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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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(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 1993¹⁰⁵ (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 1991¹⁰⁶ 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 2022¹⁰⁷; (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 2021¹⁰⁸.

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

2

In the Occupational Pension Schemes (Transfer Values) Regulations 1996¹⁰⁹, 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 1997¹¹⁰, 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 2006¹¹¹, 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 2006¹¹² 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 2013¹¹³ 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—

(5A) Where there is a change in relation to the information listed in paragraph 1A of Schedule 11 (statement to be published by unconnected multiple employer schemes), the statement mentioned in sub-paragraph (2)(a) must be altered accordingly, and published as soon as practicable after, and in any event within the period of three months beginning with, the date the change occurred.

(5) In Schedule 11 (statements to be published by collective money purchase schemes)—

(a) in paragraph 1, at the beginning insert “Where the scheme is a single or connected employer scheme,”;

(b) after paragraph 1 insert—

(1A) Where the scheme is an unconnected multiple employer scheme, a summary of— (a) the rate or amount of benefits provided under the scheme; (b) how the benefits which accrue each year under the scheme relate to the contributions made into the scheme by, on behalf of or in respect of members.

Signed

Signed by authority of the Secretary of State for Work and Pensions

Torsten Bell — Parliamentary Under Secretary of State — Department for Work and Pensions — 15th December 2025

Explanatory note

(This note is not part of the Regulations)

Explanatory Note

These Regulations amend the Pension Schemes Act 2021 (c. 1) (“the 2021 Act”) in order to remove the exclusion of pension schemes used, or intended to be used, by two or more employers some or all of which are not connected with each other (“unconnected multiple employer schemes”) from the definition of “qualifying scheme”. This enables such schemes to be “collective money purchase schemes” for the purposes of Part 1 of the 2021 Act, which extends to England and Wales and Scotland. The Regulations also make further provision about such schemes - such as the detail of the authorisation and supervisory regime to which such schemes will be subject, amend the Occupational Pension Schemes (Collective Money Purchase Schemes) Regulation 2022 (S.I. 2022/255) (“the 2022 Regulations”) and make provision for amendments to legislation in relation to schemes providing collective money purchase benefits.

Part 2 of the Regulations makes amendments to the 2021 Act.

Regulation 3 amends subsection (2) of section 3 of the 2021 Act, and omits subsection (3) of that section, to remove the limitations on qualifying schemes to (a) pension schemes established solely by one or more persons to whom section 1(2)(a) (employer) of the Pension Schemes Act 1993 applied when the scheme was established and (b) pension schemes used, or intended to be used, only by a single employer or two or more employers that are connected with each other (“single or connected employer schemes”). It also inserts definitions of “single or connected employer scheme” and “unconnected multiple employer scheme” into section 1 of the 2021 Act to enable different provision to be made in relation to each type of scheme.

Regulations 4 to 23 make amendments to the 2021 Act to make provision about unconnected multiple employer schemes. Regulation 5 amends section 9 of the 2021 Act to provide additional authorisation criteria that must be met by unconnected multiple employer schemes. Regulation 9 amends section 14 of the 2021 Act to require the Pensions Regulator to be satisfied that the business strategy relating to the scheme is sound in order to be satisfied that an unconnected multiple employer scheme is financially sustainable. Regulation 10 inserts section 14A into the 2021 Act, requiring the scheme proprietor of an unconnected multiple employer scheme to prepare a business plan for the scheme, which the Pensions Regulator must take into account in deciding whether it is satisfied that the business strategy relating to the scheme is sound. Schedules 1A and 1B, which are inserted into the 2021 Act by regulation 23 make provision about the matters the Pensions Regulator must and may take into account in deciding whether a scheme’s business strategy is sound and about the business plan. Other provisions of Part 2 of the Regulations amend the 2021 Act to reflect these changes.

Part 3 of the Regulations makes provision about when an employer is connected with another employer for the purposes of determining whether a scheme is a single or connected employer scheme or an unconnected employer scheme.

