)) give the required notification to the trustees. (8) If an item 6 or 8 triggering event occurs in relation to a collective money purchase scheme, the person who decided that the scheme— (a) should be wound up, or (b) (as the case may be) should become a closed scheme, must (if that person is not the trustees, and subject to subsections (12) and (13)) give the required notification to the trustees. (9) If an item 7 or 9 triggering event occurs in relation to a single or connected employer scheme, each employer or relevant former employer who is aware of the event must (subject to subsections (12) and (13)) give the required notification to the trustees. (9A) If an item 7, 7A, 7B or 9 triggering event occurs in relation to an unconnected multiple employer scheme, the scheme proprietor, if they are aware of the event, must (subject to subsections (12) and (13)) give the required notification to the trustees. (10) A notification under this section must be given before the end of the period specified in regulations made by the Secretary of State. (11) Except as provided by subsections (12) and (13), 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). (12) 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). (13) 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. (14) Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with a requirement imposed by this section. (15) Regulations under this section are subject to negative resolution procedure.

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34 Continuity options

(1) If a triggering event occurs in relation to a collective money purchase scheme, the trustees must pursue one of the continuity options. (2) The continuity options are— (a) continuity option 1 (discharge of liabilities and winding up) (see section 36); (b) continuity option 2 (resolving triggering event) (see section 37); (c) continuity option 3 (conversion to closed scheme) (see section 38). (3) The trustees must pursue continuity option 1— (a) if the triggering event is an item 1 or 2 triggering event and the decision to withdraw authorisation has become final (see section 35), or (b) if the triggering event is an item 3 triggering event. (4) In those cases, the trustees must pursue continuity option 1 even if— (a) the item 1, 2 or 3 triggering event occurs within the triggering event period of an earlier triggering event, and (b) the trustees have already decided to pursue continuity option 2 or 3 in respect of the earlier triggering event. (5) The trustees may pursue continuity option 3 only if (or to the extent that) the provisions of the scheme allow them to do so. Subject to that, this section overrides any provision of the collective money purchase scheme to the extent that there is a conflict. (6) Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with a requirement imposed by this section.

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35 When a decision to withdraw authorisation becomes final

(1) For the purposes of this Part, in relation to an item 1 or 2 triggering event, a decision to withdraw authorisation becomes final— (a) in the circumstances set out in relation to the event in the second column of the table in subsection (2), and (b) on the date given in relation to those circumstances in the third column of that table. (2) The table is— Triggering event | Circumstances | Date Item 1 (issue of warning notice under the standard procedure) | 1 The Pensions Regulator makes a determination 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 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 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 be withdrawn. | The date on which the appeal is finally disposed of. (3) 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.

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36 Continuity option 1: discharge of liabilities and winding up

