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Pensions Act 2008 2008 c. 30 An Act to make provision relating to pensions; and for connected purposes. [26th November 2008] Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Propose a change(1) For the purposes of this Part a jobholder is a worker— (a) who is working or ordinarily works in Great Britain under the worker's contract, (b) who is aged at least 16 and under 75, and (c) to whom qualifying earnings are payable by the employer in the relevant pay reference period (see sections 13 and 15). (2) Where a jobholder has more than one employer, or a succession of employers, this Chapter applies separately in relation to each employment. (3) Accordingly— (a) references to the employer are references to the employer concerned; (b) references to membership of a pension scheme are references to membership in relation to the employment concerned.
Propose a change(1) If a jobholder is an active member of a qualifying scheme, the employer must not take any action, or make any omission, by which (without the jobholder ceasing to be employed by the employer)— (a) the jobholder ceases to be an active member of the scheme, or (b) the scheme ceases to be a qualifying scheme. (2) Subsection (1) is not contravened if the jobholder remains an active member of another qualifying scheme. (3) Subsection (1) is not contravened if by virtue of section 5 the jobholder becomes an active member of an automatic enrolment scheme with effect from— (a) the day after the cessation referred to in paragraph (a) or (b) of subsection (1), or (b) a day within the prescribed period (if a period is prescribed). (4) Subsection (1) is not contravened if the action or omission is at the jobholder's request. (5) In this Part as it applies in the case of any jobholder, references to a qualifying scheme are references to a pension scheme which is a qualifying scheme in relation to that jobholder (see section 16).
Propose a change(1) This section applies to a jobholder— (a) who is aged at least 22, (b) who has not reached pensionable age, and (c) to whom earnings of more than £10,000 are payable by the employer in the relevant pay reference period (see section 15). (2) The employer must make prescribed arrangements by which the jobholder becomes an active member of an automatic enrolment scheme with effect from the automatic enrolment date. (3) Subsection (2) does not apply if the jobholder was an active member of a qualifying scheme on the automatic enrolment date. (4) Subsection (2) does not apply if, within the prescribed period before the automatic enrolment date, the jobholder ceased to be an active member of a qualifying scheme because of any action or omission by the jobholder. (5) For the purposes of arrangements under subsection (2) regulations may require information to be provided to any person by the employer or— (a) where the arrangements relate to an occupational pension scheme, the trustees or managers of the scheme; (b) where the arrangements relate to a personal pension scheme, the provider of the scheme. (6) For the purposes of arrangements made under subsection (2) in relation to a personal pension scheme, regulations may deem an agreement to exist (subject to section 8) between the jobholder and the provider of the scheme for the jobholder to be an active member of the scheme on terms and conditions determined in accordance with the regulations. (6A) In this section “ earnings ” has the meaning given in section 13(3). (6B) In the case of a pay reference period of less or more than 12 months, subsection (1) applies as if the amount in paragraph (c) were proportionately less or more. (7) The automatic enrolment date, in relation to any person, is the first day on which this section applies to the person as a jobholder of the employer. This is subject to section 4. (8) In this Part as it applies in the case of any jobholder, references to an automatic enrolment scheme are references to a pension scheme which is an automatic enrolment scheme in relation to that jobholder (see section 17).
Propose a change(1) Where— (a) an employer (E) gives to a person employed by E on E's staging date (“the worker”) notice that E intends to defer automatic enrolment for the worker until a date specified in the notice (“the deferral date”), and (b) any prescribed requirements in relation to the notice are met, the worker's automatic enrolment date is the deferral date if on that date section 3 applies to the worker as a jobholder of E; if not, subsection (4) applies. (2) Where— (a) a person (“the worker”) begins to be employed by an employer (E) after E's staging date, (b) E gives the worker notice that E intends to defer automatic enrolment until a date specified in the notice (“the deferral date”), and (c) any prescribed requirements in relation to the notice are met, the worker's automatic enrolment date is the deferral date if on that date section 3 applies to the worker as a jobholder of E; if not, subsection (4) applies. (3) Where— (a) a person (“the worker”) employed by an employer (E) becomes, after E's staging date, a jobholder to whom section 3 applies, (b) E gives the worker notice that E intends to defer automatic enrolment until a date specified in the notice (“the deferral date”), and (c) any prescribed requirements in relation to the notice are met, the worker's automatic enrolment date is the deferral date if on that date section 3 applies to the worker as a jobholder of E; if not, subsection (4) applies. (4) Where this subsection applies, section 3(2) does not apply in relation to any employment of the worker by E in the period beginning with the starting day and ending with the deferral date. (5) A notice under this section may be given on or before the starting day or within a prescribed period after that day. (6) The deferral date may be any date in the period of three months after the starting day. (7) An employer who gives a worker a notice under subsection (1) or (2) may not give the worker a notice under subsection (3) in relation to any occasion on or before the deferral date specified in the notice on which the worker becomes a jobholder to whom section 3 applies. (8) In this section— “ staging date ”, in relation to an employer of a particular description, means the date prescribed under section 12 in relation to employers of that description; “ starting day ” means— E's staging date, in the case of a notice under subsection (1); the day on which the worker begins to be employed by E, in the case of a notice under subsection (2); the day on which the worker becomes a jobholder to whom section 3 applies, in the case of a notice under subsection (3).
Propose a change(1) This section applies to a jobholder— (a) who is aged at least 22, (b) who has not reached pensionable age, and (c) to whom earnings of more than £10,000 are payable by the employer in the relevant pay reference period (see section 15). (1A) This section also applies to a jobholder who— (a) is aged at least 22, (b) has not reached pensionable age, and (c) is not an active member of a qualifying scheme because there has been a period beginning at any time after the jobholder's automatic enrolment date during which the requirements of section 1(1)(a) or (c) were not met (so that the person was not a jobholder for that period). (1B) This section also applies to a jobholder who has ceased to be an active member of a qualifying scheme because of something other than an action or omission by the jobholder. (2) The employer must make prescribed arrangements by which the jobholder becomes an active member of an automatic enrolment scheme with effect from the automatic re-enrolment date. (3) Subsection (2) does not apply if the jobholder was an active member of a qualifying scheme on the automatic re-enrolment date. (3A) Subsection (2) does not apply if the jobholder's automatic enrolment date is deferred under section 4 from a date before the automatic re-enrolment date to a date after the automatic re-enrolment date. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) For the purposes of arrangements under subsection (2) regulations may require information to be provided to any person by the employer or— (a) where the arrangements relate to an occupational pension scheme, the trustees or managers of the scheme; (b) where the arrangements relate to a personal pension scheme, the provider of the scheme. (7) For the purposes of arrangements made under subsection (2) in relation to a personal pension scheme, regulations may deem an agreement to exist (subject to section 8) between the jobholder and the provider of the scheme for the jobholder to be an active member of the scheme on terms and conditions determined in accordance with the regulations. (7A) In this section “ earnings ” has the meaning given in section 13(3). (7B) In the case of a pay reference period of less or more than 12 months, subsection (1) applies as if the amount in paragraph (c) were proportionately less or more. (8) Automatic re-enrolment dates are dates . . . that are to be determined in accordance with regulations.
