Pension Schemes Act 2026

May 7, 2026

Открыть оригинал документа Полный текст документа

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1"><num>1</num><heading>Asset pool companies</heading><subsection eId="section-1-1"><num>(1)</num><content>Scheme regulations relating to a scheme for local government workers which has pension funds may make provision about, or in connection with, asset pool companies and participation in asset pool companies by the scheme managers.</content></subsection><subsection eId="section-1-2"><num>(2)</num><intro>The provision which may be made under subsection <ref href="#section-1-1">(1)</ref> includes provision—</intro><level class="para1" eId="section-1-2-a"><num>(a)</num><content>imposing requirements or prohibitions on scheme managers;</content></level><level class="para1" eId="section-1-2-b"><num>(b)</num><intro>enabling the responsible authority, in prescribed circumstances, to give a direction to a scheme manager requiring the manager—</intro><level class="para2" eId="section-1-2-b-i"><num>(i)</num><content>to participate in an asset pool company specified in the direction, or</content></level><level class="para2" eId="section-1-2-b-ii"><num>(ii)</num><content>to cease to participate in an asset pool company so specified;</content></level></level><level class="para1" eId="section-1-2-c"><num>(c)</num><intro>enabling the responsible authority, in prescribed circumstances, to give a direction to an asset pool company specified in the direction, or to all or any of its participating scheme managers, requiring the company or scheme managers concerned—</intro><level class="para2" eId="section-1-2-c-i"><num>(i)</num><content>to take any steps specified in the direction with a view to enabling or securing compliance by a scheme manager with a direction requiring it to participate in, or to cease to participate in, the company (see paragraph <ref href="#section-1-2-b">(b)</ref>), and</content></level><level class="para2" eId="section-1-2-c-ii"><num>(ii)</num><content>to take any other steps necessary to enable or secure compliance with such a direction;</content></level></level><level class="para1" eId="section-1-2-d"><num>(d)</num><content>imposing requirements or prohibitions on asset pool companies;</content></level><level class="para1" eId="section-1-2-e"><num>(e)</num><content>enabling or requiring the responsible authority to issue guidance to asset pool companies;</content></level><level class="para1" eId="section-1-2-f"><num>(f)</num><intro>enabling the responsible authority, in prescribed circumstances, to give a direction to an asset pool company—</intro><level class="para2" eId="section-1-2-f-i"><num>(i)</num><content>requiring it to comply with guidance issued as mentioned in <ref href="#section-1-2-e">paragraph (e)</ref> (where the responsible authority is satisfied that it is failing, or has failed, to do so without good reason);</content></level><level class="para2" eId="section-1-2-f-ii"><num>(ii)</num><content>as to the manner in which it is to carry out any specified investment management activities.</content></level></level></subsection><subsection eId="section-1-3"><num>(3)</num><intro>In <ref href="#section-1-2">subsection (2)</ref><ref href="#section-1-2-f">(f)</ref><ref href="#section-1-2-f-i">(i)</ref> and <ref href="#section-1-2-f-ii">(ii)</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the direction;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-investment-management-activities" eId="term-investment-management-activities">investment management activities</term>” means activities involved in or connected with the management of funds and other assets.</content></hcontainer></subsection><subsection eId="section-1-4"><num>(4)</num><intro>If provision is made under subsection <ref href="#section-1-2">(2)</ref><ref href="#section-1-2-b">(b)</ref> or <ref href="#section-1-2-c">(c)</ref>, the scheme regulations must require the responsible authority to consult the following persons before a direction is given in respect of the participation of a scheme manager in an asset pool company, namely—</intro><level class="para1" eId="section-1-4-a"><num>(a)</num><content>the scheme manager;</content></level><level class="para1" eId="section-1-4-b"><num>(b)</num><content>the asset pool company;</content></level><level class="para1" eId="section-1-4-c"><num>(c)</num><content>the scheme managers participating in the asset pool company;</content></level><level class="para1" eId="section-1-4-d"><num>(d)</num><content>any other person the responsible authority considers it appropriate to consult.</content></level></subsection><subsection eId="section-1-5"><num>(5)</num><intro>If provision is made under subsection <ref href="#section-1-2">(2)</ref><ref href="#section-1-2-f">(f)</ref> for the giving of directions to an asset pool company, the scheme regulations must require the responsible authority to consult the following persons before a direction is given, namely—</intro><level class="para1" eId="section-1-5-a"><num>(a)</num><content>the asset pool company;</content></level><level class="para1" eId="section-1-5-b"><num>(b)</num><content>the scheme managers participating in the asset pool company;</content></level><level class="para1" eId="section-1-5-c"><num>(c)</num><content>the Financial Conduct Authority;</content></level><level class="para1" eId="section-1-5-d"><num>(d)</num><content>any other person the responsible authority considers it appropriate to consult.</content></level></subsection><subsection eId="section-1-6"><num>(6)</num><intro>Scheme regulations making provision mentioned in <ref href="#section-1-2">subsection (2)</ref><ref href="#section-1-2-a">(a)</ref> may (among other things)—</intro><level class="para1" eId="section-1-6-a"><num>(a)</num><content>require a scheme manager to participate in an asset pool company with a view to that company managing the funds and other assets of the scheme for which the scheme manager is responsible;</content></level><level class="para1" eId="section-1-6-b"><num>(b)</num><content>prohibit a scheme manager from participating in more than one asset pool company at the same time (subject to any transitional arrangements permitted by the regulations where a scheme manager participating in one company decides to participate instead in another company);</content></level><level class="para1" eId="section-1-6-c"><num>(c)</num><content>require the scheme managers for the time being participating in an asset pool company to take steps to secure the grant of FCA authorisation to the company for carrying out prescribed activities.</content></level></subsection><subsection eId="section-1-7"><num>(7)</num><content>Scheme regulations making provision mentioned in <ref href="#section-1-2">subsection (2)</ref><ref href="#section-1-2-d">(d)</ref> may (among other things) require an asset pool company to take steps to secure the grant of FCA authorisation to the company for carrying out prescribed activities.</content></subsection><subsection eId="section-1-8"><num>(8)</num><intro>In subsections <ref href="#section-1-6">(6)</ref><ref href="#section-1-6-c">(c)</ref> and <ref href="#section-1-7">(7)</ref> —</intro><hcontainer name="definition"><intro>“<term refersTo="#term-activities" eId="term-activities">activities</term>” means activities which—</intro><level class="para1"><num>(a)</num><content>are activities of a kind that an asset pool company could carry out, and</content></level><level class="para1"><num>(b)</num><content>require FCA authorisation;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-authorisation" eId="term-fca-authorisation">FCA authorisation</term>” means authorisation by the Financial Conduct Authority under the Financial Services and Markets Act 2000.</content></hcontainer></subsection><subsection eId="section-1-9"><num>(9)</num><intro>For the purposes of this Chapter—</intro><level class="para1" eId="section-1-9-a"><num>(a)</num><intro>“<term refersTo="#term-asset-pool-company" eId="term-asset-pool-company">asset pool company</term>” means a company limited by shares and registered in the United Kingdom which is established for purposes consisting of or including—</intro><level class="para2" eId="section-1-9-a-i"><num>(i)</num><content>managing funds or other assets for which its participating scheme managers are responsible, and</content></level><level class="para2" eId="section-1-9-a-ii"><num>(ii)</num><content>making and managing investments on behalf of those scheme managers (whether directly or through one or more collective investment vehicles),</content></level><wrapUp>and whose shares are all held by scheme managers only or by another company limited by shares and registered in the United Kingdom whose shares are all held by scheme managers only, and</wrapUp></level><level class="para1" eId="section-1-9-b"><num>(b)</num><intro>a scheme manager participates in an asset pool company by—</intro><level class="para2" eId="section-1-9-b-i"><num>(i)</num><content>being a shareholder of the company,</content></level><level class="para2" eId="section-1-9-b-ii"><num>(ii)</num><content>being a shareholder in another company which is the only shareholder of the company, or</content></level><level class="para2" eId="section-1-9-b-iii"><num>(iii)</num><content>contracting with the company for it to manage the funds and other assets for which the scheme manager is responsible.</content></level></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-1"><num>(1)</num><content>Scheme regulations relating to a scheme for local government workers which has pension funds may make provision about, or in connection with, asset pool companies and participation in asset pool companies by the scheme managers.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-2"><num>(2)</num><intro>The provision which may be made under subsection <ref href="#section-1-1">(1)</ref> includes provision—</intro><level class="para1" eId="section-1-2-a"><num>(a)</num><content>imposing requirements or prohibitions on scheme managers;</content></level><level class="para1" eId="section-1-2-b"><num>(b)</num><intro>enabling the responsible authority, in prescribed circumstances, to give a direction to a scheme manager requiring the manager—</intro><level class="para2" eId="section-1-2-b-i"><num>(i)</num><content>to participate in an asset pool company specified in the direction, or</content></level><level class="para2" eId="section-1-2-b-ii"><num>(ii)</num><content>to cease to participate in an asset pool company so specified;</content></level></level><level class="para1" eId="section-1-2-c"><num>(c)</num><intro>enabling the responsible authority, in prescribed circumstances, to give a direction to an asset pool company specified in the direction, or to all or any of its participating scheme managers, requiring the company or scheme managers concerned—</intro><level class="para2" eId="section-1-2-c-i"><num>(i)</num><content>to take any steps specified in the direction with a view to enabling or securing compliance by a scheme manager with a direction requiring it to participate in, or to cease to participate in, the company (see paragraph <ref href="#section-1-2-b">(b)</ref>), and</content></level><level class="para2" eId="section-1-2-c-ii"><num>(ii)</num><content>to take any other steps necessary to enable or secure compliance with such a direction;</content></level></level><level class="para1" eId="section-1-2-d"><num>(d)</num><content>imposing requirements or prohibitions on asset pool companies;</content></level><level class="para1" eId="section-1-2-e"><num>(e)</num><content>enabling or requiring the responsible authority to issue guidance to asset pool companies;</content></level><level class="para1" eId="section-1-2-f"><num>(f)</num><intro>enabling the responsible authority, in prescribed circumstances, to give a direction to an asset pool company—</intro><level class="para2" eId="section-1-2-f-i"><num>(i)</num><content>requiring it to comply with guidance issued as mentioned in <ref href="#section-1-2-e">paragraph (e)</ref> (where the responsible authority is satisfied that it is failing, or has failed, to do so without good reason);</content></level><level class="para2" eId="section-1-2-f-ii"><num>(ii)</num><content>as to the manner in which it is to carry out any specified investment management activities.