(1) Where the trustees of a collective money purchase scheme are required, or decide, to pursue continuity option 1, they must— (a) quantify, in the case of each beneficiary, the amount that represents the value of the beneficiary's accrued rights to benefits under the scheme; (b) formulate a proposal for discharging the scheme's liability to each beneficiary in respect of those rights, in one of the ways set out in subsection (2); (c) notify the following of the proposal and of such other matters as may be specified in regulations made by the Secretary of State — (i) each employer, (ii) each beneficiary, and (iii) where there scheme is a single or connected employer scheme, each relevant former employer. (2) The ways of discharging the scheme's liability referred to in subsection (1)(b) are— (a) transferring the value of the beneficiaries' accrued rights to benefits under the scheme to a collective money purchase scheme or to a Master Trust scheme; (b) transferring the value of those rights, in such circumstances as may be specified in regulations made by the Secretary of State, to a pension scheme that has characteristics specified in the regulations; (c) securing, in such circumstances as may be specified in regulations made by the Secretary of State, the payment of benefits by such other means (an “alternative payment mechanism”) as may be specified in the regulations. (3) A proposal under subsection (1)(b) may deal with the rights of different descriptions of beneficiaries in different ways. (4) Subsections (1)(b) and (2) have effect subject to— (a) Part 4ZA of the Pension Schemes Act 1993 (transfers and contribution refunds); (b) provision made by regulations under subsection (6). (5) Notification under subsection (1)(c) must be given— (a) in the manner specified in regulations made by the Secretary of State, and (b) before the end of the period specified in the regulations. (6) The Secretary of State may by regulations make provision for the purposes of enabling continuity option 1 to be given effect, which may include— (a) provision about how continuity option 1 is to be pursued by the trustees of a collective money purchase scheme; (b) provision conferring rights on beneficiaries or employers; (c) provision imposing duties on employers or trustees; (d) provision conferring power on the Pensions Regulator to direct trustees to do things permitted or required by the regulations; (e) provision deeming a beneficiary the value of whose accrued rights are to be transferred to a scheme that is not a collective money purchase scheme or a Master Trust scheme to have entered into an agreement with a person of a description specified in the regulations. (7) Regulations under subsection (6) must include— (a) provision about how the quantification referred to in subsection (1)(a) is to be carried out (which may be different in relation to different descriptions of beneficiaries); (b) provision for securing that a person who has become a pensioner beneficiary (whether before or after the occurrence of the triggering event as a result of which the trustees are pursuing continuity option 1) receives a periodic income, at a rate or of an amount that is calculated by reference to the amount referred to in subsection (1)(a), until the time when the proposal under subsection (1)(b) is implemented or some other specified time; (c) provision about how rights conferred by the regulations may be exercised (including the time periods within which they may be exercised); (d) provision specifying requirements (which may include approval or authorisation by the Pensions Regulator in accordance with the regulations) to be met in the case of a pension scheme, or an alternative payment mechanism, by means of which it is proposed to discharge the collective money purchase scheme's liabilities to beneficiaries in one of the ways set out in subsection (2); (e) provision requiring those responsible for a pension scheme by means of which it is proposed to discharge the collective money purchase scheme's liabilities to beneficiaries (“the receiving scheme”) to provide the Pensions Regulator with a document setting out the level of administration charges that applied in relation to members of the receiving scheme, in the manner and as at the date specified or described in the regulations; (f) provision imposing duties on the trustees to notify all or a specified description of employers and beneficiaries of their rights under the regulations and of members' rights under Part 4ZA of the Pension Schemes Act 1993; (g) provision about the winding up of the collective money purchase scheme in circumstances where the scheme's liabilities to beneficiaries are discharged. (8) In this section— “beneficiary”, in relation to the collective money purchase scheme, means— a member of the scheme, or 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; “pensioner beneficiary”, in relation to the collective money purchase scheme, means a person who is entitled to the present payment of pension or other benefits under the scheme; “specified” means specified in regulations under subsection (6). (9) Section 10 of the Pension Act 1995 (civil penalties) applies to a person who fails to comply with a requirement imposed by this section. (10) Regulations under this section may provide for the application of section 10 of the Pensions Act 1995 to a person who fails to comply with a requirement imposed by the regulations. (11) Regulations under subsection (2) or (6) are subject to affirmative resolution procedure. (12) Regulations under subsection (1)(c) or (5) are subject to negative resolution procedure.

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37 Continuity option 2: resolving triggering event

(1) Where the trustees of a collective money purchase scheme decide to pursue continuity option 2, they must attempt to resolve the triggering event. (2) The trustees must notify the Pensions Regulator when they consider that the triggering event has been resolved. (3) The notification must— (a) set out how the trustees consider that the triggering event has been resolved; (b) be given before the end of the period specified in regulations made by the Secretary of State. (4) After receiving the notification, the Pensions Regulator must notify the trustees as to whether it is satisfied that the triggering event has been resolved. (5) The Pensions Regulator may not form the view that a triggering event (“the relevant event”) has been resolved unless it is satisfied that any other event within the triggering events table that has occurred in relation to the scheme since the occurrence of the relevant event has also been resolved. (6) Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee who fails to comply with a requirement imposed by this section. (7) Regulations under subsection (3)(b) are subject to negative resolution procedure.

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38 Continuity option 3: conversion to closed scheme

(1) This section applies where the trustees of a collective money purchase scheme decide to pursue continuity option 3. (2) The trustees must notify the Pensions Regulator when they consider that preparations for the conversion of the scheme into a closed scheme are complete. (3) The Secretary of State may by regulations require notification under subsection (2) to be given before the end of a period specified in the regulations. (4) If the Pensions Regulator is satisfied— (a) that preparations for the conversion of the scheme into a closed scheme are complete, and (b) that the conversion will resolve the triggering event giving rise to the decision to pursue continuity option 3, and any other event within the triggering events table that has subsequently occurred in relation to the collective money purchase scheme, the Regulator must notify the trustees accordingly. (5) The conversion of the scheme into a closed scheme may be carried out only in accordance with the provisions of the scheme. (6) The scheme may not begin operating as a closed scheme until the trustees have received notification under subsection (4). (7) Where the trustees have pursued continuity option 3 they may not later reverse the closure of the scheme (either completely or to any extent). (8) Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee who fails to comply with a requirement or restriction imposed by this section. (9) Regulations under subsection (3) are subject to negative resolution procedure. (10) In this section “closed”, in relation to a collective money purchase scheme, means closed to new contributions or new members (or both). The reference to closure of the scheme in subsection (7) is to be read accordingly.