Part 4 of the Regulations makes provision about unconnected multiple employer schemes. This Part makes provision equivalent to the 2022 Regulations, which will continue to have effect in relation to single or connected employer schemes. There are some differences to reflect the different nature of unconnected multiple employer schemes and the additional authorisation criteria that will apply to such schemes. Chapter 1 makes preliminary provision covering application, interpretation and notices. Chapter 2 makes provision about schemes divided into sections. Chapter 3 makes provision about authorisation. Chapter 4 makes provision about the provisions that must be included in scheme rules relating to the calculation of benefits, about actuarial valuations and about benefit adjustments. Chapter 5 makes provision about ongoing supervision including about supervisory returns, significant events and risk notices. Chapter 6 (including Schedule 6), makes provision about triggering events and continuity options, including provision about administration charges during a triggering event period.

Part 5 of the Regulations amends the 2022 Regulations. Regulation 59 limits the application of the 2022 Regulations to single or connected employer schemes (other than where the 2022 Regulations make amendments to other instruments). Regulation 61 omits regulation 3 of the 2022 Regulations which made provision about when an employer is connected with another employer. This is now provided for in Part 3 of these Regulations. Regulations 60 and 62 to 77 make changes for consistency between the 2022 Regulations and these Regulations.

Part 6 of the Regulations amends the Pension Schemes Act 1993 (c. 48), the Pensions Act 1995 (c. 26) and the Pensions Act 2004 (c. 35) to ensure that relevant definitions of “scheme rules” incorporate overrides made by virtue of these Regulations. It also amends the Pensions Act 2004 to reflect changes to the provisions in the 2021 Act about risk notices provided for by regulation 15. It also amends the Pension Schemes Act 2017 (c. 17) to provide that unconnected multiple employer schemes are not Master Trusts for the purposes of that Act and to make provision for cases where a section of a Master Trust is subject to the provisions of the 2021 Act. Part 6 also introduces Schedule 7 which makes consequential amendments to secondary legislation.

A full impact assessment of the effect that this instrument will have on the costs of business, the voluntary sector and the public sector is published with the Explanatory Memorandum alongside this instrument on the UK legislation website www.legislation.gov.uk. A hard copy of the impact assessment may be obtained from the Department for Work and Pensions, Caxton House, Tothill Street, London SW1H 9NA.

Footnotes

2021 c. 1.

Regulations made under sections 5(2), 11(3)(a), 12(2)(b), 13(3), 14(3), 15(6), 16(2), 17, 18(4), 36(6), 47 and 49(2) of the Pension Schemes Act 2021 are stated to be subject to affirmative resolution procedure.

“Employer” is defined in section 49(1) of the Pension Schemes Act 2021.

2006 c. 46.

Regulation 21 of this instrument inserts a definition of “Code” into section 49(1) of the Pension Schemes Act 2021.

1995 c. 26. Section 49(8A) was inserted by S.I. 2001/3649 and amended by paragraph 82(1) and (2) of Schedule 18 to the Financial Services Act 2012 (c. 21) and S.I. 2019/192.

Section 10 was amended by paragraph 11 of Schedule 2 to the Welfare Reform and Pensions Act 1999 (c. 30), paragraphs 34 and 38 of Schedule 12 to the Pensions Act 2004 (c. 35), paragraph 121 of Schedule 13 to the Tribunals, Courts and Enforcement Act 2007 (c. 15), paragraph 52 of Schedule 9 to the Crime and Courts Act 2013 (c. 22) and paragraph 1 of Schedule 7 to the Pension Schemes Act 2021.

“The triggering events table” is defined in section 31(4) of the Pension Schemes Act 2021 as the table in that section.

2004 c. 35. Section 90 was amended by paragraphs 11 and 13 of Schedule 3 to the Pension Schemes Act 2021.

Section 35 was substituted by section 244 of the Pensions Act 2004.

2004 c. 12.

Section 270 was amended by paragraphs 1 and 9 of Schedule 7 to the Finance Act 2014 (c. 26).

The definition of “pension credit member” in section 124(1) was inserted by paragraphs 43 and 61(3) of Schedule 12 to the Welfare Reform and Pensions Act 1999 (c. 30) and the definition of “pensioner member” in section 124(1) was amended by virtue of S.I. 2006/745.

“Scheme actuary” is defined in section 49(1) of the Pension Schemes Act 2021.

S.I. 2013/2734; regulation 29B and Schedule 11 were inserted by S.I. 2022/337; paragraph 1A of Schedule 11 is inserted by paragraph 6 (5) of Schedule 7 to this instrument.

