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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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(i) in Great Britain, the person has been prohibited from being a trustee of any trust, including any trust scheme within the meaning of section 124(1) of the Pensions Act 1995 (interpretation of Part 1), under—

(aa) section 3 of that Act (prohibition orders)[^f00083], or

(bb) any other legislation, or

(ii) in Northern Ireland, the person has been prohibited from being a trustee of any trust, including any trust scheme within the meaning of Article 121(1) of the Pensions (Northern Ireland) Order 1995 (interpretation of Part 2)[^f00084], under—

(aa) Article 3 of that Order (prohibition orders)[^f00085], or

(bb) any other legislation;

(l) whether—

(i) in Great Britain, the person has been disqualified from being a trustee of any trust, including any trust scheme within the meaning of section 124(1) of the Pensions Act 1995, under—

(aa) section 29 of that Act (persons disqualified for being trustees)[^f00086], or

(bb) any other legislation, or

(ii) in Northern Ireland, the person has been disqualified from being a trustee of any trust, including any trust scheme within the meaning of Article 121(1) of the Pensions (Northern Ireland) Order 1995, under—

(aa) Article 29 of that Order (persons disqualified for being trustees)[^f00087], or

(bb) any other legislation.

3

In assessing whether a person is a fit and proper person to act in a particular capacity, the Pensions Regulator must take into account—

(a) the knowledge and skills gained from a person’s significant experience as a trustee, in assessing whether the person is fit and proper to act in that capacity;

(b) whether a person has successfully completed such relevant training as may be set out in a Code, in assessing whether the person is fit and proper to act in the capacity of a trustee of the scheme;

(c) the collective expertise and experience of persons acting together in the capacity of trustees, in assessing whether they are fit and proper to act in that capacity;

(d) a person’s relevant experience and professional competence, in assessing whether the person is fit to act in a capacity specified in section 11(2)(ba), (bb), (bc) or (bd) of the Act[^f00088];

(e) the collective expertise and experience of individuals acting together to perform the functions of a scheme proprietor, in assessing whether they are fit and proper to act in that capacity;

(f) the collective expertise and experience of individuals acting together to perform the functions of a person who promotes or markets the scheme, in assessing whether they are fit and proper to act in that capacity;

(g) the collective expertise and experience of individuals acting together to perform the functions of a chief financial officer, in assessing whether they are fit and proper to act in that capacity;

(h) the collective expertise and experience of individuals acting together to perform the functions of a chief investment officer, in assessing whether they are fit and proper to act in that capacity.

Schedule 2 — Scheme design requirement

Part 1 — Matters that the Pensions Regulator must take into account

1

The Pensions Regulator must take into account the following matters in deciding whether it is satisfied that the design of an unconnected multiple employer scheme is sound—

(a) the information or documents mentioned in regulation 33 (3) that are provided to the Pensions Regulator in accordance with section 13(6) of the Act (viability report);

(b) whether the Pensions Regulator is satisfied that the rules of the scheme meet—

(i) the requirements of section 18 of the Act (calculation of benefits), and

(ii) the requirements of regulation 40;

(i) the trustees as provided for in paragraph 8 (1)(b) and (c);

(ii) the scheme actuary on the matters in regulation 34 (2),

as set out in the viability report and viability certificate, are justified;

(d) whether the Pensions Regulator considers that—

(i) the contents of the viability report,

(ii) the contents of the viability certificate, and

(iii) the information provided to the Pensions Regulator concerning the testing or modelling used for the purposes of determining whether the design of the scheme is sound,

are sufficiently comprehensive in order to enable the Pensions Regulator to decide whether it is satisfied that the design of the scheme is sound.

Part 2 — Information that must be included in a viability report

General

2

The date which has been chosen in respect of the viability report in accordance with regulation 33 (6).

3

The name and contact details of the person to be contacted in respect of the viability report.

4

A statement, signed by the trustees, confirming that—

(a) in their opinion, the design of the scheme is sound;

(b) the viability report has been approved by the trustees.

5

Where the viability report is required to be provided to the Pensions Regulator in accordance with section 13(6)(a) of the Act (on applying for authorisation), a statement, signed by the scheme proprietor, confirming that the viability report has been approved by the scheme proprietor.

6

A statement, signed by the scheme actuary, confirming that, to the extent that the viability report refers to actuarial matters, the scheme actuary is satisfied that those references accurately reflect those matters in respect of the scheme.

7

The name of the scheme in respect of which the viability report has been prepared.

Information about the design of the scheme

8

(1) An explanation of—

(a) the design of the scheme;

(b) the reasons why the trustees consider the design of the scheme to be sound and the evidence on which this consideration is based;

(c) what changes to the investment strategy the trustees consider would be changes that result in qualifying benefits in respect of which—

(i) the rates or amounts by reference to which the qualifying benefits are provided each year under the scheme are materially different, or

(ii) the expected adjustments to those rates or amounts are materially different.

(2) The evidence referred to in sub-paragraph (1)(b) must include—

(a) the document prepared by the scheme actuary for the purposes of regulation 33 (3)(b);

(b) the scheme’s investment strategy.

9

The explanation required by paragraph 8 (1) must include an explanation as to why the trustees are satisfied that the rules of the scheme meet—

(a) the requirements of section 18 of the Act (calculation of benefits);

(b) the requirements of regulation 40.

Part 3 — Information that must be included in a viability certificate

10

The date which has been agreed in respect of the viability certificate in accordance with regulation 34 (9).

11

The name and contact details of the scheme actuary.

12

The name of the scheme in respect of which the viability certificate is being obtained.

13

A statement, signed by the scheme actuary, confirming that—

(a) in the scheme actuary’s opinion, the design of the scheme is sound;

(b) when providing the viability certificate, the scheme actuary—

(i) has had regard to the matters specified in regulation 34 (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 40.

Schedule 3 — Financial sustainability requirement

Part 1 — Information required on application for authorisation

1

The other information to be included in an application, in relation to whether the scheme is financially sustainable, is—

(a) in relation to whether the scheme has sufficient financial resources to meet the costs mentioned in section 14(2)(a) of the Act (financial sustainability requirement)—

(i) an estimate of the cost of setting up the scheme;

(ii) an estimate of the cost of running the scheme, in accordance with any requirements set out in a Code;

(iii) details of the scheme’s sources of income including estimates of the amount of income from each source, in accordance with any requirements set out in a Code;

(iv) the scheme proprietor’s strategy for meeting any shortfall between the scheme’s income and the costs mentioned in section 14(2)(a) of the Act;

(v) an explanation of how any estimates provided have been calculated and of the assumptions used in reaching those estimates;

(vi) an explanation of the circumstances in which, and the extent to which, the scheme’s actual costs and income may vary from the estimates provided and any measures in place to address such variations;

(vii) details of any financing arrangements entered into by the scheme proprietor in respect of the costs mentioned in section 14(2)(a) of the Act;