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39 Implementation strategy

(1) If a triggering event occurs in relation to a collective money purchase scheme, the trustees must— (a) produce a document setting out how the interests of members of the scheme are to be protected following the occurrence of the event (an “implementation strategy”), and (b) submit it to the Pensions Regulator for approval before the end of a period specified in regulations made by the Secretary of State. This is subject to subsections (2)(a) and (3)(a). (2) If an item 1, 2 or 3 triggering event occurs within the triggering event period for an earlier triggering event— (a) the trustees are not required to submit an implementation strategy in respect of the earlier triggering event; (b) any implementation strategy approved by the Pensions Regulator in respect of the earlier triggering event ceases to have effect when the later triggering event occurs. (3) In the case of an item 1 or 2 triggering event— (a) the trustees are required to submit an implementation strategy only if the decision to withdraw authorisation has become final (see section 35); (b) if it becomes clear that authorisation is not to be withdrawn, subsection (2) ceases to have effect on the date on which that becomes clear. Subsections (3) to (5) of section 32 apply for the purposes of paragraph (b) above as they apply for the purposes of subsection (2)(c) of that section. (4) The Pensions Regulator may direct the trustees to comply with a requirement imposed by this section. (5) Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with a direction under subsection (4). (6) This section overrides any provision of the collective money purchase scheme, to the extent that there is a conflict. (7) Regulations under subsection (1)(b) are subject to negative resolution procedure.

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40 Approval of implementation strategy

(1) The Pensions Regulator may approve an implementation strategy only if it is satisfied that the strategy is adequate. (2) Subsections (3) to (6) apply for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that an implementation strategy for a collective money purchase scheme is adequate. (3) An implementation strategy must include information about the levels of administration charges in relation to members of the scheme. (4) The information must— (a) relate to the levels of administration charges as at the date specified or described in regulations made by the Secretary of State, and (b) be set out in the manner specified or described in the regulations. (5) An implementation strategy must include information about the following matters— (a) the continuity option that is to be pursued (see section 34); (b) where continuity option 1 (discharge of liabilities and winding up) is to be pursued— (i) the scheme or schemes to which it is proposed to transfer the value of accrued rights to benefits, or the alternative payment mechanism by which the payment of benefits is to be secured, if known; (ii) when the transfer is expected to take place, or (as the case may be) when the payment of benefits is expected to be secured; (c) where continuity option 2 (resolving the triggering event) is to be pursued, how it is proposed that the triggering event should be resolved; (d) where continuity option 3 (conversion to closed scheme) is to be pursued— (i) the way in which, the extent to which and the time by which it is proposed to close the scheme; (ii) how the scheme will continue to meet the authorisation criteria; (iii) any revisions that will be needed to the viability report and the continuity strategy (see sections 13 and 17). (iv) where the scheme is an unconnected multiple employer scheme, any revisions that will be needed to the business plan (see section 14A). (6) An implementation strategy must— (a) include any other information specified or described in regulations made by the Secretary of State, and (b) be prepared in accordance with regulations made by the Secretary of State. (7) Regulations under this section are subject to negative resolution procedure.

