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The Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025

Type Statutory-Instrument

Publication 2025-12-15

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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Made: 15th December 2025

Coming into force: 31st July 2026

The Secretary of State makes these Regulations in exercise of the powers conferred by sections 3(8), 5(2), 8(4)(a), 11(2)(e) and (3)(a), 12(2)(b), 13(3), 14(3), 15(4)(a), 16(2), 17(5)(b), 18(4), 19(2) and (3), 20(5), 23(3)(c), 36(1)(c), (2)(b) and (c), (5) and (6), 40(6)(b), 47(1), (2), (3) and (4), 49(2)(b) and 51(2) and (3) of the Pension Schemes Act 2021[^f00001].

A draft of these Regulations has been laid before and approved by a resolution of each House of Parliament in accordance with sections 5(5), 11(7), 12(4), 13(8), 14(5), 15(6), 16(5), 17(10), 18(8), 36(11), 47(5), 49(5) and 51(5) of the Pension Schemes Act 2021[^f00002].

The Secretary of State has exercised discretion under section 51(6) of the Pension Schemes Act 2021 to make provision by regulations subject to affirmative resolution procedure which would otherwise be made by regulations subject to negative resolution procedure.

Part 1 — Preliminary Provisions

Citation, extent and commencement

1

(1) These Regulations may be cited as the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025.

(2) These Regulations extend to England and Wales and Scotland.

(3) These Regulations come into force on 31st July 2026.

Part 2 — Amendment of the Pension Schemes Act 2021

Amendment of the Pension Schemes Act 2021

2

The Pension Schemes Act 2021 is amended in accordance with this Part.

Extension of definition of qualifying schemes

3

(1) In section 1 (collective money purchase benefits and schemes) at the end insert—

(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[^f00003] 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.

(2) In section 3 (qualifying schemes)—

(a) in subsection (2), omit “by a person or persons to whom section 1(2)(a) (employer) of the Pension Schemes Act 1993 applied when the scheme was established (without other persons)”;

(b) omit subsection (3) (limitation to single or connected employer schemes).

Application for authorisation: unconnected multiple employer schemes

4

In section 8 (application for authorisation)—

(a) at the end of subsection (3)(a) omit “and”;

(b) after subsection (3)(a) insert—

(aa) where the scheme is an unconnected multiple employer scheme— (i) the scheme’s business plan (see section 14A), (ii) the scheme’s latest accounts (if any), (iii) the latest accounts (if any) of the scheme proprietor (see section 14B), prepared and audited as individual accounts in accordance with the applicable requirements, and (iv) the latest accounts of any undertaking, other than an unincorporated association, that partly or wholly funds the scheme proprietor, prepared and audited as individual accounts in accordance with the applicable requirements, and

(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[^f00004] 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).

Authorisation criteria: unconnected multiple employer schemes

5

In section 9 (decision on application)—

(a) in subsection (3)—

(i) after paragraph (c) insert—

(ca) where the scheme is an unconnected multiple employer scheme, that— (i) the scheme has a single scheme proprietor (see section 14B), and (ii) the scheme proprietor meets the requirements set out in section 14C, (cb) where the scheme is an unconnected multiple employer scheme, that— (i) no person has carried out promotion or marketing of the scheme that is unclear or misleading without rectification (see section 14D(1)), and (ii) the scheme has adequate systems and processes for securing that promotion or marketing of the scheme is clear and not misleading (see section 14D(2) and (3)), (cc) where the scheme is an unconnected multiple employer scheme, that no trustee of the scheme— (i) promotes or markets the scheme, or (ii) acts as a chief financial officer of the scheme,

(ii) at the end of paragraph (e) omit “and”;

(iii) at the end of paragraph (f) insert “, and”;

(iv) at the end insert—

(g) where the scheme is an unconnected multiple employer scheme, that if— (i) a triggering event occurs in relation to the scheme, and (ii) the circumstances are such that the trustees of the scheme are not required to pursue continuity option 1 by virtue of section 34(3), the trustees will not be prevented from pursuing continuity option 3 if they consider it appropriate to do so (see sections 17A, 31 and 34).

(b) after subsection (3) insert—

(3A) Subsection (3)(cb)(ii) does not apply if no person is carrying out promotion or marketing of the scheme.

(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).

Commencement of operation of an unconnected multiple employer scheme

6

After section 9 insert—

(9A) (1) Where the Pensions Regulator grants authorisation to an unconnected multiple employer scheme, but no person has operated the scheme within the commencement period— (a) the scheme’s authorisation is withdrawn, and (b) the Pensions Regulator must— (i) notify the trustees that the scheme is no longer authorised, and (ii) remove the scheme from the list of authorised collective money purchase schemes (see section 26). (2) The commencement period, in relation to a scheme, is the period of 24 months beginning with the day on which the Pensions Regulator received the application for authorisation of the scheme. (3) But if, before the end of that 24-month period, the trustees of the scheme satisfy the Pensions Regulator that they have good reason for needing an extension to the period, the Regulator may extend the commencement period by up to six weeks. (4) A notification to the trustees of an unconnected multiple employer scheme under section 9(4)(b) must state— (a) the date on which the commencement period ends, and (b) that if no person has operated the scheme by that date, the authorisation will be withdrawn. (5) If no person has operated an authorised unconnected multiple employer scheme before the beginning of the period of three months ending with the date on which the commencement period ends, the Pensions Regulator must send a second notification to the trustees of the scheme stating the matters specified in subsection (4)(a) and (b). (6) Section 7(5) (meaning of “operates”) applies for the purposes of this section.

Fit and proper persons requirement: unconnected multiple employer schemes

7

In section 11(2) (fit and proper persons requirement - persons to be assessed), after paragraph (b) insert—

(ba) where the scheme is an unconnected multiple employer scheme, the scheme proprietor (see section 14B); (bb) where the scheme is an unconnected multiple employer scheme, a person who promotes or markets the scheme; (bc) where the scheme is an unconnected multiple employer scheme, a chief financial officer of the scheme; (bd) where the scheme is an unconnected multiple employer scheme, a chief investment officer of the scheme;

Viability report: unconnected multiple employer schemes

8

In section 13 (viability report) after subsection (7) insert—

(7A) Before providing a viability report to the Pensions Regulator in accordance with subsection (6)(a) the trustees of an unconnected multiple employer scheme must obtain the approval of the report by the scheme proprietor (see section 14B). (7B) The trustees of an unconnected multiple employer scheme must provide the scheme proprietor with any revised viability report— (a) within seven days of the viability report being revised, and (b) at any other time, on request from the scheme proprietor.

Financial sustainability requirement - business strategy: unconnected multiple employer schemes

9

In section 14 (financial sustainability requirement)—

(a) after subsection (3) insert—

(3A) In deciding whether it is satisfied that an unconnected multiple employer scheme has sufficient financial resources to meet the costs mentioned in subsection (2), the Pensions Regulator must also take into account— (a) the liability of the scheme proprietor to provide funds to or in respect of the scheme for the purposes of meeting those costs (see section 14B), and (b) the financial resources of the scheme proprietor. (3B) In order to be satisfied that an unconnected multiple employer scheme is financially sustainable, the Pensions Regulator must also be satisfied that the business strategy relating to the scheme is sound. (3C) In deciding whether it is satisfied that the business strategy relating to an unconnected multiple employer scheme is sound, the Pensions Regulator— (a) must take into account— (i) the scheme’s business plan, and any supporting information and documents (see section 14A); (ii) the information and matters specified in Parts 1 and 2 of Schedule 1A; (iii) any additional information or documents specified in a Code[^f00005] for the purposes of this paragraph, and (b) may take into account the information specified in Part 3 of Schedule 1A.