(viii) details of the security and enforceability of any loans or other funding commitments provided to the trustees in respect of the scheme, including the reasons why the trustees consider these commitments to be secure and enforceable;

(ix) where the scheme has any arrangements with service providers that meet the description in paragraph 2 (h), details of the matters set out in that paragraph in respect of each arrangement;

(x) details of any insurance held in respect of the scheme, in respect of the costs mentioned in section 14(2)(a) of the Act, including details of the matters set out in paragraph 2 (i);

(b) in relation to whether the scheme has sufficient financial resources to meet the costs mentioned in section 14(2)(b) of the Act—

(i) an estimate of the costs mentioned in section 14(2)(b)(i) of the Act;

(ii) an estimate of the costs mentioned in section 14(2)(b)(ii) of the Act;

(iii) the scheme proprietor’s strategy for meeting the costs mentioned in section 14(2)(b) of the Act;

(iv) the amount and classes of assets held by the scheme proprietor, or that will be available to the trustees, to meet those costs;

(v) an explanation of how any estimates provided have been calculated and of the assumptions used in reaching those estimates;

(vi) details of the security and enforceability of any loans or other funding commitments provided to the trustees in respect of the scheme, including the reasons why the trustees consider these commitments to be secure and enforceable;

(vii) details of any insurance held in respect of the scheme, in respect of the costs mentioned in section 14(2)(b) of the Act, including details of the matters set out in paragraph 3 (g);

(viii) details of any compensation for which members are eligible in the event of a scheme failure, including details of the matters set out in paragraph 3 (i).

Part 2 — Matters which the Pensions Regulator must take into account

2

The Pensions Regulator must take account of the following matters in deciding whether it is satisfied that an unconnected multiple employer purchase scheme has sufficient financial resources to meet the costs mentioned in section 14(2)(a) of the Act (financial sustainability requirement)—

(a) the scheme’s sources of income, including the estimated amount of income from each source;

(b) the estimated cost of setting up the scheme;

(d) the scheme proprietor’s strategy for meeting any shortfall between the scheme’s income and the costs mentioned in section 14(2)(a) of the Act;

(e) the robustness of any estimates provided to the Pensions Regulator in relation to the costs mentioned in section 14(2)(a) of the Act, and the robustness of the strategy mentioned in sub-paragraph (d);

(f) any financing arrangements entered into by the scheme proprietor in respect of the costs mentioned in section 14(2)(a) of the Act;

(g) the security and enforceability of loans and other funding commitments provided to the trustees in respect of the scheme;

(h) where the scheme has an arrangement with a service provider under which the service provider accepts the risk that its costs will exceed any fee paid to it, the provisions made to secure this service and any limitation on the service provider’s liability for those costs;

(i) any insurance held in respect of the costs mentioned in section 14(2)(a) of the Act, including details of—

(i) the insurance provider;

(ii) the policy holder;

(iii) the beneficiary of the policy;

(iv) any limitations on the insurer’s liability.

3

The Pensions Regulator must take account of the following matters in deciding whether it is satisfied that an unconnected multiple employer scheme has sufficient financial resources to meet the costs mentioned in section 14(2)(b) of the Act—

(a) the most recent estimates of the costs mentioned in section 14(2)(b) of the Act provided in respect of the scheme;

(b) the extent and manner in which the scheme proprietor has made provision to meet those costs;

(d) the robustness of any estimates provided to the Pensions Regulator in relation to the costs mentioned in section 14(2)(b) of the Act, and the robustness of the strategy for meeting those costs;

(e) the security and enforceability of loans and other funding commitments provided to the trustees in respect of the scheme;

(f) the alignment between the actions set out in the scheme’s continuity strategy and the estimate in the strategy of the costs of carrying out those actions;

(g) any insurance held in respect of the costs mentioned in section 14(2)(b) of the Act, including details of—

(i) the insurance provider;

(ii) the policy holder;

(iii) the beneficiary of the policy;

(iv) any limitations on the insurer’s liability;

(h) the quality of the scheme’s records and data;

(i) whether the members are eligible for compensation in the event of a scheme failure and, if so, details of—

(i) the compensation provider;

(ii) the basis on which the compensation is payable;

(iii) any limits on the amount of compensation payable;

(j) the scheme’s most recent continuity strategy.

Part 3 — Requirements to be met by the unconnected multiple employer scheme

4

An unconnected multiple employer scheme must meet the following requirements relating to its financing—

(a) any assets held by the scheme proprietor, or available to the trustees, to meet the costs mentioned in section 14(2) of the Act (financial sustainability requirement) must be—

(i) of the classes and in the proportions set out in a Code;

(ii) valued in accordance with any discounted rates set out in a Code;

(iii) available to be used when the relevant costs fall due;

(b) the scheme’s trustees must have first call on the assets referred to in sub-paragraph (a);

(c) any funding commitment made to the scheme in respect of the costs mentioned in section 14(2) of the Act must be given in writing and duly executed by the party making the commitment.

Schedule 4 — Communication requirement

Part 1 — Interpretation

1

In this Schedule—

“relevant functions” are— the development, production, provision or review of scheme communications, record-keeping in respect of scheme communications, quality assurance activities in respect of scheme communications, and any other functions, in respect of scheme communications, set out in a Code;

“scheme communication” means a notification, notice, document, statement or other communication relating to the scheme which is provided, or made available, to a relevant person by, on behalf of or in respect of the scheme.

Part 2 — Matters that the Pensions Regulator must take into account

Functionality, quality and maintenance of IT systems

2

Whether the IT systems used for the purposes of carrying out relevant functions—

(a) have the necessary capacity and capability to enable relevant functions to be carried out by, on behalf of or in respect of the scheme in accordance with—

(i) any legal requirement in relation to scheme communications, and

(ii) the scheme’s systems and processes concerning scheme communications;

(b) are monitored to ensure that they continue to have the necessary capacity and capability;

(d) have a back-up system which allows data concerning scheme communications to be recovered if the main system fails;

(e) have restricted physical and electronic access, with firewalls and other appropriate protection against viruses and other threats;

(f) are maintained at regular intervals, either automatically or by a person with the appropriate skills and experience;

(g) are backed up and updated regularly, including the maintenance of firewalls and other preventative systems.

Resource planning

3

Whether there are systems and processes for ensuring that there are sufficient individuals, with the relevant skills, qualifications and capacity necessary to enable relevant functions to be carried out by, on behalf of or in respect of the scheme in accordance with—

(a) any legal requirement in relation to scheme communications, and

(b) the scheme’s systems and processes concerning scheme communications.

Quality assurance

4

Whether there are systems and processes—

(a) for assessing and improving the effectiveness of scheme communications and for updating scheme communications to take into account these assessments;

(b) for ensuring that the information contained in scheme communications is accurate and is not misleading;

(d) for ensuring that scheme communications are provided or made available in a timely manner;

(e) for scheme communications to be reviewed by such persons as the trustees consider appropriate before being provided or made available and for scheme communications to be kept under review as appropriate.