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41 Trustees' duties once implementation strategy approved

(1) When the Pensions Regulator has notified the trustees of a collective money purchase scheme that an implementation strategy relating to the scheme is approved, the trustees must— (a) pursue the continuity option identified in the strategy, and (b) take such other steps as are identified in the strategy in order to carry it out. (2) The Secretary of State may by regulations require the trustees of a collective money purchase scheme to make available an approved implementation strategy relating to the scheme, before the end of the period specified or described in the regulations, to employers or, where the scheme is a single or connected employer scheme, relevant former employers that are of a description specified in the regulations. (3) If an item 1, 2 or 3 triggering event occurs within the triggering event period for an earlier triggering event— (a) the trustees cease to be subject to the requirements of subsection (1) and regulations under subsection (2) in respect of an approved implementation strategy relating to the earlier triggering event, but (b) in the case of an item 1 or 2 triggering event, if it becomes clear that authorisation is not to be withdrawn, the trustees are again subject to those requirements from the date on which that becomes clear. Subsections (3) to (5) of section 32 apply for the purposes of paragraph (b) above as they apply for the purposes of subsection (2)(c) of that section. (4) The Pensions Regulator may direct the trustees to comply with subsection (1), if they fail to do so. (5) Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with a direction under subsection (4). (6) To the extent that there is a conflict, this section overrides a provision of— (a) a collective money purchase scheme, or (b) a contract between the trustees of a collective money purchase scheme and a person providing services in relation to the scheme. (7) Regulations under subsection (2) are subject to negative resolution procedure.

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42 Prohibition on winding up except in accordance with continuity option 1

(1) A person may wind up a collective money purchase scheme only in accordance with continuity option 1 (see section 36). (2) Subsection (1) overrides any provision of a collective money purchase scheme to the extent that there is a conflict. (3) Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with subsection (1).

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43 Periodic reporting requirements

(1) During a triggering event period for a collective money purchase scheme, the trustees must submit reports to the Pensions Regulator. (2) The first report must be submitted before the end of a period specified in regulations made by the Secretary of State. (3) Subsequent reports must be submitted at intervals specified by the Pensions Regulator. (4) The reports must— (a) report on progress in carrying out the implementation strategy, (b) record events or decisions of a description specified in regulations made by the Secretary of State, (c) contain such other information as is specified in regulations made by the Secretary of State, and (d) be made in the manner and form specified by the Pensions Regulator. (5) Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with a requirement imposed by this section. (6) Regulations under this section are subject to negative resolution procedure.

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44 Pause orders

(1) This section applies during a triggering event period for a collective money purchase scheme. (2) The Pensions Regulator may make a pause order in relation to the scheme if either of the following two conditions is met. (3) Condition 1 is that the Pensions Regulator is satisfied that making a pause order will help the trustees to carry out the implementation strategy. (4) Condition 2 is that the Pensions Regulator is satisfied that— (a) there is, or is likely to be if a pause order is not made, an immediate risk to the interests of members of the scheme or the assets of the scheme, and (b) it is necessary to make a pause order to protect the interests of the generality of the members of the scheme. (5) A pause order is an order that during the period for which it has effect one or more of the following directions has effect— (a) a direction that no new members (or no new members of a specified description) are to be admitted to the scheme; (b) a direction that no further payments (or no further payments of a specified description) are to be made towards the scheme— (i) by or on behalf of employers or , where the scheme is a single or connected employer scheme, relevant former employers (or employers or relevant former employers of a specified description), or (ii) by or in respect of members (or members of a specified description); (c) a direction that an amount (or specified amount) which— (i) corresponds to a payment that would be due to be made towards the scheme in respect of a member but for a direction under paragraph (b), and (ii) has been deducted from a payment of earnings in respect of an employment, is to be repaid to the member in question by the employer; (d) a direction that no benefits (or no benefits of a specified description) are to be paid to or in respect of members (or members of a specified description) under the scheme rules; (e) a direction that— (i) no transfers (or no transfers of a specified description) of or in respect of a member's rights under the scheme rules are to be made from the scheme, (ii) no transfer payments (or no transfer payments of a specified description) in respect of a member's rights under the scheme rules are to be made from the scheme, or (iii) no other steps (or no other steps of a specified description) are to be taken to discharge a liability of the scheme to or in respect of a member of the scheme in respect of pensions or other benefits. (6) In subsection (5)(b)— (a) a reference to payments does not include payments due to be made before the order takes effect, and (b) a reference to payments towards a scheme includes payments in respect of pension credits where the person entitled to the credit is a member of the scheme. (7) A direction under subsection (5)(e) may provide that— (a) no transfers of or in respect of a member's rights under the scheme rules, or no such transfers of a specified description, may be made from the scheme, or (b) no transfer payments in respect of such rights, or no such transfer payments of a specified description, may be made from the scheme, unless the amounts paid out from the scheme in respect of the transfers or transfer payments are determined in a specified manner and the transfers or transfer payments satisfy such other conditions as may be specified. (8) A pause order may also require the trustees of the scheme to obtain an actuarial valuation within a specified period. (9) A pause order containing such a requirement must specify— (a) the date by reference to which the matters to be set out in the valuation must be determined; (b) the information and statements that the valuation must contain; (c) any other requirements that the valuation must satisfy. (10) Schedule 2 makes further provision about pause orders. (11) In this section— “earnings” has the meaning given in section 181(1) of the Pension Schemes Act 1993; “pension credit” means a credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999 or Article 26(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)); “specified” means specified in the pause order.