(b) at the end of subsection (4)(a) insert “(including information about the financial resources of the scheme proprietor)”.

Financial sustainability, scheme proprietor and promotion or marketing requirements: unconnected multiple employer schemes

10

After section 14 insert—

(14A) (1) The scheme proprietor of an unconnected multiple employer scheme must prepare a business plan for the scheme. (2) A business plan must— (a) include the information specified in Part 1 of Schedule 1B, and any other information set out in a Code for the purposes of this paragraph, unless Part 2 of that Schedule provides otherwise, and (b) comply with the requirements specified in Part 2 of Schedule 1B, and any other requirements set out in a Code in relation to the information to be included in a business plan. (3) The scheme proprietor must, at least once a year— (a) review the most recent business plan, and (b) if appropriate, revise it within three months of the scheme proprietor concluding that it is appropriate to revise the plan. (4) The scheme proprietor must revise the most recent business plan at any time if— (a) there is any significant change to the information included in it, or (b) a triggering event (see section 31) has reduced the value of the financial resources of the scheme. (5) The business plan, and any revised business plan, must be approved by the trustees of the scheme. (6) The scheme proprietor or the trustees must provide the Pensions Regulator with the most recent business plan, and any supporting information or documents required by the Regulator— (a) on application for authorisation (see section 8), (b) where a revision is required as a result of a review under subsection (3), on completion of the revision, (c) where a revision is required under subsection (4), within three months of the plan being revised, and (d) at any other time, on request from the Pensions Regulator. (14B) (1) An unconnected multiple employer scheme has a single scheme proprietor (see section 9(3)(ca)(i)) if there is a person, but no more than one person, who meets all the criteria in subsection (2) in relation to the scheme. (2) The criteria are— (a) if the Pensions Regulator is considering an application for authorisation in relation to the scheme, that the person is liable to provide funds to or in respect of the scheme for the purposes of meeting— (i) some or all of the costs of setting up the scheme, and (ii) some or all of the costs relating to obtaining authorisation of the scheme, (b) that the person is liable to provide funds to or in respect of the scheme in circumstances where administration charges received from or in respect of members are not sufficient to cover the balance (if any) of the costs of setting up, and obtaining authorisation of, the scheme, and the costs of running it, (c) that the person is liable, in the event of a triggering event occurring in relation to the scheme, to provide funds to or in respect of the scheme for the purposes of meeting— (i) the costs of complying with the duties under sections 31 to 45 (see section 14(2)(b)(i)), and (ii) the costs of continuing to run the scheme for such period (which must be at least six months and no more than two years) as the Pensions Regulator thinks appropriate for the scheme (see section 14(2)(b)(ii)), and (d) that the person is responsible for making business decisions relating to the commercial activities of the scheme. (3) In this Part, “the scheme proprietor”, in relation to a scheme, means the person who meets all the criteria in subsection (2). (14C) (1) This section makes provision about the requirements that the scheme proprietor of an unconnected multiple employer scheme must meet in order for the scheme to meet the authorisation criterion mentioned in section 9(3)(ca)(ii). (2) The first requirement is that the scheme proprietor is a body corporate or a partnership that is a legal person under the law by which it is governed. (3) The second requirement is that the scheme proprietor is not a trustee of the scheme. (4) The third requirement is that the scheme proprietor had accounts prepared and audited as individual accounts in accordance with the applicable requirements at the time when it entered into the relationship or arrangement with the scheme by virtue of which it is the scheme proprietor. (5) The scheme proprietor is excepted from the third requirement if— (a) the scheme proprietor has deposited a proportion, set out in a Code, of the assets required to meet the costs mentioned in section 14(2) in a separate account in the name of the trustees with a deposit taker as defined in section 49(8A) of the Pensions Act 1995[^f00006] (other responsibilities of trustees, etc.), or (b) the Pensions Regulator grants an exception from the requirement. (6) A scheme proprietor ceases to be excepted from the third requirement— (a) by virtue of subsection (5)(a), if any of the proportion of the assets referred to in that subsection is withdrawn from the account referred to in that subsection before the date on which the scheme proprietor provides accounts to the Pensions Regulator under this Part, or (b) by virtue of subsection (5)(b), if the Pensions Regulator withdraws an exception granted under that subsection. (7) The Pensions Regulator may only withdraw an exception under subsection (6)(b) if— (a) the Regulator has notified the scheme proprietor of its intention to withdraw the exception before the beginning of the period of two weeks ending with the day on which the exception is to be withdrawn (the “withdrawal day”), and (b) the scheme proprietor has not, by the withdrawal day, provided accounts to the Regulator under this Part. (8) In this section “body corporate” has the meaning given in section 1173(1) of the Companies Act 2006. (9) Subsections (3A) to (3C) of section 8 (where accounts are prepared and audited as individual accounts in accordance with the applicable requirements) apply for the purposes of this section. (14D) (1) Part 1 of Schedule 1C sets out the matters that the Pensions Regulator must take into account in deciding whether it is satisfied that no person has carried out promotion or marketing of an unconnected multiple employer scheme that is unclear or misleading without rectification (see section 9(3)(cb)(i)). (2) Part 2 of Schedule 1C sets out the matters that the Pensions Regulator must take into account in deciding whether it is satisfied that the scheme has adequate systems and processes for securing that promotion or marketing of the scheme is clear and not misleading (see section 9(3)(cb)(ii)). (3) In deciding whether it is satisfied that an unconnected multiple employer scheme has adequate systems and processes for securing that promotion or marketing of the scheme is clear and not misleading, the Pensions Regulator may take into account whether any promotion or marketing of the scheme has been unclear or misleading (whether or not it has been rectified).

Continuity strategy requirement - scheme proprietor: unconnected multiple employer schemes

11

In section 17 (continuity strategy requirement)—

(a) for subsection (2) substitute—

(2) A document addressing how the interests of members of the scheme are to be protected if a triggering event (see section 31) occurs in relation to the scheme (a “continuity strategy”) must be prepared by— (a) where the scheme is a single or connected employer scheme, the trustees of the scheme; (b) where the scheme is an unconnected multiple employer scheme, the scheme proprietor.

(b) in subsection (6) for “collective money purchase scheme” substitute “single or connected employer scheme”;

(6A) The scheme proprietor of an unconnected multiple employer scheme must— (a) keep the continuity strategy under review, and (b) revise it if appropriate. (6B) The continuity strategy of an unconnected multiple employer scheme, and any revisions to it, must be approved by the trustees of the scheme.

(d) for subsection (7) substitute—

(7) The continuity strategy must be provided to the Pensions Regulator in accordance with subsection (7A)— (a) where the scheme is a single or connected employer scheme, by the trustees; (b) where the scheme is an unconnected multiple employer scheme, by the scheme proprietor. (7A) The continuity strategy must be provided— (a) on application for authorisation (see section 8), (b) within three months of the continuity strategy being revised, and (c) at any other time, on request from the Pensions Regulator.

