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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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(a) the steps the trustees would take to decide which continuity option to pursue (if applicable) and the timescales for taking those steps;

(b) details of—

(i) the main decisions and actions that would need to be taken to protect members’ interests during a triggering event period[^f00032];

(ii) the person responsible for taking them; and

(iii) the timescales for taking them;

(i) the information to be provided; and

(ii) the stages at which communication would take place;

(d) details of strategies for communicating with the Pensions Regulator;

(e) details of how the trustees would choose a receiving scheme, if applicable;

(f) details of how the trustees would choose the policy or policies mentioned in paragraph 2 (2) of Schedule 6, if applicable;

(g) details of how any periodic income to be paid in accordance with paragraph 7 of Schedule 6 would be calculated and paid, if continuity option 1 were to be pursued;

(h) details of how the value of beneficiaries’ accrued rights to benefits would be transferred to a receiving scheme, if applicable;

(i) details of how beneficiaries’ personal data would be transferred to a receiving scheme, if applicable;

(j) details of how the payment of benefits would be secured in accordance with paragraph 2 (2) of Schedule 6, if applicable;

(k) details of how beneficiaries’ personal data would be transferred to an insurer, or insurers, mentioned in paragraph 2 (2) of Schedule 6, if applicable;

(l) details of how members’ records are to be maintained during a triggering event period;

(m) details of how the quantification of the value of each beneficiary’s accrued rights to benefits under the scheme would be carried out;

(n) details of how the trustees would comply with any legal requirements and meet any legal costs arising from a triggering event;

(o) details of how the trustees would comply with any actuarial requirements and meet any actuarial costs arising from a triggering event;

(p) a plan for making decisions concerning the scheme’s investment strategy, when a triggering event occurs, and for dealing with scheme investments during a triggering event period;

(q) a plan for dealing with any contributions due from employers and members;

(r) details of how the scheme’s administration services would continue after a triggering event;

(s) details of how service providers would be retained and paid during a triggering event period;

(t) details of how implementation of the continuity strategy would be funded;

(u) an estimate of the costs of carrying out the actions set out in the continuity strategy;

(v) a statement, signed by the trustees, confirming that they have approved the continuity strategy, and any revisions to it.

(2) In deciding, for the purposes of section 17 of the Act (continuity strategy requirement), whether it is satisfied that an unconnected multiple employer scheme has an adequate continuity strategy, the Pensions Regulator must take into account the robustness of any assumptions referred to in the following information which have been used for the purposes of estimating figures included in that information—

(a) the plan mentioned at paragraph (1)(p), and

(b) the details mentioned at paragraph (1)(n), (o), (s) and (t).

(3) A continuity strategy must be prepared—

(a) in writing,

(b) in the format set out in a Code, and

(4) In this regulation, “receiving scheme” means a pension scheme to which the value of a beneficiary’s accrued rights to benefits under the scheme may be transferred in accordance with Schedule 6.

Continuity strategy: administration charges

39

(1) With the exception of those administration charges mentioned in regulation 57 (1), the section of the continuity strategy setting out the levels of administration charges must set them out as follows.

(2) The section must set out for each charge structure all levels of administration charges in the current scheme year including—

(a) for any additional charges, and the reason for imposing them;

(b) for any third-party charges, and the reason for imposing them;

(3) The levels must be set out on an annualised basis.

Chapter 4 — Valuation and Benefit Adjustment

Calculation of benefits

40

(1) The rules of an unconnected multiple employer scheme—

(a) must contain the provisions set out in paragraphs (2) to (5), and

(b) are overridden to the extent that they conflict with those provisions.

(2) In relation to the determination of the value of the available assets of the scheme, the assets to be taken into account are the available assets of the scheme attributed to the scheme in the relevant accounts, excluding any resources invested in contravention of section 40(1) of the Pensions Act 1995 (restriction on employer-related investments).

(3) In relation to the determination of the required amount—

(a) that the trustees must apply the methods set out in the scheme rules;

(b) that the mortality tables used and the demographic assumptions made, having regard to the main characteristics of the members as a group, must be based on a central estimate basis;

(c) that the discount rate must be determined using a central estimate of the estimated future returns on assets held by the scheme or expected to be held in the future;

(d) that the inflation assumptions used must be based on a central estimate basis.

(4) In relation to the adjustment to the rate or amount of benefits provided under the scheme—

(a) that the trustees must apply the methods set out in the scheme rules;

(b) that any such adjustment must be based on the actuarial valuation calculated by reference to the most recent effective date;

(d) that any such adjustment must be applied on the benefit adjustment date;

(e) that, subject to sub-paragraph (f) and except where there is a multi-annual reduction in effect, the amount of any adjustment required or made to the rate or amount of benefits provided under the scheme that is an increase must be determined on the assumptions that—

(i) that increase will be made in each year of the remaining lives of—

(aa) the beneficiaries of the scheme on the effective date;

(bb) the expected survivors in relation to the members of the scheme on the effective date, and

(ii) that increase will include the projected change in inflation;

(f) that, except where there is a multi-annual reduction in effect, the amount of any adjustment required or made to the rate or amount of benefits provided under the scheme that is an increase must be determined on the assumption that, to the extent that the increase is greater than whichever is higher of—

(i) 2% per annum above the percentage increase in the consumer prices index;

(ii) a percentage per annum above the percentage increase in the consumer prices index, if any, set out in the scheme rules for the purposes of this sub-paragraph,

that part of the increase will not be made in any year other than the year in which the adjustment first takes effect.

(5) In relation to how the rates at which rights to benefits under the scheme accrue are to be determined, that the rates are to be determined with the effect that either—

(a) the expected value of rights to benefits of each active member which are expected to accrue under the scheme during the relevant period, calculated on an actuarial basis, is equal to the value of the contributions expected to be made into the scheme by, on behalf of or in respect of the member in that period, or

(b) in respect of each employer that uses the scheme, the aggregate expected value of the rights to benefits of the active members of the scheme employed by that employer which are expected to accrue under the scheme during the relevant period, calculated on an actuarial basis, is equal to the value of the aggregate contributions expected to be made into the scheme by, on behalf of or in respect of those active members in that period.

(6) For the purposes of paragraph (5) the “relevant period” is such period as is agreed by the trustees of the scheme and the scheme actuary over which the rates at which the rights to benefits under the scheme accrue are expected to be applied.

(7) Subject to paragraph (3), it is for the trustees of an unconnected multiple employer scheme to determine, having obtained advice from the scheme actuary, which assumptions are to be used—

(a) for the purposes of determining the required amount on which the adjustment to the rate or amount of benefits provided under the scheme is based;

(b) for the purposes of paragraph (5).

(8) Paragraphs (9) to (17) apply where the scheme rules of an unconnected multiple employer scheme permit the trustees to apply a multi-annual reduction.