</content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-2-a"><num>(a)</num><content>imposing requirements or prohibitions on scheme managers;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-2-b"><num>(b)</num><intro>enabling the responsible authority, in prescribed circumstances, to give a direction to a scheme manager requiring the manager—</intro><level class="para2" eId="section-1-2-b-i"><num>(i)</num><content>to participate in an asset pool company specified in the direction, or</content></level><level class="para2" eId="section-1-2-b-ii"><num>(ii)</num><content>to cease to participate in an asset pool company so specified;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-2-c"><num>(c)</num><intro>enabling the responsible authority, in prescribed circumstances, to give a direction to an asset pool company specified in the direction, or to all or any of its participating scheme managers, requiring the company or scheme managers concerned—</intro><level class="para2" eId="section-1-2-c-i"><num>(i)</num><content>to take any steps specified in the direction with a view to enabling or securing compliance by a scheme manager with a direction requiring it to participate in, or to cease to participate in, the company (see paragraph <ref href="#section-1-2-b">(b)</ref>), and</content></level><level class="para2" eId="section-1-2-c-ii"><num>(ii)</num><content>to take any other steps necessary to enable or secure compliance with such a direction;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-2-d"><num>(d)</num><content>imposing requirements or prohibitions on asset pool companies;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-2-e"><num>(e)</num><content>enabling or requiring the responsible authority to issue guidance to asset pool companies;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-2-f"><num>(f)</num><intro>enabling the responsible authority, in prescribed circumstances, to give a direction to an asset pool company—</intro><level class="para2" eId="section-1-2-f-i"><num>(i)</num><content>requiring it to comply with guidance issued as mentioned in <ref href="#section-1-2-e">paragraph (e)</ref> (where the responsible authority is satisfied that it is failing, or has failed, to do so without good reason);</content></level><level class="para2" eId="section-1-2-f-ii"><num>(ii)</num><content>as to the manner in which it is to carry out any specified investment management activities.</content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-3"><num>(3)</num><intro>In <ref href="#section-1-2">subsection (2)</ref><ref href="#section-1-2-f">(f)</ref><ref href="#section-1-2-f-i">(i)</ref> and <ref href="#section-1-2-f-ii">(ii)</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the direction;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-investment-management-activities" eId="term-investment-management-activities">investment management activities</term>” means activities involved in or connected with the management of funds and other assets.</content></hcontainer></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-not-supported-by-a-substantive-employer-covenant" eId="term-not-supported-by-a-substantive-employer-covenant">not supported by a substantive employer covenant</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-4">(4)</ref>;</content></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-the-management-documents" eId="term-the-management-documents">the management documents</term>” has the meaning given by <ref href="#section-70">section 70</ref><ref href="#section-70-3">(3)</ref>;</content></hcontainer>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(a)</num><content>in the case of a scheme established under a trust, the trustees of the scheme, and</content></level>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-investment-strategy" eId="term-investment-strategy">investment strategy</term>” means a statement of a scheme manager’s objectives, priorities and preferences in relation to the investment of the funds and other assets for which it is responsible;</content></hcontainer>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-4"><num>(4)</num><intro>If provision is made under subsection <ref href="#section-1-2">(2)</ref><ref href="#section-1-2-b">(b)</ref> or <ref href="#section-1-2-c">(c)</ref>, the scheme regulations must require the responsible authority to consult the following persons before a direction is given in respect of the participation of a scheme manager in an asset pool company, namely—</intro><level class="para1" eId="section-1-4-a"><num>(a)</num><content>the scheme manager;</content></level><level class="para1" eId="section-1-4-b"><num>(b)</num><content>the asset pool company;</content></level><level class="para1" eId="section-1-4-c"><num>(c)</num><content>the scheme managers participating in the asset pool company;</content></level><level class="para1" eId="section-1-4-d"><num>(d)</num><content>any other person the responsible authority considers it appropriate to consult.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-5"><num>(5)</num><intro>If provision is made under subsection <ref href="#section-1-2">(2)</ref><ref href="#section-1-2-f">(f)</ref> for the giving of directions to an asset pool company, the scheme regulations must require the responsible authority to consult the following persons before a direction is given, namely—</intro><level class="para1" eId="section-1-5-a"><num>(a)</num><content>the asset pool company;</content></level><level class="para1" eId="section-1-5-b"><num>(b)</num><content>the scheme managers participating in the asset pool company;</content></level><level class="para1" eId="section-1-5-c"><num>(c)</num><content>the Financial Conduct Authority;</content></level><level class="para1" eId="section-1-5-d"><num>(d)</num><content>any other person the responsible authority considers it appropriate to consult.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-6"><num>(6)</num><intro>Scheme regulations making provision mentioned in <ref href="#section-1-2">subsection (2)</ref><ref href="#section-1-2-a">(a)</ref> may (among other things)—</intro><level class="para1" eId="section-1-6-a"><num>(a)</num><content>require a scheme manager to participate in an asset pool company with a view to that company managing the funds and other assets of the scheme for which the scheme manager is responsible;</content></level><level class="para1" eId="section-1-6-b"><num>(b)</num><content>prohibit a scheme manager from participating in more than one asset pool company at the same time (subject to any transitional arrangements permitted by the regulations where a scheme manager participating in one company decides to participate instead in another company);</content></level><level class="para1" eId="section-1-6-c"><num>(c)</num><content>require the scheme managers for the time being participating in an asset pool company to take steps to secure the grant of FCA authorisation to the company for carrying out prescribed activities.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-7"><num>(7)</num><content>Scheme regulations making provision mentioned in <ref href="#section-1-2">subsection (2)</ref><ref href="#section-1-2-d">(d)</ref> may (among other things) require an asset pool company to take steps to secure the grant of FCA authorisation to the company for carrying out prescribed activities.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-8"><num>(8)</num><intro>In subsections <ref href="#section-1-6">(6)</ref><ref href="#section-1-6-c">(c)</ref> and <ref href="#section-1-7">(7)</ref> —</intro><hcontainer name="definition"><intro>“<term refersTo="#term-activities" eId="term-activities">activities</term>” means activities which—</intro><level class="para1"><num>(a)</num><content>are activities of a kind that an asset pool company could carry out, and</content></level><level class="para1"><num>(b)</num><content>require FCA authorisation;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-authorisation" eId="term-fca-authorisation">FCA authorisation</term>” means authorisation by the Financial Conduct Authority under the Financial Services and Markets Act 2000.</content></hcontainer></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-master-trust-scheme" eId="term-master-trust-scheme">Master Trust scheme</term>” has the same meaning as in the <ref eId="c00005" href="https://www.legislation.gov.uk/ukpga/2017/17/contents">Pension Schemes Act 2017</ref> (see section 1(1) of that Act);</content></hcontainer>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-9"><num>(9)</num><intro>For the purposes of this Chapter—</intro><level class="para1" eId="section-1-9-a"><num>(a)</num><intro>“<term refersTo="#term-asset-pool-company" eId="term-asset-pool-company">asset pool company</term>” means a company limited by shares and registered in the United Kingdom which is established for purposes consisting of or including—</intro><level class="para2" eId="section-1-9-a-i"><num>(i)</num><content>managing funds or other assets for which its participating scheme managers are responsible, and</content></level><level class="para2" eId="section-1-9-a-ii"><num>(ii)</num><content>making and managing investments on behalf of those scheme managers (whether directly or through one or more collective investment vehicles),</content></level><wrapUp>and whose shares are all held by scheme managers only or by another company limited by shares and registered in the United Kingdom whose shares are all held by scheme managers only, and</wrapUp></level><level class="para1" eId="section-1-9-b"><num>(b)</num><intro>a scheme manager participates in an asset pool company by—</intro><level class="para2" eId="section-1-9-b-i"><num>(i)</num><content>being a shareholder of the company,</content></level><level class="para2" eId="section-1-9-b-ii"><num>(ii)</num><content>being a shareholder in another company which is the only shareholder of the company, or</content></level><level class="para2" eId="section-1-9-b-iii"><num>(iii)</num><content>contracting with the company for it to manage the funds and other assets for which the scheme manager is responsible.</content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-9-a"><num>(a)</num><intro>“<term refersTo="#term-asset-pool-company" eId="term-asset-pool-company">asset pool company</term>” means a company limited by shares and registered in the United Kingdom which is established for purposes consisting of or including—</intro><level class="para2" eId="section-1-9-a-i"><num>(i)</num><content>managing funds or other assets for which its participating scheme managers are responsible, and</content></level><level class="para2" eId="section-1-9-a-ii"><num>(ii)</num><content>making and managing investments on behalf of those scheme managers (whether directly or through one or more collective investment vehicles),</content></level><wrapUp>and whose shares are all held by scheme managers only or by another company limited by shares and registered in the United Kingdom whose shares are all held by scheme managers only, and</wrapUp></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-9-b"><num>(b)</num><intro>a scheme manager participates in an asset pool company by—</intro><level class="para2" eId="section-1-9-b-i"><num>(i)</num><content>being a shareholder of the company,</content></level><level class="para2" eId="section-1-9-b-ii"><num>(ii)</num><content>being a shareholder in another company which is the only shareholder of the company, or</content></level><level class="para2" eId="section-1-9-b-iii"><num>(iii)</num><content>contracting with the company for it to manage the funds and other assets for which the scheme manager is responsible.</content></level></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2"><num>2</num><heading>Asset management</heading><subsection eId="section-2-1"><num>(1)</num><content>Where scheme regulations relating to a scheme for local government workers make provision under <ref href="#section-1">section 1</ref><ref href="#section-1-1">(1)</ref>, the regulations must make provision about the management of the funds and other assets for which the scheme managers are responsible.</content></subsection><subsection eId="section-2-2"><num>(2)</num><intro>The provision made by virtue of <ref href="#section-2-1">subsection (1)</ref> must include provision for securing that (among other things)—</intro><level class="para1" eId="section-2-2-a"><num>(a)</num><content>each scheme manager formulates, publishes and keeps under review an investment strategy,</content></level><level class="para1" eId="section-2-2-b"><num>(b)</num><intro>the funds or other assets for which a scheme manager is responsible (other than money needed for making payments under the scheme from the pension fund maintained by that scheme manager) are—</intro><level class="para2" eId="section-2-2-b-i"><num>(i)</num><content>held on behalf of the scheme manager by an asset pool company in which the scheme manager participates (subject to any transitional arrangements permitted by the regulations in relation to the transfer of funds or assets to the company), and</content></level><level class="para2" eId="section-2-2-b-ii"><num>(ii)</num><content>properly managed by that company with a view to implementing the scheme manager’s investment strategy, and</content></level></level><level class="para1" eId="section-2-2-c"><num>(c)</num><content>in the case of a scheme for local government workers for England and Wales, each scheme manager (other than the Environment Agency) co-operates with an appropriate strategic authority to identify and develop appropriate investment opportunities.