Ability to pursue continuity option 3: unconnected multiple employer schemes

12

After section 17 insert—

(17A) (1) This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that, unless required to pursue continuity option 1 by virtue of section 34(3), the trustees of an unconnected multiple employer scheme would not be prevented from pursuing continuity option 3 whenever they consider it appropriate to do so, should a triggering event occur in relation to the scheme (see section 9(3)(g)). (2) In deciding whether it is satisfied that the trustees of the scheme would not be so prevented, the Pensions Regulator must take into account whether there would be any constraints or fetters on the trustees when deciding whether to pursue continuity option 3, should a triggering event occur. (3) For the purposes of subsection (2) the circumstances in which there would be a constraint or fetter on the trustees when deciding whether to pursue continuity option 3 include where, before making the decision, the trustees would be required to— (a) obtain the consent of employers, the scheme proprietor, members of the scheme, or any other person, or (b) consult with any person other than employers, the scheme proprietor and members of the scheme.

Requirement to submit annual accounts: unconnected multiple employer schemes

13

After section 26 (list of authorised schemes) insert—

(26A) (1) The trustees of an authorised unconnected multiple employer scheme must send the scheme’s accounts to the Pensions Regulator. (2) The accounts must be sent to the Regulator no later than two months after they are obtained by the trustees. (3) The scheme proprietor of an authorised unconnected multiple employer scheme must send to the Pensions Regulator— (a) its accounts prepared and audited as individual accounts in accordance with the applicable requirements, and (b) if the scheme proprietor is partly or wholly funded by an undertaking other than an unincorporated association (“relevant undertaking”), the accounts of that undertaking prepared and audited in accordance with the applicable requirements. (4) The accounts of the scheme proprietor and any relevant undertaking must be sent to the Regulator— (a) no later than nine months after the end of the financial year to which they relate, or (b) if an item 4A, 4B or 7A triggering event occurs in relation to the scheme (see section 31) and the Pensions Regulator gives notice to the scheme proprietor requiring that accounts be sent early, within such shorter period after the end of the financial year to which they relate as is specified in the notice. (5) In subsection (4) “financial year” in relation to a scheme proprietor or a relevant undertaking is to be interpreted in accordance with— (a) the requirements of the law referred to in section 8(3A), or (b) where no such meaning is given to “financial year” in those requirements, the Companies Act 2006. (6) Subsections (3A) to (3C) of section 8 (where accounts are prepared and audited as individual accounts in accordance with the applicable requirements) apply for the purposes of this section. (7) Section 10 of the Pensions Act 1995[^f00007] (civil penalties) applies to a person who fails to comply with a requirement imposed by or under this section.

Notification of significant events: unconnected multiple employer schemes

14

In section 28(2) (duty to notify the Pensions Regulator of significant events) after paragraph (b) insert—

(ba) where the scheme is an unconnected multiple employer scheme, the scheme proprietor; (bb) where the scheme is an unconnected multiple employer scheme, a person who promotes or markets the scheme; (bc) where the scheme is an unconnected multiple employer scheme, a chief financial officer of the scheme; (bd) where the scheme is an unconnected multiple employer scheme, a chief investment officer of the scheme;

Risk notices - scheme proprietor: unconnected multiple employer schemes

15

In section 29 (risk notices)—

(a) after subsection (1) insert—

(1A) Where the scheme is an unconnected multiple employer scheme the Pensions Regulator may give a risk notice to the scheme proprietor if the Regulator considers that— (a) there is an issue of concern in relation to the scheme, and (b) the scheme will breach the authorisation criteria, or is likely to breach them, if the issue is not resolved.

(b) in subsection (2), after “the scheme” insert “or (as the case may be) the scheme proprietor”;

(d) after subsection (4) insert—

(4A) Where risk notices relating to the same issue of concern have been issued to the trustees of the scheme and the scheme proprietor, the reference in subsection (4) to the proposals in a resolution plan is to be read as a reference to the proposals in the resolution plans of the trustees and the scheme proprietor taken together.

(e) in subsection (5)—

(i) in the words before paragraph (a), after “trustees” insert “or (as the case may be) the scheme proprietor”;

(ii) in paragraph (a), after “concern” insert “(whether alone or together with the proposals in another resolution plan relating to the same issue of concern)”;

(iii) in paragraph (b), after “trustees” insert “or the scheme proprietor”;

(f) in subsection (6), after “trustees” insert “or the scheme proprietor”;

(g) in subsection (7)—

(i) after “trustees”, in the first place it occurs, insert “or the scheme proprietor”;

(ii) after “trustees”, in the second place it occurs, insert “or (as the case may be) the scheme proprietor”;

(h) in subsection (11)—

(i) in the opening words, after “trustee” insert “or a scheme proprietor”;

(ii) in paragraph (a) after “(1)” insert “, (1A)”.

16

In section 31 (triggering events)—

(a) in subsection (2) for “9” substitute “10”;

(b) in subsection (4), in the triggering events table[^f00008]—

(i) at the beginning of the text in the second column relating to item 4 insert “Where the scheme is a single or connected employer scheme,”;

(ii) after the row for item 4 insert—

4A.	Where the scheme is an unconnected multiple employer scheme, an insolvency event occurs in relation to the scheme proprietor.	The date on which the insolvency event occurs.
4B.	Where the scheme is an unconnected multiple employer scheme and the scheme proprietor is a person or body of a kind that meets requirements prescribed under section 129(1)(b) of the Pensions Act 2004, the scheme proprietor becomes unlikely to continue as a going concern.	The earlier of— the date on which the scheme proprietor notifies the Pensions Regulator of that fact, and the date on which the trustees become aware of that fact.

(iii) at the beginning of the text in the second column relating to item 5 insert “Where the scheme is a single or connected employer scheme,”;

(iv) after the row for item 7 insert—

7A.	Where the scheme is an unconnected multiple employer scheme, the scheme proprietor decides to end the relationship or arrangement with the scheme by virtue of which it is the scheme proprietor.	The date of the decision.
7B.	Where the scheme is an unconnected multiple employer scheme, the scheme proprietor ends the relationship or arrangement with the scheme by virtue of which it is the scheme proprietor.	The earlier of— the date on which the scheme proprietor notifies the Pensions Regulator of that fact, and the date on which the trustees become aware of that fact.

(v) at the end insert—

10.	Where the scheme is an unconnected multiple employer scheme, the trustees decide that the scheme is at risk of failure and so it is necessary for one of the continuity options to be pursued (see section 34).	The date of the decision.

(4A) An unconnected multiple employer scheme is to be taken to permit the trustees of the scheme to make the decision referred to in item 10 of the table, to the extent that it would not otherwise do so.

References to relevant former employers

17

(1) In section 31(5) (triggering events), in the definition of “relevant former employer”, for “collective money purchase scheme” substitute “single or connected employer scheme”.

(2) In section 36(1)(c) (continuity option 1: discharge of liabilities and winding up)—

(a) for “each employer and each relevant former employer, and each beneficiary,” substitute “the following”;

(b) at the end insert

— (i) each employer, (ii) each beneficiary, and (iii) where there scheme is a single or connected employer scheme, each relevant former employer.

(3) In section 41(2) (trustees’ duties once implementation strategy approved) for “to employers or relevant former employers” substitute “to employers or, where the scheme is a single or connected employer scheme, relevant former employers”.