Member engagement

5

Whether there are systems and processes—

(a) for gathering feedback from members concerning scheme communications;

(b) for evaluating feedback from members concerning scheme communications and sharing this feedback with trustees;

(c) for taking into account feedback from members concerning scheme communications in the design of scheme communications;

(d) for reporting to the trustees, and members, as to how feedback from members has been taken into account in the design of scheme communications.

Schedule 5 — Systems and processes requirement - matters that the Pensions Regulator must take into account

Features and functionality of IT systems

1

Whether the IT systems have the capacity and capability—

(a) to process financial transactions securely, accurately and by automated means, including the core transactions described in regulation 24(2) of the Occupational Pension Schemes (Scheme Administration) Regulations 1996[^f00089] (requirements for processing financial transactions);

(b) to make and receive electronic payments;

(d) to exchange data with other IT systems, including those used by employers and service providers;

(e) to process information securely, accurately and by automated means for the purposes of calculating the rate or amount of benefits to be provided under the scheme, in accordance with the scheme rules;

(f) to reconcile data on transactions and produce reports so that those activities can be monitored and transaction errors rectified promptly;

(g) to identify and categorise transactions and payments for authorisation and countersigning at an appropriate level of authority;

(h) to be updated to reflect changes in the legal requirements affecting transactions, payments and records, including changes in tax thresholds and the annual allowance;

(i) to reconcile contributions paid by or on behalf of an employer with the records of the member to whom they relate.

Standards required of IT systems

2

Whether the IT systems—

(a) are capable of being upgraded to reflect changes in required transactions and capacity;

(b) have restricted physical and electronic access, with firewalls and other appropriate protection against viruses and other threats;

(d) are of sufficient standard to allow the scheme to meet the objectives set out in the scheme’s business plan[^f00090].

Maintenance of IT systems

3

Whether the IT systems—

(a) are maintained at regular intervals, either automatically or by a person with the appropriate skills and experience;

(b) are backed up and updated regularly, including the maintenance of firewalls and other preventative systems;

Member records

4

Whether the scheme’s systems and processes ensure that—

(a) there is an accurate record on the relevant IT system of each member’s details, including the member’s pensionable service, within the meaning given in section 124(1) of the Pensions Act 1995, and pensionable salary and, on an annual basis, the amount that represents the member’s share of the available assets of the scheme;

(b) any unpaid contributions by or in respect of active members can be explained to the Pensions Regulator and remedied;

(c) members’ records are reviewed regularly for completeness and accuracy and updated promptly with changes of information;

(d) errors in member’s records can be identified and addressed, and any financial impact of such errors on members can be rectified;

(e) for each financial year, records are maintained—

(i) in respect of each person receiving payment of a pension or other benefits under the scheme, including the amount of benefits received during the year;

(ii) in respect of each person receiving payment of a periodic income in accordance with paragraph 7 of Schedule 6, including the amount of income received during the year;

(f) for each financial year, there is an accurate record of the amount that represents the value of accrued rights to benefits under the scheme that has been transferred out of the scheme during the financial year.

Trustees and others

5

Whether there are systems and processes—

(a) for the fair and transparent recruitment, appointment, resignation and removal of trustees;

(b) for the fair and transparent recruitment, appointment, resignation and removal of the scheme actuary;

(c) for determining and recording that persons involved in the scheme in the capacities mentioned in section 11(2) of the Act (fit and proper persons requirement) are, and remain, fit and proper;

(d) for monitoring and recording trustees’ learning and development, and for ensuring that it is appropriate for the scheme’s activities;

(e) in relation to meetings of trustees, including—

(i) the intervals at which meetings of trustees are to take place;

(ii) the number of trustees required to authorise decisions on risk management, resource planning and investments;

(iii) the process for managing the scheme’s business between meetings of the trustees;

(f) for recording, maintaining and managing all documents relating to the trustees in an accessible medium;

(g) for managing the scheme’s business if one or more trustees are absent.

Contracts and service providers

6

Whether there are systems and processes—

(a) for establishing that service providers have the necessary qualifications, experience or approval, as applicable;

(b) for establishing that service providers have the capability to provide their services in respect of the scheme—

(i) in accordance with any scheme rules that relate to those services;

(ii) in accordance with any statutory requirement in relation to those services to which the trustees are subject in respect of the scheme, to the extent that the services are provided on behalf of the trustees;

(c) for ensuring that trustees are appropriately engaged in overseeing service providers and in decisions concerning them, including their appointment;

(d) for informing the scheme proprietor about the appointment, removal, roles and responsibilities of service providers;

(e) for informing the trustees of—

(i) any failure by service providers to deliver services;

(ii) any actions or omissions by service providers which may prejudice the effective running of the scheme;

(iii) any actions or omissions by service providers which may prejudice the ability to meet the objectives set out in the scheme’s business plan;

(f) for recording, maintaining and managing all documents relating to service providers in an accessible medium.

Governance

7

Whether there are systems and processes—

(a) for the identification of roles and responsibilities in respect of the governance of the scheme;

(b) for the appointment of persons with sufficient skills, knowledge and experience to carry out those roles and responsibilities;

(c) for setting clear objectives concerning the governance 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 governance of the scheme;

(e) for identifying and addressing any failures in the governance of the scheme.

Risk management

8

Whether there are systems and processes—

(a) for identifying, managing and monitoring operational, financial, regulatory and compliance risks;

(b) for identifying, managing and monitoring risks in respect of the soundness of the design of the scheme;

(d) for ensuring that risks are managed in a timely manner by persons with the appropriate skills, knowledge and resources;

(e) for informing the trustees about risks that have arisen and the steps being taken to manage them.

Security

9

Whether there are systems and processes—

(a) for preventing unauthorised access to sensitive records and infrastructure, including those containing member information, financial details or investment information;

(b) for monitoring and recording electronic and physical access to sensitive records and infrastructure;

Resource planning

10

Whether there are systems and processes for ensuring that there are sufficient individuals with the skills, qualifications and capacity necessary to comply with the requirements of Part 1 of the Act (collective money purchase benefits) and, in particular—

(a) to run and maintain the scheme’s systems and processes,

(b) to provide for the effective running of the scheme,

(c) to send appropriate and timely notifications, information and documents to the Pensions Regulator, including information about the scheme’s systems and processes, and

(d) to meet the objectives set out in the scheme’s business plan.

Investments

11

Whether there are systems and processes—

(a) for investing contributions in a timely manner in accordance with the scheme’s investment strategy;

(b) for recording investment decisions;

(d) for recording, managing and reviewing the risks associated with investment decisions;

(e) for informing trustees about questions, decisions and risks relating to investments.