(9) The trustees of an unconnected multiple employer scheme may apply a multi-annual reduction to the rate or amount of benefits provided under the scheme provided that—

(a) the multi-annual reduction is to be applied in full on or before the third benefit adjustment date beginning with the benefit adjustment date which relates to the actuarial valuation as a result of which the multi-annual reduction is to be applied;

(b) the reduction applied in any year of the multi-annual reduction must not be greater than the reduction applied in the previous year of the multi-annual reduction.

(10) Except as provided by paragraph (11), the trustees of an unconnected multiple employer scheme must not vary any planned adjustments under a multi-annual reduction after the first benefit adjustment date which relates to the actuarial valuation as a result of which the multi-annual reduction is to be applied.

(11) Where there is one or more multi-annual reduction or reductions in effect and a subsequent actuarial valuation results in an increase in the rate or amount of benefits provided under the scheme, the trustees, having obtained the advice of the scheme actuary, must vary one or more multi-annual reduction or reductions then in effect, by applying that increase to offset the planned reduction or reductions under the multi-annual reduction or reductions, which take effect on or after the benefit adjustment date following that valuation.

(12) Paragraph (9)(b) does not apply to a multi-annual reduction that has been varied in accordance with paragraph (11).

(13) Any offsetting increase pursuant to paragraph (11) must be applied to the remaining years of the multi-annual reduction or reductions so that the total reduction applied in any year of the multi-annual reduction or reductions must not be greater than the total reduction applied in the previous year of the multi-annual reduction or reductions.

(14) If an offsetting increase has been applied pursuant to paragraphs (11) and (13) so that a multi-annual reduction has been offset in full, such multi-annual reduction will cease to have effect and, if all multi-annual reductions cease to have effect, any remaining increase must be applied in accordance with the scheme rules made pursuant to paragraph (4)(e) and (f).

(15) Where there is a multi-annual reduction in effect and a subsequent actuarial valuation results in a further reduction in the rate or amount of benefits provided under the scheme, that further reduction is to be applied by the trustees, having obtained the advice of the scheme actuary, in addition to the multi-annual reduction which is in effect.

(16) Where there is a single multi-annual reduction in effect and a subsequent actuarial valuation results in a further reduction in the rate or amount of benefits provided under the scheme which is to be applied as a multi-annual reduction (the “second multi-annual reduction”)—

(a) paragraph (9)(b) does not apply to the second multi-annual reduction;

(b) the total reduction applied in any year of the second multi-annual reduction must not be greater than the total reduction applied in the previous year of the second multi-annual reduction.

(17) Where there are two (but not more than two) multi-annual reductions in effect and a subsequent actuarial valuation results in a further reduction in the rate or amount of benefits provided under the scheme which is to be applied as a multi-annual reduction (the “third multi-annual reduction”)—

(a) paragraph (9)(b) does not apply to the third multi-annual reduction;

(b) the total reduction applied in any year of the third multi-annual reduction must not be greater than the total reduction applied in the previous year of the third multi-annual reduction.

(18) In this regulation—

“benefit adjustment date” means the date set out in the scheme rules on which an adjustment to the rate or amount of benefits provided under the scheme following an actuarial valuation must be applied each year;

“relevant accounts”, in relation to an actuarial valuation, are the accounts for the scheme which are prepared in respect of the period ending with the effective date of the actuarial valuation.

Advice of scheme actuary

41

When advising the trustees of an unconnected multiple employer scheme in accordance with section 19(1) of the Act (advice of scheme actuary), the scheme actuary must have regard to any guidance which is relevant to determining the matters mentioned in section 18(1) and (2) of the Act (calculation of benefits) published, and from time to time revised, by—

(a) the Institute and Faculty of Actuaries;

(b) the Pensions Regulator;

Actuarial valuations

42

(1) The trustees of an unconnected multiple employer scheme must obtain—

(a) an actuarial valuation in which the effective date falls within the period of one year beginning with the day on which the scheme begins operating, and

(b) subsequent actuarial valuations in which the effective date is not more than one year after the effective date of the previous actuarial valuation.

(2) At any time prior to the certification of the actuarial valuation by the scheme actuary[^f00034], the trustees of an unconnected multiple employer scheme may, where the scheme rules so permit, instruct the scheme actuary—

(a) to adjust the value of the available assets of the scheme to account for changes in asset values since the effective date;

(b) to adjust the value of the required amount to account for changes to the scheme membership or other relevant matters since the effective date.

(3) Before instructing the scheme actuary to make an adjustment described in paragraph (2) the trustees of an unconnected multiple employer scheme must obtain written advice from the scheme actuary.

(4) An actuarial valuation prepared in accordance with section 20(1) of the Act (actuarial valuations) must contain the following—

(a) the methods and assumptions used for the actuarial valuation and how these have been derived;

(b) the scheme actuary’s certification that the matters mentioned in section 20(2) of the Act have been determined in accordance with the scheme rules;

(c) the total number of members enrolled in the scheme as at the effective date, including a breakdown of the number of active members, deferred members, pension credit members and pensioner members, and of survivors entitled to the payment of benefits under the scheme;

(d) the average age of the active members, deferred members, pension credit members and pensioner members in the scheme as at the effective date;

(e) the amount of all benefits in payment as at the effective date;

(f) the effective date of the previous actuarial valuation;

(g) the value of the available assets of the scheme and the required amount set out in the previous actuarial valuation;

(h) whether an adjustment to the rate or amount of the benefits provided under the scheme was required following the previous actuarial valuation;

(i) where an adjustment to the rate or amount of the benefits provided under the scheme was required following the previous actuarial valuation, the details of the adjustment and the date the adjustment was applied;

(j) where an increase has been determined on the assumption that part of the increase will not be made in any year other than the year in which the adjustment first takes effect pursuant to regulation 40 (4)(f)—

(i) the reason why the increase was determined on that assumption;

(ii) details of how the determination was applied in relation to members of the scheme;

(k) a statement as to whether any multi-annual reduction is in effect as at the effective date;

(l) where a multi-annual reduction is in effect, the details of the arrangement including—

(i) the duration of the multi-annual reduction;

(ii) the rate of reduction for each year of the arrangement;

(iii) confirmation that previous reductions have been applied in accordance with the details of the arrangement;

(iv) the number of years remaining until the multi-annual reduction is applied in full;

(v) any variation to the multi-annual reduction as a result of applying an increase to offset the planned reduction under the multi-annual reduction in accordance with regulation 40 (11), including the effect of that offsetting increase on the planned reduction in the remaining years of the multi-annual reduction;

(m) where a multi-annual reduction would have been in effect as at the effective date but has ceased to have effect in accordance with regulation 40 (14), the details of—

(i) when such multi-annual reduction ceased to have effect;

(ii) any remaining increase that has been applied in accordance with regulation 40 (14);

(n) in relation to the methods and assumptions used for the actuarial valuation—

(i) where there has been no change compared to the methods and assumptions used for the previous actuarial valuation, a statement setting out why the methods and assumptions continue to be appropriate for the scheme, or

(ii) where there has been a change compared to the methods and assumptions used for the previous actuarial valuation, a statement setting out the justification for any changes to the methods or assumptions used.