(4) In section 44(5)(b)(i) (pause orders) after “on behalf of employers or” insert “, where the scheme is a single or connected employer scheme,”.

(5) In Schedule 2 (pause orders), in paragraph 4(3)(c), at the beginning insert “where the scheme is a single or connected employer scheme,”.

Notification of triggering events: unconnected multiple employer schemes

18

In section 33 (notification of triggering events)—

(a) in the table in subsection (2)—

(i) after the row for an item 4 triggering event insert—

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.

(ii) in the second column of the row for an item 6 triggering event—

(aa) at the beginning of the final entry insert “Where the scheme is a single or connected employer scheme,”;

(bb) after the final entry insert “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.”;

(iii) in the second column of the row for an item 7 triggering event—

(aa) at the beginning of the final entry insert “Where the scheme is a single or connected employer scheme,”;

(bb) after the final entry insert “Where the scheme is an unconnected multiple employer scheme, the scheme proprietor if they are aware of the event.”;

(iv) after the row for an item 7 triggering event insert—

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.

(v) in the second column of the row for an item 8 triggering event—

(aa) at the beginning of the final entry insert “Where the scheme is a single or connected employer scheme,”;

(bb) after the final entry insert “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.”;

(vi) in the second column of the row for an item 9 triggering event—

(aa) at the beginning of the final entry insert “Where the scheme is a single or connected employer scheme,”;

(bb) after the final entry insert “Where the scheme is an unconnected multiple employer scheme, the scheme proprietor if they are aware of the event.”;

(vii) after the row for an item 9 triggering event insert—

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.

(b) in subsection (3) for “collective money purchase scheme” substitute “single or connected employer scheme”;

(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.

(d) after subsection (5) insert—

(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.

(e) in subsection (7) for “collective money purchase scheme” substitute “single or connected employer scheme”;

(f) after subsection (7) insert—

(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.

(g) in subsection (9) for “collective money purchase scheme” substitute “single or connected employer scheme”;

(h) after subsection (9) insert—

(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.

Approval of implementation strategy: unconnected multiple employer schemes

19

In section 40(5)(d) (approval of implementation strategy), at the end insert—

(iv) where the scheme is an unconnected multiple employer scheme, any revisions that will be needed to the business plan (see section 14A).

Powers to extend definition of qualifying schemes: regulations about unconnected multiple employer schemes

20

In section 47 (powers to extent definition of qualifying schemes), after subsection (4) insert—

(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.

Interpretation of Part 1 of the Pension Schemes Act 2021

21

In section 49 (interpretation of Part 1)—

(a) in subsection (1)—

(i) before the definition of “administration charge” insert—

“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);

(ii) after the definition of “authorisation criteria” insert—

“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[^f00009];

(iii) after the definition of “insolvency event” insert—

“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;

(iv) after the definition of “the scheme actuary” insert—

“the scheme proprietor”, in relation to an unconnected multiple employer scheme, has the meaning given in section 14B(3);

(v) after the definition of “triggering event” insert—

“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.

(b) after subsection (1) insert—

(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.

Index of defined expressions

22

In section 50 (index of defined expressions), in the table—

(a) before the entry for “actuarial valuation” insert—

the accounts (of an unconnected multiple employer scheme)	section 49

(b) after the entry for “authorisation criteria” insert—

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

investment strategy (in relation to an unconnected multiple employer scheme)	section 49

(d) after the entry for “pension scheme” insert—

promotion or marketing (and related expressions)	section 9(7)

(e) after the entry for “qualifying scheme” insert—

rectification (in relation to promotion or marketing that is unclear or misleading, and related expressions)	section 9(7)

(f) at the end of the entry for “relevant former employer” insert “(in relation to a single or connected employer scheme)”;

(g) after the entry for “the scheme actuary” insert—

the scheme proprietor (in relation to an unconnected multiple employer scheme)	section 49

(h) after the entry for “section (of a pension scheme)” insert—

single or connected employer scheme	section 1(3)

(i) after the entry for “triggering events table” insert—

unconnected multiple employer scheme	section 1(3)
undertaking	section 49
unincorporated association	section 49

New Schedules - scheme proprietor accounts etc, business strategy, business plan and promotion or marketing: unconnected multiple employer schemes