Propose a change(1) Regulations under section 5(8) must either— (a) secure that for any jobholder there is no automatic re-enrolment date less than three years after the jobholder's automatic enrolment date, and that there is not more than one automatic re-enrolment date in any period of three years, or (b) secure that for any employer there is not more than one automatic re-enrolment date in any period of 2 years and 9 months. (2) Subsection (1) does not restrict the provision that regulations may make about the timing of a jobholder's automatic re-enrolment date (“the relevant date”) in the following cases. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) The first case is where— (a) . . . the jobholder ceases to be an active member of a qualifying scheme . . . , (b) that event is not the effect of any action or omission by the jobholder . . . , and (c) the relevant date is the jobholder's first automatic re-enrolment date after that event. (5) The second case is where— (a) there is a period beginning at any time after the jobholder's automatic enrolment date during which the requirements of section 1(1)(a) or (c) are not met (so that the person is not a jobholder for that period), and (b) the relevant date is the jobholder's first automatic re-enrolment date after that period. (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Propose a change(1) This section applies to a jobholder who is not an active member of a qualifying scheme. (2) But it does not apply at a time when— (a) arrangements are required to be made under section 3 or 5 in respect of the jobholder, . . . (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) The jobholder may by notice require the employer to arrange for the jobholder to become an active member of an automatic enrolment scheme. (4) The Secretary of State may by regulations make provision— (a) about the form and content of the notice; (b) about the arrangements that the employer is required to make; (c) for determining the date with effect from which the jobholder is to become an active member under the arrangements. (5) For the purposes of arrangements under subsection (3) regulations may require information to be provided to any person by the employer or— (a) where the arrangements relate to an occupational pension scheme, the trustees or managers of the scheme; (b) where the arrangements relate to a personal pension scheme, the provider of the scheme. (6) For the purposes of arrangements made under subsection (3) in relation to a personal pension scheme, regulations may deem an agreement to exist (subject to section 8) between the jobholder and the provider of the scheme for the jobholder to be an active member of the scheme on terms and conditions determined in accordance with the regulations. (7) Subsections (8) and (9) apply where a jobholder becomes an active member of an automatic enrolment scheme in pursuance of a notice under this section and, within the period of 12 months beginning with the day on which that notice was given— (a) ceases to be an active member of that scheme, and (b) gives the employer a further notice under this section. (8) The further notice does not have effect to require the employer to arrange for the jobholder to become an active member of an automatic enrolment scheme. (9) But any arrangements the employer makes for the jobholder to become, within that period, an active member of such a scheme must be made in accordance with regulations under this section.
Propose a change(1) This section applies on any occasion when arrangements under section 3(2), 5(2) or 7(3) apply to a jobholder (arrangements for the jobholder to become an active member of an automatic enrolment scheme). (2) If the jobholder gives notice under this section— (a) the jobholder is to be treated for all purposes as not having become an active member of the scheme on that occasion; (b) any contributions paid by the jobholder, or by the employer on behalf or in respect of the jobholder, on the basis that the jobholder has become an active member of the scheme on that occasion must be refunded in accordance with prescribed requirements. (3) Regulations under subsection (2)(b) may, in particular, make provision about— (a) the time within which contributions must be refunded; (b) how the amount to be refunded is calculated; (c) the procedure for refunding contributions. (4) The Secretary of State may by regulations make further provision in relation to notices under this section. (5) The regulations may in particular make provision— (a) as to the form and content of a notice; (b) as to the period within which a notice must be given; (c) as to the person to whom a notice must be given; (d) requiring any person to make prescribed arrangements for enabling notices to be given; (e) requiring any person to take prescribed action in consequence of a notice (in addition to any action prescribed under subsection (2)(b)). (6) The regulations must provide for the notice— (a) to include information about the effect in relation to jobholders of giving notice under this section, and (b) to be signed or otherwise authorised by the jobholder.
Propose a change(1) This section applies to a worker— (a) to whom paragraphs (a) and (b) of section 1(1) apply (working in Great Britain and aged between 16 and 75), (b) to whom paragraph (c) of section 1(1) does not apply (qualifying earnings), and (c) who is not an active member of a pension scheme that satisfies the requirements of this section. (2) The worker may by notice require the employer to arrange for the worker to become an active member of a pension scheme that satisfies the requirements of this section. (3) The Secretary of State may by regulations make provision— (a) about the form and content of the notice; (b) about the arrangements that the employer is required to make; (c) for determining the date with effect from which the worker is (subject to compliance with any requirements of the scheme) to become an active member under the arrangements. (4) Subsections (5) and (6) apply where a worker becomes an active member of a pension scheme in pursuance of a notice under this section and, within the period of 12 months beginning with the day on which that notice was given— (a) ceases to be an active member of that scheme because of any action or omission by the worker, and (b) gives the employer a further notice under this section. (5) The further notice does not have effect to require the employer to arrange for the worker to become an active member of a pension scheme. (6) But any arrangements the employer makes for the worker to become, within that period, an active member of a pension scheme that satisfies the requirements of this section must be made in accordance with regulations under this section. (7) A pension scheme satisfies the requirements of this section if— (a) it is registered under Chapter 2 of Part 4 of the Finance Act 2004 (c. 12), and (b) in the case of a personal pension scheme, there are, in relation to the worker concerned, direct payment arrangements (within the meaning of section 111A of the Pension Schemes Act 1993 (c. 48)) between the worker and the employer.
Propose a change(1) The Secretary of State may make provision by regulations— (a) for ... jobholders to be given information about the effect of sections 2 to 8 in relation to them; (b) for ... workers to whom section 9 applies to be given information about the effect of that section in relation to them; (c) for a prescribed person to be required to provide the information. (2) Regulations under this section may in particular make provision about — (a) what information must be given; (b) in what circumstances it must be given; (c) how and when it must be given.
Propose a change(1) The Secretary of State may make regulations requiring employers to provide the Pensions Regulator (“the Regulator”) with information about action they have taken or intend to take for the purposes of any provision of, or of regulations under, sections 2 to 10. (2) The regulations may in particular— (a) require an employer to provide information about pension schemes to which any action relates; (b) require an employer to identify which of any prescribed descriptions a scheme falls within; (c) require an employer to provide information that appears to the Secretary of State to be required for the performance by the Regulator of its functions under Chapter 2 of this Part; (d) make provision about how and in what form any information is to be provided.