(5) The requirements set out at paragraph (4)(f) to (i) and (k) to (n) do not apply to an actuarial valuation prepared in accordance with paragraph (1)(a).

(6) The trustees of an unconnected multiple employer scheme must obtain an actuarial valuation within a period of ten months beginning with the effective date of the valuation.

(7) The trustees of an unconnected multiple employer scheme must secure that any actuarial valuation obtained by them is made available to the Pensions Regulator before the end of the period of ten days beginning with the date on which they obtain it.

(8) In this regulation—

(a) “deferred member”, “pension credit member” and “pensioner member” have the meanings given in section 124(1) of the Pensions Act 1995;

(b) the day on which a scheme begins operating is the day on which, in relation to the scheme, a person first accepts money as described in section 7(5)(a) or (b) of the Act.

Reporting requirements relating to benefit adjustments

43

A report under section 22(2) of the Act (benefits adjustments) must, in addition to an explanation of why the adjustment was not made in accordance with the most recent actuarial valuation or (as the case may be) does not take effect in accordance with the scheme rules, contain the following information—

(a) the level of any adjustments applied;

(b) the level of the benefit adjustment that should have been applied in accordance with the most recent actuarial valuation or (as the case may be) the scheme rules;

(d) a timetable for implementing any remedial actions;

(e) a statement as to whether the failure to apply the benefit adjustment in accordance with the most recent actuarial valuation or (as the case may be) the scheme rules will or is likely to result in any negative impact on the scheme’s ongoing ability to provide the pension benefits under the design of the scheme;

(f) where there is or is likely to be a negative impact on the scheme’s ongoing ability to provide the pension benefits, details of any proposed actions to address this.

Powers of the Pensions Regulator

44

A direction issued by the Pensions Regulator under section 23(2)(a) of the Act (powers of the Pensions Regulator) in relation to an unconnected multiple employer scheme must set out the matters that the Regulator has considered in determining to issue the direction.

Chapter 5 — Ongoing Supervision

Supervisory return: contents

45

The Pensions Regulator may require the following information to be included in a supervisory return required under section 27(1) of the Act, to the extent that it has not already been provided to the Regulator—

(a) details of how trustees’ competence is being maintained, with particular reference to their compliance with the knowledge and understanding requirements in sections 247 (requirement for knowledge and understanding: individual trustees), 248 (requirement for knowledge and understanding: corporate trustees) and 249 (requirement for knowledge and understanding: supplementary) of the Pensions Act 2004[^f00035] as applicable;

(b) any other information that is relevant to the authorisation criteria listed in section 9(3) of the Act (decision on application)[^f00036].

Significant events

46

(1) The following are significant events for the purposes of section 28 of the Act (duty to notify the Pensions Regulator of significant events)—

(a) a proposal to change or add to the persons involved in the scheme in the capacities mentioned in section 11(2) of the Act (fit and proper persons requirement);

(b) an individual who is involved in the scheme in a capacity mentioned in section 11(2) of the Act, or whose involvement in the scheme in that capacity has been suspended while the individual’s appointment is being considered—

(i) is convicted of an offence;

(ii) enters bankruptcy;

(iii) has a County Court judgment registered, or in Scotland a decree of the Sheriff Court issued, against the individual;

(iv) is sanctioned by a regulator other than the Pensions Regulator;

(v) is disqualified as a company director;

(vi) has been the subject of an adverse judgment or has reached a settlement in civil proceedings, including in connection with investment or other financial business, misconduct, fraud or the formation or management of a body corporate;

(vii) has contravened any of the requirements or standards of a regulator, including the Pensions Regulator;

(viii) has a change of circumstances, through ill health or otherwise, which materially impairs the individual’s ability to operate in a capacity mentioned in section 11(2) of the Act;

(ix) has any other change of circumstances which the person required to give notice considers likely to affect the Pensions Regulator’s assessment under section 11 of the Act of whether the individual is a fit and proper person;

(d) a proposal to change the design of the scheme including, but not limited to, the following—

(i) a proposal that the scheme should become a closed scheme;

(ii) where the scheme is a collective money purchase scheme by virtue of section 1(2)(a) of the Act (collective money purchase benefits and schemes) and the scheme is not divided into sections, a proposal for the scheme to become a scheme that is divided into sections;

(e) where the scheme is a collective money purchase scheme by virtue of section 1(2)(b) of the Act, a proposal to provide qualifying benefits, or other benefits, under a new section of the qualifying scheme;

(f) a failure to obtain a viability certificate in accordance with section 13(4) or (5) of the Act (viability report);

(g) an event which, in the opinion of a person mentioned in section 28(2) of the Act (duty to notify the Pensions Regulator of significant events)[^f00037], undermines, or is likely to undermine, the soundness of the design of the scheme;

(h) an event which has resulted or, in the opinion of a person mentioned in section 28(2) of the Act, is likely to result in the scheme being unable to meet the requirements of Part 3 of Schedule 3;

(i) the scheme is unable or, in the opinion of a person mentioned in section 28(2) of the Act, is unlikely to be able to meet its running costs;

(j) in the opinion of a person mentioned in section 28(2) of the Act, the scheme will be unable or is unlikely to be able, to meet the costs mentioned in section 14(2)(b) of the Act (financial sustainability requirement);

(k) a failure of the systems or processes used in running the scheme which has a significant adverse effect on the security or quality of data or on service delivery;

(l) a failure of the systems and processes for communicating with relevant persons which has a significant adverse effect on communications with relevant persons;

(m) a proposal to make a significant change to the systems and processes used in running the scheme (including the systems and processes for communicating with relevant persons), including a change in who the persons are that are responsible for delivering key services to the scheme;

(n) an investigation of the scheme, or of a person involved in the scheme, by a regulator or other competent authority inside or outside the United Kingdom;

(o) a proposal to begin promotion or marketing of the scheme;

(p) in the opinion of a person mentioned in section 28(2) of the Act, a person has carried out promotion or marketing of the scheme that is unclear or misleading;

(q) a change that requires revision of a business plan under section 14A(4) of the Act (financial sustainability requirement: business plan)[^f00038];

(r) a failure to meet a key milestone, target, estimate or assumption in the business plan;

(s) the scheme is unable or unlikely to meet its liabilities on demand;

(t) the scheme is unable or unlikely to meet the level of assets or liquidity agreed with the Pensions Regulator and set out in the business plan;

(u) a change to the financial reporting period to be used in the accounts of the scheme or scheme proprietor;

(v) an event which, in the opinion of a person mentioned in section 28(2) of the Act, undermines, or is likely to undermine, the ability of the trustees of the scheme to pursue continuity option 3 whenever they consider it appropriate to do so, should a triggering event occur (other than where section 34(3) of the Act requires the trustees to pursue continuity option 1).