</content></level></subsection><subsection eId="section-2-3"><num>(3)</num><intro>The provision made by virtue of <ref href="#section-2-1">subsection (1)</ref> may include, in particular, provision about—</intro><level class="para1" eId="section-2-3-a"><num>(a)</num><content>sources of advice that a scheme manager must, or may, use in formulating its investment strategy, and</content></level><level class="para1" eId="section-2-3-b"><num>(b)</num><content>matters that must, or may, be covered by an investment strategy.</content></level></subsection><subsection eId="section-2-4"><num>(4)</num><intro>The matters referred to in <ref href="#section-2-3">subsection (3)</ref><ref href="#section-2-3-b">(b)</ref> include—</intro><level class="para1" eId="section-2-4-a"><num>(a)</num><content>the scheme manager’s approach to responsible investment,</content></level><level class="para1" eId="section-2-4-b"><num>(b)</num><content>the scheme manager’s approach to local investments, and</content></level><level class="para1" eId="section-2-4-c"><num>(c)</num><content>strategic asset allocation or target ranges for growth and income.</content></level></subsection><subsection eId="section-2-5"><num>(5)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-investment-strategy" eId="term-investment-strategy">investment strategy</term>” means a statement of a scheme manager’s objectives, priorities and preferences in relation to the investment of the funds and other assets for which it is responsible;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-local-investments" eId="term-local-investments">local investments</term>”, in relation to a scheme manager, means investments in, or for the benefit of persons living or working in—</intro><level class="para1"><num>(a)</num><content>the scheme manager’s area, or</content></level><level class="para1"><num>(b)</num><content>the areas of the other scheme managers participating in the same asset pool company as the scheme manager;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-strategic-authorities" eId="term-strategic-authorities">strategic authorities</term>” means—</intro><level class="para1"><num>(a)</num><content>the Greater London Authority,</content></level><level class="para1"><num>(b)</num><content>a combined authority in England established under section 103 of the Local Democracy, Economic Development and Construction Act 2009,</content></level><level class="para1"><num>(c)</num><content>a combined county authority in England established under section 9(1) of the Levelling-up and Regeneration Act 2023,</content></level><level class="para1"><num>(d)</num><content>any other local authority in England of a description prescribed for the purposes of this paragraph in scheme regulations, and</content></level><level class="para1"><num>(e)</num><content>a corporate joint committee in Wales established by regulations under Part 5 of the Local Government and Elections (Wales) Act <ref eId="c00001" href="http://www.legislation.gov.uk/id/asc/2021/1">2021 (asc 1)</ref>.</content></level></hcontainer></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-1"><num>(1)</num><content>Where scheme regulations relating to a scheme for local government workers make provision under <ref href="#section-1">section 1</ref><ref href="#section-1-1">(1)</ref>, the regulations must make provision about the management of the funds and other assets for which the scheme managers are responsible.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-2"><num>(2)</num><intro>The provision made by virtue of <ref href="#section-2-1">subsection (1)</ref> must include provision for securing that (among other things)—</intro><level class="para1" eId="section-2-2-a"><num>(a)</num><content>each scheme manager formulates, publishes and keeps under review an investment strategy,</content></level><level class="para1" eId="section-2-2-b"><num>(b)</num><intro>the funds or other assets for which a scheme manager is responsible (other than money needed for making payments under the scheme from the pension fund maintained by that scheme manager) are—</intro><level class="para2" eId="section-2-2-b-i"><num>(i)</num><content>held on behalf of the scheme manager by an asset pool company in which the scheme manager participates (subject to any transitional arrangements permitted by the regulations in relation to the transfer of funds or assets to the company), and</content></level><level class="para2" eId="section-2-2-b-ii"><num>(ii)</num><content>properly managed by that company with a view to implementing the scheme manager’s investment strategy, and</content></level></level><level class="para1" eId="section-2-2-c"><num>(c)</num><content>in the case of a scheme for local government workers for England and Wales, each scheme manager (other than the Environment Agency) co-operates with an appropriate strategic authority to identify and develop appropriate investment opportunities.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-2-a"><num>(a)</num><content>each scheme manager formulates, publishes and keeps under review an investment strategy,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-2-b"><num>(b)</num><intro>the funds or other assets for which a scheme manager is responsible (other than money needed for making payments under the scheme from the pension fund maintained by that scheme manager) are—</intro><level class="para2" eId="section-2-2-b-i"><num>(i)</num><content>held on behalf of the scheme manager by an asset pool company in which the scheme manager participates (subject to any transitional arrangements permitted by the regulations in relation to the transfer of funds or assets to the company), and</content></level><level class="para2" eId="section-2-2-b-ii"><num>(ii)</num><content>properly managed by that company with a view to implementing the scheme manager’s investment strategy, and</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-2-c"><num>(c)</num><content>in the case of a scheme for local government workers for England and Wales, each scheme manager (other than the Environment Agency) co-operates with an appropriate strategic authority to identify and develop appropriate investment opportunities.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-3"><num>(3)</num><intro>The provision made by virtue of <ref href="#section-2-1">subsection (1)</ref> may include, in particular, provision about—</intro><level class="para1" eId="section-2-3-a"><num>(a)</num><content>sources of advice that a scheme manager must, or may, use in formulating its investment strategy, and</content></level><level class="para1" eId="section-2-3-b"><num>(b)</num><content>matters that must, or may, be covered by an investment strategy.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-4"><num>(4)</num><intro>The matters referred to in <ref href="#section-2-3">subsection (3)</ref><ref href="#section-2-3-b">(b)</ref> include—</intro><level class="para1" eId="section-2-4-a"><num>(a)</num><content>the scheme manager’s approach to responsible investment,</content></level><level class="para1" eId="section-2-4-b"><num>(b)</num><content>the scheme manager’s approach to local investments, and</content></level><level class="para1" eId="section-2-4-c"><num>(c)</num><content>strategic asset allocation or target ranges for growth and income.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-5"><num>(5)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-investment-strategy" eId="term-investment-strategy">investment strategy</term>” means a statement of a scheme manager’s objectives, priorities and preferences in relation to the investment of the funds and other assets for which it is responsible;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-local-investments" eId="term-local-investments">local investments</term>”, in relation to a scheme manager, means investments in, or for the benefit of persons living or working in—</intro><level class="para1"><num>(a)</num><content>the scheme manager’s area, or</content></level><level class="para1"><num>(b)</num><content>the areas of the other scheme managers participating in the same asset pool company as the scheme manager;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-strategic-authorities" eId="term-strategic-authorities">strategic authorities</term>” means—</intro><level class="para1"><num>(a)</num><content>the Greater London Authority,</content></level><level class="para1"><num>(b)</num><content>a combined authority in England established under section 103 of the Local Democracy, Economic Development and Construction Act 2009,</content></level><level class="para1"><num>(c)</num><content>a combined county authority in England established under section 9(1) of the Levelling-up and Regeneration Act 2023,</content></level><level class="para1"><num>(d)</num><content>any other local authority in England of a description prescribed for the purposes of this paragraph in scheme regulations, and</content></level><level class="para1"><num>(e)</num><content>a corporate joint committee in Wales established by regulations under Part 5 of the Local Government and Elections (Wales) Act <ref eId="c00001" href="http://www.legislation.gov.uk/id/asc/2021/1">2021 (asc 1)</ref>.</content></level></hcontainer></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-vfm-member-satisfaction-survey-form" eId="term-vfm-member-satisfaction-survey-form">VFM member satisfaction survey form</term>” means a request, in a form approved by the relevant authority, for inviting from relevant members information regarding their level of satisfaction with the service provided by the scheme or arrangement (as the case requires).</content></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-the-employer" eId="term-the-employer">the employer</term>”, in relation to an occupational pension scheme, means the employer of persons in the description of employment to which the scheme in question relates (and see also <ref href="#section-97">section 97</ref>);</content></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-the-onboarding-conditions" eId="term-the-onboarding-conditions">the onboarding conditions</term>” has the meaning given by <ref href="#section-66">section 66</ref><ref href="#section-66-2">(2)</ref> (read with any regulations under section <ref href="#section-66">66</ref><ref href="#section-66-4">(4)</ref>);</content></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-event-of-concern" eId="term-event-of-concern">event of concern</term>” has the meaning given by <ref href="#section-86">section 86</ref><ref href="#section-86-1">(1)</ref>;</content></hcontainer>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(b)</num><content>the areas of the other scheme managers participating in the same asset pool company as the scheme manager;</content></level>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-protected-liabilities" eId="term-protected-liabilities">protected liabilities</term>” has the same meaning as in <ref eId="c00046" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2/chapter/3">Chapter 3</ref> of <ref eId="c00047" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2">Part 2</ref> of the <ref eId="c00048" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (see section 131 of that Act);</content></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given by <ref href="#d25e10834">subsection (2)</ref>;</content></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3"><num>3</num><heading>Additional powers for certain scheme managers</heading><subsection eId="section-3-1"><num>(1)</num><content>Scheme regulations may make provision for the purpose of conferring any power or powers falling within subsection <ref href="#section-3-2">(2)</ref> or <ref href="#section-3-4">(4)</ref> on a specified scheme manager for a scheme for local government workers in England and Wales.</content></subsection><subsection eId="section-3-2"><num>(2)</num><intro>Scheme regulations under this section may make provision conferring on the scheme manager (in relation to carrying out its functions as a scheme manager)—</intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content>any specified power or powers of a local authority under Part 6 of the Local Government Act 1972, or</content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content>any power or powers corresponding to one or more of the powers of a local authority under that Part.