Valuation and benefit adjustment

12

Whether there are systems and processes—

(a) for ensuring that the rules of the scheme meet the requirements of section 18 of the Act (calculation of benefits) and regulation 40;

(b) for ensuring that the trustees comply with section 19(1) of the Act (advice of scheme actuary);

(d) for ensuring that the trustees obtain actuarial valuations in accordance with section 20 of the Act (actuarial valuations) and regulation 42;

(e) for establishing that the scheme actuary has complied with section 21 of the Act (certificate that actuarial valuation prepared in accordance with scheme rules);

(f) for complying with the requirements of section 22 of the Act (benefits adjustments), where applicable;

(g) for responding to a direction given under section 23(2) of the Act (powers of the Pensions Regulator).

Member engagement

13

Whether there are systems and processes—

(a) for facilitating members’ engagement with the scheme;

(b) for bringing members’ views to the attention of the trustees;

Schedule 6 — Continuity Option 1: transfer out and winding up

Interpretation and notices

1

(1) In this Schedule—

“arrangement” has the meaning given in section 152 of the Finance Act 2004[^f00091];

“default arrangement” has the meaning given in regulation 3 of the Occupational Pension Schemes (Charges and Governance) Regulations 2015[^f00092];

“default discharge option” means the way the trustees propose to discharge the scheme’s liability to a beneficiary in respect of the beneficiary’s accrued rights to benefits under the scheme, unless the beneficiary specifies otherwise in accordance with paragraph 14;

“dependant” has the meaning given in paragraph 15 of Schedule 28 to the Finance Act 2004[^f00093];

“dependants’ income withdrawal” has the meaning given in paragraph 21 of Schedule 28 to the Finance Act 2004[^f00094];

“dependant’s flexi-access drawdown fund” has the meaning given in paragraph 22A of Schedule 28 to the Finance Act 2004[^f00095];

“discharge time” in relation to a beneficiary under the scheme means the time that the scheme’s liability to the beneficiary in respect of the value of the beneficiary’s accrued rights to benefits under the scheme is discharged;

“final quantification” means the quantification carried out immediately prior to the discharge time, in accordance with paragraph 5 (1)(f);

“income withdrawal” has the meaning given in paragraph 7 of Schedule 28 to the Finance Act 2004[^f00096];

“initial quantification” means the quantification carried out in accordance with paragraph 5 (1)(c);

“member’s flexi-access drawdown fund” has the meaning given in paragraph 8A of Schedule 28 to the Finance Act 2004[^f00097];

“nominee” has the meaning given in paragraph 27A of Schedule 28 to the Finance Act 2004[^f00098];

“nominees’ income withdrawal” has the meaning given in paragraph 27D of Schedule 28 to the Finance Act 2004[^f00099];

“nominee’s flexi-access drawdown fund” has the meaning given in paragraph 27E of Schedule 28 to the Finance Act 2004[^f00100];

“pensioner beneficiary”, in relation to the unconnected multiple employer scheme, means a person who is entitled to the present payment of pension or other benefits under the scheme;

“penultimate quantification” means the quantification carried out not less than one month before the proposed discharge time, in accordance with paragraph 5 (1)(e);

“periodic income” means a payment made by a scheme under paragraph 7, which is not the payment of a benefit (including pension) under the scheme;

“quantification” means the quantification of the amount that represents the value of each beneficiary’s accrued rights to benefits under the scheme;

“successor” has the meaning given in paragraph 27F of Schedule 28 to the Finance Act 2004[^f00101];

“successors’ income withdrawal” has the meaning given in paragraph 27J of Schedule 28 to the Finance Act 2004[^f00102];

“successor’s flexi-access drawdown fund” has the meaning given in paragraph 27K of Schedule 28 to the Finance Act 2004[^f00103];

“winding-up commencement time” means the time, determined in accordance with these Regulations and the scheme rules, that winding-up is taken to begin for the purposes of continuity option 1;

“winding-up period” means the period beginning with the winding-up commencement time and ending when the winding up of the scheme is completed;

“winding-up quantification” means the quantification carried out after the Pensions Regulator notifies the trustees that the implementation strategy is approved, in accordance with paragraph 5 (1)(d).

(2) Notices given under this Schedule must be sent—

(a) in writing, by post or email,

(b) to the addressee’s last known address, and

(3) For the purposes of sub-paragraph (2), a person’s email address is—

(a) any email address provided for the time being by that person as an address for contacting that person, or

(b) if no such address has been provided, any email address by means of which the sender reasonably believes that the notice will come to the attention of that person or (where that person is a body corporate) any director or other officer of that body corporate.

(4) A notice under this Schedule sent to a person by email is taken to have been received by that person 48 hours after it is sent.

Alternative ways of discharging the scheme’s liability

2

(1) The ways of discharging an unconnected multiple employer scheme’s liability to each beneficiary in respect of the beneficiary’s accrued rights to benefits under the scheme referred to in section 36(1)(b) of the Act (continuity option 1: discharge of liabilities and winding up) include—

(a) transferring the value of those rights to an occupational pension scheme;

(b) transferring the value of those rights to a member's flexi-access drawdown fund in respect of an arrangement for the purposes of entitlement by the beneficiary to income withdrawal which is an authorised member payment for the purposes of Part 4 of the Finance Act 2004 (pension schemes etc);

(c) transferring the value of those rights to a dependant’s flexi-access drawdown fund in respect of an arrangement for the purposes of entitlement by the dependant to dependants’ income withdrawal which is an authorised member payment for the purposes of Part 4 of the Finance Act 2004 (pension schemes etc);

(d) transferring the value of those rights to a nominee’s flexi-access drawdown fund in respect of an arrangement for the purposes of entitlement by the nominee to nominees’ income withdrawal which is an authorised member payment for the purposes of Part 4 of the Finance Act 2004 (pension schemes etc);

(e) transferring the value of those rights to a successor’s flexi-access drawdown fund in respect of an arrangement for the purposes of entitlement by the successor to successors’ income withdrawal which is an authorised member payment for the purposes of Part 4 of the Finance Act 2004 (pension schemes etc).

(2) The way of discharging an unconnected multiple employer scheme’s liability to each beneficiary in respect of the beneficiary’s accrued rights to benefits under the scheme referred to as an “alternative payment mechanism” in section 36(2)(c) of the Act is securing the payment of benefits by the purchase of one or more policies from one or more insurers authorised by the Financial Conduct Authority for carrying on long-term insurance business in the United Kingdom.

Requirements of rules of scheme

3

(1) The rules of an unconnected multiple employer scheme must make provision about how continuity option 1 is to be given effect in the event that the trustees are required or decide to pursue continuity option 1.