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45 Prohibition on increasing charges etc during triggering event period

(1) During a triggering event period for a collective money purchase scheme, the trustees must not— (a) impose administration charges on or in respect of members at levels above those set out in the implementation strategy, (b) impose new administration charges on or in respect of members, or (c) impose administration charges on or in respect of a member in consequence of the member leaving, or deciding to leave, the scheme during that period. (2) The trustees of a receiving scheme that is a collective money purchase scheme or a Master Trust scheme must not— (a) impose administration charges on or in respect of members at levels above those set out in the document provided to the Pensions Regulator by virtue of regulations under section 36(7)(e), or (b) impose new administration charges on or in respect of members, for the purposes of meeting any of the costs mentioned in subsection (4). (3) The Secretary of State may by regulations— (a) provide that subsection (1) or (2) does not apply in relation to administration charges specified or described in the regulations; (b) make provision about how levels of administration charges are to be calculated for the purposes of this section. (4) The costs referred to in subsection (2) are costs for which a receiving scheme is liable— (a) which were incurred by the transferring scheme, or (b) which relate directly to the transfer of the value of accrued rights to benefits under the transferring scheme. (5) To the extent that there is a conflict, this section overrides a provision of— (a) a collective money purchase scheme, (b) a Master Trust scheme, (c) a contract between the trustees of a collective money purchase scheme and a person providing services in relation to the scheme, or (d) a Master Trust scheme contract within the meaning of section 39(1) of the Pension Schemes Act 2017 or any corresponding statutory provision. (6) The Secretary of State may by regulations apply some or all of the provisions of this section to a receiving scheme that has characteristics specified in regulations under section 36(2)(b). (7) Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee who fails to comply with this section. (8) In this section— “receiving scheme” means a pension scheme that— receives a transfer from a transferring scheme of the value of accrued rights to benefits under that scheme during a triggering event period for that scheme, and was proposed by the trustees of the transferring scheme, or by employers in relation to that scheme, as a scheme to which the value of those rights should be transferred; “transferring scheme” means a collective money purchase scheme the trustees of which, following a triggering event, are pursuing continuity option 1. (9) Regulations under subsection (3)(a) or (6), and the first regulations under subsection (3)(b), are subject to affirmative resolution procedure. (10) Subsequent regulations under subsection (3)(b) are subject to negative resolution procedure.

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46 Publication of information

(1) The Secretary of State may by regulations require the trustees of a collective money purchase scheme to publish information relating to the scheme that is specified or described in the regulations. (2) Regulations under subsection (1) may, among other things— (a) require the trustees to publish a document specified or described in the regulations; (b) require information or a document to be made available free of charge; (c) require information or a document to be provided to a person in a form or by means specified or described in the regulations; (d) require or permit information specified or described in the regulations to be excluded from a document when it is published in accordance with the regulations. (3) In complying with a requirement imposed by regulations under subsection (1) a trustee must have regard to any guidance prepared from time to time by the Secretary of State. (4) Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee who fails to take all reasonable steps to comply with a requirement imposed by regulations under this section. (5) Regulations under subsection (1) are subject to negative resolution procedure.

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47 Powers to extend definition of qualifying schemes