</content></level></subsection><subsection eId="section-3-3"><num>(3)</num><content>The power to make provision by virtue of subsection <ref href="#section-3-2">(2)</ref> is not exercisable if, or to the extent that, the scheme manager already has the powers of a local authority under Part 6 of the Local Government Act 1972 (otherwise than by virtue of scheme regulations under this section).</content></subsection><subsection eId="section-3-4"><num>(4)</num><content>Scheme regulations under this section may make provision conferring on the scheme manager (as part of its functions as a scheme manager) power to provide any administrative, professional or technical service for any other person who is a scheme manager for a public service pension scheme.</content></subsection><subsection eId="section-3-5"><num>(5)</num><intro>In subsection <ref href="#section-3-4">(4)</ref>—</intro><level class="para1" eId="section-3-5-a"><num>(a)</num><content>“<term refersTo="#term-public-service-pension-scheme" eId="term-public-service-pension-scheme">public service pension scheme</term>” means a scheme for the payment of pensions and other benefits to or in respect of persons of a description set out in section 1(2) of PSPA 2013, and</content></level><level class="para1" eId="section-3-5-b"><num>(b)</num><content>“<term refersTo="#term-scheme-manager" eId="term-scheme-manager">scheme manager</term>” (in the third place it appears) means any person who is, for the purposes of PSPA 2013, a scheme manager for any such scheme.</content></level></subsection><subsection eId="section-3-6"><num>(6)</num><content>The power to make provision by virtue of subsection <ref href="#section-3-4">(4)</ref> is not exercisable if, or to the extent that, the scheme manager already has the power to provide services referred to in that subsection (otherwise than by virtue of scheme regulations under this section).</content></subsection><subsection eId="section-3-7"><num>(7)</num><content>Scheme regulations under this section may amend or modify any Act passed before or in the same Session as this Act.</content></subsection><subsection eId="section-3-8"><num>(8)</num><content>In this section “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in scheme regulations under this section.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-1"><num>(1)</num><content>Scheme regulations may make provision for the purpose of conferring any power or powers falling within subsection <ref href="#section-3-2">(2)</ref> or <ref href="#section-3-4">(4)</ref> on a specified scheme manager for a scheme for local government workers in England and Wales.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-2"><num>(2)</num><intro>Scheme regulations under this section may make provision conferring on the scheme manager (in relation to carrying out its functions as a scheme manager)—</intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content>any specified power or powers of a local authority under Part 6 of the Local Government Act 1972, or</content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content>any power or powers corresponding to one or more of the powers of a local authority under that Part.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-3"><num>(3)</num><content>The power to make provision by virtue of subsection <ref href="#section-3-2">(2)</ref> is not exercisable if, or to the extent that, the scheme manager already has the powers of a local authority under Part 6 of the Local Government Act 1972 (otherwise than by virtue of scheme regulations under this section).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-4"><num>(4)</num><content>Scheme regulations under this section may make provision conferring on the scheme manager (as part of its functions as a scheme manager) power to provide any administrative, professional or technical service for any other person who is a scheme manager for a public service pension scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-5"><num>(5)</num><intro>In subsection <ref href="#section-3-4">(4)</ref>—</intro><level class="para1" eId="section-3-5-a"><num>(a)</num><content>“<term refersTo="#term-public-service-pension-scheme" eId="term-public-service-pension-scheme">public service pension scheme</term>” means a scheme for the payment of pensions and other benefits to or in respect of persons of a description set out in section 1(2) of PSPA 2013, and</content></level><level class="para1" eId="section-3-5-b"><num>(b)</num><content>“<term refersTo="#term-scheme-manager" eId="term-scheme-manager">scheme manager</term>” (in the third place it appears) means any person who is, for the purposes of PSPA 2013, a scheme manager for any such scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-6"><num>(6)</num><content>The power to make provision by virtue of subsection <ref href="#section-3-4">(4)</ref> is not exercisable if, or to the extent that, the scheme manager already has the power to provide services referred to in that subsection (otherwise than by virtue of scheme regulations under this section).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-7"><num>(7)</num><content>Scheme regulations under this section may amend or modify any Act passed before or in the same Session as this Act.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-8"><num>(8)</num><content>In this section “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in scheme regulations under this section.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5"><num>5</num><heading>Scheme manager governance reviews</heading><subsection eId="section-5-1"><num>(1)</num><intro>Scheme regulations relating to a scheme for local government workers which has pension funds may make provision for or in connection with—</intro><level class="para1" eId="section-5-1-a"><num>(a)</num><content>the carrying out of periodic or ad hoc governance reviews of individual scheme managers,</content></level><level class="para1" eId="section-5-1-b"><num>(b)</num><content>the issuing by the responsible authority of guidance to persons carrying out governance reviews about the carrying out of such reviews, and</content></level><level class="para1" eId="section-5-1-c"><num>(c)</num><content>functions of the responsible authority in response to a report of such a review.</content></level></subsection><subsection eId="section-5-2"><num>(2)</num><intro>For this purpose, in relation to any scheme manager—</intro><level class="para1" eId="section-5-2-a"><num>(a)</num><content>a governance review is a review of the governance of the scheme so far as administered by the scheme manager, and the performance and effectiveness of the scheme manager, over a period (“the period of review”);</content></level><level class="para1" eId="section-5-2-b"><num>(b)</num><intro>a periodic governance review is a governance review that is required by a provision of scheme regulations to take place—</intro><level class="para2" eId="section-5-2-b-i"><num>(i)</num><content>within a prescribed period after the commencement of that provision, or</content></level><level class="para2" eId="section-5-2-b-ii"><num>(ii)</num><content>within a prescribed period after the completion of a previous governance review,</content></level><wrapUp>in respect of a period of review prescribed by or determined under the regulations;</wrapUp></level><level class="para1" eId="section-5-2-c"><num>(c)</num><intro>an ad hoc governance review is a governance review that is required by scheme regulations to take place—</intro><level class="para2" eId="section-5-2-c-i"><num>(i)</num><content>where a direction to carry out a governance review has been given to the scheme manager by the responsible authority (if a power to give such a direction has been conferred by the regulations), in respect of a period of review specified in the direction, or</content></level><level class="para2" eId="section-5-2-c-ii"><num>(ii)</num><content>in prescribed circumstances (other than the passage of time since the most recent completed governance review), in respect of a period of review prescribed by or determined under the regulations.</content></level></level></subsection><subsection eId="section-5-3"><num>(3)</num><content>The period of review for the first governance review of a scheme manager may include time before the commencement of the regulations providing for governance reviews to take place.</content></subsection><subsection eId="section-5-4"><num>(4)</num><intro>Scheme regulations which make provision for the carrying out of governance reviews must make provision—</intro><level class="para1" eId="section-5-4-a"><num>(a)</num><content>requiring governance reviews to be carried out independently of the scheme manager being reviewed and the responsible authority, but under arrangements made by and at the expense of that scheme manager;</content></level><level class="para1" eId="section-5-4-b"><num>(b)</num><intro>requiring the person carrying out a governance review, as soon as practicable after completing the review, to—</intro><level class="para2" eId="section-5-4-b-i"><num>(i)</num><content>prepare a report on the review, and</content></level><level class="para2" eId="section-5-4-b-ii"><num>(ii)</num><content>send a copy of the report to the responsible authority and the scheme manager being reviewed;</content></level></level><level class="para1" eId="section-5-4-c"><num>(c)</num><content>requiring the scheme manager to publish the report.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-1"><num>(1)</num><intro>Scheme regulations relating to a scheme for local government workers which has pension funds may make provision for or in connection with—</intro><level class="para1" eId="section-5-1-a"><num>(a)</num><content>the carrying out of periodic or ad hoc governance reviews of individual scheme managers,</content></level><level class="para1" eId="section-5-1-b"><num>(b)</num><content>the issuing by the responsible authority of guidance to persons carrying out governance reviews about the carrying out of such reviews, and</content></level><level class="para1" eId="section-5-1-c"><num>(c)</num><content>functions of the responsible authority in response to a report of such a review.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-2"><num>(2)</num><intro>For this purpose, in relation to any scheme manager—</intro><level class="para1" eId="section-5-2-a"><num>(a)</num><content>a governance review is a review of the governance of the scheme so far as administered by the scheme manager, and the performance and effectiveness of the scheme manager, over a period (“the period of review”);</content></level><level class="para1" eId="section-5-2-b"><num>(b)</num><intro>a periodic governance review is a governance review that is required by a provision of scheme regulations to take place—</intro><level class="para2" eId="section-5-2-b-i"><num>(i)</num><content>within a prescribed period after the commencement of that provision, or</content></level><level class="para2" eId="section-5-2-b-ii"><num>(ii)</num><content>within a prescribed period after the completion of a previous governance review,</content></level><wrapUp>in respect of a period of review prescribed by or determined under the regulations;</wrapUp></level><level class="para1" eId="section-5-2-c"><num>(c)</num><intro>an ad hoc governance review is a governance review that is required by scheme regulations to take place—</intro><level class="para2" eId="section-5-2-c-i"><num>(i)</num><content>where a direction to carry out a governance review has been given to the scheme manager by the responsible authority (if a power to give such a direction has been conferred by the regulations), in respect of a period of review specified in the direction, or</content></level><level class="para2" eId="section-5-2-c-ii"><num>(ii)</num><content>in prescribed circumstances (other than the passage of time since the most recent completed governance review), in respect of a period of review prescribed by or determined under the regulations.