23

After Schedule 1 (money purchase benefits) insert—

Schedule 1A (1) The scheme’s latest accounts (if any). (2) The statement of investment principles (if any) prepared by the trustees of the scheme in accordance with section 35 of the Pensions Act 1995 (investment principles)[^f00010]. (3) The latest accounts (if any) of the scheme proprietor provided to the Pensions Regulator under section 8 or section 26A. (4) The latest accounts of any undertaking, other than an unincorporated association, that partly or wholly funds the scheme proprietor, provided to the Pensions Regulator under section 8 or section 26A. (5) The structure of the scheme and its target market, including any plans to acquire or merge with other schemes. (6) The robustness and prudence of any assumptions in the scheme’s business plan (see section 14A) about membership, contributions, income and costs. (7) The planned expenditure of the scheme, the purpose of the expenditure, and how it will be funded. (8) The terms, security and affordability of loans and other funding provided to the scheme, and the identity of each lender or other funding provider. (9) Information about the market in which the scheme operates or is to operate. (10) The experience and professional competence of the individuals involved in running the scheme. (11) Where a business plan has been revised as a result of a significant change to the information included in it (see section 14A(4)), the circumstances that led to the significant change. (12) Any provision made by the trustees and the scheme proprietor to fund contingent liabilities in respect of the scheme. (13) The scheme’s accounts, other than the latest accounts. (14) Any accounts of the scheme proprietor, and of any undertaking that partly or wholly funds the scheme proprietor, provided to the Pensions Regulator under section 8 or section 26A, other than the latest accounts. Schedule 1B (1) The date by reference to which the information in the business plan is stated (the “effective date” of the plan) (see paragraph 26). (2) The period to which the business plan relates, to be no less than three years and no more than five years starting with the effective date of the plan. (3) In each case where estimates are provided in connection with a business plan— (a) any assumptions used in reaching those estimates, and (b) the circumstances in which, and the extent to which, the scheme’s actual membership, contributions, income and costs may vary from the estimates of those matters. (4) The name of the person who prepared the business plan. (5) A statement, signed by the trustees and the scheme proprietor, confirming— (a) that the scheme proprietor considers the business plan to give a true and fair representation of the matters to which it relates, and (b) that the business plan has been approved by the trustees. (6) The name by which the scheme is known. (7) The name under which the scheme is registered under Chapter 2 of Part 4 of the Finance Act 2004[^f00011] (if the scheme is so registered). (8) Any trading or brand name under which the scheme is promoted or marketed (if different from the names referred to in paragraphs 6 and 7). (9) The date when the scheme was established. (10) The address of the scheme’s office most recently notified to HM Revenue and Customs in connection with the scheme’s registration under Chapter 2 of Part 4 of the Finance Act 2004 (if the scheme is so registered). (11) The name of— (a) each trustee of the scheme, and (b) the scheme proprietor. (12) The name and address of any scheme administrator (within the meaning given by section 270 of the Finance Act 2004[^f00012]). (13) The number of participating employers. (14) The number of members, broken down into active members, deferred members, pension credit members and pensioner members (within the meanings given in section 124(1) of the Pensions Act 1995[^f00013]). (15) In the three years ending with the effective date of the plan— (a) the number of members joining the scheme, (b) the number of members transferring from the scheme, and (c) the number of members leaving the scheme. (16) The number given to the scheme when it was placed on the register of occupational and personal pension schemes compiled and maintained by the Pensions Regulator under section 59(1) of the Pensions Act 2004 (if the scheme has been so placed). (17) The reference number issued to the scheme by HM Revenue and Customs when the scheme was registered under Chapter 2 of Part 4 of the Finance Act 2004 (if the scheme is so registered). (18) The scheme’s objectives and its strategy for meeting them, including delivery milestones. (19) Details of the succession planning in place in the event that— (a) any single undertaking that provides significant funding to the scheme proprietor ceases to do so, or (b) two or more undertakings that provide funding to the scheme proprietor which collectively is significant cease to do so. (20) A description of the activities (if any) carried out by the scheme proprietor which do not relate directly to the scheme. (21) The identity of any regulator (other than the Pensions Regulator) that regulates activities carried out by the scheme proprietor. (22) In paragraph 21 “regulator” means— (a) a person who has responsibility for, or oversight of, an area of activity by virtue of any legislation, or (b) a person in a country or territory outside the United Kingdom which exercises functions of a public nature corresponding or similar to functions of a person referred to in sub-paragraph (a). (23) A declaration as to the overall competence of the scheme proprietor, with particular reference to the experience, knowledge and professional qualifications of the individuals performing the functions of the scheme proprietor in the exercise of a management or executive role, and plans to improve that competence by way of continuous professional development or otherwise. (24) Where a triggering event has reduced the value of the financial resources of the scheme (see section 14A(4)(b)), the plans and timetable for restoring the scheme’s financial resources to a level likely to satisfy the Pensions Regulator that the scheme is financially sustainable. (25) A business plan must be— (a) in writing, and (b) in the format set out in a Code. (26) The information in the business plan must be correct as at the later of— (a) a date chosen by the scheme proprietor, but not earlier than six months before the date when the trustees of the scheme apply to the Pensions Regulator for authorisation, (b) where a business plan has been revised as a result of a review under section 14A(3), the date the review was completed, (c) where a business plan has been revised as a result of a significant change to the information included in it, the date on which the significant change occurred, and (d) where a business plan has been revised as a result of a triggering event reducing the value of the financial resources of the scheme, the earlier of— (i) one month after the date the triggering event occurred, and (ii) such date as the Pensions Regulator may notify to the scheme proprietor for the purposes of this paragraph. (27) If a revised business plan is provided in accordance with section 14A(6)(b) or (c) the plan must— (a) indicate the parts of it which have been revised, and (b) include a new statement in accordance with paragraph 5. (28) Paragraph 29 applies if— (a) a triggering event has occurred in relation to the scheme (see section 31), (b) the trustees are pursuing continuity option 1 or 2 (see sections 36 and 37), and (c) the Pensions Regulator has approved an implementation strategy relating to the scheme (see sections 39 and 40). (29) Where this paragraph applies, the Pensions Regulator may give notice to the scheme proprietor and the trustees of the scheme specifying that a revised business plan provided during the triggering event period (see section 32)— (a) must state that the circumstances described in paragraph 28(a) to (c) exist, and (b) need not— (i) contain the information specified in Part 1 or set out in a Code as described in section 14A(2)(a), or (ii) comply with any requirements set out in a Code as described in section 14A(2)(b). Schedule 1C (1) Whether information included in promotion or marketing of the scheme is consistent with the information included in— (a) the document prepared by the scheme actuary[^f00014] under regulation 33 (3)(b) (soundness of scheme design) of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025 (S.I. 2025/1313) for the purposes of the viability report that is the most recent viability report at the time of the promotion or marketing; (b) the scheme’s investment strategy that is the most recent investment strategy at the time of the promotion or marketing; (c) the summary, if any, published most recently in relation to the scheme at the time of the promotion or marketing, in accordance with regulation 29B(2)(a) of, and paragraph 1A of Schedule 11 to, the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 (S.I. 2013/2734) (scheme design statement)[^f00015]. (2) (1) Whether promotion or marketing of the scheme clearly and accurately explains, in accordance with any provision set out in a Code— (a) how the rate or amount of benefits provided to members under the scheme is determined, including supporting illustrations of what individual members might receive; (b) that performance of investments can fluctuate; (c) that the expected value of the rights to benefits is not guaranteed; (d) that the rate or amount of benefits provided to members under the scheme can fluctuate; (e) what would happen if the scheme becomes unable to continue to operate; (f) such other matters as may be set out in a Code. (2) Whether promotion or marketing of the scheme provides— (a) access to the summary, published most recently in relation to the scheme at the time of the promotion or marketing, in accordance with regulation 29B(2)(a) of, and paragraph 1A of Schedule 11 to, the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 (scheme design statement), or (b) where such a summary has not been published at the time of the promotion or marketing, information about where the summary will be published and the expected date of publication. (3) Whether there are quality assurance checks to ensure that promotion or marketing of the scheme is clear and not misleading. (4) Whether there are systems and processes for ensuring that there are sufficient individuals, with the relevant skills, knowledge, experience and capacity necessary to enable relevant functions to be carried out by or on behalf of the scheme— (a) in a manner that secures that promotion or marketing of the scheme is clear and not misleading, and (b) in accordance with the scheme’s systems and processes concerning promotion or marketing of the scheme. (5) Whether there are systems and processes— (a) for gathering feedback concerning promotion or marketing of the scheme; (b) for directing complaints concerning promotion or marketing of the scheme to the correct channels for resolution; (c) for evaluating feedback and complaints concerning promotion or marketing of the scheme and sharing such feedback and complaints with the scheme proprietor and the trustees of the scheme; (d) for taking into account feedback and complaints concerning promotion or marketing of the scheme in the design of promotion or marketing of the scheme; (e) for reporting to the scheme proprietor and the trustees as to how feedback and complaints have been taken into account in the design of promotion or marketing of the scheme. (6) Whether the IT systems used for the purposes of record-keeping in respect of promotion or marketing of the scheme have the necessary capacity and capability to record and manage all documents relating to promotion or marketing of the scheme (including all documents relating to feedback and complaints) in an accessible form, and to retain those documents for at least six years. (7) Whether there are systems and processes for identifying, managing and monitoring risks in respect of promotion or marketing of the scheme. (8) Whether there are systems and processes— (a) for the identification of roles and responsibilities in respect of the oversight of promotion or marketing of the scheme; (b) for the appointment of persons with sufficient skills, knowledge and experience to carry out those roles; (c) for setting clear objectives concerning promotion or marketing of the scheme and for monitoring whether those objectives are being met within the relevant timescales; (d) for documenting and reporting to the scheme proprietor and the trustees of the scheme matters relating to the oversight of promotion or marketing of the scheme; (e) for identifying and addressing any failures in the oversight of promotion or marketing of the scheme; (f) for ensuring that all persons carrying out relevant functions in relation to the scheme are aware of the requirement that promotion or marketing of the scheme is clear and not misleading. (9) In this Part “relevant functions” in relation to a scheme are— (a) the development, production, provision or review of materials relating to promotion or marketing of the scheme, (b) record-keeping in respect of promotion or marketing of the scheme, (c) quality assurance activities in respect of promotion or marketing of the scheme, and (d) any other functions, in respect of promotion or marketing of the scheme, set out in a Code.