(1) The Secretary of State may by regulations remove the exclusion of any of the following from the definition of “qualifying scheme” in section 3— (a) pension schemes not established solely by one or more persons to whom section 1(2)(a) (employer) of the Pension Schemes Act 1993 applied when the scheme was established; (b) pension schemes used, or intended to be used, by two or more employers some or all of which are not connected with each other. (2) The Secretary of State may by regulations make further provision about collective money purchase schemes that could not be qualifying schemes, or sections of qualifying schemes, but for regulations under subsection (1) (“relevant schemes”), including— (a) provision about the authorisation of relevant schemes by the Pensions Regulator; (b) provision about triggering events and continuity options; (c) provision about administration charges during triggering event periods. (3) Regulations under subsection (2) making provision about relevant schemes used, or intended to be used, by two or more employers some or all of which are not connected with each other may among other things— (a) make provision corresponding or similar to provision made by or under Part 1 of the Pension Schemes Act 2017; (b) disapply any provision of that Part in relation to such schemes. (4) The provision that may be made under subsection (1) or (2) may be made by— (a) modifying or amending this Part; (b) making consequential modifications or amendments of any other enactment. (4A) Where regulations under this section make provision in relation to an unconnected multiple employer scheme that corresponds or is similar to provision contained in regulations under another provision of this Part made in relation to a single or connected employer scheme, the regulations under this section are to be treated for the purposes of this Part as having been made under that other provision of this Part to the extent that they contain such provision. (5) Regulations under this section are subject to affirmative resolution procedure.

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48 Minor and consequential amendments

Schedule 3 makes minor and consequential amendments relating to this Part.

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49 Interpretation of Part 1

(1) In this Part— “the accounts” of an unconnected multiple employer scheme means the accounts audited by the person appointed as auditor in relation to the scheme under section 47(1)(a) of the Pensions Act 1995 (professional advisers) (and see subsection (1A) below); “administration charge” has the same meaning as in paragraph 1 of Schedule 18 to the Pensions Act 2014; “authorisation” means authorisation under section 9 or by virtue of regulations under section 5(2) (and related expressions are to be read accordingly); “authorisation criteria” has the meaning given in section 9(3); “chief financial officer”, in relation to an unconnected multiple employer scheme, means a person acting in a capacity in which that person has significant influence over either or both of the following— the management and use of financial resources of the scheme; business decisions relating to the commercial activities of the scheme; “chief investment officer”, in relation to an unconnected multiple employer scheme, means a person who— is acting in a capacity in which that person has significant influence over either or both of the following— the contents of the scheme’s investment strategy; the implementation, management and communication of the scheme’s investment strategy, but does not have that influence by virtue of a contract or other arrangement— under which services relating to investments are provided in relation to the scheme, and by virtue of which the scheme, or a person acting on behalf of the scheme, has the status of client or customer; “Code” means a code of practice issued by the Pensions Regulator under section 90 of the Pensions Act 2004; “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act); “employer”, in relation to an occupational pension scheme, means a person who employs or engages persons who are, or are entitled to become, members of the scheme; “enactment” includes an enactment comprised in subordinate legislation; “implementation strategy” has the meaning given in section 39; “insolvency event” has the meaning given in section 121 of the Pensions Act 2004; “investment strategy”, in relation to an unconnected multiple employer scheme, means a document prepared by the trustees setting out the strategy for investing the assets that arise or derive from the payments made by or in respect of members of the scheme; “Master Trust scheme” means a Master Trust scheme within the meaning of the Pension Schemes Act 2017 or any corresponding statutory provision; “member” has the meaning given in section 124(1) of the Pensions Act 1995 (read with regulations made under section 125(4) of that Act); “occupational pension scheme” has the same meaning as in the Pension Schemes Act 1993 (see section 1(1) of that Act); “pension scheme” has the meaning given in section 1(5) of the Pension Schemes Act 1993; “the scheme actuary”, in relation to a pension scheme, means the person appointed under section 47(1)(b) of the Pensions Act 1995 (professional advisers) in relation to the scheme; “the scheme proprietor”, in relation to an unconnected multiple employer scheme, has the meaning given in section 14B(3); “scheme rules” has the meaning given in section 318(2) and (3) of the Pensions Act 2004; “statutory provision” has the meaning given in section 1(f) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)); “subordinate legislation” has the meaning given in section 21(1) of the Interpretation Act 1978; “triggering event” has the meaning given in section 31. “undertaking” has the meaning given in section 1161 of the Companies Act 2006; “unincorporated association” means any body of persons unincorporate but does not include a partnership. (1A) In relation to an unconnected multiple employer scheme which is a section of a qualifying scheme, references in this Part to the scheme’s accounts are to be read as references to the accounts of the qualifying scheme as a whole. (2) For the purposes of this Part, an employer (“A”) is connected with another employer (“B”)— (a) where A is, or has been, a group undertaking in relation to B within the meaning of section 1161(5) of the Companies Act 2006, or (b) in circumstances specified in regulations made by the Secretary of State. (3) This Part applies to a qualifying scheme— (a) which provides both qualifying benefits and other benefits, and (b) for which there is no power to wind up the scheme to the extent only that it provides qualifying benefits, as if references to winding up the scheme, or to the scheme being wound up, were to ceasing to operate the scheme, or the scheme ceasing to operate, to the extent that it provides qualifying benefits. (4) Regulations made by the Secretary of State may make provision to the effect that, for the purposes of any specified provisions of this Part, a reference in this Part to a collective money purchase scheme includes a scheme that— (a) is in the process of being wound up, and (b) was a collective money purchase scheme immediately before the beginning of that process. “Specified” here means specified in the regulations. (5) Regulations under subsection (2) or (4) are subject to affirmative resolution procedure.