</content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-2-a"><num>(a)</num><content>a governance review is a review of the governance of the scheme so far as administered by the scheme manager, and the performance and effectiveness of the scheme manager, over a period (“the period of review”);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-2-b"><num>(b)</num><intro>a periodic governance review is a governance review that is required by a provision of scheme regulations to take place—</intro><level class="para2" eId="section-5-2-b-i"><num>(i)</num><content>within a prescribed period after the commencement of that provision, or</content></level><level class="para2" eId="section-5-2-b-ii"><num>(ii)</num><content>within a prescribed period after the completion of a previous governance review,</content></level><wrapUp>in respect of a period of review prescribed by or determined under the regulations;</wrapUp></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-2-c"><num>(c)</num><intro>an ad hoc governance review is a governance review that is required by scheme regulations to take place—</intro><level class="para2" eId="section-5-2-c-i"><num>(i)</num><content>where a direction to carry out a governance review has been given to the scheme manager by the responsible authority (if a power to give such a direction has been conferred by the regulations), in respect of a period of review specified in the direction, or</content></level><level class="para2" eId="section-5-2-c-ii"><num>(ii)</num><content>in prescribed circumstances (other than the passage of time since the most recent completed governance review), in respect of a period of review prescribed by or determined under the regulations.</content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-3"><num>(3)</num><content>The period of review for the first governance review of a scheme manager may include time before the commencement of the regulations providing for governance reviews to take place.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-4"><num>(4)</num><intro>Scheme regulations which make provision for the carrying out of governance reviews must make provision—</intro><level class="para1" eId="section-5-4-a"><num>(a)</num><content>requiring governance reviews to be carried out independently of the scheme manager being reviewed and the responsible authority, but under arrangements made by and at the expense of that scheme manager;</content></level><level class="para1" eId="section-5-4-b"><num>(b)</num><intro>requiring the person carrying out a governance review, as soon as practicable after completing the review, to—</intro><level class="para2" eId="section-5-4-b-i"><num>(i)</num><content>prepare a report on the review, and</content></level><level class="para2" eId="section-5-4-b-ii"><num>(ii)</num><content>send a copy of the report to the responsible authority and the scheme manager being reviewed;</content></level></level><level class="para1" eId="section-5-4-c"><num>(c)</num><content>requiring the scheme manager to publish the report.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-4-a"><num>(a)</num><content>requiring governance reviews to be carried out independently of the scheme manager being reviewed and the responsible authority, but under arrangements made by and at the expense of that scheme manager;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-4-b"><num>(b)</num><intro>requiring the person carrying out a governance review, as soon as practicable after completing the review, to—</intro><level class="para2" eId="section-5-4-b-i"><num>(i)</num><content>prepare a report on the review, and</content></level><level class="para2" eId="section-5-4-b-ii"><num>(ii)</num><content>send a copy of the report to the responsible authority and the scheme manager being reviewed;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-5-4-c"><num>(c)</num><content>requiring the scheme manager to publish the report.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-1"><num>(1)</num><content>PSPA 2013 is amended as follows.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8"><num>8</num><heading>Interpretation of Chapter 1</heading><subsection eId="section-8-1"><num>(1)</num><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-asset-pool-company" eId="term-asset-pool-company">asset pool company</term>” has the meaning given by <ref href="#section-1">section 1</ref><ref href="#section-1-9">(9)</ref><ref href="#section-1-9-a">(a)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-local-government-worker" eId="term-local-government-worker">local government worker</term>” has the same meaning as in PSPA 2013 (see paragraph 3 of Schedule 1 to that Act);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-management" eId="term-management">management</term>” and related expressions, in relation to the funds and assets of a scheme for local government workers, include (among other things)—</intro><level class="para1"><num>(a)</num><content>buying, selling or holding assets;</content></level><level class="para1"><num>(b)</num><content>setting asset allocation;</content></level><level class="para1"><num>(c)</num><content>establishing and managing pooled investment vehicles;</content></level><level class="para1"><num>(d)</num><content>selecting investments;</content></level><level class="para1"><num>(e)</num><content>acting as a responsible investor (including by acting as a shareholder in an investee company);</content></level><level class="para1"><num>(f)</num><content>deciding whether to develop or use internal investment management capability or external investment managers;</content></level><level class="para1"><num>(g)</num><content>managing cash flow;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pspa-2013" eId="term-pspa-2013">PSPA 2013</term>” means the Public Service Pensions Act 2013;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-participates" eId="term-participates">participates</term>” and related expressions, in relation to an asset pool company, are to be interpreted in accordance with <ref href="#section-1">section 1</ref><ref href="#section-1-9">(9)</ref><ref href="#section-1-9-b">(b)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-prescribed" eId="term-prescribed">prescribed</term>” means prescribed by scheme regulations;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-responsible-authority" eId="term-the-responsible-authority">the responsible authority</term>” means (in relation to a scheme for local government workers in England and Wales or Scotland)—</intro><level class="para1"><num>(a)</num><content>the Secretary of State, in or as regards England and Wales, or</content></level><level class="para1"><num>(b)</num><content>the Scottish Ministers, in or as regards Scotland;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-scheme" eId="term-scheme">scheme</term>” means a scheme (within the meaning of PSPA 2013) established under section 1 of that Act;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-scheme-manager" eId="term-scheme-manager">scheme manager</term>”, in relation to a scheme for local government workers, means a person who is a scheme manager by virtue of section 4(5) of PSPA 2013 (being a person responsible for the local administration of pensions and other benefits payable under the scheme who maintains a pension fund for the purposes of providing pensions and other benefits under its part of the scheme);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-scheme-regulations" eId="term-scheme-regulations">scheme regulations</term>” means regulations made under section 1 of PSPA 2013.</content></hcontainer></subsection><subsection eId="section-8-2"><num>(2)</num><content>A reference in this Chapter to the funds and other assets for which a scheme manager is responsible is to the funds and other assets which are (or should be) held as part of its pension fund for the purpose of providing pensions and other benefits under its part of a scheme for local government workers.</content></subsection><subsection eId="section-8-3"><num>(3)</num><content>Nothing in this Chapter is to be taken as affecting the generality of the powers conferred by section 1 or 3(1) of, or any provision of Schedule 3 to, PSPA 2013.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-1"><num>(1)</num><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-asset-pool-company" eId="term-asset-pool-company">asset pool company</term>” has the meaning given by <ref href="#section-1">section 1</ref><ref href="#section-1-9">(9)</ref><ref href="#section-1-9-a">(a)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-local-government-worker" eId="term-local-government-worker">local government worker</term>” has the same meaning as in PSPA 2013 (see paragraph 3 of Schedule 1 to that Act);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-management" eId="term-management">management</term>” and related expressions, in relation to the funds and assets of a scheme for local government workers, include (among other things)—</intro><level class="para1"><num>(a)</num><content>buying, selling or holding assets;</content></level><level class="para1"><num>(b)</num><content>setting asset allocation;</content></level><level class="para1"><num>(c)</num><content>establishing and managing pooled investment vehicles;</content></level><level class="para1"><num>(d)</num><content>selecting investments;</content></level><level class="para1"><num>(e)</num><content>acting as a responsible investor (including by acting as a shareholder in an investee company);</content></level><level class="para1"><num>(f)</num><content>deciding whether to develop or use internal investment management capability or external investment managers;</content></level><level class="para1"><num>(g)</num><content>managing cash flow;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pspa-2013" eId="term-pspa-2013">PSPA 2013</term>” means the Public Service Pensions Act 2013;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-participates" eId="term-participates">participates</term>” and related expressions, in relation to an asset pool company, are to be interpreted in accordance with <ref href="#section-1">section 1</ref><ref href="#section-1-9">(9)</ref><ref href="#section-1-9-b">(b)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-prescribed" eId="term-prescribed">prescribed</term>” means prescribed by scheme regulations;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-responsible-authority" eId="term-the-responsible-authority">the responsible authority</term>” means (in relation to a scheme for local government workers in England and Wales or Scotland)—</intro><level class="para1"><num>(a)</num><content>the Secretary of State, in or as regards England and Wales, or</content></level><level class="para1"><num>(b)</num><content>the Scottish Ministers, in or as regards Scotland;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-scheme" eId="term-scheme">scheme</term>” means a scheme (within the meaning of PSPA 2013) established under section 1 of that Act;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-scheme-manager" eId="term-scheme-manager">scheme manager</term>”, in relation to a scheme for local government workers, means a person who is a scheme manager by virtue of section 4(5) of PSPA 2013 (being a person responsible for the local administration of pensions and other benefits payable under the scheme who maintains a pension fund for the purposes of providing pensions and other benefits under its part of the scheme);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-scheme-regulations" eId="term-scheme-regulations">scheme regulations</term>” means regulations made under section 1 of PSPA 2013.</content></hcontainer></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-the-fca" eId="term-the-fca">the FCA</term>” means the Financial Conduct Authority;</content></hcontainer>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(a)</num><content>in relation to an FCA-regulated pension scheme, the person mentioned in <ref href="#section-48-2">subsection (2)</ref><ref href="#section-48-2-b">(b)</ref>;</content></level>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>““<term refersTo="#term-relevant-master-trust" eId="term-relevant-master-trust">relevant Master Trust</term>” has the meaning given by section 20(4);”;</content></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule"><num>Schedule<authorialNote class="referenceNote">Section 129</authorialNote></num><heading>Amendments of Pensions Act 2004</heading><paragraph eId="schedule-paragraph-1" class="schProv1"><num>1</num><content>The Pensions Act 2004 is amended as follows.</content></paragraph><paragraph eId="schedule-paragraph-2" class="schProv1"><num>2</num><content><mod>In section 10 (functions exercisable by the Determinations Panel), in subsection (6), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(m)</num><content>section <ref href="#section-63">63</ref> of the Pension Schemes Act 2026 (application for authorisation of a superfund);</content></level><level class="para1"><num>(n)</num><content><ref href="#section-66">section 66</ref> of that Act (application for approval of a superfund transfer);</content></level><level class="para1"><num>(o)</num><content>section <ref href="#section-78">78</ref> of that Act (application for approval of individual to be responsible for key function in relation to superfund);</content></level><level class="para1"><num>(p)</num><content>section <ref href="#section-80">80</ref> of that Act (application to approve a person to be a trustee of a superfund scheme).