(2) The rules must include the following—

(a) the time when the winding up is to be taken to begin for the purposes of continuity option 1, taking account of the requirements of paragraph 4;

(b) how the value of the available assets of the scheme is to be determined;

(c) how the amount that represents the value of each beneficiary’s accrued rights to benefits under the scheme is to be quantified for the purposes of the initial quantification, the winding-up quantification and any subsequent quantification (including the penultimate quantification) carried out prior to the final quantification;

(d) how the amount that represents the value of each beneficiary’s accrued rights to benefits under the scheme is to be quantified for the purposes of the final quantification;

(e) how the amount or rate of periodic income payable during the winding-up period is to be calculated and adjusted from time to time.

(3) Rules for determining how the amount that represents the value of each beneficiary’s accrued rights to benefits under the scheme is to be quantified must apply to all beneficiaries of the scheme without variation.

Winding-up commencement time

4

(1) Where the trustees of an unconnected multiple employer scheme are required to pursue continuity option 1 because a triggering event which is an item 1 or 2 triggering event has occurred in relation to the scheme, the winding-up commencement time must be on the date the decision to withdraw authorisation becomes final for the purposes of Part 1 of the Act (collective money purchase benefits).

(2) Where the trustees of an unconnected multiple employer scheme are required to pursue continuity option 1 because a triggering event which is an item 3 triggering event has occurred in relation to the scheme, the winding-up commencement time must be on the date on which the Pensions Regulator gives a notification under section 7(3) of the Act (scheme not authorised).

(3) Subject to sub-paragraphs (1) and (2), the winding-up commencement time shall be determined in accordance with subsections (3A) to (3D) of section 124 of the Pensions Act 1995[^f00104] (interpretation of Part 1).

Quantification of the value of beneficiaries’ accrued rights to benefits

5

(1) Quantification must be carried out—

(a) in accordance with these Regulations and with the scheme rules,

(b) on an actuarial basis,

(c) as an initial estimate before the end of the period of 28 days beginning with the date of the winding-up commencement time,

(d) as a subsequent estimate within the period of six months beginning with the date on which the Pensions Regulator notifies the trustees that the implementation strategy is approved,

(e) as a final estimate not less than one month before the proposed discharge time, and

(f) as a final figure immediately prior to the discharge time in relation to the beneficiary.

(2) The quantification must be carried out by reference to the realisable value of the available assets of the scheme.

(3) The amount that represents the value of a beneficiary’s accrued rights to benefits under the scheme for the purposes of the final quantification must be reduced to take account of any periodic income received by that beneficiary in accordance with paragraph 7.

Winding-up period

6

(1) Subject to sub-paragraph (5), no new members may be admitted to the scheme during the winding-up period.

(2) No further contributions by or on behalf or in respect of members of the scheme may be paid towards the scheme (other than those due to be paid before the beginning of the winding-up period) during the winding-up period.

(3) No benefits may accrue to or in respect of members of the scheme during the winding-up period.

(4) Subject to sub-paragraph (6), no pension or other benefits may be paid by the scheme to or in respect of beneficiaries during the winding-up period.

(5) Where a person is entitled to a pension credit derived from another person’s shareable rights under the scheme, nothing in this Schedule prevents the trustees of the scheme discharging their liability in respect of the credit under Chapter 1 of Part 4 of the Welfare Reform and Pensions Act 1999 (sharing of rights under pension arrangements) by conferring appropriate rights under the scheme on that person.

(6) Nothing in this Schedule prevents the exercise of any right or power conferred by Chapter 2 of Part 4ZA of the Pension Schemes Act 1993[^f00105] (early leavers: cash transfer sums and contribution refunds) or the discharge of any duty imposed by that Chapter.

(7) The requirements mentioned in sub-paragraph (8) cease to apply during the winding-up period and the trustees are discharged from any liability to carry out these requirements in respect of the winding-up period.

(8) The requirements are—

(a) obtaining actuarial valuations in accordance with section 20 of the Act (actuarial valuations),

(b) determining the rate or amount of benefits under the scheme, under scheme rules in accordance with section 18 of the Act (calculation of benefits), and

(c) providing qualifying benefits including the payment of a pension or other benefits under the scheme, as provided for in section 3 of the Act (qualifying schemes).

(9) In sub-paragraph (5)—

“appropriate rights” has the same meaning as in paragraph 5 of Schedule 5 to the Welfare Reform and Pensions Act 1999 (pension credits: mode of discharge);

“shareable rights” has the meaning given in section 27(2) of that Act (scope of mechanism).

Periodic income

7

(1) Where a person was a pensioner beneficiary of the scheme immediately prior to the beginning of the winding-up period, or would have become a pensioner beneficiary of the scheme during the winding-up period but for the provisions of this Schedule, the trustees must pay that person a periodic income under and in accordance with this paragraph.

(2) A payment of periodic income by a scheme under this paragraph is not a payment of benefits (including pension) under the scheme.

(3) The periodic income is payable to a person who was a pensioner beneficiary of the scheme immediately prior to the beginning of the winding–up period during the period beginning with the date of the winding-up commencement time and continuing until the earlier of the date of the discharge time in relation to that person or the date that person would otherwise have ceased to be a pensioner beneficiary.

(4) The periodic income is payable to a person who would have become a pensioner beneficiary of the scheme during the winding-up period but for the provisions of this Schedule during the period beginning with the date that person would have become a pensioner beneficiary and continuing until the earlier of the date of the discharge time in relation to that person or the date that person would otherwise have ceased to be a pensioner beneficiary.

(5) In the case of a person who was a pensioner beneficiary immediately prior to the beginning of the winding-up period, payments of periodic income before the initial quantification has been carried out must be made—

(a) on the same date that a payment of pension would have been due to be made to that person had the winding up of the scheme not commenced, and

(b) at the same rate or amount as the last payment of pension made to that person before the beginning of the winding-up period.

(6) In the case of a person who would have become a pensioner beneficiary of the scheme during the winding-up period but for the provisions of this Schedule, payments of periodic income before the initial quantification has been carried out must—

(a) be made on the same date that a payment of pension would have been due to be made to that person had the winding up of the scheme not commenced, and

(b) be calculated by reference to the last actuarial valuation carried out before the beginning of the winding-up period.

(7) After the initial quantification has been carried out, the amount or rate of the periodic income payable to a person must—

(a) be calculated by reference to the amount that represents the value of the person’s accrued rights to benefits under the scheme;

(b) until the winding-up quantification has been carried out, be calculated and paid on the basis of the initial quantification;

(c) after the winding-up quantification has been carried out, be calculated and paid on the basis of the latest of the winding-up quantification or any subsequent quantification;

(d) be adjusted from time to time to take account of any subsequent quantification carried out up to and including the penultimate quantification.

Information about periodic income

8

(1) The information mentioned in sub-paragraph (2) must be given in accordance with the provisions of this paragraph to each person who was a pensioner beneficiary of the scheme immediately prior to the beginning of the winding-up period and to each person who would have become a pensioner beneficiary of the scheme during the winding-up period but for the provisions of this Schedule.