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50 Index of defined expressions

The Table below lists provisions that define or otherwise explain terms defined for this Part of this Act. the accounts (of an unconnected multiple employer scheme) | section 49 actuarial valuation | section 20(2) administration charge | section 49 affirmative resolution procedure | section 51 authorisation (and related expressions) | section 49 authorisation criteria | section 49 chief financial officer (in relation to an unconnected multiple employer scheme) | section 49 chief investment officer (in relation to an unconnected multiple employer scheme) | section 49 Code | section 49 collective money purchase benefit | section 1 collective money purchase scheme | section 1 connected (in relation to employers) | section 49 the data protection legislation | section 49 determination notice | section 30(4) employer | section 49 enactment | section 49 implementation strategy | section 49 insolvency event | section 49 investment strategy (in relation to an unconnected multiple employer scheme) | section 49 item 1 triggering event (and similar references) | section 31(5) Master Trust scheme | section 49 member | section 49 negative resolution procedure | section 51 occupational pension scheme | section 49 pension scheme | section 49 promotion or marketing (and related expressions) | section 9(7) qualifying benefit | section 2 qualifying scheme | sections 3 and 4 rectification (in relation to promotion or marketing that is unclear or misleading, and related expressions) | section 9(7) relevant former employer (in relation to a single or connected employer scheme) | section 31(5) the scheme actuary | section 49 the scheme proprietor (in relation to an unconnected multiple employer scheme) | section 49 scheme rules | section 49 section (of a pension scheme) | regulations under section 5(1) single or connected employer scheme | section 1(3) special procedure | section 30(4) standard procedure | section 30(4) statutory provision | section 49 subordinate legislation | section 49 triggering event | section 49 triggering event period | section 32 triggering events table | section 31(4) unconnected multiple employer scheme | section 1(3) undertaking | section 49 unincorporated association | section 49 warning notice | section 30(4)

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51 Regulations

(1) Regulations under this Part are to be made by statutory instrument. (2) A power to make regulations under this Part may be used— (a) to make different provision for different purposes; (b) to make provision in relation to all or only some of the purposes for which it may be used. (3) Regulations under this Part may— (a) confer a discretion on a person; (b) make consequential, supplementary or incidental provision; (c) make transitional, transitory or saving provision. (4) Where regulations under this Part are subject to “negative resolution procedure”, the statutory instrument containing the regulations is subject to annulment in pursuance of a resolution of either House of Parliament. (5) Where regulations under this Part are subject to “affirmative resolution procedure”, the regulations must not be made unless a draft of the statutory instrument containing them has been laid before Parliament and approved by a resolution of each House of Parliament. (6) Any provision that may be made by regulations under this Part subject to negative resolution procedure may be made by regulations subject to affirmative resolution procedure.

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52 Collective money purchase benefits and schemes

(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 53), and (b) the scheme is a qualifying scheme (see sections 54 and 55). (2) In this Part “collective money purchase scheme” means— (a) a qualifying scheme, or (b) a section of a qualifying scheme (see sections 54(6) to (9) and 56), 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.

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53 Qualifying benefits

(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 Department. (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 confirmatory 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.

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54 Qualifying schemes

(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 55). (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 Department, 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.

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55 Qualifying schemes: supplementary

(1) For the purposes of section 54(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 (Northern Ireland) Act 1993 (see section 1(1) of that Act), (b) a scheme under section 1 of the Public Service Pensions Act (Northern Ireland) 2014 (c. 2 (N.I.)) (new public service schemes), (c) a new public body pension scheme as defined in section 31 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 (Northern Ireland) 2014 (c. 2 (N.I.)) (see sections 4(6) and 34 of that Act). (3) The reference to a pension in section 54(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.