Propose a change(1) The Secretary of State may make regulations requiring employers to provide information relating to— (a) jobholders who are active members of a qualifying scheme, or (b) workers who are active members of a pension scheme that satisfies the requirements of section 9, to the trustees or managers of the scheme (where the scheme is an occupational pension scheme) or the provider of the scheme (where the scheme is a personal pension scheme). (2) Regulations under this section may make provision— (a) specifying the information to be provided; (b) about when, or the frequency with which, the information (or a particular item of information) is to be provided; (c) about how and in what form the information is to be provided. (3) The information that regulations under this section may require employers to provide includes information about persons ceasing to be jobholders or workers within subsection (1)(a) or (b).
Propose a changeThe Secretary of State may by regulations provide that sections 2 to 9 do not apply in the case of an employer of any description until such date after the commencement of those sections as is prescribed in relation to employers of that description.
Propose a change(1) A person's qualifying earnings in a pay reference period of 12 months are the part (if any) of the gross earnings payable to that person in that period that is— (a) more than £6,240, and (b) not more than £50,270. (2) In the case of a pay reference period of less or more than 12 months, subsection (1) applies as if the amounts in paragraphs (a) and (b) were proportionately less or more. (3) In this section, “earnings”, in relation to a person, means sums of any of the following descriptions that are payable to the person in connection with the person's employment— (a) salary, wages, commission, bonuses and overtime; (b) statutory sick pay under Part 11 of the Social Security Contributions and Benefits Act 1992 (c. 4); (c) statutory maternity pay under Part 12 of that Act; (d) statutory paternity pay under Part 12ZA of that Act; (e) statutory adoption pay under Part 12ZB of that Act; (ea) statutory shared parental pay under Part 12ZC of that Act; (eb) statutory parental bereavement pay under Part 12ZD of that Act; (ec) statutory neonatal care pay under Part 12ZE of that Act; (f) sums prescribed for the purposes of this section.
Propose a change(1) The Secretary of State must in each tax year consider whether any of the amounts in sections 3(1)(c), 5(1)(c) and 13(1)(a) and (b) should be increased or decreased. (2) If the Secretary of State considers that any of those amounts should be increased or decreased, the Secretary of State may make an order substituting in the provisions in question the amounts that the Secretary of State thinks appropriate. (3) For the purposes of subsection (1) the Secretary of State may take into account any of the factors specified in subsection (4) (as well as any others that the Secretary of State thinks relevant). (4) The factors are— (a) the amounts for the time being specified in Chapter 2 of Part 3 (personal allowances) of the Income Tax Act 2007; (b) the amounts for the time being specified in regulations under section 5 of the Social Security Contributions and Benefits Act 1992 (earnings limits and thresholds for Class 1 national insurance contributions); (c) the amounts for the time being specified in section 44(4) of that Act (rate of basic state pension) and in regulations under section 3(1) of the Pensions Act 2014 (full rate of state pension); (d) the general level of prices in Great Britain, and the general level of earnings there, estimated in such manner as the Secretary of State thinks fit.
Propose a change(1) In relation to any person a pay reference period is the period prescribed. (2) The Secretary of State may by regulations— (a) make provision for determining a person's earnings in any pay reference period; (b) make provision for determining the first date of each pay reference period in relation to a person. (3) A reference in any provision to the relevant pay reference period is a reference to the period determined in accordance with regulations under this section, as they apply for the purposes of that provision in the case concerned.
Propose a change(1) The Secretary of State may by order specify rounded figures for the purposes of section 3(6B), 5(7B) or 13(2) in the case of pay reference periods of any length specified in the order. (2) A rounded figure so specified applies in place of the amount that would otherwise apply (“the exact amount”). (3) The Secretary of State must decide in relation to any particular amount whether to specify— (a) a figure that is a whole number of pounds, or (b) a figure that is divisible by 10 pence, or (c) a figure that includes a whole number of pennies. (4) It is for the Secretary of State to decide whether to round any particular amount up or down. Accordingly, a figure specified under this section may be the figure within paragraph (a) or (b) or (c) of subsection (3) that is closest to the exact amount or the one that is next closest to it (or, if two figures are joint closest, it may be either of those).
Propose a change(1) A pension scheme is a qualifying scheme in relation to a jobholder (J) if— (a) the scheme is an occupational pension scheme or a personal pension scheme, (b) the scheme is registered under Chapter 2 of Part 4 of the Finance Act 2004 (c. 12), and (c) while J is an active member, the scheme satisfies the quality requirement in relation to J. (2) The Secretary of State may by regulations provide that subsection (1)(b) does not apply in relation to a scheme to which section 25 or 27 applies, if prescribed requirements are satisfied. (3) The Secretary of State may by regulations provide that a scheme is not a qualifying scheme in relation to J if— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (ab) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) while J is an active member, the contributions that must be paid to the scheme by, or on behalf or in respect of, J exceed a prescribed amount, or (c) the scheme provides for average salary benefits to be provided to or in respect of J and contains prescribed features. (3A) See also paragraphs 1(4) and 2(4) of Schedule 18 to the Pensions Act 2014, which confer power to make regulations providing for a scheme not to be a qualifying scheme in relation to a jobholder in certain circumstances. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Propose a change(1) A pension scheme is an automatic enrolment scheme in relation to a jobholder (J) if— (a) it is a qualifying scheme in relation to J, (b) it satisfies the conditions in subsection (2), and (c) it satisfies any further conditions prescribed. (2) The conditions mentioned in subsection (1)(b) are that— (a) no provision of the scheme prevents the employer from making arrangements prescribed by regulations under section 3(2), 5(2) or 7(4) for J to become an active member of the scheme; (b) no provision of the scheme requires J to express a choice in relation to any matter, or to provide any information, in order to remain an active member.
Propose a changeFor the purposes of this Part, each of these is an occupational pension scheme— (a) an occupational pension scheme within the meaning of section 1(1) of the Pension Schemes Act 1993 (c. 48) that has its main administration in the United Kingdom; (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) a pension scheme that is prescribed or is of a prescribed description and that has its main administration elsewhere than in the United Kingdom.
Propose a changeFor the purposes of this Part, a personal pension scheme is a pension scheme that is not an occupational pension scheme.