A definition of “unconnected multiple employer schemes” is inserted into the Pension Schemes Act 2021 by regulation 3 of this instrument.

“Scheme rules” is defined in section 49(1) of the Pension Schemes Act 2021.

Section 17(2) is amended by regulation 11 of this instrument.

“Actuarial valuation” is defined in section 20(2) of the Pension Schemes Act 2021.

Section 67A was inserted by section 262 of the Pensions Act 2004.

The term “qualifying benefits” is explained in section 2 of the Pension Schemes Act 2021.

This information is required to enable the Pensions Regulator to carry out its function under section 26(1) of the Pension Schemes Act 2021 (list of authorised schemes).

Section 11(2) is amended by regulation 7 of this instrument.

1997 c. 50; section 112(1) was amended by section 79(1) of the Protection of Vulnerable Groups (Scotland) Act 2007 (asp 14), section 97(2) of, and Part 8 of Schedule 8 to, the Policing and Crime Act 2009 (c. 26), section 80(1) of the Protection of Freedoms Act 2012 (c. 9), S.S.I. 2006/50 and S.I. 2012/3006 and repealed in relation to Scotland by paragraph 3 of Schedule 5 to the Disclosure (Scotland) Act 2020 (asp 13).

2020 asp 13.

Sections 14B and 14C are inserted by regulation 10 of this instrument.

Schedule 1C is inserted by regulation 23 of this instrument.

Section 3 is amended by regulation 3 of this instrument.

1993 c. 48. Section 113 was amended by section 1(2) of the Employment Rights (Dispute Resolution) Act 1998 (c. 8), sections 52(1) and (2) of the Child Support, Pensions and Social Security Act 2000 (c. 19), paragraphs 9 and 17 of Schedule 12 to the Pensions Act 2004, paragraph 6 of Schedule 5 to the Pensions Act 2007 (c. 22), section 44(1) of the Pensions Act 2014 (c. 19), section 38 of the Pension Schemes Act 2015 (c. 8), section 127(3) of the Pension Schemes Act 2021 and S.I. 2005/2053.

Section 228ZA was inserted by paragraph 10(1) of Schedule 4 to the Finance (No. 2) Act 2015 (c. 33).

Section 14 is amended by regulation 9 of this instrument.

The term “triggering event period” is explained in section 32 of the Pension Schemes Act 2021.

A company registered in England and Wales with number 02486368.

See section 21 of the Pension Schemes Act 2021 (certificate that actuarial valuation prepared in accordance with scheme rules).

Section 248(8) was amended by S.I. 2009/1941.

Regulation 5 of this instrument amends section 9(3).

Section 28(2) is amended by regulation 14 of this instrument.

Section 14A is inserted by regulation 10 of this instrument.

Section 9(3)(cb) is inserted by regulation 5 of this instrument.

Section 29(4) is amended by regulation 15 of this instrument.

Section 29(7) is amended by regulation 15 of this instrument.

Section 33(3A) is inserted by regulation 18 (c) of this instrument.

“Implementation strategy” is defined in section 49(1) of the Pension Schemes Act 2021.

Section 33 is amended by regulation 18 of this instrument.

Section 23 was substituted by section 36(1) and (3) of the Pensions Act 2004.

Section 99(2) was substituted by paragraphs 3 and 13 of Schedule 4 to the Pension Schemes Act 2015 and was amended by section 25(1) and (4) of the Pension Schemes Act 2021.

1999 c. 30; section 24 was amended by paragraph 158 of Schedule 27, and Schedule 30, to the Civil Partnership Act 2004 (c. 33).

Section 49(1) of the Pension Schemes Act 2021 provides that “occupational pension scheme” has the same meaning as in the Pension Schemes Act 1993.

S.I. 2001/544. The definition of financial instrument was inserted by S.I. 2006/3384, and was amended by S.I. 2017/488 and 2019/632. There are other amendments to article 3 which are not relevant to this instrument.

S.I. 2022/255; amended by S.I. 2024/334.

“Single or connected employer scheme” is defined for the purposes of Part 1 of the Pension Schemes Act 2021 in section 1(3) of that Act (inserted by regulation 3 (1) of this instrument).

Paragraph (4) of regulation 17 was amended by, and paragraph (10C) of that regulation was inserted by, S.I. 2024/344.