</content></level></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-3" class="schProv1"><num>3</num><content><mod>In section 13 (improvement notices) in subsection (7), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(j)</num><content>Chapter <ref href="#part-2-chapter-1">1</ref>, <ref href="#part-2-chapter-2">2</ref>, <ref href="#schedule-paragraph-4">4</ref> or <ref href="#part-2-chapter-6">6</ref> of Part <ref href="#part-2">2</ref> of, or any provision of Part <ref href="#part-3">3</ref> of, the Pension Schemes Act 2026.</content></level></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-4" class="schProv1"><num>4</num><content><mod>In section 70 (duty to report breaches of the law), in subsection (1), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(g)</num><intro>in relation to an operating superfund—</intro><level class="para2"><num>(i)</num><content>a member of the superfund group;</content></level><level class="para2"><num>(ii)</num><content>a person who is responsible for a key function.</content></level></level></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-5" class="schProv1"><num>5</num><content><mod>In section 72 (provision of information) subsection (2), after paragraph (c) (but before the “and” that follows it) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><intro>in relation to an operating superfund—</intro><level class="para2"><num>(i)</num><content>a member of the superfund group, and</content></level><level class="para2"><num>(ii)</num><content>a person who is responsible for a key function,</content></level></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-paragraph-6-1"><num>(1)</num><content>In section 73 (inspection of premises), subsection (2) is amended as follows.</content></subparagraph><subparagraph eId="schedule-paragraph-6-2"><num>(2)</num><content><mod>Before paragraph (da) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e24389"><num>(dza)</num><content>sections <ref href="#d25e6214">28A</ref> to <ref href="#d25e7697">28G</ref> of the Pensions Act 2008 (scale and asset allocation);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-paragraph-6-3"><num>(3)</num><content><mod> After paragraph (dc) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(dd)</num><intro>any of the following provisions of the Pension Schemes Act 2026—</intro><level class="para2"><num>(i)</num><content>Chapters <ref href="#part-2-chapter-1">1</ref>, <ref href="#part-2-chapter-2">2</ref>, <ref href="#schedule-paragraph-4">4</ref> and <ref href="#part-2-chapter-6">6</ref> of <ref href="#part-2">Part 2</ref>;</content></level><level class="para2"><num>(ii)</num><content><ref href="#part-3">Part 3</ref>;</content></level></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-paragraph-6-4"><num>(4)</num><content><mod>In paragraph (e), for “(dc)” substitute <quotedText>“(dd)”</quotedText>.</mod></content></subparagraph></paragraph><paragraph eId="schedule-paragraph-7" class="schProv1"><num>7</num><content><mod>In section 76 (inspection of premises: supplementary), in subsection (3)(a), after “of this Act,” insert <quotedText>“section <ref href="#section-92">92</ref> or <ref href="#section-93">93</ref> of the Pension Schemes Act 2026,”</quotedText>.</mod></content></paragraph><paragraph eId="schedule-paragraph-8" class="schProv1"><num>8</num><content><mod>In section 77A (fixed penalty notices), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><intro>Where the recipient of the notice is—</intro><level class="para1"><num>(a)</num><content>a trustee of an operating superfund scheme,</content></level><level class="para1"><num>(b)</num><content>the responsible body of an operating superfund, or</content></level><level class="para1"><num>(c)</num><content>a person responsible for a key function in relation to an operating superfund,</content></level><wrapUp>subsection (3)(b) has effect as though the figure mentioned there were £100,000.</wrapUp></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-9" class="schProv1"><num>9</num><content><mod>In section 77B (escalating penalty notices), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9)</num><intro>Where the recipient of the notice is—</intro><level class="para1"><num>(a)</num><content>a trustee of an operating superfund scheme,</content></level><level class="para1"><num>(b)</num><content>the responsible body of an operating superfund, or</content></level><level class="para1"><num>(c)</num><content>a person responsible for a key function in relation to an operating superfund,</content></level><wrapUp>subsection (5)(b) has effect as though the figure mentioned there were £20,000.</wrapUp></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-10" class="schProv1"><num>10</num><intro>In section 80 (offences of providing false or misleading information), in subsection (1)(c)—</intro><level class="para1" eId="schedule-paragraph-10-a"><num>(a)</num><content><mod>in the words before sub-paragraph (i), after “under” insert <quotedText>“or by virtue of any of the following”</quotedText>;</mod></content></level><level class="para1" eId="schedule-paragraph-10-b"><num>(b)</num><content>omit the “or” after sub-paragraph (v);</content></level><level class="para1" eId="schedule-paragraph-10-c"><num>(c)</num><content>each of sub-paragraphs (i) to (vi) becomes an unnumbered paragraph;</content></level><level class="para1" eId="schedule-paragraph-10-d"><num>(d)</num><content><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>Chapter <ref href="#part-2-chapter-1">1</ref>, <ref href="#part-2-chapter-2">2</ref>, <ref href="#part-2-chapter-4">4</ref> or <ref href="#part-2-chapter-6">6</ref> of Part <ref href="#part-2">2</ref> of, or any provision of Part <ref href="#part-3">3</ref> of, the Pension Schemes Act 2026</item></blockList></quotedStructure><inline name="appendText">.</inline></mod></content></level></paragraph><paragraph eId="schedule-paragraph-11" class="schProv1"><num>11</num><intro>In section 80A (financial penalty for providing false or misleading information to Regulator), in subsection (2)(c)—</intro><level class="para1" eId="schedule-paragraph-11-a"><num>(a)</num><content><mod>in the words before sub-paragraph (i), after “under” insert <quotedText>“or by virtue of any of the following”</quotedText>;</mod></content></level><level class="para1" eId="schedule-paragraph-11-b"><num>(b)</num><content>omit the “or” after sub-paragraph (v);</content></level><level class="para1" eId="schedule-paragraph-11-c"><num>(c)</num><content>each of sub-paragraphs (i) to (vi) becomes an unnumbered paragraph;</content></level><level class="para1" eId="schedule-paragraph-11-d"><num>(d)</num><content><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>Chapter <ref href="#part-2-chapter-1">1</ref>, <ref href="#part-2-chapter-2">2</ref>, <ref href="#schedule-paragraph-4">4</ref> or <ref href="#part-2-chapter-6">6</ref> of Part <ref href="#part-2">2</ref> of, or any provision of Part <ref href="#part-3">3</ref> of, the Pension Schemes Act 2026</item></blockList></quotedStructure><inline name="appendText">.</inline></mod></content></level></paragraph><paragraph eId="schedule-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-paragraph-12-1"><num>(1)</num><content>Section 90 (codes of practice issued by Regulator) is amended as follows.</content></subparagraph><subparagraph eId="schedule-paragraph-12-2"><num>(2)</num><content><mod>In subsection (2), after paragraph (jd) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(je)</num><intro>the process for making—</intro><level class="para2"><num>(i)</num><content>an application for authorisation of a superfund under <ref href="#part-3-chapter-2">Chapter 2</ref> of <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026;</content></level><level class="para2"><num>(ii)</num><content>an application for approval of a superfund transfer under <ref href="#part-3-chapter-3">Chapter 3</ref> of that Part of that Act;</content></level></level><level class="para1"><num>(jf)</num><intro>the matters that the Pensions Regulator expects to take into account in deciding—</intro><level class="para2"><num>(i)</num><content>whether it is satisfied as described in <ref href="#section-63">section 63</ref><ref href="#section-63-1">(1)</ref> of the Pension Schemes Act 2026 (condition for superfund to be authorised);</content></level><level class="para2"><num>(ii)</num><content>whether it is satisfied as described in <ref href="#section-66">section 66</ref><ref href="#section-66-1">(1)</ref><ref href="#section-66-1-c">(c)</ref> of that Act (“onboarding conditions” for superfund transfers);</content></level></level><level class="para1"><num>(jg)</num><content>the discharge of the duties imposed by Chapters 4 and 5 of <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (ongoing requirements for operating superfunds);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-paragraph-12-3"><num>(3)</num><intro>In subsection (6), in the definition of “the pensions legislation”—</intro><level class="para1" eId="schedule-paragraph-12-3-a"><num>(a)</num><content><mod>after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e24762"><num>(da)</num><content>sections 20, 26 and <ref href="#d25e6214">28A</ref> to <ref href="#d25e8016">28I</ref> of the Pensions Act 2008 (scale and the asset allocation requirement),</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="schedule-paragraph-12-3-b"><num>(b)</num><content><mod>omit the “or” before paragraph (h) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content>Chapter <ref href="#part-2-chapter-1">1</ref>, <ref href="#part-2-chapter-2">2</ref>, <ref href="#schedule-paragraph-4">4</ref> or <ref href="#part-2-chapter-6">6</ref> of Part <ref href="#part-2">2</ref> of, or any provision of Part <ref href="#part-3">3</ref> of, the Pension Schemes Act 2026.</content></level></quotedStructure></mod></content></level></subparagraph></paragraph><paragraph eId="schedule-paragraph-13" class="schProv1"><num>13</num><content><mod>In section 93 (Regulator’s procedure in relation to its regulatory functions), in subsection (2), after paragraph (pe) (but before the “and” that follows it) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(pf)</num><content>the power to issue a notice under <ref href="#section-86">section 86</ref><ref href="#section-86-1">(1)</ref><ref href="#section-86-1-k">(k)</ref> of the Pension Schemes Act 2026 (Regulator notice triggering event of concern for superfund);</content></level><level class="para1"><num>(pg)</num><content>the power to give a direction under section <ref href="#section-90">90</ref> of the Pension Schemes Act 2026 (directions in relation to superfund during period of concern);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-paragraph-14" class="schProv1"><num>14</num><content><mod>In section 97 (special procedure: applicable cases), in subsection (5), after paragraph (tk) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(tl)</num><content>the power under <ref href="#section-63">section 63</ref> or <ref href="#section-94">94</ref> of the Pension Schemes Act 2026 to withdraw authorisation from a superfund;</content></level><level class="para1"><num>(tm)</num><content>the power under <ref href="#section-78">section 78</ref><ref href="#section-78-8">(8)</ref> or <ref href="#section-80">80</ref><ref href="#section-80-8">(8)</ref> of the Pension Schemes Act 2026 to suspend or revoke its approval for a person to be responsible for a key function in relation to a superfund or to be a trustee of a superfund scheme;</content></level><level class="para1"><num>(tn)</num><content>the power to issue a notice under <ref href="#section-86">section 86</ref><ref href="#section-86-1">(1)</ref><ref href="#section-86-1-k">(k)</ref> of the Pension Schemes Act 2026 (Regulator notice triggering event of concern for superfund);</content></level><level class="para1"><num>(to)</num><content>the power to give a direction under section <ref href="#section-90">90</ref> of the Pension Schemes Act 2026 (directions in relation to superfund during period of concern);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-paragraph-15" class="schProv1"><num>15</num><content><mod>In section 126 (pension protection: eligible schemes), after subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1B)</num><content>In relation to a superfund scheme, <ref href="#section-61">section 61</ref><ref href="#section-61-2">(2)</ref> of the Pension Schemes Act 2026 (sections treated as separate schemes) applies for the purposes of this Part as it applies for the purposes of <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026.