(2) The information is—

(a) that during the winding-up period pensions and other benefits cease to be payable under the scheme and instead the scheme must make payments of periodic income to persons who were and to persons who would have become pensioner beneficiaries;

(b) when payment of the periodic income to the person will commence or, if a payment of periodic income has already been made, when the payments commenced;

(c) an explanation that payment of the periodic income from the scheme will cease at the earlier of the date of the discharge time in relation to the person or the date the person would otherwise have ceased to be a pensioner beneficiary;

(d) details of when and how the periodic income is to be or is being paid;

(e) the amount that the person’s periodic income will be following the initial quantification, where this is known;

(f) an explanation of how the amount of the periodic income is calculated;

(g) that the amount may be adjusted during the winding-up period, and that the amount may reduce following an adjustment;

(h) how and when notice of any adjustment will be given to the person;

(i) that the value of the person’s accrued rights to benefits under the scheme at the discharge time will be reduced to take account of the periodic income payments made to the person during the winding-up period.

(3) In the case of a person who was a pensioner beneficiary under the scheme immediately prior to the beginning of the winding-up period, the information must be given as soon as practical and in any event no more than one month after the date of the winding-up commencement time.

(4) In the case of a person who would have become a pensioner beneficiary under the scheme during the winding-up period but for the provisions of this Schedule, the information must be given as soon as practical and in any event no more than one month after the date the person would have become a pensioner beneficiary.

Scheme to continue to be a collective money purchase scheme during winding-up

9

(1) A “collective money purchase scheme” for the purposes of Part 1 of the Act (collective money purchase benefits) includes a scheme or section of a scheme during the winding-up period where the scheme or section was an unconnected multiple employer scheme immediately before the winding-up commencement time.

(2) Sub-paragraph (1) applies irrespective of the fact that in accordance with the requirements of this Schedule the scheme or section has, during the winding-up period—

(a) ceased to make payments of benefits including payments of pension under the scheme, and

(b) commenced payments of periodic income under paragraph 7 (1).

Trustees’ notice to employers

10

(1) The trustees of an unconnected multiple employer scheme that is pursuing continuity option 1 must send a notice to each employer in relation to the scheme containing the information mentioned in sub-paragraph (2), in accordance with sub-paragraph (3).

(2) The information is—

(a) details of the default discharge options identified in respect of beneficiaries and details of which option will apply to different descriptions of beneficiary including the name of any scheme which has been identified as a default discharge option for beneficiaries of the scheme;

(b) that if a beneficiary does not specify an alternative in accordance with the requirements of this Schedule, the scheme’s liability to the beneficiary will be discharged in accordance with the relevant default discharge option;

(c) the beneficiary’s rights under Chapter 2 of Part 4ZA of the Pension Schemes Act 1993 (early leavers: cash transfer sums and contribution refunds);

(d) the timetable for future communication with beneficiaries and employers;

(e) that the notice is for information only.

(3) A notice under this paragraph must be sent before the end of the period of 14 days beginning with—

(a) the date on which the trustees identify the default discharge options, or

(b) if later, the date on which the Pensions Regulator notifies the trustees that the implementation strategy is approved.

Notice to receiving scheme

11

(1) The trustees of an unconnected multiple employer scheme that is pursuing continuity option 1 must send a notice to the trustees or managers of any occupational pension scheme to which they propose to transfer the value of beneficiaries’ accrued rights to benefits under the scheme under a default discharge option, the trustees or managers of which are able and willing to accept the transfer.

(2) The notice sent under this paragraph must state that the scheme has been selected as a default discharge option for the purposes of section 36 of the Act (continuity option 1: discharge of liabilities and winding up), for the transfer of the value of beneficiaries’ accrued rights to benefits.

(3) The notice must be sent before the end of the period of 14 days beginning with—

(a) the date on which the trustees identify the scheme as a default discharge option for those purposes, or

(b) if later, the date on which the Pensions Regulator notifies the trustees that the implementation strategy is approved.

Trustees’ first notice to beneficiaries in respect of discharge options

12

(1) The trustees of an unconnected multiple employer scheme that is pursuing continuity option 1 must send a notice to each beneficiary of the scheme containing the information mentioned in sub-paragraph (2), in accordance with sub-paragraph (3).

(2) The information is—

(a) details of the default discharge option for the beneficiary;

(b) where the beneficiary can obtain information and guidance about the default discharge option;

(c) details of the beneficiary’s right to choose whether the scheme’s liability to the beneficiary in respect of the value of the beneficiary’s accrued rights to benefits under the scheme is discharged by—

(i) the default discharge option proposed by the trustees, or

(ii) an alternative option specified by the beneficiary;

(d) details of the alternative options available to the beneficiary in accordance with paragraph 14 (2);

(e) details of the beneficiary’s rights under Chapter 2 of Part 4ZA of the Pension Schemes Act 1993 (early leavers: cash transfer sums and contribution refunds);

(f) next steps and the timetable for future communications with the beneficiary.

(3) A notice under this paragraph must be sent before the end of the period of 14 days beginning with—

(a) the date on which the trustees identify the default discharge option in relation to the beneficiary, or

(b) if later, the date on which the Pensions Regulator notifies the trustees that the implementation strategy is approved.

Trustees’ second notice to beneficiaries in respect of discharge options

13

(1) The trustees of an unconnected multiple employer scheme that is pursuing continuity option 1 must send a second notice to each beneficiary of the scheme containing the information mentioned in sub-paragraph (2), in accordance with sub-paragraph (3).

(2) The information is—

(a) the proposed discharge time;

(b) an estimate of the amount that represents the value of the beneficiary’s accrued rights to benefits under the scheme based on the latest quantification in relation to the beneficiary;

(c) details of the default discharge option for the beneficiary including the nature of the arrangement it is proposed will be used to discharge the scheme’s liability to the beneficiary and the name of the scheme or insurers the trustees propose to use;

(d) that the scheme’s liability to the beneficiary in respect of the value of the beneficiary’s accrued rights to benefits under the scheme will be discharged by the default discharge option unless the beneficiary specifies otherwise;

(e) where the beneficiary can obtain information and guidance about the default discharge option;

(f) details of the beneficiary’s right to choose whether the value of the beneficiary’s accrued rights to benefits under the scheme are discharged by—

(i) the default discharge option proposed by the trustees, or

(ii) an alternative option specified by the beneficiary;

(g) the requirement for a beneficiary who wishes to specify an alternative option to send the trustees of the scheme a notice in accordance with paragraph 14;

(h) details of the alternative options available to the beneficiary in accordance with paragraph 14 (2);

(i) details of the beneficiary’s rights under Chapter 2 of Part 4ZA of the Pension Schemes Act 1993 (early leavers: cash transfer sums and contribution refunds);

(j) details of where the beneficiary can obtain information and guidance about the alternative options available to the beneficiary;

(k) next steps and the timetable for future communications with beneficiaries.