(2) In this regulation, the significant events listed in paragraph (1)(a), (c) to (e), (g), (h), (k) to (p) and (v) are specified significant events.

(3) A person who is required to give notice of a specified significant event and who is aware of the specified further information relating to that event set out in paragraphs (4) to (11) as applicable, must provide the specified further information, in writing, to the Pensions Regulator, as soon as reasonably practicable.

(4) Where the specified significant event is a proposal or a change mentioned in paragraph (1)(a), (c) to (e) or (m), the specified further information relating to that event is—

(a) details of the proposal or change;

(b) the reasons for the proposal or change;

(d) how the interests of members of the scheme have been taken into account.

(5) Where the specified significant event is that an event mentioned in paragraph (1)(g) has occurred, the specified further information relating to that event is—

(a) the nature of the event;

(b) the reasons why the person mentioned in paragraph (1)(g) is of the opinion that the event undermines, or is likely to undermine, the soundness of the design of the scheme.

(6) Where the specified significant event is that an event mentioned in paragraph (1)(h) has occurred, the specified further information relating to that event is—

(a) the nature of the event;

(b) if the person mentioned in paragraph (1)(h) is of the opinion that the event is likely to result in the scheme being unable to meet the requirements of Part 3 of Schedule 3, the reasons for this opinion.

(7) Where the specified significant event is that a failure mentioned in paragraph (1)(k) or (l) has occurred, the specified further information relating to that event is—

(a) the nature of the failure;

(b) the contact details of the person with responsibility for addressing the effect of the failure.

(8) Where the specified significant event is an investigation of the scheme, or of a person involved in the scheme, by a regulator or other competent authority inside or outside the United Kingdom, the specified further information relating to that event is—

(a) the nature of the investigation;

(b) the contact details of the regulator or other competent authority.

(9) Where the specified significant event is a proposal mentioned in paragraph (1)(o), the specified further information relating to that event is—

(a) the details of the proposal;

(b) the reasons for the proposal;

(d) how the interests of the members of the scheme have been taken into account;

(e) how it is proposed the authorisation criterion in section 9(3)(cb)(ii) of the Act (promotion and marketing systems and processes)[^f00039] will be met.

(10) Where the specified significant event is that, in the opinion of a person mentioned in section 28(2) of the Act, the activity mentioned in paragraph (1)(p) has occurred, the specified further information relating to that event is—

(a) the nature of the promotion or marketing;

(b) the reasons why the person is of the opinion that the promotion or marketing is unclear or misleading.

(11) Where the specified significant event is that an event mentioned in paragraph (1)(v) has occurred, the specified further information relating to that event is—

(a) the nature of the event;

(b) the reasons why the person mentioned in paragraph (1)(v) is of the opinion that the event undermines, or is likely to undermine, the ability of the trustees of the scheme to pursue continuity option 3 whenever they consider it appropriate to do so, should a triggering event occur.

Risk notices

47

(1) The date referred to in section 29(3)(b) of the Act (risk notices) must fall within the period of 14 days beginning with the date on which the risk notice was issued.

(2) The date referred to in section 29(4) of the Act[^f00040] must fall within the period of seven days beginning with the date on which the further notice was issued.

(3) A progress report required by section 29(7)(a) of the Act[^f00041] must be submitted before the end of the period of 14 days beginning with the date on which the Pensions Regulator notifies the trustees or the scheme proprietor that it is satisfied that the proposals in the resolution plan are likely to be adequate to resolve the issue of concern.

(4) A risk notice must—

(a) state that the Pensions Regulator considers—

(i) that the issue identified in the notice is an issue of concern in relation to the scheme, and

(ii) that the scheme will breach the authorisation criteria, or is likely to breach them, if the issue is not resolved,

(b) contain a statement of the Pensions Regulator’s grounds for its consideration and of the evidence on which its consideration is based, and

(c) explain that section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee or a scheme proprietor who fails to comply with the notice.

Chapter 6 — Triggering Events and Continuity Options

Triggering events: notification requirements

48

(1) A trustee who is required to give a required notification under section 33(3A) of the Act (notification of triggering events in relation to an unconnected multiple employer scheme)[^f00042] must notify each employer and the scheme proprietor of the following matters—

(a) that, unless not required to submit an implementation strategy by virtue of section 39(2)(a) or (3)(a) of the Act, the trustees—

(i) have submitted an implementation strategy[^f00043] to the Pensions Regulator and the date on which they did so, or (as the case may be) will submit an implementation strategy to the Pensions Regulator before the end of the period specified in regulation 49, and

(ii) will make the implementation strategy available to each employer and the scheme proprietor after it has been approved by the Pensions Regulator;

(b) the timetable for future communications with each employer and the scheme proprietor.

(2) Notifications under section 33 of the Act[^f00044] must be given before the end of the period of—

(a) in the case of notifications to the Pensions Regulator, seven days,

(b) in the case of notifications to an employer or the scheme proprietor, 14 days, or

beginning with the date specified in paragraph (3).

(3) The specified date is—

(a) the date on which the triggering event occurred, in the case of—

(i) notifications given under section 33(1) of the Act—

(aa) in respect of an item 4A, 4B or 7A triggering event, by the scheme proprietor;

(bb) in respect of an item 6 or 8 triggering event, by the person who made the decision;

(cc) in respect of an item 10 triggering event, by the trustees;

(ii) notifications given under section 33(7A) or (8) of the Act;

(b) the date on which the scheme proprietor ends the relationship or arrangement with the scheme by virtue of which it is the scheme proprietor, in the case of notifications given under section 33(1) of the Act by the scheme proprietor in respect of an item 7B triggering event;

(i) notifications given under section 33(1) of the Act which are not mentioned in sub-paragraph (a)(i) or (b);

(ii) notifications given under section 33(3A) or (9A) of the Act.

Implementation strategy: approval

49

Where the trustees of an unconnected multiple employer scheme are required to submit an implementation strategy to the Pensions Regulator for approval, it must be submitted before the end of the period of 28 days beginning with the date on which—

(a) the decision to withdraw authorisation becomes final, in relation to an item 1 or 2 triggering event, or

(b) the triggering event occurred, in relation to an item 3 to 10 triggering event.

Implementation strategy: charges

50

(1) The information to be included in the implementation strategy about the levels of administration charges in relation to members of the scheme—

(a) must relate to the levels of administration charges for the scheme years specified in paragraph (2), and

(b) with the exception of those administration charges mentioned in regulation 57 (1), must be set out in accordance with paragraphs (3) and (4).

(2) The specified scheme years are—

(a) the scheme year in which the triggering event occurred, and

(b) the scheme year preceding the one in which the triggering event occurred.