Part 3 — Meaning of “connected”

Connected employers

24

(1) For the purposes of section 49(2)(b) of the Pension Schemes Act 2021 (interpretation of Part 1), an employer (“A”) is connected with another employer (“B”), and an employer which is a group undertaking of A is connected with an employer which is a group undertaking of B—

(a) where A and B have separate legal identities but are structured so that the economic position of the shareholders of each is, as far as practicable, the same as if they held shares in a single company comprising the combined businesses of A and B;

(b) where A employs members of the scheme jointly with B;

(d) where A holds or controls, or in the previous six months has held or controlled, at least 33% of the voting power in B;

(e) where A is, or in the previous six months has been, engaged in a joint venture with B.

(2) In paragraph (1)—

“active members” has the meaning given in section 124(1) of the Pensions Act 1995;

“group undertaking” has the meaning given in section 1161(5) of the Companies Act 2006 (meaning of “undertaking” and related expressions);

“joint venture” means an arrangement, contractual or otherwise, by which two or more parties undertake an economic activity that is subject to joint control.

Part 4 — Unconnected Multiple Employer Schemes

Chapter 1 — Preliminary Provisions

Application

25

This Part applies in relation to unconnected multiple employer schemes[^f00016].

Interpretation and notices

26

(1) In this Part—

“the Act” means the Pension Schemes Act 2021;

“active member” has the meaning given in section 124(1) of the Pensions Act 1995;

“additional charge” means an administration charge for advice, information or a service provided to a member, including where the member requests a transfer to another pension scheme;

“the available assets of the scheme” has the meaning given in section 2(2) of the Act;

“beneficiary”, in relation to an unconnected multiple employer 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[^f00017] in respect of the member;

“body corporate” has the meaning given in section 1173(1) of the Companies Act 2006;

“central estimate” means an estimate that is not deliberately either optimistic or pessimistic, does not include any margin for prudence and does not incorporate adjustments to reflect the desired outcome;

“closed”, in relation to an unconnected multiple employer scheme, means closed to new contributions or new members (or both);

“consumer prices index” means the consumer prices index calculated and published by the Office for National Statistics;

“continuity option” means one of the continuity options listed in section 34(2) of the Act;

“continuity strategy” has the meaning given in section 17(2) of the Act[^f00018];

“effective date” has the meaning given in section 20(6)(a) of the Act;

“multi-annual reduction” means an arrangement permitted under the scheme rules under which the trustees apply a reduction to the rate or amount of benefits provided under the scheme over multiple years following an actuarial valuation[^f00019];

“relevant person” means a person falling within section 15(3) of the Act;

“the required amount” has the meaning given in section 2(2) of the Act;

“scheme year” means— a year specified for the purposes of the scheme in any document comprising the scheme, or if no such year is specified, a period of 12 months beginning on 1st April or on such other date as the trustees of the scheme select;

“service provider” means a person providing advisory, administration, investment or other services in respect of the scheme;

“survivor” has the meaning given in section 67A(10)(a) of the Pensions Act 1995[^f00020];

“third-party charge” means any administration charge imposed on or in respect of a member by a person other than the trustees of the scheme;

“viability certificate” has the meaning given in section 13(1)(b) of the Act;

“viability report” has the meaning given in section 13(1)(a) of the Act.

(2) Except where paragraph 1 of Schedule 6 provides otherwise, sections 303 (service of notifications and other documents) and 304 (notification and documents in electronic form) of the Pensions Act 2004 are treated as applying where provision made, in whatever terms, by or under Part 1 of the Act authorises or requires a notice or notification to be given to a person in respect of an unconnected multiple employer scheme.

Chapter 2 — Schemes Divided into Sections

Qualifying schemes

27

(1) The following combinations of qualifying benefits[^f00021] are to be treated as described in relation to unconnected multiple employer schemes for the purposes of section 3(8) of the Act (qualifying schemes)—

(a) qualifying benefits in respect of which the rates or amounts, by reference to which the qualifying benefits are provided each year under the scheme, are materially different as a result of a change to the scheme’s investment strategy;

(b) qualifying benefits in respect of which the rates or amounts, by reference to which the qualifying benefits are provided each year under the scheme, are subject to materially different expected adjustments, as a result of a change to the scheme’s investment strategy.

(2) For the purposes of paragraph (1), whether the combinations of qualifying benefits described in paragraph (1) arise is to be determined by reference to the explanation in the scheme’s viability report referred to in paragraph 8 (1)(c) of Schedule 2.

(3) This regulation does not apply in relation to a scheme the trustees of which are pursuing continuity option 1.

Schemes divided into sections

28

(1) Where an undivided scheme becomes a collective money purchase scheme that is divided into sections (a “divided scheme”), an authorisation previously granted in respect of the undivided scheme (the “existing authorisation”) applies to a section if—

(a) that section of the divided scheme is a collective money purchase scheme by virtue of section 1(2)(b) of the Act (collective money purchase benefits and schemes), and

(b) the rate or amounts by reference to which the qualifying benefits provided under that section of the divided scheme are provided each year under the scheme, and the expected adjustments to those rates or amounts, are the same as those provided for under the undivided scheme.

(2) Where an undivided scheme becomes a divided scheme and there are two or more sections of that scheme to which paragraph (1) applies, the trustees of the undivided scheme must determine which section within the divided scheme the existing authorisation will apply to.

(3) Where paragraph (2) applies, the trustees of the undivided scheme must, as soon as reasonably practicable, provide the Pensions Regulator with the following information[^f00022]—

(a) the date from which the existing authorisation will apply to the section within the divided scheme, and

(b) the name of the section within the divided scheme to which the existing authorisation will apply.

(4) In this regulation, “undivided scheme” has the meaning given in section 5(2) of the Act (schemes divided into sections).

Chapter 3 — Authorisation

Application for authorisation: contents

29

(1) This regulation specifies information that must be included in an application for authorisation under section 8 of the Act (application for authorisation).

(2) The other information to be included in an application, in relation to each person acting in a capacity mentioned in section 11(2) of the Act (fit and proper persons requirement)[^f00023] and each person exercising a core function in relation to the scheme within the meaning given by regulation 31 (4) (fit and proper persons requirement), is—

(a) in the case of an individual—

(i) the person’s full name;

(ii) the person’s date of birth;

(iii) the title and description of the person’s role in relation to the scheme;

(iv) the person’s residential address and, if different, the person’s address for correspondence;

(v) any other address at which the person has been resident at any time in the period of five years before the date of the application for authorisation;

(vi) a criminal conviction certificate obtained by means of an application in accordance with section 112(1) of the Police Act 1997 (criminal conviction certificates)[^f00024], a Level 1 disclosure within the meaning of section 1 of the Disclosure (Scotland) Act 2020[^f00025] or, in relation to the law of a country outside the United Kingdom, any document that is equivalent to such a certificate or disclosure;

(b) in the case of a body corporate or partnership—

(i) the full name of each individual who is performing, or who will be performing, the functions of that person in relation to the scheme in the exercise of a management or executive role in relation to that person;

(ii) the date of birth of each such individual;

(iii) the residential address of each such individual and, if different, their address for correspondence;

(iv) any other address at which each such individual has been resident at any time in the period of five years before the date of the application for authorisation;

(v) for each such individual, a criminal conviction certificate obtained by means of an application in accordance with section 112(1) of the Police Act 1997 (criminal conviction certificates), a Level 1 disclosure within the meaning of section 1 of the Disclosure (Scotland) Act 2020 or, in relation to the law of a country outside the United Kingdom, any document that is equivalent to such a certificate or disclosure;

(c) in the case of any person, responses to a list of questions that may be asked by the Pensions Regulator, as part of an application for authorisation, to assess whether the person is a fit and proper person.