(3) A notice under this paragraph must be sent before the end of the period of one month beginning with the date on which the winding-up quantification was completed.

Beneficiaries’ response to trustees

14

(1) A beneficiary who has received notice from the trustees under paragraph 13 may give notice to the trustees requiring them to discharge the scheme’s liability to the beneficiary in respect of the value of the beneficiary’s accrued rights to benefits under the scheme—

(a) in the way set out in the default discharge option, or

(b) in an alternative way specified by the beneficiary.

(2) The alternative ways which may be specified by the beneficiary are—

(a) transferring the value of the beneficiaries’ accrued rights to benefits under the scheme to an authorised collective money purchase scheme or an authorised Master Trust scheme;

(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) or an occupational pension scheme;

(c) transferring the value of those rights to a member’s flexi-access drawdown fund in respect of an arrangement for the purposes of entitlement by the beneficiary to income withdrawal which is an authorised member payment for the purposes of Part 4 of the Finance Act 2004 (pension schemes etc);

(d) transferring the value of those rights to a dependant’s flexi-access drawdown fund in respect of an arrangement for the purposes of entitlement by the dependant to dependants’ income withdrawal which is an authorised member payment for the purposes of Part 4 of the Finance Act 2004 (pension schemes etc);

(e) transferring the value of those rights to a nominee’s flexi-access drawdown fund in respect of an arrangement for the purposes of entitlement by the nominee to nominees’ income withdrawal which is an authorised member payment for the purposes of Part 4 of the Finance Act 2004 (pension schemes etc);

(f) transferring the value of those rights to a successor’s flexi-access drawdown fund in respect of an arrangement for the purposes of entitlement by the successor to successors’ income withdrawal which is an authorised member payment for the purposes of Part 4 of the Finance Act 2004 (pension schemes etc);

(g) securing the payment of benefits by the purchase of one or more policies from one or more insurers authorised by the Financial Conduct Authority for carrying on long-term insurance business in the United Kingdom.

(3) Where the alternative way specified by the beneficiary is that the value of the beneficiary’s accrued rights to benefits should be transferred to an alternative pension scheme, the scheme must be one which is able and willing to accept the transfer.

(4) A notice under this paragraph—

(a) must be sent before the end of the period of three months beginning with the day when the beneficiary received notice from the trustees under paragraph 13, and

(b) must contain sufficient information about the alternative way specified by the beneficiary, including bank account details, to enable the trustees to comply with paragraph 17 (1).

Notice of expected discharge time

15

Not less than one month before the date of the expected discharge time, the trustees of an unconnected multiple employer scheme that is pursuing continuity option 1 must send a notice of the expected discharge time to—

(a) each beneficiary of the scheme, and

(b) the employers in relation to the scheme.

Trustees’ powers

16

(1) This paragraph applies where the trustees of an unconnected multiple employer scheme that is pursuing continuity option 1 do not receive a notice from a beneficiary in accordance with paragraph 14.

(2) The trustees may discharge the scheme’s liability to a beneficiary in respect of the beneficiary’s accrued rights to benefits under the scheme in the way set out in the default discharge option for the beneficiary without the consent of the beneficiary.

(3) Where the default discharge option for a beneficiary is the way referred to in paragraph 2 (2) and the scheme discharges its liability to the beneficiary in this way without the beneficiary’s consent, the beneficiary is deemed to have entered into an agreement with the insurer.

Trustees’ duty to transfer

17

(1) If the trustees of an unconnected multiple employer scheme that is pursuing continuity option 1 receive notice from a beneficiary in accordance with paragraph 14, they must arrange for the scheme’s liability to the beneficiary in respect of the beneficiary’s accrued rights to benefits under the scheme to be discharged as specified in the notice.

(2) If the trustees do not receive notice from a beneficiary in accordance with paragraph 14, they must arrange for the scheme’s liability to the beneficiary in respect of the beneficiary’s accrued rights to benefits under the scheme to be discharged in accordance with the default discharge option.

(3) When the trustees have arranged for the scheme’s liability to a beneficiary to be discharged in accordance with sub-paragraph (1) or (2) they must notify the beneficiary of—

(a) the value of the beneficiary’s accrued rights to benefits under the scheme,

(b) any reductions made in accordance with paragraph 5 (3), and

(c) who has or will become liable for the payment of benefits to the beneficiary when the scheme’s liability to the beneficiary in respect of the value of the beneficiary’s accrued rights to benefits under the scheme is discharged.

Administration charges

18

(1) This paragraph applies to the trustees or managers of any occupational pension scheme (the “proposed receiving scheme”) to which the trustees of an unconnected multiple employer scheme that is pursuing continuity option 1 (the “transferring scheme”) propose to transfer the value of beneficiaries’ accrued rights to benefits under the scheme, under a default discharge option.

(2) The trustees of the proposed receiving scheme must provide to the Pensions Regulator, in accordance with this paragraph, a document setting out the level of administration charges that applies in relation to members of the proposed receiving scheme.

(3) The document must be provided before the end of the period of 28 days beginning with the date on which the trustees of the proposed receiving scheme receive the notice under paragraph 11.

(4) The document must set out for each charge structure all levels of administration charges (including any discounted levels)—

(a) for each arrangement, including a default arrangement, and any different levels in relation to any one arrangement,

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

(d) for any other type of administration charge in the scheme, and the reason for imposing it.

(5) Where the proposed receiving scheme is a Master Trust scheme the charges must be set out as at the most recent date, not falling within a triggering event period in relation to the transferring scheme, on which the receiving scheme submitted a strategy to the Pensions Regulator under section 12 of the Pension Schemes Act 2017 (continuity strategy requirement).

(6) In all other cases the charges must be set out as at the date the triggering event occurred in relation to the transferring scheme as a result of which continuity option 1 is being pursued.

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

(8) Where there is a discounted level, the reason for charging the lower level must also be set out.

(9) The document must include a statement explaining—

(a) how the scheme will be in compliance with section 45(2) of the Act (prohibition on increasing charges etc during triggering event period),

(b) whether the scheme is to be liable for the costs mentioned in section 45(4) of the Act, and

(10) In this paragraph “discounted level” means a lower level of an administration charge which applies in particular circumstances, including—

(a) a lower level which applies to members from a particular employer, or

(b) a lower level which applies to a member according to the value of the member’s rights in the scheme.

Trustee discharge

19

Where the trustees of an unconnected multiple employer scheme that is pursuing continuity option 1 have discharged the scheme’s liability in respect of a beneficiary’s accrued rights to benefits under the scheme in accordance with the requirements of section 36 of the Act (continuity option 1: discharge of liabilities and winding up), the trustees cease to have any further obligation to provide benefits in relation to those rights.