(3) The trustees must set out for each charge structure all levels of administration charges including—

(a) for any additional charges, and the reason for imposing them;

(b) for any third-party charges, and the reason for imposing them;

(4) The levels in paragraph (3) must be set out on an annualised basis.

(5) During a triggering event period for an unconnected multiple employer scheme, the trustees must not impose administration charges on or in respect of members at levels above the fixed charge level.

(6) For the purposes of paragraph (5) the fixed charge level is calculated as follows—

(a) the trustees must compare each level from the levels set out in the implementation strategy for the scheme year in paragraph (2)(a) with the corresponding level from the levels set out for the scheme year in paragraph (2)(b), and take the lower of the two levels as the fixed charge level, and

(b) where the triggering event period is more or less than a full year, the levels in sub-paragraph (a) must be applied on a pro rata basis.

Implementation strategy: content

51

(1) An implementation strategy must contain—

(a) details of—

(i) the main decisions and actions that will be taken, in relation to the continuity option being pursued, to address the triggering event that has occurred,

(ii) the person responsible for taking them, and

(iii) the timescales for taking them;

(b) a communications plan setting out what information will be communicated to employers and beneficiaries and when, including information about—

(i) the continuity option being pursued, and

(ii) key milestones and when they are to be (or were) achieved;

(c) if continuity option 1 is being pursued, a plan setting out how the scheme’s liability to each beneficiary in respect of the value of their accrued rights to benefits under the scheme is to be discharged under the proposal formulated by the trustees in accordance with section 36(1)(b) of the Act (continuity option 1: discharge of liabilities and winding up);

(d) if continuity option 1 is being pursued, details of how any periodic income to be paid in accordance with paragraph 7 of Schedule 6 would be calculated and paid;

(e) a plan setting out how the integrity of members’ records will be maintained during the triggering event period;

(f) details of how assets held by the scheme would be converted into a cash equivalent of the value of each beneficiary’s accrued rights to benefits under the scheme, if applicable;

(g) details of how the trustees will comply with any legal requirements and meet any legal costs arising from the triggering event that has occurred and the continuity option being pursued;

(h) details of how the trustees will comply with any actuarial requirements and meet any actuarial costs arising from the triggering event that has occurred and the continuity option being pursued;

(i) details of how scheme investments will be managed during the triggering event period;

(j) a plan for dealing with any outstanding contributions due from employers and members;

(k) details of how the scheme’s administration services will continue during the triggering event period;

(l) details of how service providers are to be retained and paid during the triggering event period;

(m) details of how carrying out the steps identified in the implementation strategy, including steps relating to the continuity option being pursued, is to be funded;

(n) details of when and how the process of determining the rate or amount of benefits provided under the scheme is to be carried out in accordance with section 18 of the Act (calculation of benefits), if applicable.

(2) An implementation strategy must be prepared—

(a) in writing,

(b) in the format set out in a Code, and

(3) After approval by the Pensions Regulator, the implementation strategy must be made available to the scheme proprietor and the employers in relation to the scheme before the end of the period of seven days beginning with the date on which the Pensions Regulator notifies the trustees that the implementation strategy is approved.

Continuity option 1: discharge of liabilities and winding up

52

Schedule 6 applies when the trustees of an unconnected multiple employer scheme are required, or decide, to pursue continuity option 1.

Continuity option 2: resolving the triggering event

53

A notification to the Pensions Regulator setting out how the trustees consider that a triggering event (“the relevant event”) has been resolved under section 37(2) of the Act (continuity option 2: resolving the triggering event) must be given before the end of the period of 14 days beginning with the later of—

(a) the date on which the relevant event was, in the trustees’ opinion, resolved, and

(b) if any other event within the second column of the triggering events table has occurred in relation to the scheme since the occurrence of the relevant event, the date on which such other events have, in the trustees’ opinion, been resolved.

Continuity option 3: conversion to closed scheme

54

(1) A notification to the Pensions Regulator under section 38(2) of the Act (continuity option 3: conversion to closed scheme) must be given before the end of the period of 28 days beginning with the date on which the trustees consider that preparations for the conversion of the scheme into a closed scheme are complete.

(2) Preparations for the conversion of the scheme into a closed scheme are not complete unless the steps identified in the implementation strategy, in order to carry out continuity option 3, are complete.

Periodic reporting requirement

55

(1) The first report under section 43(1) of the Act (periodic reporting requirements) must be submitted to the Pensions Regulator before the end of the period of 14 days beginning with the date on which the Regulator notifies the trustees that the implementation strategy is approved.

(2) The reports under section 43 of the Act must record—

(a) decisions made by the trustees and employers concerning the continuity option being pursued;

(b) where continuity option 1 is being pursued, decisions made by the trustees and employers in relation to the proposal formulated in accordance with section 36(1)(b) of the Act (continuity option 1: discharge of liabilities and winding up) for discharging the scheme’s liability to each beneficiary.

(3) The reports under section 43 of the Act must contain the following information—

(a) if the person preparing the report is not an independent trustee appointed pursuant to section 23(1) of the Pensions Act 1995 (power to appoint independent trustees)[^f00045], the name and address of that person;

(b) the name and address of the scheme actuary;

(c) a statement as to whether any of the scheme’s administration services are being carried out by a person other than a trustee, and if so the name and address of that person;

(d) the timescales for completing the steps identified in the implementation strategy;

(e) details of whether any particular issues are affecting the trustees’ ability to pursue or complete the steps identified in the implementation strategy.

Pause orders

56

Where a pause order containing a direction under section 44(5)(e) of the Act (pause orders) has effect in respect of a scheme, section 99 of the Pension Schemes Act 1993 (trustees’ duties after exercise of option)[^f00046] has effect in relation to that scheme as if for subsection (2)(c) of section 99 there were substituted—

(c) in the case of an application which relates to money purchase benefits that are collective money purchase benefits, by the later of— (i) the last day of the period of six months beginning with the date of the application or such longer period beginning with that date as may be prescribed, or (ii) where a pause order made under section 44(2) of the Pension Schemes Act 2021 and containing a direction under section 44(5)(e) of that Act has effect in relation to that scheme before the last day of the period referred to in sub-paragraph (i), the last day of the period of three months beginning with the date on which the pause order ceases to have effect.

Administration charges during a triggering event period

57

(1) Subsections (1) and (2) of section 45 of the Act do not apply in relation to the following administration charges—

(a) costs incurred as a result of the buying, selling, lending or borrowing of investments;

(b) where a court order provides for the recovery by the trustees of costs incurred in complying with the order, the amount of those costs;

(c) charges permitted by regulations made under section 24 (charges by pension arrangements in relation to earmarking orders) or section 41 (charges in respect of pension sharing costs) of the Welfare Reform and Pensions Act 1999[^f00047];

(d) costs solely associated with the provision of death benefits;

(e) costs solely attributable to holding physical assets.