(3) The other information to be included in an application, in relation to whether the scheme is financially sustainable, is the information set out in Part 1 of Schedule 3.

(4) The application must include a statement, signed by the trustees of the scheme, confirming that—

(a) the scheme has a single scheme proprietor in accordance with section 14B of the Act, and

(b) the scheme proprietor meets the requirements set out in section 14C of the Act[^f00026].

(5) The other information to be included in an application, in relation to whether no person has carried out promotion or marketing of the scheme that is unclear or misleading without rectification, and whether the scheme has adequate systems and processes for securing that promotion or marketing of the scheme is clear and not misleading is—

(a) if there has been no promotion or marketing of the scheme, and there is no intention for there to be any such promotion or marketing, a statement, signed by the scheme proprietor—

(i) confirming that fact, and

(ii) setting out the reasons why this is the case;

(b) in any other case—

(i) details of any promotion or marketing of the scheme,

(ii) details of the matters set out in Part 1 of Schedule 1C to the Act (no promotion or marketing that is unclear or misleading)[^f00027], and

(iii) details of the systems and processes used, or intended to be used, for the purposes of promotion and marketing of the scheme, including details of the matters set out in Part 2 of Schedule 1C to the Act (promotion or marketing: systems and processes).

(6) The application must include a statement, signed by the trustees of the scheme, confirming that no trustee—

(a) promotes or markets the scheme, or

(b) acts as a chief financial officer of the scheme.

(7) The other information to be included in an application, in relation to whether the systems and processes used for communicating with members and others are adequate, is details of the systems and processes used, or intended to be used, for the purposes of communicating with relevant persons, including details of the matters set out in Schedule 4.

(8) The other information to be included in an application, in relation to whether the systems and processes used in running the scheme are sufficient, is—

(a) details of the systems and processes used, or intended to be used, in the running of the scheme, including details of the matters set out in Schedule 5;

(b) whether the systems and processes used, or intended to be used, in the running of the scheme have been devised, applied or maintained by the scheme or a service provider.

(9) The other information to be included in an application, in relation to whether (unless required to pursue continuity option 1 by virtue of section 34(3) of the Act) the trustees of the scheme would not be prevented from pursuing continuity option 3, is an explanation by the trustees of why they consider that to be the case, including—

(a) why the trustees do not consider themselves to be constrained or fettered in making a decision to pursue continuity option 3 should a triggering event occur (other than by section 34(3));

(b) whether the trustees are required to, before making that decision—

(i) obtain the consent of employers, the scheme proprietor, members of the scheme or any other person, or

(ii) consult with any person other than employers, the scheme proprietor and members of the scheme.

(10) The other information to be included in an application is—

(a) the name by which the scheme is known;

(b) the name of each employer in relation to the scheme;

(c) the date on which it is proposed that the scheme will begin operating, subject to the Pensions Regulator’s decision under section 9(1) of the Act (decision on application);

(d) the contact details of the trustees making the application;

(e) a copy of the rules of the scheme;

(f) a copy of the scheme’s trust deed;

(g) an explanation of how the scheme satisfies the definition of a collective money purchase scheme under section 1(2) of the Act (collective money purchase schemes), including—

(i) an explanation of how the requirements of section 3 of the Act (qualifying schemes)[^f00028] are met in respect of the scheme, and

(ii) where the scheme is a section of a qualifying scheme, an explanation of how the requirements of section 3 of the Act are met in respect of that section.

(11) For the purposes of paragraph (10), the date on which it is proposed that the scheme will begin operating is the date proposed as the date on which, in relation to the scheme, a person is to first accept money as described in section 7(5)(a) or (b) of the Act (authorisation of collective money purchase schemes).

Application for authorisation: fee

30

(1) Subject to paragraphs (2) and (3), an application for authorisation of an unconnected multiple employer scheme must be accompanied by a fee of £77,000.

(2) If an application for authorisation is made in respect of a section of a pension scheme and, at the time when the application is made another section of that pension scheme is an authorised collective money purchase scheme, the application must be accompanied by such fee as the Pensions Regulator may specify (but see paragraph (4)).

(3) If applications for authorisation are made in respect of two or more sections of the same pension scheme at the same time and, at the time when the applications are made no other section of that pension scheme is an authorised collective money purchase scheme—

(a) one of the applications for authorisation must be accompanied by a fee of £77,000, and

(b) all the other applications for authorisation must each be accompanied by such fee as the Pensions Regulator may specify (but see paragraph (4)).

(4) A fee specified under paragraphs (2) or (3)(b)—

(a) must not exceed £77,000, and

(b) must be calculated on a cost recovery basis.

(5) The Pensions Regulator must pay fees received under this regulation to the Secretary of State, unless the Secretary of State with the consent of the Treasury directs otherwise.

Fit and proper persons requirement

31

(1) Schedule 1 sets out the matters that the Pensions Regulator must take into account in assessing, for the purposes of section 11 of the Act (fit and proper persons requirement), whether a person is fit and proper to act in a capacity mentioned in section 11(2) of the Act.

(2) Where a person in a capacity mentioned in paragraphs (a) to (d) of section 11(2) is a body corporate or partnership, the Pensions Regulator must assess whether each individual performing the functions of that person in relation to the scheme, in the exercise of a management or executive role, is a fit and proper person to act in relation to the scheme in that capacity.

(3) Where a person exercises a core function in relation to an unconnected multiple employer scheme, the Pensions Regulator may assess whether that person is a fit and proper person to act in such a capacity and if so must take into account the matters set out in Schedule 1.

(4) In this regulation, “core function” includes a strategic, executive or management role carried out in respect of, or on behalf of, a person mentioned in paragraphs (a) to (d) of section 11(2) of the Act.

Scheme design requirement

32

Part 1 of Schedule 2 sets out the matters that the Pensions Regulator must take into account in deciding, for the purposes of section 12 of the Act (scheme design requirement), whether it is satisfied that the design of an unconnected multiple employer scheme is sound.

Viability report

33

(1) A viability report must include the information specified in Part 2 of Schedule 2.

(2) A viability report must be submitted—

(a) in writing;

(b) in the format set out in a Code.

(3) The following must be prepared or obtained in connection with a viability report—

(a) a copy of the rules of the scheme concerning how the rate or amount of benefits provided under the scheme is to be determined,

(b) a document prepared by the scheme actuary to inform the trustees’ consideration as to whether the design of the scheme is sound for the purposes of preparing or reviewing the viability report,

(d) any other information or documents as requested by the Pensions Regulator.