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56 Schemes divided into sections

(1) The Department 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 Department 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 52(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 52(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. (5) Regulations under subsection (2) are subject to confirmatory procedure.

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57 Amendment of definitions of “money purchase benefits” etc

(1) Schedule 4 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 (Northern Ireland) Act 1993; (c) Part 1 of the Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.)) (pension scheme membership for jobholders). (2) In section 30 of the Pensions Act (Northern Ireland) 2012 (c. 3 (N.I.)) (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 53 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 4 to the Pension Schemes Act 2021 ”.

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58 Authorisation of collective money purchase schemes

(1) A person may not operate a collective money purchase scheme unless the scheme is authorised. (2) Article 10 of the Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22)) (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 82), and (b) include an explanation of the trustees' duties under sections 82 to 96. (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.

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59 Application for authorisation

(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 64), ... (aa) where the scheme is an unconnected multiple employer scheme— (i) the scheme’s business plan (see section 65A); (ii) the scheme’s latest accounts (if any); (iii) the latest accounts (if any) of the scheme proprietor (see section 65B), 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 68). (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 Department 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.

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60 Decision on application

(1) Where an application is made for authorisation of a collective money purchase scheme under section 59, 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 62), (b) that the design of the scheme is sound (see section 63), (c) that the scheme is financially sustainable (see section 65), (ca) where the scheme is an unconnected multiple employer scheme, that— (i) the scheme has a single scheme proprietor (see section 65B), and (ii) the scheme proprietor meets the requirements set out in section 65C, (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 65D(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 65D(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 or other senior financial officer of the scheme, (d) that the scheme has adequate systems and processes for communicating with members and others (see section 66), (e) that the systems and processes used in running the scheme are sufficient to ensure that it is run effectively (see section 67), ... (f) that the scheme has an adequate continuity strategy (see section 68) , 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 85(3), the trustees will not be prevented from pursuing continuity option 3 if they consider it appropriate to do so (see sections 68A, 82 and 85). (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 77). (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 61). (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.

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60A Failure of unconnected multiple employer schemes to commence operation

(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 77). (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 60(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 58(5) (meaning of “operates”) applies for the purposes of this section.

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61 Reference to Tribunal of refusal to grant authorisation

(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.

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62 Fit and proper persons requirement

(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 60(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 65B); (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 or other senior financial officer of the scheme; (bd) where the scheme is an unconnected multiple employer scheme, a chief or other senior 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 Department. (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 Department, 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 Article 4 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)); “director” and “shadow director” have the meaning given in Article 5 of that Order. (7) Regulations under subsection (3)(a) are subject to confirmatory procedure. (8) Regulations under subsection (2)(e) are subject to negative resolution.

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63 Scheme design requirement

(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 60(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 64); (b) any matters specified in regulations made by the Department. (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 confirmatory procedure.

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64 Viability report

(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 69 and any regulations under that section. (3) The Department 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 59), (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 65B). (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 confirmatory procedure.

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65 Financial sustainability requirement

(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 60(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 82 to 96, 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 Department. (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 65B), 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 65A); (ii) the information and matters specified in Parts 1 and 2 of Schedule 4A; (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 4A. (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 confirmatory procedure.

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65A Unconnected multiple employer schemes: business plan

(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 4B, 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 4B, 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 82) 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 59), (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.

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65B Unconnected multiple employer schemes: single scheme proprietor

(1) An unconnected multiple employer scheme has a single scheme proprietor (see section 60(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 82 to 96 (see section 65(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 65(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).

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65C Unconnected multiple employer schemes: scheme proprietor requirements

(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 60(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 65(2) in a separate account in the name of the trustees with a deposit taker as defined in Article 49(8A) of the Pensions (Northern Ireland) Order 1995 (other responsibilities of trustees, employers, 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 59 (where accounts are prepared and audited as individual accounts in accordance with the applicable requirements) apply for the purposes of this section.

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65D Unconnected multiple employer schemes: promotion or marketing requirement

(1) Part 1 of Schedule 4C 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 60(3)(cb)(i)). (2) Part 2 of Schedule 4C 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 60(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).

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66 Communication requirement

(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 60(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 Department, 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 confirmatory procedure.

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67 Systems and processes requirements

(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 60(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 Department. (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 confirmatory procedure.

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