(2) Section 45(2) of the Act does not apply, in respect of a receiving scheme that is a Master Trust scheme, in relation to any administration charges imposed on or in respect of a member of the scheme in relation to a member’s flexi-access drawdown fund.

(3) Section 45 of the Act, with the exception of subsection (1), applies to a relevant alternative receiving scheme in the same way as it applies to a receiving scheme that is a Master Trust scheme.

(4) For the purposes of paragraph (3), a relevant alternative receiving scheme is a receiving scheme that—

(a) is an occupational pension scheme[^f00048], and

(b) is not a collective money purchase scheme or a Master Trust scheme.

(5) For the purposes of paragraph (1)(e), the costs solely attributable to holding a physical asset include—

(a) the costs of managing and maintaining the asset;

(b) fees for valuing the asset;

(d) ground rent, charges, rates, taxes and utilities bills incurred in relation to the asset.

(6) In this regulation—

“commodity” means any goods of a fungible nature that are capable of being delivered, including metals and their ores and alloys, agricultural products and energy such as electricity, but not including cash or financial instruments (within the meaning of article 3 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001[^f00049]);

“member’s flexi-access drawdown fund” has the meaning given in paragraph 1 (1) of Schedule 6;

“physical asset” means an asset whose value depends on its physical form, including— land, buildings and other structures on land or sea, vehicles, ships, aircraft or rolling stock, and commodities;

“receiving scheme” has the meaning given in section 45(8) of the Act.

Part 5 — Amendment of the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022

Amendment of the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022

58

The Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022[^f00050] are amended in accordance with regulations 59 to 77.

Application

59

After regulation 1 (citation, extent and commencement) insert—

(1A) (1) Parts 2 to 6 and Part 1 insofar as it relates to those Parts apply in relation to single or connected employer schemes[^f00051]. (2) Part 7 and Part 1 insofar as it relates to Part 7 apply in relation to all collective money purchase schemes.

Amendment of regulation 2: interpretation and notices

60

In regulation 2(1) (interpretation and notices)—

(a) in the definition of “Code”, at the end insert “under section 90 of the Pensions Act 2004”;

(b) after the definition of “multi-annual reduction” insert—

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

Omission of regulation 3

61

Omit regulation 3 (connected employers).

Amendment of regulation 4: qualifying schemes

62

For regulation 4(1) (qualifying schemes) substitute—

(1) The combinations of qualifying benefits described for the purposes of section 3(8) of the Act (qualifying schemes) are— (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 different; (b) qualifying benefits in respect of which the rates or amounts of contributions paid by the employer are different; (c) qualifying benefits in respect of which the rates or amounts of contributions paid by the employee are different; (d) qualifying benefits in respect of which the normal pension ages as specified in the rules of the scheme are different.

Amendment of regulation 5: schemes divided into sections

63

In regulation 5 (schemes divided into sections)—

(a) for paragraph (1)(b) substitute—

(b) the rates or amounts, and age, described in regulation 4(1), and specified in the rules by reference to which the qualifying benefits are provided under that section of the divided scheme, are the same as those provided for under the undivided scheme.

(b) in paragraph (2) for “providing benefits with the same characteristics set out in regulation 4(1)” substitute “of that scheme to which paragraph (1) applies”.

Amendment of regulation 6: authorisation - contents

64

In regulation 6 (authorisation: contents)—

(a) in paragraph (2)(a)(v)—

(i) after “(criminal conviction certificates)” insert “, a Level 1 disclosure within the meaning of section 1 of the Disclosure (Scotland) Act 2020”;

(ii) for “any equivalent document” substitute “any document that is equivalent to such a certificate or disclosure”;

(b) in paragraph (2)(b) for “section 11(2)(a) to (d)” substitute “section 11(2) of the Act”;

; (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) 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

Amendment of regulation 8: fit and proper persons requirement

65

In regulation 8(2) (fit and proper persons requirement), omit “For the purposes of section 11(2)(e) of the Act,”.

Amendment of regulation 10: viability report

66

In regulation 10(4) (viability report), for sub-paragraph (b) substitute—

(b) the conclusions reached by the scheme actuary on— (i) the matters contained in regulation 11(2); (ii) whether the rules of the scheme meet the requirements of section 18 of the Act (calculation of benefits) and the requirements of regulation 17; and

Amendment of regulation 11: viability certificate

67

In regulation 11 (viability certificate)—

(a) in paragraph (2)—

(i) omit sub-paragraph (a);

(ii) in sub-paragraph (b)—

(aa) before “member booklet” insert “scheme’s”;

(bb) before “statement of scheme design” insert “scheme’s”;

(cc) before “most recent” insert “scheme’s”;

(b) in paragraph (3)—

(i) before “member booklet” insert “scheme’s”;

(ii) before “statement of scheme design” insert “scheme’s”;

(iii) before “statements of benefits” insert “scheme’s”;

(i) in the definition of “member booklet”—

(aa) after ““member booklet”” insert “, in relation to a scheme,”;

(bb) omit “, in relation to a collective money purchase scheme,”;

(ii) in the definition of “statement of benefits”—

(aa) after ““statement of benefits”” insert “, in relation to a scheme,”;

(bb) for “a collective money purchase” substitute “the”;

(cc) omit sub-paragraph (ii);

(iii) in the definition of “statement of scheme design”—

(aa) after ““statement of scheme design”” insert “, in relation to a scheme,”;

(bb) for “a collective money purchase” substitute “the”.

Amendment of regulation 17: calculation of benefits

68

In regulation 17 (calculation of benefits)[^f00052]—

(a) in paragraph (4), for sub-paragraph (e) substitute—

(e) that, except where there is a multi-annual reduction in effect, the amount of any adjustment required or made to the rate or amount of benefits provided under the scheme that is an increase must be determined on the assumptions that— (i) that increase will be made in each year for the remaining lives of— (aa) the beneficiaries of the scheme on the effective date; (bb) the expected survivors in relation to the members of the scheme on the effective date, and (ii) that increase will include the projected change in inflation.

(b) omit paragraph (5);

Amendment of regulation 18: advice of scheme actuary

69

In regulation 18 (advice of scheme actuary), after paragraph (b) insert—

(c) the Financial Reporting Council Limited.

Amendment of regulation 19: actuarial valuations

70

In regulation 19(4) (actuarial valuations)—

(a) in sub-paragraph (c) for “pensioner members and survivors” substitute “pension credit members and pensioner members, and of survivors”;

(b) in sub-paragraph (d) after “deferred members,” insert “, pension credit members”.

Amendment of regulation 21: powers of the Regulator

71

In regulation 21 (powers of the Regulator), omit paragraph (2).