The definition of “personal pension scheme” in section 1(1) was substituted by section 239(3) of the Pensions Act 2004 and amended by Part 3(2) of Schedule 27 to the Finance Act 2007 (c. 11).

2017 c. 17.

Section 100B was inserted by paragraphs 3 and 14 of Schedule 4 to the Pension Schemes Act 2015.

Sub-paragraph (xvi) was inserted by section 25(1) and (6)(a) of the Pension Schemes Act 2021.

Sub-paragraph (xii) was inserted by section 25(1) and (6)(b) of the Pension Schemes Act 2021.

Section 101AI was inserted by section 264 of the Pensions Act 2004.

Sub-paragraph (xiv) was inserted by paragraphs 1 and 3(a) of Schedule 3 to the Pension Schemes Act 2021.

Sub-paragraph (xi) was inserted by paragraphs 1 and 3(b) of Schedule 3 to the Pension Schemes Act 2021.

Section 67A, together with other sections, was substituted for section 67 by section 262 of the Pensions Act 2004.

Sub-paragraph (xv) was inserted by section 24(1) and (8)(a) of the Pension Schemes Act 2021.

Sub-paragraph (xii) was inserted by section 24(1) and (8)(b) of the Pension Schemes Act 2021.

Section 93(2)(pc) was inserted by paragraphs 11 and 14(3) of Schedule 3 to the Pension Schemes Act 2021.

Section 318(3)(a)(xv) was inserted by paragraphs 11 and 20(a) of Schedule 3 to the Pension Schemes Act 2021.

Section 318(3)(b)(xii) was inserted by paragraphs 11 and 20(b) of Schedule 3 to the Pension Schemes Act 2021.

2016 asp 21.

1986 c. 45.

S.I. 1989/2405 (N.I.19).

Section 385(1) was amended by paragraphs 1 and 55 of Schedule 19 to the Enterprise and Regulatory Reform Act 2013 (c. 24).

Section 383(1) was amended by paragraphs 1 and 53 of Schedule 19 to the Enterprise and Regulatory Reform Act 2013.

S.R. 1991 No. 364.

Section 263H was inserted by section 71(2) of, and Schedule 18 to, the Enterprise and Regulatory Reform Act 2013.

Section 381(2) was amended by paragraphs 1 and 52 of Schedule 19 to the Enterprise and Regulatory Reform Act 2013.

Section 381(1) was amended by paragraphs 1 and 52 of Schedule 19 to the Enterprise and Regulatory Reform Act 2013.

Schedule 4A was inserted by section 257(2) of, and Schedule 20 to, the Enterprise Act 2002 (c. 40).

Section 22 was amended by section 6(2) of the Bankruptcy and Diligence (Scotland) Act 2024 (asp 9).

Schedule 2A was inserted by S.I. 2005/1455 (N.I. 10).

1974 c. 53.

S.I. 1978/1908 (N.I. 27).

1986 c. 46; section 1(1) was amended by section 5(1) of the Insolvency Act 2000 (c. 39), section 204(1) and (3) of the Enterprise Act 2002 and paragraph 2(2) of Schedule 13 to the Finance Act 2024 (c. 3). Section 1A(1) was inserted by section 6(1) and (2) of the Insolvency Act 2000 and was amended by paragraphs 1 and 3 of Schedule 7 to the Small Business, Enterprise and Employment Act 2015 (c. 26) and paragraph 2(3) of Schedule 13 to the Finance Act 2024.

S.I. 2002/3150 (N.I. 4). Article 3(1) was amended by S.I. 2005/1454 (N.I. 9). Article 4(1) was amended by paragraph 9(4)(a) of Schedule 8 to the Small Business, Enterprise and Employment Act 2015.

Section 3 was substituted by section 33 of the Pensions Act 2004 and amended by S.I. 2010/22.

S.I. 1995/3213 (N.I. 22).

Article 3 was substituted by S.I. 2005/255 (N.I. 1) and was amended by paragraphs 2 and 3 of Schedule 1 to and Schedule 3 to the Pensions Regulator Tribunal (Transfer of Functions) Act (Northern Ireland) 2010 (c. 4 (N.I.)).