(4) The document described at paragraph (3)(b) must include an explanation of—

(a) the assumptions used by the scheme actuary in carrying out the tests in regulation 34 (2)(b) or (c) (as the case may be) and how the use of those assumptions is justified,

(b) the conclusions reached by the scheme actuary on—

(i) the matters contained in regulation 34 (2), and

(ii) whether the rules of the scheme meet the requirements of section 18 of the Act (calculation of benefits) and the requirements of regulation 40, and

(5) Before preparing an investment strategy for the purposes of paragraph (3), the trustees must take advice from a person who is reasonably believed by the trustees to be qualified by their ability in, and practical experience of, financial matters and to have the appropriate knowledge and experience of the management of the investments of such schemes.

(6) A viability report must be prepared—

(a) in the case of the scheme’s first viability report, by reference to information as at a date, chosen by the trustees, which must not be earlier than ten months before the date when the trustees apply to the Pensions Regulator for authorisation;

(b) in the case of any subsequent viability report, by reference to information as at a date, chosen by the trustees, which must not be earlier than ten months before the date when the trustees provide the report to the Pensions Regulator.

(7) If a revised viability report is submitted in accordance with section 13(6)(b) of the Act (viability report), the viability report must indicate which parts of it have been revised and why.

Viability certificate

34

(1) A viability certificate must contain the information specified in Part 3 of Schedule 2.

(2) The scheme actuary must have regard to the following matters when providing a viability certificate and considering whether the design of the scheme is sound—

(a) whether, in the opinion of the scheme actuary, the trustees have, in the scheme’s member booklet, the scheme’s statement of scheme design and the wording used in the scheme’s most recent statements of benefits—

(i) accurately described the methods by which the scheme determines the rate or amount of benefits provided under the scheme;

(ii) accurately described estimates of the rate or amount of any future pension benefits payable under the design of the scheme;

(iii) accurately explained that the future pension benefits payable under the scheme are subject to annual adjustment in accordance with the scheme rules;

(b) in a case where the certificate is being provided in respect of a scheme, the trustees of which are applying for authorisation under section 8 of the Act (application for authorisation), whether the scheme actuary is satisfied that—

(i) the first gateway test is met, and

(ii) the second gateway test is met;

(c) in a case where the certificate is being provided in respect of a scheme which has begun operating and has at least one active member, whether the scheme actuary is satisfied that the live running test is met.

(3) In a case where a final version of the scheme’s member booklet, the scheme’s statement of scheme design or the wording to be used in the scheme’s statements of benefits has not been prepared, the reference to that document or wording, as the case may be, in paragraph (2)(a) is to the latest draft of that document or wording, as the case may be.

(4) The first gateway test is met if the estimate of the projected average annual increase in the first ten years’ benefits, calculated on a central estimate basis—

(a) by reference to the contributions to be made into the scheme over the first ten years by or on behalf of or in respect of the expected active members into the scheme,

(b) by reference to the returns expected to be achieved on the available assets of the scheme during the remaining lives of the first ten years’ beneficiaries, calculated on a central estimate basis, and

(c) based on the premise that such projected annual increase is to be applied over the remaining lives of the first ten years’ beneficiaries,

is no less than the estimate of the projected average annual increase in the prices for goods and services as measured by the consumer prices index, calculated on a central estimate basis.

(5) For the purposes of the first gateway test—

(a) the “first ten years” means the period of ten years beginning with the date on which the scheme is expected to begin operating;

(b) the “first ten years’ beneficiaries” means—

(i) the expected active members of the scheme during the first ten years, and

(ii) the expected survivors in relation to the expected active members of the scheme during the first ten years;

(c) the “first ten years’ benefits” means the estimated rate or amount of future pension benefits payable under the scheme which relate to the rights to benefits to be accrued under the scheme over a period of ten years beginning with the date on which the scheme is expected to begin operating.

(6) The second gateway test is met if the expected value of the rights to benefits of each active member which are expected to accrue under the scheme during the relevant period is at least equal in value to the amount of the contributions expected to be made by or on behalf of the member into the scheme in that period (not including contributions made by or on behalf of the employers other than any contributions made as a result of a salary sacrifice arrangement).

(7) The live running test is met if the expected value of the rights to benefits of each active member which are expected to accrue under the scheme during the relevant period is at least equal in value to the amount of the contributions expected to be made by or on behalf of the member into the scheme in that period (not including contributions made by or on behalf of the employers other than any contributions made as a result of a salary sacrifice arrangement).

(8) For the purposes of paragraphs (6) and (7)—

(a) the expected value of the rights to benefits which are expected to accrue is to be calculated using the methods and assumptions that would be expected to be used for an actuarial valuation of the scheme;

(b) the “relevant period” is—

(i) in paragraph (6), a period of five years beginning with the date on which the scheme is expected to begin operating;

(ii) in paragraph (7), a period of five years beginning with the date which has been agreed in accordance with paragraph (9) in respect of the viability certificate that is being provided.

(9) A viability certificate must be prepared—

(a) in respect of the scheme’s first viability certificate, by reference to information as at a date to be agreed between the trustees and the scheme actuary, but not earlier than ten months before the date when the trustees apply to the Pensions Regulator for authorisation;

(b) in respect of any subsequent viability certificate, by reference to information as at a date to be agreed between the trustees and the scheme actuary, but not earlier than ten months before the date when the certificate is provided to the trustees.

(10) In this regulation—

“member booklet”, in relation to a scheme, means a document containing any basic information about the scheme that regulations made under section 113 of the Pension Schemes Act 1993[^f00029] (disclosure of information about schemes to members etc.) require the trustees of the scheme to provide to members and, if it is practicable to do so, prospective members (each as defined for the purposes of those regulations);

“salary sacrifice arrangement” has the meaning given to “relevant salary sacrifice arrangements” in section 228ZA(6) of the Finance Act 2004[^f00030];

“statement of benefits”, in relation to a scheme, means a document containing, in relation to a member of the scheme, any of the following information that regulations made under section 113 of the Pension Schemes Act 1993 require the trustees of the scheme to provide to the members (as defined for the purposes of those regulations) of the scheme specified by those regulations— an illustration of the amount of pension that may be payable to that member on their retirement date; other information related to that illustration;

“statement of scheme design”, in relation to a scheme, means information explaining the design of the scheme that regulations made under section 46(1) of the Act (publication of information) require the trustees to publish.

(11) For the purposes of this regulation a scheme begins operating where, in relation to the scheme, a person first accepts money as described in section 7(5)(a) or (b) of the Act.

Financial sustainability requirement

35

(1) Part 2 of Schedule 3 sets out matters that the Pensions Regulator must take into account in deciding, for the purposes of section 14 of the Act (financial sustainability requirement)[^f00031], whether it is satisfied that an unconnected multiple employer scheme is financially sustainable.

(2) Part 3 of Schedule 3 sets out the requirements to be met by an unconnected multiple employer scheme in relation to its financing for the purposes of section 14 of the Act.

Communication requirement

36

Schedule 4 sets out the matters that the Pensions Regulator must take into account in deciding, for the purposes of section 15 of the Act (communication requirement), whether it is satisfied that an unconnected multiple employer scheme has adequate systems and processes for communicating with members and others.

Systems and processes requirement

37

Schedule 5 sets out the matters that the Pensions Regulator must take into account in deciding, for the purposes of section 16 of the Act (systems and processes requirements), whether it is satisfied that the systems and processes used in running an unconnected multiple employer scheme are sufficient to ensure that the scheme is run effectively.

Continuity strategy: contents

38

(1) A continuity strategy must contain the following information—

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