Propose a change(1) A money purchase scheme that is not a relevant Master Trust and that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if under the scheme— (a) the jobholder's employer must pay contributions in respect of the jobholder; (b) the employer's contribution, however calculated, must be equal to or more than 3% of the amount of the jobholder's qualifying earnings in the relevant pay reference period; (c) the total amount of contributions paid by the jobholder and the employer, however calculated, must be equal to or more than 8% of the amount of the jobholder's qualifying earnings in the relevant pay reference period. (1A) A money purchase scheme that is a relevant Master Trust satisfies the quality requirement in relation to a jobholder if the conditions in subsection (1)(a) to (c) and Condition 1 and Condition 2 of this subsection are met. Condition 1 This Condition is that the relevant Master Trust— is approved under section 28A in respect of a main scale default arrangement, is exempted by regulations from the requirement for approval, has previously been approved under section 28E (transition pathway relief) and is to be treated in accordance with regulations as if it had approval under section 28A, qualifies under section 28E for transition pathway relief, or qualifies under section 28F for new entrant pathway relief. Condition 2 This Condition is that the relevant Master Trust— is approved under section 28C in respect of the asset allocation requirement, or is exempted by regulations from the requirement for approval. See also section 28G (suspension of asset allocation requirement: savers’ interest test) for provision about circumstances in which the asset allocation requirement is suspended. (1B) Regulations under Condition 1(b) or 2(b) of subsection (1A) may exempt any description of relevant Master Trust, for example those that are— (a) designed to meet the needs of persons with a protected characteristic within the meaning of the Equality Act 2010, or (b) hybrid schemes. (1C) Regulations may— (a) permit the Regulatory Authority to determine that a relevant Master Trust is to be treated for a period (“the protected period”) as meeting Condition 1 or Condition 2 of subsection (1A) for a period specified by the Regulatory Authority; (b) specify circumstances in which a relevant Master Trust, which is treated as mentioned in paragraph (a) and meets prescribed conditions, is to be subject during a prescribed period (ending with the end of the protected period) to any requirements specified in the regulations; and provision under this paragraph may include provision corresponding to any provision that may be made under section 28A(10); (c) make provision about the Regulatory Authority requiring the trustees or managers of a relevant Master Trust to give the Regulatory Authority a plan showing how they propose to meet or continue to meet the scale requirement under section 28A or the conditions for approval under section 28C. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) A scheme does not fail to satisfy the quality requirement under this section merely because the trustees or managers of the scheme may on any occasion refuse to accept a contribution below an amount prescribed for the purposes of this section on the grounds that it is below that amount. (4) In this section— “main scale default arrangement” is to be interpreted in accordance with section 28A(13); “Master Trust scheme” has the same meaning as in the Pension Schemes Act 2017 (see section 1(1) of that Act); “relevant Master Trust” means a money purchase scheme that has its main administration in the United Kingdom and is an authorised Master Trust scheme.
Propose a changeA defined benefits scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if it satisfies the test scheme standard in relation to that jobholder.
Propose a change(1) A scheme satisfies the test scheme standard in relation to a jobholder (J) if the pensions to be provided for the relevant members of the scheme are broadly equivalent to, or better than, the pensions which would be provided for them under a test scheme. (2) Subject to subsection (3), the relevant members are J and all active members who are jobholders of the same employer as J. (3) In applying this section the pensions to be provided for relevant members must be considered as a whole. (4) The Secretary of State may by regulations make provision for the manner of, and criteria for, determining whether the pensions to be provided for the relevant members under a scheme are broadly equivalent to, or better than, the pensions which would be provided for them under a test scheme. (5) Regulations under subsection (4) may provide for the determination to be made in accordance with guidance issued from time to time by the Secretary of State. (6) The Secretary of State may by regulations provide that a scheme only satisfies the test scheme standard if the scheme actuary certifies that it does. (7) Except in prescribed circumstances, the scheme actuary is the actuary appointed under section 47(1)(b) of the Pensions Act 1995 (c. 26) (professional advisers) in relation to the scheme. (8) In the case of a scheme under which a sum of money is made available for the provision of benefits to a relevant member, references in this section to pensions are to be read as references to such sums.
Propose a change(1) A test scheme is an occupational pension scheme which satisfies— (a) the requirement in subsection (2), (b) the requirement in subsection (4) or requirements prescribed under subsection (6) (as appropriate), and (c) any further requirements that are prescribed. (2) The scheme must either— (a) provide for a member to be entitled to a pension commencing at the appropriate age and continuing for life, or (b) provide for a sum of money to be made available for the provision of benefits to a member commencing at the appropriate age and continuing for life. (3) The appropriate age is 65 or any higher age prescribed. (4) In the case of a scheme that provides entitlement to a pension as mentioned in subsection (2)(a), the annual rate of the pension at the appropriate age must be— (a) 1/120th of average qualifying earnings in the last three tax years preceding the end of pensionable service, multiplied by (b) the number of years of pensionable service, up to a maximum of 40. (5) Section 13(1) (qualifying earnings) applies for the purposes of subsection (4) as if the reference to a pay reference period were a reference to a tax year. (6) In the case of a scheme that provides for a sum of money to be made available as mentioned in subsection (2)(b), regulations must prescribe requirements relating to that sum.
Propose a change(1) The Secretary of State may by regulations provide that a defined benefits scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if any one or more of the following is satisfied— (a) the scheme is of a prescribed description and satisfies the quality requirement under section 20 in relation to that jobholder; (b) the cost of providing the benefits accruing for or in respect of the relevant members over a relevant period would require contributions to be made of a total amount equal to at least a prescribed percentage of the members' total relevant earnings over that period; (c) in the case of each of at least 90% of the relevant members, the cost of providing the benefits accruing for or in respect of the member over a relevant period would require contributions to be made of a total amount equal to at least a prescribed percentage of the member's total relevant earnings over that period. (2) For this purpose— “contributions” means contributions to the scheme by, or on behalf or in respect of, a relevant member; “relevant earnings” means earnings of a prescribed description; “relevant members” means members of the scheme of a prescribed description; “relevant period” means a period specified in or determined in accordance with the regulations. (3) A percentage prescribed under subsection (1)(b) or (c) must be at least 8%. (4) Regulations under subsection (1)(b) or (c) may make provision— (a) about how to calculate whether the requirement is satisfied, including provision requiring the calculation to be made in accordance with prescribed methods or assumptions; (b) requiring benefits of a prescribed description to be disregarded in determining whether the requirement is satisfied; (c) that a scheme only satisfies the requirement if the scheme actuary certifies that it does; and for this purpose “scheme actuary” has the prescribed meaning. (5) Section 13(3) (meaning of “earnings”) applies for the purposes of this section as it applies for the purposes of that section. (6) The Secretary of State must from time to time review any regulations in force under subsection (1). (7) A review must be carried out— (a) during 2017, and (b) after that, no more than three years after the completion of the previous review.
Propose a change(1) A hybrid scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if it satisfies the requirements mentioned in whichever of these is the appropriate paragraph— (a) the requirements for a money purchase scheme under section 20, subject to any prescribed modifications; (b) the requirements for a defined benefits scheme under sections 21 to 23A, subject to any prescribed modifications. (2) Which paragraph of subsection (1) is appropriate for any hybrid scheme is to be determined by rules made by the Secretary of State. (3) The rules may provide for different paragraphs to be appropriate for different provisions of a scheme. (4) The rules may provide for the paragraphs to be appropriate as alternatives, for any scheme or any provisions of a scheme.