</content></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-16" class="schProv1"><num>16</num><content><mod>In section 127 (pension protection: duty to assume responsibility for schemes following insolvency event), after subsection (4) insert— <quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e24930"><num>(4A)</num><intro>In relation to an eligible scheme that is a superfund scheme, if—</intro><level class="para1"><num>(a)</num><content>an event of concern takes place in relation to the scheme by virtue of the protected liabilities threshold ceasing to be met, and</content></level><level class="para1"><num>(b)</num><content>no qualifying insolvency event occurred in relation to the employer before the event of concern took place,</content></level><wrapUp>this Chapter applies as though a qualifying insolvency event had occurred in relation to the employer immediately after the event of concern took place.</wrapUp></subsection><subsection><num>(4B)</num><content>In subsection <ref href="#d25e24930">(4A)</ref>, “<term refersTo="#term-the-protected-liabilities-threshold">the protected liabilities threshold</term>” and “<term refersTo="#term-event-of-concern">event of concern</term>” have the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026.</content></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-17" class="schProv1"><num>17</num><content><mod>In section 222 (the statutory funding objective), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro>Regulations may, in relation to a superfund scheme—</intro><level class="para1"><num>(a)</num><content>provide that it is for the Regulator to determine which methods and assumptions are to be used in calculating a scheme’s technical provisions, and</content></level><level class="para1"><num>(b)</num><content>require the Regulator, in making its determination, to take into account prescribed matters and follow prescribed principles.</content></level></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-paragraph-18-1"><num>(1)</num><content>Section 224 (actuarial valuations and reports) is amended as follows.</content></subparagraph><subparagraph eId="schedule-paragraph-18-2"><num>(2)</num><content><mod>After subsection (7A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7B)</num><content>Where the scheme in question is a superfund scheme, the trustees must, as soon as reasonably practicable after receiving an actuarial report, send a copy of it to the Regulator together with such other information as may be prescribed.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-paragraph-18-3"><num>(3)</num><content><mod>In subsection (8), for “or (7A)” substitute <quotedText>“, (7A) or (7B)”</quotedText>.</mod></content></subparagraph></paragraph><paragraph eId="schedule-paragraph-19" class="schProv1"><num>19</num><content><mod>In section 256 (no indemnification for fines or civil penalties), in subsection (1)(b), at the end insert <quotedText>“, or <ref href="#section-18">section 18</ref>, <ref href="#section-32">32</ref> or <ref href="#section-55">55</ref> of the Pension Schemes Act 2026.”</quotedText></mod></content></paragraph><paragraph eId="schedule-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-paragraph-20-1"><num>(1)</num><content><mod>In section 318 (general interpretation), in subsection (1), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-key-function">key function</term>”, in relation to a superfund, has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-operating-superfund">operating superfund</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-operating-superfund-scheme">operating superfund scheme</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-responsible-body">responsible body</term>”, in relation to a superfund, has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-superfund">superfund</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-superfund-group">superfund group</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-superfund-scheme">superfund scheme</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-superfund-transfer">superfund transfer</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act);</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph></paragraph><paragraph eId="schedule-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-paragraph-21-1"><num>(1)</num><content>Schedule 2 (the reserved regulatory functions) is amended as follows.</content></subparagraph><subparagraph eId="schedule-paragraph-21-2"><num>(2)</num><content><mod>For the heading of Part 5 substitute <quotedText>“Functions under the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006 (<ref eId="c00197" href="http://www.legislation.gov.uk/id/uksi/2006/349">S.I. 2006/349</ref>)”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-paragraph-21-3"><num>(3)</num><content>Parts 4A and 4B are moved to after Part 5 and are renumbered as (respectively) Parts 6 and 7.</content></subparagraph><subparagraph eId="schedule-paragraph-21-4"><num>(4)</num><content>Accordingly, paragraphs 44A to 44O are renumbered as (respectively) paragraphs 46 to 60.</content></subparagraph><subparagraph eId="schedule-paragraph-21-5"><num>(5)</num><content><mod>After Part 7 (as moved and renumbered by sub-paragraph <ref href="#schedule-paragraph-21-3">(3)</ref> above) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 8</num><heading>Functions under the Pension Schemes Act 2026</heading><paragraph class="schProv1"><num>61</num><content>The power under <ref href="#section-63">section 63</ref><ref href="#section-63-1">(1)</ref> to authorise a superfund.</content></paragraph><paragraph class="schProv1"><num>62</num><content>The power under <ref href="#section-63">section 63</ref><ref href="#section-63-6">(6)</ref> to withdraw authorisation from a superfund that has not yet received a superfund transfer.</content></paragraph><paragraph class="schProv1"><num>63</num><content>The power under <ref href="#section-66">section 66</ref> to approve a superfund transfer.</content></paragraph><paragraph class="schProv1"><num>64</num><content>The power under <ref href="#section-78">section 78</ref><ref href="#section-78-1">(1)</ref> to approve an individual to be responsible for a key function.</content></paragraph><paragraph class="schProv1"><num>65</num><content>The power under <ref href="#section-78">section 78</ref><ref href="#section-78-8">(8)</ref> to suspend or revoke an individual’s approval to be responsible for a key function.</content></paragraph><paragraph class="schProv1"><num>66</num><content>The power under <ref href="#section-80">section 80</ref><ref href="#section-80-1">(1)</ref> to approve a person to be a trustee of a superfund scheme.</content></paragraph><paragraph class="schProv1"><num>67</num><content>The power under <ref href="#section-80">section 80</ref><ref href="#section-80-8">(8)</ref> to suspend or revoke a person’s approval to be a trustee of a superfund scheme.</content></paragraph><paragraph class="schProv1"><num>68</num><content>The power under <ref href="#section-94">section 94</ref> to withdraw authorisation from an operating superfund.</content></paragraph></part></quotedStructure></mod></content></subparagraph></paragraph></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-paragraph-1" class="schProv1"><num>1</num><content>The Pensions Act 2004 is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-paragraph-7" class="schProv1"><num>7</num><content><mod>In section 76 (inspection of premises: supplementary), in subsection (3)(a), after “of this Act,” insert <quotedText>“section <ref href="#section-92">92</ref> or <ref href="#section-93">93</ref> of the Pension Schemes Act 2026,”</quotedText>.</mod></content></paragraph>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-paragraph-10-a"><num>(a)</num><content><mod>in the words before sub-paragraph (i), after “under” insert <quotedText>“or by virtue of any of the following”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-paragraph-10-b"><num>(b)</num><content>omit the “or” after sub-paragraph (v);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-paragraph-10-c"><num>(c)</num><content>each of sub-paragraphs (i) to (vi) becomes an unnumbered paragraph;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-paragraph-11-a"><num>(a)</num><content><mod>in the words before sub-paragraph (i), after “under” insert <quotedText>“or by virtue of any of the following”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-paragraph-11-b"><num>(b)</num><content>omit the “or” after sub-paragraph (v);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-paragraph-11-c"><num>(c)</num><content>each of sub-paragraphs (i) to (vi) becomes an unnumbered paragraph;</content></level>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-paragraph-12-1"><num>(1)</num><content>Section 90 (codes of practice issued by Regulator) is amended as follows.</content></subparagraph><subparagraph eId="schedule-paragraph-12-2"><num>(2)</num><content><mod>In subsection (2), after paragraph (jd) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(je)</num><intro>the process for making—</intro><level class="para2"><num>(i)</num><content>an application for authorisation of a superfund under <ref href="#part-3-chapter-2">Chapter 2</ref> of <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026;</content></level><level class="para2"><num>(ii)</num><content>an application for approval of a superfund transfer under <ref href="#part-3-chapter-3">Chapter 3</ref> of that Part of that Act;</content></level></level><level class="para1"><num>(jf)</num><intro>the matters that the Pensions Regulator expects to take into account in deciding—</intro><level class="para2"><num>(i)</num><content>whether it is satisfied as described in <ref href="#section-63">section 63</ref><ref href="#section-63-1">(1)</ref> of the Pension Schemes Act 2026 (condition for superfund to be authorised);</content></level><level class="para2"><num>(ii)</num><content>whether it is satisfied as described in <ref href="#section-66">section 66</ref><ref href="#section-66-1">(1)</ref><ref href="#section-66-1-c">(c)</ref> of that Act (“onboarding conditions” for superfund transfers);</content></level></level><level class="para1"><num>(jg)</num><content>the discharge of the duties imposed by Chapters 4 and 5 of <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (ongoing requirements for operating superfunds);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-paragraph-12-3"><num>(3)</num><intro>In subsection (6), in the definition of “the pensions legislation”—</intro><level class="para1" eId="schedule-paragraph-12-3-a"><num>(a)</num><content><mod>after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e24762"><num>(da)</num><content>sections 20, 26 and <ref href="#d25e6214">28A</ref> to <ref href="#d25e8016">28I</ref> of the Pensions Act 2008 (scale and the asset allocation requirement),</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="schedule-paragraph-12-3-b"><num>(b)</num><content><mod>omit the “or” before paragraph (h) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content>Chapter <ref href="#part-2-chapter-1">1</ref>, <ref href="#part-2-chapter-2">2</ref>, <ref href="#schedule-paragraph-4">4</ref> or <ref href="#part-2-chapter-6">6</ref> of Part <ref href="#part-2">2</ref> of, or any provision of Part <ref href="#part-3">3</ref> of, the Pension Schemes Act 2026.</content></level></quotedStructure></mod></content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-paragraph-19" class="schProv1"><num>19</num><content><mod>In section 256 (no indemnification for fines or civil penalties), in subsection (1)(b), at the end insert <quotedText>“, or <ref href="#section-18">section 18</ref>, <ref href="#section-32">32</ref> or <ref href="#section-55">55</ref> of the Pension Schemes Act 2026.”</quotedText></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-paragraph-20-1"><num>(1)</num><content><mod>In section 318 (general interpretation), in subsection (1), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-key-function">key function</term>”, in relation to a superfund, has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-operating-superfund">operating superfund</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-operating-superfund-scheme">operating superfund scheme</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-responsible-body">responsible body</term>”, in relation to a superfund, has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-superfund">superfund</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-superfund-group">superfund group</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-superfund-scheme">superfund scheme</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-superfund-transfer">superfund transfer</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act);</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-paragraph-21-1"><num>(1)</num><content>Schedule 2 (the reserved regulatory functions) is amended as follows.