Amendment of regulation 25: triggering events: notification requirements

72

In regulation 25 (triggering events: notification requirements), in paragraph (1), for sub-paragraph (a) substitute—

(a) that, unless not required to submit an implementation strategy by virtue of section 39(2)(a) or (3)(a), the trustees— (i) have submitted an implementation strategy to the Regulator and the date on which they did so, or (as the case may be) will submit an implementation strategy to the Regulator before the end of the period specified in regulation 26; and (ii) will make the implementation strategy available to each employer and any relevant former employer after it has been approved by the Regulator;

Amendment of Schedule 1: fit and proper persons requirement

73

(1) Schedule 1 (fit and proper persons requirement) is amended as follows.

(2) In paragraph 1, in sub-paragraph (3) omit the definition of “the Accountant in Bankruptcy”.

(3) In paragraph 2—

(a) in sub-paragraph (a)(v)—

(i) for “(including” substitute “or”;

(ii) at the end omit the closing bracket;

(b) in sub-paragraph (b)—

(i) in paragraph (ii) omit “to the Accountant in Bankruptcy for sequestration”;

(ii) in paragraph (v)—

(aa) for “within the meaning given by”, in both places it occurs, substitute “made under”—

(bb) for “(including” substitute “or”;

(cc) at the end omit the closing bracket;

(i) for “(including” substitute “or”;

(ii) at the end omit the closing bracket.

Amendment of Schedule 2: scheme design requirement

74

In Schedule 2 (scheme design requirement)—

(a) in paragraph 1 omit sub-paragraph (b);

(b) in paragraph 9 omit sub-paragraph (a);

(b) when providing the viability certificate, the scheme actuary— (i) has had regard to the matters specified in regulation 11(2), as applicable; and (ii) is satisfied that the scheme has rules that meet the requirements of section 18 of the Act (calculation of benefits) and the requirements of regulation 17.

Amendment of Schedule 3: financial sustainability requirement

75

In Schedule 3 (financial sustainability requirement), in paragraph 2(g) for “the scheme” substitute “any”.

Amendment of Schedule 5: systems and processes requirement

76

In Schedule 5 (systems and processes requirement)—

(a) in paragraph 2(h), for “, the annual allowance and the lifetime allowance” substitute “and the annual allowance”;

(b) in paragraph 12(a), for “policy” substitute “strategy”.

Amendment of Schedule 6: continuity option 1 - transfer out and winding up

77

In Schedule 6 (continuity option 1: transfer out and winding up)—

(a) in paragraph 1(1)—

(i) in the definition of “final quantification”, for “means the final quantification” substitute “means the quantification”;

(ii) in the definition of “initial quantification”, for “means the initial quantification” substitute “means the quantification”;

(b) in paragraph 5(1), for “The quantification of the value of each beneficiary’s accrued rights to benefits under the scheme” substitute “Quantification”;

(d) in paragraph 9(1), for “was a collective money purchase scheme” substitute “was a single or connected employer scheme”;

(e) in paragraph 12(2)(c)—

(i) after “whether” insert “the scheme’s liability to the beneficiary in respect of”;

(ii) for “are discharged” substitute “is discharged”;

(f) in paragraph 14—

(i) for sub-paragraph (2)(b)—

(b) transferring the value of those rights to a scheme which is— (i) registered under Chapter 2 of Part 4 of the Finance Act 2004 (registration of pension schemes), and (ii) a personal pension scheme within the meaning given in section 1(1) of the Pension Schemes Act 1993 (categories of pension schemes)[^f00053] or an occupational pension scheme;

(ii) in sub-paragraph (4)(b), for “paragraph 15” substitute “paragraph 17(1)”;

(g) in paragraph 18(5), for “a continuity strategy to the Regulator” substitute “a strategy to the Regulator under section 12 of the Pension Schemes Act 2017 (continuity strategy requirement)[^f00054]”.

Part 6 — Consequential amendments

Amendment of the Pension Schemes Act 1993

78

(1) The Pension Schemes Act 1993 is amended as follows.

(2) In section 100B (meaning of “scheme rules”: occupational pension schemes)[^f00055], in subsection (2)—

(a) in paragraph (a)—

(i) in sub-paragraph (xvi)[^f00056], after “sections” insert “31,”;

(ii) after sub-paragraph (xvi) insert—

(xvii) regulations 40 and 56 of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025 (S.I. 2025/1313);

(b) in paragraph (b)—

(i) in sub-paragraph (xii)[^f00057] after “18(7)(b),” insert “31(4A),”;

(ii) after sub-paragraph (xii) insert—

(xiii) regulation 40 (1)(b)) of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025.

(3) In section 101AI (right to cash transfer sum and contribution refund: further provisions)[^f00058], in subsection (8)—

(a) in paragraph (a)—

(i) in sub-paragraph (xiv)[^f00059], after “sections” insert “31,”;

(ii) after sub-paragraph (xiv) insert—

(xv) regulations 40 and 56 of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025 (S.I. 2025/1313);

(b) in paragraph (b)—

(i) in sub-paragraph (xi)[^f00060], after “18(7)(b),” insert “31(4A),”;

(ii) after sub-paragraph (xi) insert—

(xii) regulation 40 (1)(b) of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025.

Amendment of the Pensions Act 1995

79

In section 67A of the Pensions Act 1995 (the subsisting rights provisions: interpretation)[^f00061], in subsection (9)—

(a) in paragraph (a)—

(i) in sub-paragraph (xv)[^f00062], after “sections” insert “31,”;

(ii) after sub-paragraph (xv) insert—

(xvi) regulations 40 and 56 of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025 (S.I. 2025/1313);

(b) in paragraph (b)—

(i) in sub-paragraph (xii)[^f00063], after “18(7)(b),” insert “31(4A),”;

(ii) after sub-paragraph (xii) insert—

(xiii) regulation 40 (1)(b) of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025.

Amendment of the Pensions Act 2004

80

(1) The Pensions Act 2004 is amended as follows.

(2) In section 93(2)(pc) (the Regulator’s procedure in relation to its regulatory functions)[^f00064], after “section 29(1)” insert “, (1A)”.

(3) In section 318 (general interpretation)—

(a) in subsection (3)(a)—

(i) in sub-paragraph (xv)[^f00065], after “sections” insert “31,”;

(ii) after sub-paragraph (xv) insert—

(xvi) regulations 40 and 56 of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025 (S.I. 2025/1313);

(b) in subsection (3)(b)—

(i) in sub-paragraph (xii)[^f00066], after “18(7)(b),” insert “31(4A),”;

(ii) after sub-paragraph (xii) insert—

(xiii) regulation 40 (1)(b) of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025.

Amendment of the Pension Schemes Act 2017

81

(1) The Pension Schemes Act 2017 is amended as follows.

(2) In section 1 (master trust schemes: definition)—

(a) at the end of subsection (1)(c) omit “and”;

(b) at the end of subsection (1)(d) insert “, and”;

(e) is not a collective money purchase scheme.

(d) after subsection (1) insert—

(1A) Where a Master Trust scheme has a section which is a collective money purchase scheme by virtue of section 1(2)(b) of the Pension Schemes Act 2021, references in the following provisions of this Act to a Master Trust scheme do not include any such section, except as provided in section 39(4A) to (4C).