Propose a changeThe Secretary of State may by regulations make provision as to the quality requirement to be satisfied in the case of an occupational pension scheme within section 18(c).
Propose a change(1) This section applies to a personal pension scheme if the operation of the scheme— (a) is carried on in such a way as to be a regulated activity for the purposes of the Financial Services and Markets Act 2000 (c. 8), and (b) is carried on in the United Kingdom by a person who is in relation to that activity an authorised person or an exempt person under section 19 of that Act. (2) The scheme satisfies the quality requirement in relation to a jobholder if the following conditions are satisfied. (3) The first condition is that all of the benefits that may be provided to the jobholder under the scheme are money purchase benefits. (4) The second condition is that, in relation to the jobholder, there is an agreement between the provider of the scheme and the employer under which— (a) the employer must pay contributions in respect of the jobholder; (b) the employer's contribution, however calculated, must be equal to or more than 3% of the amount of the jobholder's qualifying earnings in the relevant pay reference period. (5) In subsection (6), “shortfall” means the difference (if any) between— (a) the employer's contribution in respect of the jobholder under the agreement referred to in subsection (4), and (b) 8% of the amount of the jobholder's qualifying earnings in the relevant pay reference period. (6) The third condition is that if there is a shortfall there is an agreement between the provider of the scheme and the jobholder under which the jobholder must pay contributions which, however calculated, are equal to or more than the shortfall. (7) The fourth condition is that, in relation to the jobholder, there are direct payment arrangements (within the meaning of section 111A of the Pension Schemes Act 1993 (c. 48)) between the jobholder and the employer. (7A) The fifth condition is that if the scheme is a group personal pension scheme of a prescribed description it must, unless subsection (7C) applies, hold an approval under section 28B in respect of a main scale default arrangement. (7B) The sixth condition is that if the scheme is a group personal pension scheme of a prescribed description it must hold an approval under section 28C in respect of the asset allocation requirement. See also section 28G (suspension of asset allocation requirement: savers’ interest test) for provision about circumstances in which the asset allocation requirement is suspended. (7C) This subsection applies if the group personal pension scheme— (a) has previously been approved under section 28E (transition pathway relief) and is to be treated in accordance with regulations as if it had approval under section 28B, (b) qualifies under section 28E for transition pathway relief, or (c) qualifies under section 28F for new entrant pathway relief. (7D) Regulations under subsection (7A) or (7B) may exempt any description of group personal pension schemes, for example those that are designed to meet the needs of persons with a protected characteristic within the meaning of the Equality Act 2010. (7E) Regulations may— (a) permit the Regulatory Authority to determine that a group personal pension scheme is to be treated as meeting the fifth or sixth condition for a period (the “protected period”) specified by the Regulatory Authority; (b) specify circumstances in which a group personal pension scheme which is treated as mentioned in paragraph (a) and meets prescribed conditions is to be subject during a prescribed period (which ends with the end of the protected period) to any requirements specified in the regulations; and provision under this paragraph may include provision corresponding to any provision that may be made under section 28A(10); (c) make provision about the Regulatory Authority requiring the provider of a group personal pension scheme to give the Regulatory Authority a plan showing how they propose to meet or continue to meet the scale requirement under section 28B or the conditions for approval under section 28C. (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) A scheme does not fail to satisfy the quality requirement under this section merely because the provider of the scheme may on any occasion refuse to accept a contribution below an amount prescribed for the purposes of this section on the grounds that it is below that amount. (10) In this section “main scale default arrangement” is to be interpreted in accordance with section 28B(13).
Propose a changeThe Secretary of State may by regulations make provision as to the quality requirement to be satisfied in the case of a personal pension scheme to which section 26 does not apply.
Propose a change(1) The Secretary of State may by regulations provide that, subject to provision within subsection (6)(f), a scheme to which this section applies is to be taken to satisfy the relevant quality requirement in relation to each of an employer's relevant jobholders if a certificate given in accordance with the regulations is in force in relation to the employer. (1A) In this section— (a) “ relevant jobholder ” means a jobholder to whom the certificate in question applies; (b) a reference to a scheme includes a reference to part of a scheme. (2) The certificate must state— (a) that, in relation to relevant jobholders of the employer who are active members of the scheme, the scheme is in the opinion of the person giving the certificate able to satisfy the relevant quality requirement throughout the certification period, or (b) that, in relation to those jobholders, the scheme is in that person's opinion able to satisfy a prescribed alternative requirement throughout the certification period. (2A) Alternative requirements must be such that, assuming all jobholders to be active members of schemes to which this section applies, for at least 90% of jobholders— (a) employer contributions, and (b) total contributions, would be likely to be no less if every scheme satisfied an alternative requirement applicable to it than if every scheme satisfied the relevant quality requirement. (2B) In subsection (2A)— “ alternative requirement ” means a requirement prescribed under subsection (2)(b); “ employer contributions ”, in relation to an active member of a scheme, means the amount of contributions that have to be paid under the scheme in respect of the member by the employer; “ total contributions ”, in relation to an active member of a scheme, means the total amount of contributions that have to be paid under the scheme in respect of the member by the employer and by the member. (2C) The Secretary of State— (a) must apply the test in subsection (2A) when regulations under subsection (2)(b) are first made, and (b) must carry out subsequent reviews of whether the test continues to be satisfied. A review under paragraph (b) must be carried out during 2017, and after that each review must be completed no more than three years after the completion of the previous one. (3) This section applies to— (a) a money purchase scheme to which section 20 applies; (b) a personal pension scheme to which section 26 applies; (c) a hybrid scheme, to the extent that requirements within section 24(1)(a) apply. (3A) This section also applies to— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) a personal pension scheme of a prescribed description for which provision is made under section 27; (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3B) This section also applies to a defined benefits scheme that has its main administration in the United Kingdom and is of a description prescribed under section 23A(1)(a). (4) The “relevant quality requirement”— (a) for a scheme within subsection (3)(a), means the quality requirement under section 20 , except so far as that quality requirement relates to Condition 1 or 2 in subsection (1A); (b) for a scheme within subsection (3)(b), means the quality requirement under section 26 , except so far as that quality requirement relates to the fifth and sixth conditions; (c) for a scheme within paragraph (c) of subsection (3), means the requirements mentioned in that paragraph , except so far as those requirements relate to Condition 1 or 2 in section 20(1A); (d) for a scheme within subsection (3A), means a prescribed requirement. (e) for a scheme within subsection (3B), means the quality requirement under section 23A(1)(a). (5) Regulations may make further provision in relation to certification under this section. (6) Regulations may in particular make provision— (a) as to the period for which a certificate is in force (the “certification period”); (b) as to the persons by whom a certificate may be given; (c) as to procedures in connection with certification or where a certificate has been given; (d) requiring persons to have regard to guidance issued by the Secretary of State; (e) requiring an employer to calculate the amount of contributions that a scheme, and any contribution agreements, required to be paid by or in respect of any relevant jobholder in the certification period; (f) as to cases where the requirements of a scheme, and any contribution agreements, as to payment of contributions by or in respect of relevant jobholders of an employer did not satisfy prescribed conditions. (7) Provision within subsection (6)(f) includes in particular provision for a scheme not to be treated by virtue of regulations under this section as having satisfied the relevant quality requirement unless prescribed steps are taken (which may include the making of prescribed payments). (8) In subsection (6) “contribution agreements” means— (a) the agreement required, in the case of a scheme within subsection (3)(b), by section 26(4) and any agreement required, in the case of such a scheme, by section 26(6), or (b) any agreement of the same or a similar kind that is required, in the case of a scheme within subsection (3A)(b), by regulations under section 27. (9) The Secretary of State may by order repeal this section.