Winding up

20

As soon as practicable after the trustees of an unconnected multiple employer scheme that is pursuing continuity option 1 have, in accordance with section 36 of the Act, discharged the scheme’s liability in respect of beneficiaries’ accrued rights to benefits under the scheme, they must wind up the scheme.

Regulator’s power to direct

21

(1) The Pensions Regulator may direct the trustees of an unconnected multiple employer scheme to do anything they are permitted or required to do by this Schedule where continuity option 1 is being pursued.

(2) The trustees of an unconnected multiple employer scheme must comply with a direction issued by the Pensions Regulator requiring them to do anything permitted or required by this Schedule.

Civil penalties

22

Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with a requirement imposed by this Schedule, including where the requirement is contained in a direction made under it.

Schedule 7 — Collective money purchase schemes: amendments to secondary legislation

Amendment of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991

1

(1) The Occupational Pension Schemes (Preservation of Benefit) Regulations 1991[^f00106] are amended as follows.

(2) In regulation 12A (discharge of liabilities by collective money purchase scheme which is winding up)—

(a) in paragraph (1) for sub-paragraph (b) substitute—

(b) the trustees of the scheme do not receive a notice from the beneficiary in accordance with— (i) where the scheme is a single or connected employer scheme, paragraph 14 of Schedule 6 to the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022[^f00107]; (ii) where the scheme is an unconnected multiple employer scheme, paragraph 14 of Schedule 6 to the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025.

(b) in paragraph (2)—

(i) for the definition of “default discharge option” substitute—

“default discharge option” has the meaning given by— in relation to a single or connected employer scheme, paragraph 1(1) of Schedule 6 to the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022; in relation to an unconnected multiple employer scheme, paragraph 1 (1) of Schedule 6 to the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025;

(ii) after the definition of “default discharge option” insert—

“single or connected employer scheme” and “unconnected multiple employer scheme” have the meanings given by section 1(3) of the Pension Schemes Act 2021[^f00108].

Amendment of the Occupational Pension Schemes (Transfer Values) Regulations 1996

2

In the Occupational Pension Schemes (Transfer Values) Regulations 1996[^f00109], in regulation 2A (collective money purchase schemes during winding-up) for paragraph (2) substitute—

(2) In this regulation— - “single or connected employer scheme” and “unconnected multiple employer scheme” have the meanings given by section 1(3) of the Pension Schemes Act 2021; - “winding-up period” has the meaning given by— in relation to a single or connected employer scheme, paragraph 1(1) of Schedule 6 to the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022; in relation to an unconnected multiple employer scheme, paragraph 1 (1) of Schedule 6 to the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025.

Amendment of the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 1997

3

In the Occupational Pension Schemes (Assignment, Forfeiture, Bankruptcy etc.) Regulations 1997[^f00110], in regulation 8 (exemptions from the inalienability and forfeiture provisions)—

(a) in paragraph (7A)—

(i) from “Schedule 6” to the end becomes sub-paragraph (a);

(ii) at the beginning of that sub-paragraph insert “where the scheme is a single or connected employer scheme,”;

(iii) after that sub-paragraph insert—

(b) where the scheme is an unconnected multiple employer scheme, Schedule 6 (continuity option 1: transfer out and winding up) to the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025.

(b) for paragraph (9) substitute—

(9) In paragraph (7A), “periodic income” has the meaning given by— (a) in relation to a single or connected employer scheme, paragraph 1(1) of Schedule 6 to the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022; (b) in relation to an unconnected multiple employer scheme, paragraph 1 (1) of Schedule 6 to the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025.

(10) In paragraphs (7A) and (9) “single or connected employer scheme” and “unconnected multiple employer scheme” have the meanings given by section 1(3) of the Pension Schemes Act 2021.

Amendment of the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006

4

In the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006[^f00111], in regulation 10 (listed changes: exclusions)—

(a) in paragraph (1)—

(i) in sub-paragraph (ad) for “collective money purchase scheme” substitute “single or connected employer scheme”;

(ii) after sub-paragraph (ad) insert—

(ae) is made in respect of an unconnected multiple employer scheme that is pursuing continuity option 1 in accordance with— (i) Schedule 6 to the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025, or (ii) scheme rules made in accordance with that Schedule,

(b) in paragraph (5)—

(i) for the definition of “multi-annual reduction” substitute—

“multi-annual reduction” has the meaning given by— in relation to a single or connected employer scheme, regulation 2(1) of the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022; in relation to an unconnected multiple employer scheme, regulation 26(1) of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025;

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

“single or connected employer scheme” and “unconnected multiple employer scheme” have the meanings given by section 1(3) of the Pension Schemes Act 2021.

Amendment of the Occupational Pension Schemes (Modification of Schemes) Regulations 2006

5

(1) The Occupational Pension Schemes (Modification of Schemes) Regulations 2006[^f00112] are amended as follows.

(2) In regulation 1(3) (interpretation)—

(a) for the definition of “multi-annual reduction” substitute—

“multi-annual reduction” has the meaning given by— in relation to a single or connected employer scheme, regulation 2(1) of the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022; in relation to an unconnected multiple employer scheme, regulation 26(1) of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025;

(b) after the definition of “the scheme administrator” insert—

“single or connected employer scheme” has the meaning given by section 1(3) of the Pension Schemes Act 2021;

“unconnected multiple employer scheme” has the meaning given by section 1(3) of the Pension Schemes Act 2021

(3) In regulation 3 (non-application of the subsisting rights provisions)—

(a) at the end of paragraph (k) omit “or”;

(b) in paragraph (l)—

(i) for “collective money purchase scheme” substitute “single or connected employer scheme”;

(ii) at the end insert “; or”;

(m) which is made in respect of an unconnected multiple employer scheme that is pursuing continuity option 1 in accordance with— (i) Schedule 6 to the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025; or (ii) scheme rules made in accordance with the requirements of that Schedule.

Amendment of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013

6

(1) The Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013[^f00113] are amended as follows.

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

(a) for the definition of “multi-annual reduction” substitute—

“multi-annual reduction”— in relation to a single or connected employer scheme has the meaning given by regulation 2(1) of the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022, and in relation to an unconnected multiple employer scheme has the meaning given by regulation 26 (1) of the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025;

(b) after the definition of “scheme year” insert—

“single or connected employer scheme” has the meaning given by section 1(3) of the 2021 Act;

“unconnected multiple employer scheme” has the meaning given by section 1(3) of the 2021 Act;

(3) In regulation 24(6) (occupational pension schemes during winding up)—

(a) in sub-paragraph (za) for “collective money purchase scheme” substitute “single or connected employer scheme”;

(b) after sub-paragraph (za) insert—

(zb) in relation to an unconnected multiple employer scheme, in accordance with paragraph 4 of Schedule 6 to the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025,

(4) In regulation 29B (additional publication requirements for collective money purchase schemes), after paragraph (5) insert—

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