(3) In section 39 (interpretation of Part 1)—

(a) in subsection (1)—

(i) in the definition of the “accounts” of a Master Trust scheme for “subsection (2)” substitute “subsections (2) and (4A)”;

(ii) at the appropriate place insert—

“collective money purchase scheme” has the meaning given in section 1(2) of the Pension Schemes Act 2021;

(b) after subsection (4) insert—

(4A) In relation to a Master Trust scheme, a section of which is a collective money purchase scheme, references in this Part to the scheme’s accounts are to be read as references to the accounts of the scheme as a whole. (4B) The reference in section 10(3) to activities that relate directly to Master Trust schemes is, in its application to a Master Trust scheme a section of which is a collective money purchase scheme, to be read as a reference to activities that relate directly to the scheme as a whole. (4C) This Part applies to a Master Trust scheme— (a) a section of which is a collective money purchase scheme, and (b) for which there is no power to wind up the scheme to the extent only that it is not a collective money purchase scheme, as if references to winding up the scheme, or to the scheme being wound up, were to ceasing to operate the scheme, or the scheme ceasing to operate, to the extent that it is not a collective money purchase scheme.

Collective money purchase schemes - amendments to secondary legislation

82

Schedule 7 contains consequential amendments to secondary legislation in relation to collective money purchase schemes.

Schedule 1 — Fit and proper persons requirement

1

(1) In this Schedule—

“arrangement” means a voluntary arrangement entered into by an individual with their creditors;

“the Bankruptcy Act” means the Bankruptcy (Scotland) Act 2016[^f00067];

“the Insolvency Act” means the Insolvency Act 1986[^f00068];

“the Insolvency Order” means the Insolvency (Northern Ireland) Order 1989[^f00069];

“the registrar of companies” has the meaning given by section 1060(3) of the Companies Act 2006.

(2) In paragraph 2(a)—

“adjudicator” has the meaning given by section 385(1) of the Insolvency Act[^f00070];

“creditor” has the meaning given by section 383(1) of the Insolvency Act[^f00071].

(3) In paragraph 2(b)—

“creditor” has the meaning given by section 383(1) of the Insolvency Act;

“debtor application” has the meaning given by section 228(1) of the Bankruptcy Act;

“sequestration” means sequestration under the Bankruptcy Act.

(4) In paragraph 2(c)—

“bankrupt”, “bankruptcy order” and “bankruptcy petition” have the meanings given in Article 9(1) of the Insolvency Order;

“the court” is defined in rule 0.2 of the Insolvency Rules (Northern Ireland) 1991[^f00072];

“creditor” has the meaning given in Article 9(1) of the Insolvency Order.

(5) In paragraph 2(d), “director” has the meaning given in section 251 of the Insolvency Act.

2

The matters that the Pensions Regulator must take into account are—

(a) whether, in England and Wales, the person has—

(i) made any arrangement with the person’s creditors,

(ii) applied to an adjudicator under section 263H of the Insolvency Act[^f00073] (bankruptcy applications to an adjudicator) for a bankruptcy order within the meaning given by section 381(2) of the Insolvency Act[^f00074] (“bankrupt” and associated terminology),

(iii) been served with a bankruptcy petition within the meaning given by section 381(3) of the Insolvency Act,

(iv) been made bankrupt within the meaning given by section 381(1) of the Insolvency Act[^f00075],

(v) been the subject of a bankruptcy restrictions order made under paragraph 1 (bankruptcy restrictions order) of Schedule 4A to the Insolvency Act[^f00076] or an interim bankruptcy restrictions order made under paragraph 5 (interim bankruptcy restrictions order) of that Schedule, or

(vi) offered a bankruptcy restrictions undertaking made under paragraph 7 (bankruptcy restrictions undertaking) of Schedule 4A to the Insolvency Act;

(b) whether, in Scotland, the person has—

(i) made any arrangement with the person’s creditors,

(ii) made a debtor application,

(iii) been served with a petition for sequestration,

(iv) been the subject of an award of sequestration in accordance with section 22 of the Bankruptcy Act (when sequestration is awarded)[^f00077], or

(v) been the subject of a bankruptcy restrictions order made under section 155(1) (bankruptcy restrictions order) of the Bankruptcy Act or an interim bankruptcy restrictions order made under section 160 (interim bankruptcy restrictions orders) of that Act;

(i) made any arrangement with the person’s creditors,

(ii) petitioned the court for a bankruptcy order,

(iii) been served with a bankruptcy petition,

(iv) been adjudged bankrupt,

(v) been the subject of a bankruptcy restrictions order made under paragraph 1 (bankruptcy restrictions order) of Schedule 2A to the Insolvency Order[^f00078] or an interim bankruptcy restrictions order made under paragraph 5 (interim bankruptcy restrictions order) of that Schedule, or

(vi) offered a bankruptcy restrictions undertaking made under paragraph 7 (bankruptcy restrictions undertaking) of Schedule 2A to the Insolvency Order;

(d) whether the person has been a director or partner of, or otherwise concerned in the management of, a business that has gone into insolvency, liquidation or administration while the person was concerned with that business or within one year of their being so concerned;

(e) whether—

(i) in Great Britain, the person has been convicted of any criminal offence, excluding convictions that are spent within the meaning of the Rehabilitation of Offenders Act 1974[^f00079], or

(ii) in Northern Ireland, the person has been convicted of any criminal offence, excluding convictions that are spent within the meaning of the Rehabilitation of Offenders (Northern Ireland) Order 1978[^f00080];

(f) whether there has been a judgment against the person or the person has reached a settlement in civil proceedings, particularly in connection with investment or other financial business, misconduct, fraud or the formation or management of a body corporate;

(g) whether—

(i) in Great Britain, the person has been subject to a disqualification order under section 1(1) (disqualification orders: general) or a disqualification undertaking under section 1A(1) (disqualification undertakings: general) of the Company Directors Disqualification Act 1986[^f00081], or

(ii) in Northern Ireland, the person has been subject to a disqualification order under Article 3(1) (disqualification orders: general) or a disqualification undertaking under Article 4(1) (disqualification undertakings: general) of the Company Directors Disqualification (Northern Ireland) Order 2002[^f00082];

(h) whether the person has contravened any of the requirements or standards of—

(i) a regulator, including the Pensions Regulator, or

(ii) the registrar of companies;

(i) any information received from—

(i) a regulator, or

(ii) the registrar of companies;

(j) the person’s conduct in relation to, or arising out of or in connection with, any work the person has carried out in one or more of the capacities mentioned in section 11(2) of the Act, or carried out in respect of, or on behalf of, a person mentioned in paragraphs (a) to (d) of section 11(2) of the Act—

(i) in the period of five years ending with the date of the application for authorisation of the scheme, and

(ii) at any time since the date of the application for authorisation of the scheme;

(k) whether—

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