Propose a change(1) For the purposes of Condition 1 of section 20(1A), the Regulatory Authority (“the Authority”) may approve a relevant Master Trust (“the RMT”) in respect of a main scale default arrangement if the Authority determines that— (a) the RMT meets the scale requirement by reference to the main scale default arrangement, and (b) any other prescribed conditions are met. (2) The RMT meets the scale requirement by reference to a main scale default arrangement if the sum of the values mentioned in paragraphs (a) to (c) of subsection (4) is equal to or greater than the minimum amount. (3) In this section “the minimum amount” means £25 billion. (4) Subject to subsection (7), those values are— (a) the total value of assets of the RMT which— (i) represent accrued rights of members of that scheme, (ii) are held subject to the main scale default arrangement, and (iii) are managed under a common investment strategy; (b) if one or more relevant Master Trusts are connected with the RMT, the total value of assets of those schemes that— (i) represent accrued rights of members of those schemes, (ii) are held subject to the main scale default arrangement, and (iii) are managed under the investment strategy mentioned in paragraph (a)(iii); (c) if one or more group personal pension schemes are connected with the RMT, the total value of assets of those schemes that— (i) represent accrued rights of members of those schemes, (ii) are held subject to the main scale default arrangement, and (iii) are managed under the investment strategy mentioned in paragraph (a)(iii). (5) A reference in subsection (4) to a relevant Master Trust or a group personal pension scheme being “connected” with the RMT is to a relevant Master Trust or a group personal pension scheme having a prescribed connection with the RMT. (6) Regulations under subsection (5) may, for example, provide— (a) that a relevant Master Trust is connected with the RMT only if it has the same scheme funder or scheme strategist as the RMT, or (b) that a group personal pension scheme is connected with the RMT only if its provider is also the scheme funder or scheme strategist of the RMT. (7) Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under subsection (4)(a) to (c). (8) Regulations may make provision about— (a) how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced; (b) what it means for assets of a pension scheme to be managed under a “common investment strategy” (including in particular provision defining that expression by reference to whether or how far the assets relating to each member of the scheme are allocated in the same proportion to the same investments). (9) Regulations may make provision about how the value of assets is to be determined for the purposes of subsections (2) and (4). (10) Regulations may make provision— (a) as to a time limit within which the Authority must decide an application for approval; (b) as to procedures in connection with approvals or where an approval has been given; (c) about the withdrawal of approvals including conditions for, and procedures in connection with, withdrawals; (d) for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal; (e) for the Authority to maintain and publish a list of relevant Master Trusts that are approved under this section. (11) Regulations under subsection (10)(c) may in particular make provision— (a) about steps, including communications with a relevant Master Trust, that the Authority must take before deciding to withdraw an approval; (b) setting a minimum period that must elapse between a notification that approval is to be withdrawn and the withdrawal of the approval; (c) where the Authority has given notice to the trustees or managers of a relevant Master Trust that the approval (under this section) of that scheme is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers to— (i) act in relation to the scheme as if its approval has been withdrawn, and (ii) take steps for ensuring that persons (such as employers) who may be affected in the event of the relevant Master Trust’s losing that approval are promptly informed if such a loss should occur; (d) permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph (c), a penalty determined in accordance with the regulations that does not exceed £100,000; (e) providing for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty. (12) Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate. (13) In this section “main scale default arrangement” means an arrangement— (a) that is used for the purposes of one or more pension schemes, and (b) subject to which assets of any one of those schemes must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held.
Propose a change(1) The Regulatory Authority (“the Authority”) may, for the purposes of the Condition in section 26(7A), approve a group personal pension scheme (“the GPP”) in respect of a main scale default arrangement if the Authority determines that— (a) the GPP meets the scale requirement by reference to the main scale default arrangement, and (b) any other prescribed conditions are met. (2) The GPP meets the scale requirement by reference to a main scale default arrangement if the sum of the values mentioned in paragraphs (a) to (c) of subsection (4) is equal to or greater than the minimum amount. (3) In this section “the minimum amount” means £25 billion. (4) Subject to subsections (5) and (6), those values are— (a) the total value of assets of the GPP which— (i) represent accrued rights of members of the GPP, (ii) are held subject to the main scale default arrangement, and (iii) are managed under a common investment strategy; (b) if one or more group personal pension schemes are connected with the GPP, the total value of assets of those schemes that— (i) represent accrued rights of members of those schemes, (ii) are held subject to the main scale default arrangement, and (iii) are managed under the investment strategy mentioned in paragraph (a)(iii); (c) if one or more relevant Master Trusts are connected with the GPP, the total value of assets of those schemes that— (i) represent accrued rights of members of that scheme, (ii) are held subject to the main scale default arrangement, and (iii) are managed under the investment strategy mentioned in paragraph (a)(iii). (5) Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under subsection (4)(a) to (c). (6) Regulations may make provision about— (a) how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced; (b) what it means for assets of a pension scheme to be managed under a “common investment strategy” (including in particular provision defining that expression by reference to whether or how far the assets relating to each member of the scheme are allocated in the same proportion to the same investments). (7) Regulations may make provision about how the value of assets is to be determined for the purposes of subsections (2) and (4). (8) A reference in subsection (4) to a group personal pension scheme or a relevant Master Trust being “connected” with the GPP is to a group personal pension scheme or a relevant Master Trust having a prescribed connection with the GPP. (9) Regulations under subsection (8) may, for example, provide— (a) that a group personal pension scheme is connected with the GPP only if it has the same provider as the GPP, or (b) that a relevant Master Trust is connected with the GPP only if its scheme funder or scheme strategist is also the provider of the GPP. (10) Regulations may make provision— (a) as to a time limit within which the Authority must decide an application for approval; (b) as to procedures in connection with approvals or where an approval has been given; (c) about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals; (d) for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal; (e) for the Authority to maintain and publish a list of group personal pension schemes that are approved under this section. (11) Regulations under subsection (10)(c) may in particular make provision— (a) about steps, including communications with a group personal pension scheme, that the Authority must take before deciding to withdraw an approval; (b) setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval; (c) where the Authority has given notice to the provider of the GPP that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the provider to— (i) act in relation to the scheme as if its approval has been withdrawn, and (ii) take steps for ensuring that persons (such as employers) who may be affected in the event of the GPP losing that approval are promptly informed if such a loss should occur; (d) permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph (c), a penalty determined in accordance with the regulations that does not exceed £100,000; (e) providing for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty. (12) Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate. (13) In this section “main scale default arrangement” means an arrangement— (a) that is used for the purposes of one or more pension schemes, and (b) subject to which assets of any one of those schemes must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held.