Section 29 was amended by paragraphs 34 and 45 of Schedule 12 to and Schedule 13 to the Pensions Act 2004 and S.I. 2006/1722, 2009/1941, 2012/2404 and 2016/481.

Article 29 was amended by S.I. 2002/3150 (N.I. 4), S.I. 2005/255 (N.I. 1) and S.R. 2008 No. 94 and and.

Paragraphs (ba) to (bd) of section 11(2) are inserted by regulation 7 of this instrument.

S.I. 1996/1715. Regulation 24 was inserted by S.I. 2015/879.

Regulation 10 of this instrument inserts section 14A into the Pension Schemes Act 2021 (business plan requirement).

Section 152 was amended by paragraphs 1 and 2 of Schedule 5 to the Finance Act 2021 (c. 26) and section 24(1) and (2) of the Finance (No. 2) Act 2023 (c. 30).

S.I. 2015/879. Regulation 3 was amended by S.I. 2015/889 and 2022/255.

Paragraph 15 was amended by paragraphs 1 and 26 of Schedule 10 to the Finance Act 2005 (c. 7), paragraph 6(2) of Schedule 5 to the Finance Act 2016 (c. 24) and S.I. 2005/3229.

Paragraph 21 was substituted by paragraphs 12 and 15 of Schedule 16 to the Finance Act 2011 (c. 11) and amended by paragraph 20 of Schedule 1 to the Taxation of Pensions Act 2014 (c. 30).

Paragraph 22A was inserted by paragraph 4(1) of Schedule 1 to the Taxation of Pensions Act 2014.

Paragraph 7 was substituted by paragraphs 2 and 5 of Schedule 16 to the Finance Act 2011 and amended by paragraphs 5 and 19 of Schedule 1 to the Taxation of Pensions Act 2014.

Paragraph 8A was inserted by paragraph 3(1) of Schedule 1 to the Taxation of Pensions Act 2014.

Paragraph 27A was inserted by paragraphs 1 and 3(1) of Schedule 2 to the Taxation of Pensions Act 2014.

Paragraph 27D was inserted by paragraphs 1 and 3(1) of Schedule 2 to the Taxation of Pensions Act 2014.

100

Paragraph 27E was inserted by paragraphs 1 and 3(1) of Schedule 2 to the Taxation of Pensions Act 2014 and amended by paragraphs 1 and 13 of Schedule 4 to the Finance Act 2015 (c. 11).

101

Paragraph 27F was inserted by paragraphs 1 and 3(1) of Schedule 2 to the Taxation of Pensions Act 2014.

102

Paragraph 27J was inserted by paragraphs 1 and 3(1) of Schedule 2 to the Taxation of Pensions Act 2014.

103

Paragraph 27K was inserted by paragraphs 1 and 3(1) of Schedule 2 to the Taxation of Pensions Act 2014 and amended by paragraphs 1 and 13 of Schedule 4 to the Finance Act 2015.

104

Subsections (3A) to (3D) were inserted by section 49(2) of the Child Support, Pensions and Social Security Act 2000 (c. 19) and amended by paragraphs 34 and 69 of Schedule 12 to the Pensions Act 2004.

105

Chapter 2 of Part 4ZA was inserted by section 264 of the Pensions Act 2004 and its heading was substituted by paragraphs 3 and 4 of Schedule 4 to the Pension Schemes Act 2015 (c. 8).

106

S.I. 1991/167; regulation 12(7) was inserted by S.I. 2018/240; regulation 12A was inserted by S.I. 2022/337. There are other amending instruments but none is relevant.

107

Paragraph 14 was amended by S.I. 2024/334 and is further amended by regulation 77 (f) of this instrument.

108

Section 1(3) is inserted by regulation 3 (1) of this instrument.

109

S.I. 1996/1847; regulation 2A was inserted by S.I. 2022/337. There are other amending instruments but none is relevant.

110

S.I. 1997/785; regulation 8(7A) and (9) were inserted by S.I. 2022/337. There are other amending instruments but none is relevant.

111

S.I. 2006/349, amended by S.I. 2022/337; there are other amending instruments but none is relevant.

112

S.I. 2006/759, amended by S.I. 2022/337; there are other amending instruments but none is relevant.

113

S.I. 2013/2734, amended by S.I. 2015/482 and 2022/337; there are other amending instruments but none is relevant.

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