Propose a change(1) The Regulatory Authority (“the Authority”) may approve a relevant Master Trust or a group personal pension scheme in respect of the asset allocation requirement only if the Authority determines that at least the prescribed percentage (by value) of the assets held in main default funds of the scheme are qualifying assets. (2) Regulations under subsection (1) may prescribe a percentage by reference to— (a) all of the assets of the scheme that are held in main default funds, or (b) a prescribed description of the assets of the scheme that are so held. (3) In this section “qualifying asset” means an asset of a prescribed description that is held in a main default fund of a relevant Master Trust or group personal pension scheme. (4) A description of asset may be prescribed under subsection (3) only if it represents a direct or indirect holding in any of the following asset classes— (a) private equity; (b) venture capital; (c) private credit; (d) interests in land; (e) infrastructure; (f) unlisted equity securities not falling within paragraphs (a) to (e). In this subsection “unlisted equity securities” means equity securities not listed on a recognised stock exchange within the meaning of the Income Tax Acts (see section 1005 of the Income Tax Act 2007) (including equity securities admitted to trading that are not listed on such an exchange). (5) Regulations under subsection (3) must secure that a description of asset is prescribed under that subsection in respect of each asset class mentioned in subsection (4)(a) to (f). (6) A description prescribed under subsection (4) may for example relate to— (a) whether an asset is located in the United Kingdom or elsewhere; (b) the presence or absence of other prescribed factors linking an asset to economic activity in the United Kingdom. (7) Regulations under this section may not have the effect of requiring, as a condition of a scheme's approval under subsection (1)— (a) more than 10% (by value) of all of the assets of the scheme that are held in main default funds to be qualifying assets, or (b) more than 5% (by value) of all of the assets so held to be of a UK-specific description. (8) In subsection (7)(b) “UK-specific description” means a description framed by reference to whether an asset is located in the United Kingdom or meets any other condition linked to economic activity in the United Kingdom. (9) For the purposes of this section assets of a relevant Master Trust or group personal pension scheme are held in “main default funds” if— (a) the jobholders by or in respect of whom contributions have been made to the scheme have not (or predominantly have not) expressed a choice as to where the contributions are allocated, and (b) the arrangements under which the assets are held meet any other conditions that may be prescribed. (10) Regulations may make provision— (a) about how the meeting of the asset allocation requirement is to be evidenced; (b) requiring the trustees or managers of relevant Master Trusts or the providers of group personal pension schemes to have regard to any guidance issued by the Secretary of State about the effect of any regulations under this section. (11) Regulations may make provision— (a) as to a time limit within which the Authority must decide an application for approval; (b) as to procedures in connection with approvals or where an approval has been given; (c) about the period for which an approval has effect; (d) about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals; (e) about the provision to the Authority of information required for the purposes of deciding applications (including any additional information the Authority may require in a particular case); (f) requiring the Authority to report to the Secretary of State any information the Secretary of State may require relating to the allocation of assets by relevant Master Trusts or group personal pension schemes; (g) for the Authority’s decision on the application to be referred to the Upper Tribunal; (h) for the Authority to maintain and publish— (i) a list of relevant Master Trusts that are approved under this section, and (ii) a list of group personal pension schemes that are approved under this section, (or a single list of the pension schemes mentioned in sub-paragraphs (i) and (ii)). (12) Regulations under subsection (11)(d) may in particular make provision— (a) about steps, including communications with a relevant Master Trust or group personal pension scheme, that the Authority must take before deciding to withdraw an approval; (b) setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval; (c) where the Authority has given notice to the trustees or managers of a relevant Master Trust or the provider of a group personal pension that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers or provider to— (i) act in relation to the scheme as if its approval has been withdrawn, and (ii) take steps for ensuring that persons (such as employers) who may be affected in the event of the scheme losing that approval are promptly informed if such a loss should occur; (d) permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph (c), a penalty determined in accordance with the regulations that does not exceed £100,000. (13) Before making regulations under subsection (1) the Secretary of State must prepare and publish a report setting out— (a) a joint assessment by the Financial Conduct Authority and the Pensions Regulator of the extent to which there is evidence of competitive conditions restricting relevant Master Trusts and group personal pension schemes from investing in qualifying assets, including in circumstances where such investments may be in the best interests of members of such schemes; (b) the Secretary of State’s assessment of the extent to which relevant Master Trusts and group personal pension schemes have made progress towards achieving— (i) 10% (by value) of scheme assets held in main default funds to be qualifying assets, and (ii) 5% (by value) of scheme assets so held to be of a UK-specific description (within the meaning of subsection (7)(b)); (c) the Secretary of State’s assessment of any barriers to relevant Master Trusts or group personal pension schemes investing in qualifying assets, including in particular where such assets are located in the United Kingdom; (d) the steps taken by the Secretary of State or the Authority to address any such barriers; (e) how the financial interests of members of relevant Master Trusts and group personal pension schemes are or would be affected by the proposed regulations; (f) what effects the proposed measures could be expected to have on economic growth in the United Kingdom; (g) any other matters the Secretary of State considers appropriate. (14) The power to make regulations under subsection (1) may only be exercised once. (15) Before making regulations under subsection (1), the Secretary of State must have regard to the joint assessment of the Financial Conduct Authority and the Pensions Regulator mentioned in subsection (13)(a). (16) Before making regulations under this section, the Secretary of State must consult the Treasury. (17) The Secretary of State must consult such persons as the Secretary of State considers appropriate before publishing a report under subsection (13). (18) The Secretary of State may not make regulations under subsection (1) before 1 January 2028. (19) Provision under this section overrides any provision of the trust deed or rules of the scheme in question, so far as they are in conflict (and for that purpose, a provision of the trust deed or rules of the scheme is “in conflict” with provision under this section so far as the former does not allow for the assets of the scheme to be managed in such a way as to meet the conditions for approval under this section).
Propose a change(1) Regulations may make provision about information that the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme must give to the Regulatory Authority about the allocation of assets of the relevant Master Trust or group personal pension scheme. (2) The regulations may make provision about— (a) the types of information that must be given; (b) when it must be given; (c) the form and manner in which it must be given.
Propose a change(1) The Regulatory Authority (“the Authority”) may approve a relevant Master Trust as qualifying for transition pathway relief if the Authority determines that— (a) the condition in subsection (2) is met, and (b) any other prescribed conditions are met. (2) The condition mentioned in subsection (1)(a) is that the Authority determines that the relevant Master Trust— (a) would qualify for approval under section 28A (MSDA approval: relevant Master Trusts) if the amount specified in section 28A(3) were £10 billion, and (b) has a credible plan in place for meeting the scale requirement within the meaning of section 28A(2). (3) The Authority may approve a group personal pension scheme as qualifying for transition pathway relief if the Authority determines that— (a) the condition in subsection (4) is met, and (b) any other prescribed conditions are met. (4) The condition mentioned in subsection (3)(a) is that the Authority determines that the group personal pension scheme— (a) would qualify for approval under section 28B (MSDA approval: group personal pension schemes) if the amount specified in section 28B(3) were £10 billion, and (b) has a credible plan in place for meeting the scale requirement within the meaning of section 28B(2). (5) Regulations may require trustees or managers of schemes that are authorised under this section to take prescribed steps, for example— (a) to produce plans for increasing the scale of their schemes’ holdings or to take other actions that may facilitate progress towards approval under section 28A or 28B, or (b) in connection with governance and investment capability. (6) Regulations must make provision about the criteria for making any determinations under subsection (1) or (3). (7) Regulations may make provision of a kind mentioned in section 28A(10) or (11); and for this purpose a reference in those provisions— (a) to an approval under section 28A is to be read as a reference to an approval under this section; (b) to a relevant Master Trust is to be read as a reference to a relevant Master Trust or a group personal pension scheme; (c) to the trustees or managers of a relevant Master Trust is to be read as a reference to the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme. (8) Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate. (9) In this section “relevant Master Trust” has the same meaning as in section 20.
Propose a change(1) A relevant Master Trust or group personal pension scheme qualifies for new entrant pathway relief for the purposes of Condition 1(e) of section 20(1A) or section 26(7C)(c) if the relevant Master Trust or group personal pension scheme is approved by the Regulatory Authority (“the Authority”) under this section. (2) The Authority may approve a relevant Master Trust or a group personal pension scheme under this section only if the Authority determines that— (a) the scheme in question does not yet have any members, (b) the scheme in question has strong potential to grow so as to meet the scale requirement under section 28A or 28B, (c) the scheme in question has an innovative product design, and (d) any other prescribed conditions are met. (3) Regulations may make provision of a kind mentioned in section 28A(10) or (11); and for this purpose a reference in those provisions— (a) to an approval under section 28A is to be read as a reference to an approval under this section; (b) to a relevant Master Trust is to be read as a reference to a relevant Master Trust or a group personal pension scheme; (c) to the trustees or managers of a relevant Master Trust is to be read as a reference to the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme. (4) Regulations may make provision about the meaning of “strong potential to grow” and “innovative product design” (including how it can be demonstrated that a scheme has strong potential to grow or an innovative product design). (5) Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.
Propose a change(1) Regulations must make provision for authorising the Regulatory Authority (“the Authority”), on an application by a relevant Master Trust or group personal pension scheme, to determine that the scheme in question is to be treated, for a period specified by the Authority, as if that scheme were exempted from the requirement for approval under section 28C. (2) The Secretary of State must make regulations under subsection (1) so that they have effect whenever regulations under section 28C(1) or (2) have effect. (3) Regulations under subsection (1)— (a) may make provision about the form and content of an application, including about the evidence to be provided as part of an application; (b) must make provision requiring an application to include a statement— (i) that the applicant concludes that meeting the asset allocation requirement is likely not to be in the best interests of members of the scheme, and (ii) setting out the basis on which the applicant reached the conclusion; (c) must make provision requiring the Authority to determine that the applicant is to be treated as mentioned in subsection (1) in cases where— (i) the application complies with the requirements of regulations made under subsection (1), and (ii) the Authority is of the view that it is reasonable for the applicant to have reached the conclusion that meeting the asset allocation requirement is likely not to be in the best interests of members of the scheme; (d) may make provision about the basis on which the Authority may or must form such a view, including about the evidence which the Authority may or must take into account; (e) may make provision as to the process for making a determination, including as to— (i) the level of detail of enquiry required in different cases; (ii) a time limit within which the Authority must decide an application; (iii) procedures in connection with applications; (f) must require the Authority to provide reasons for any determination not to approve an application; (g) must provide for the Authority’s determination on an application to be referred to the Upper Tribunal.
Propose a change(1) The Regulatory Authority (“the Authority”) may give a risk notice to the trustees or managers of a relevant Master Trust if the Authority considers that— (a) there is an issue of concern in relation to the relevant Master Trust, and (b) the relevant Master Trust will, or is likely to, cease to meet the conditions for approval under section 28A or 28C if the issue is not resolved. (2) A “risk notice” is a notice that requires the trustees or managers of a relevant Master Trust to submit to the Authority a plan (a “resolution plan”) setting out proposals for resolving the issue of concern. (3) A risk notice must— (a) identify the issue of concern; (b) specify the date by which the resolution plan is to be submitted. (4) If the Authority is not satisfied that the proposals in a resolution plan are likely to be adequate to resolve the issue of concern, the Authority may give a further notice to the trustees or managers requiring them to submit a revised plan by a date specified in the notice. (5) The trustees or managers must implement the proposals in a resolution plan if the Authority— (a) is satisfied that the proposals are likely to be adequate to resolve the issue of concern, and (b) notifies the trustees or managers accordingly. (6) The Authority may direct the trustees or managers to comply with the requirement imposed by subsection (5). (7) Where the trustees or managers are required by subsection (5) to implement the proposals in a resolution plan, they must— (a) submit to the Authority, before the end of a period specified in regulations, a report setting out what progress they are making in implementing the proposals (a “progress report”); (b) submit further progress reports to the Authority at intervals specified by the Authority. (8) Resolution plans and progress reports must be provided in the manner and form specified by the Authority. (9) A reference to a resolution plan in subsections (4) to (8) includes a reference to a resolution plan as revised under subsection (4). (10) Regulations may— (a) specify information that a risk notice must contain; (b) provide that the date referred to in subsection (3)(b) or (4) must fall before the end of a period specified in the regulations. (11) Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee or manager of a relevant Master Trust who fails to comply with— (a) a notice under subsection (1) or (4), (b) a direction under subsection (6), or (c) a requirement imposed by subsection (7).
Propose a change