</content></subparagraph><subparagraph eId="schedule-paragraph-21-2"><num>(2)</num><content><mod>For the heading of Part 5 substitute <quotedText>“Functions under the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006 (<ref eId="c00197" href="http://www.legislation.gov.uk/id/uksi/2006/349">S.I. 2006/349</ref>)”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-paragraph-21-3"><num>(3)</num><content>Parts 4A and 4B are moved to after Part 5 and are renumbered as (respectively) Parts 6 and 7.</content></subparagraph><subparagraph eId="schedule-paragraph-21-4"><num>(4)</num><content>Accordingly, paragraphs 44A to 44O are renumbered as (respectively) paragraphs 46 to 60.</content></subparagraph><subparagraph eId="schedule-paragraph-21-5"><num>(5)</num><content><mod>After Part 7 (as moved and renumbered by sub-paragraph <ref href="#schedule-paragraph-21-3">(3)</ref> above) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 8</num><heading>Functions under the Pension Schemes Act 2026</heading><paragraph class="schProv1"><num>61</num><content>The power under <ref href="#section-63">section 63</ref><ref href="#section-63-1">(1)</ref> to authorise a superfund.</content></paragraph><paragraph class="schProv1"><num>62</num><content>The power under <ref href="#section-63">section 63</ref><ref href="#section-63-6">(6)</ref> to withdraw authorisation from a superfund that has not yet received a superfund transfer.</content></paragraph><paragraph class="schProv1"><num>63</num><content>The power under <ref href="#section-66">section 66</ref> to approve a superfund transfer.</content></paragraph><paragraph class="schProv1"><num>64</num><content>The power under <ref href="#section-78">section 78</ref><ref href="#section-78-1">(1)</ref> to approve an individual to be responsible for a key function.</content></paragraph><paragraph class="schProv1"><num>65</num><content>The power under <ref href="#section-78">section 78</ref><ref href="#section-78-8">(8)</ref> to suspend or revoke an individual’s approval to be responsible for a key function.</content></paragraph><paragraph class="schProv1"><num>66</num><content>The power under <ref href="#section-80">section 80</ref><ref href="#section-80-1">(1)</ref> to approve a person to be a trustee of a superfund scheme.</content></paragraph><paragraph class="schProv1"><num>67</num><content>The power under <ref href="#section-80">section 80</ref><ref href="#section-80-8">(8)</ref> to suspend or revoke a person’s approval to be a trustee of a superfund scheme.</content></paragraph><paragraph class="schProv1"><num>68</num><content>The power under <ref href="#section-94">section 94</ref> to withdraw authorisation from an operating superfund.</content></paragraph></part></quotedStructure></mod></content></subparagraph></paragraph>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-2"><num>(2)</num><content>A reference in this Chapter to the funds and other assets for which a scheme manager is responsible is to the funds and other assets which are (or should be) held as part of its pension fund for the purpose of providing pensions and other benefits under its part of a scheme for local government workers.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-3"><num>(3)</num><content>Nothing in this Chapter is to be taken as affecting the generality of the powers conferred by section 1 or 3(1) of, or any provision of Schedule 3 to, PSPA 2013.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-2"><num>(2)</num><content>In the Pensions Act 2004, omit section 251 (old resolution procedure in relation to payments of surplus).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-3"><num>(3)</num><content><ref href="#section-9-2">Subsection (2)</ref> does not affect the validity of a resolution passed under the section it repeals.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-1"><num>(1)</num><content><ref eId="c00002" href="https://www.legislation.gov.uk/ukpga/1995/26/section/37">Section 37</ref> of the <ref eId="c00003" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (restrictions on power to pay surplus to employer) is amended in accordance with <ref href="#section-10-2">subsections (2)</ref> to <ref href="#section-10-5">(5)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-3"><num>(3)</num><content>Omit subsections (3) and (4).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-4"><num>(4)</num><content><mod>In subsection (6)(a), for “the requirements of this section” substitute <quotedText>“subsection <ref href="#d25e1457">(2A)</ref>”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-5"><num>(5)</num><intro>In subsection (8)—</intro><level class="para1" eId="section-10-5-a"><num>(a)</num><content>omit “in prescribed circumstances”;</content></level><level class="para1" eId="section-10-5-b"><num>(b)</num><content><mod>after “modifications,” insert <quotedText>“in prescribed circumstances or”</quotedText>.</mod></content></level></subsection>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-2"><num>Part 2</num><heading>Defined contribution pensions</heading><chapter eId="part-2-chapter-1"><num>Chapter 1</num><heading>Value for money</heading><section eId="section-11"><num>11</num><heading>Relevant schemes: value for money</heading><subsection eId="section-11-1"><num>(1)</num><intro>The Secretary of State may make regulations (“<term refersTo="#term-value-for-money-regulations" eId="term-value-for-money-regulations">value for money regulations</term>”) for the purpose of evaluating, and promoting best practice with regard to, the provision of value for money by—</intro><level class="para1" eId="section-11-1-a"><num>(a)</num><content>prescribed descriptions of relevant pension schemes (“regulated VFM schemes”), and</content></level><level class="para1" eId="section-11-1-b"><num>(b)</num><content>prescribed descriptions of arrangements under relevant pension schemes (“regulated VFM arrangements”).</content></level></subsection><subsection eId="section-11-2"><num>(2)</num><intro>Value for money regulations may in particular require responsible trustees or managers to—</intro><level class="para1" eId="section-11-2-a"><num>(a)</num><intro>make, and publish (in whole or part) reports of, assessments (“VFM assessments”) of the performance of—</intro><level class="para2" eId="section-11-2-a-i"><num>(i)</num><content>regulated VFM schemes, or</content></level><level class="para2" eId="section-11-2-a-ii"><num>(ii)</num><content>regulated VFM arrangements,</content></level><wrapUp>with regard to the provision of value for money in respect of prescribed periods (“VFM periods”);</wrapUp></level><level class="para1" eId="section-11-2-b"><num>(b)</num><content>notify the Pensions Regulator of any publication they make under <ref href="#section-11-2-a">paragraph (a)</ref>;</content></level><level class="para1" eId="section-11-2-c"><num>(c)</num><intro>publish or share with prescribed persons in respect of—</intro><level class="para2" eId="section-11-2-c-i"><num>(i)</num><content>regulated VFM schemes or (as the case may be) regulated VFM arrangements, and</content></level><level class="para2" eId="section-11-2-c-ii"><num>(ii)</num><content>VFM periods,</content></level><wrapUp>prescribed categories of information (“metric data”) for the purpose of enabling VFM assessments to be made (with respect to the scheme or arrangement in question and other regulated VFM schemes or regulated VFM arrangements).</wrapUp></level></subsection><subsection eId="section-11-3"><num>(3)</num><content>A duty to publish information under <ref href="#section-11-2">subsection (2)</ref><ref href="#section-11-2-c">(c)</ref> may be a duty to publish the information for a specified period.</content></subsection><subsection eId="section-11-4"><num>(4)</num><intro>Where value for money regulations require responsible trustees or managers to make a VFM assessment with respect to a scheme or arrangement, the regulations may require those trustees or managers to—</intro><level class="para1" eId="section-11-4-a"><num>(a)</num><content>assign to the scheme or arrangement, and set out in the VFM assessment, a rating for that period (a “VFM rating”), and</content></level><level class="para1" eId="section-11-4-b"><num>(b)</num><content>notify the Pensions Regulator of the rating.</content></level></subsection><subsection eId="section-11-5"><num>(5)</num><intro>Value for money regulations may specify—</intro><level class="para1" eId="section-11-5-a"><num>(a)</num><content>the method for calculating anything that is to be calculated under the regulations;</content></level><level class="para1" eId="section-11-5-b"><num>(b)</num><content>the time at or by which anything required to be done under the regulations must be done.</content></level></subsection><subsection eId="section-11-6"><num>(6)</num><content>In complying with value for money regulations a person must have regard to any guidance issued from time to time by the Secretary of State.</content></subsection><subsection eId="section-11-7"><num>(7)</num><intro>The Secretary of State must consult with such persons as the Secretary of State considers appropriate before—</intro><level class="para1" eId="section-11-7-a"><num>(a)</num><content>making value for money regulations;</content></level><level class="para1" eId="section-11-7-b"><num>(b)</num><content>issuing guidance under <ref href="#section-11-6">subsection (6)</ref>.</content></level></subsection><subsection eId="section-11-8"><num>(8)</num><intro>In this Chapter “<term refersTo="#term-responsible-trustees-or-managers" eId="term-responsible-trustees-or-managers">responsible trustees or managers</term>” means any of the following—</intro><level class="para1" eId="section-11-8-a"><num>(a)</num><content>trustees or managers of a regulated VFM scheme;</content></level><level class="para1" eId="section-11-8-b"><num>(b)</num><content>trustees or managers of a relevant pension scheme any arrangements under which are regulated VFM arrangements.</content></level></subsection><subsection eId="section-11-9"><num>(9)</num><content>Nothing in this Chapter prejudices the breadth of subsections <ref href="#section-11-1">(1)</ref> and <ref href="#section-11-2">(2)</ref>.</content></subsection><subsection eId="section-11-10"><num>(10)</num><content>Subject to <ref href="#section-11-11">subsection (11)</ref>, value for money regulations are subject to the affirmative procedure.</content></subsection><subsection eId="section-11-11"><num>(11)</num><content>Any exercise, after the first, of the power to prescribe categories of information by virtue of <ref href="#section-11-2">subsection (2)</ref><ref href="#section-11-2-c">(c)</ref> is subject to the negative procedure.</content></subsection><subsection eId="section-11-12"><num>(12)</num><content>Subject to <ref href="#section-11-13">subsection (13)</ref>, in this Chapter “<term refersTo="#term-relevant-pension-scheme" eId="term-relevant-pension-scheme">relevant pension scheme</term>” means an occupational pension scheme that provides money purchase benefits.</content></subsection><subsection eId="section-11-13"><num>(13)</num><content>Value for money regulations may provide that where an occupational pension scheme provides money purchase benefits in conjunction with other benefits, references in this Chapter (other than this subsection) to the occupational pension scheme are to an occupational pension scheme only to the extent that it provides money purchase benefits.</content></subsection></section><section eId="section-12"><num>12</num><heading>Publication etc of metric data</heading><subsection eId="section-12-1"><num>(1)</num><intro>Categories of information prescribed under section <ref href="#section-11">11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref> may for example relate to—</intro><level class="para1" eId="section-12-1-a"><num>(a)</num><content>the quality of services provided to members of the scheme or (as the case may be) arrangement;</content></level><level class="para1" eId="section-12-1-b"><num>(b)</num><content>classes of assets invested in;</content></level><level class="para1" eId="section-12-1-c"><num>(c)</num><content>investment performance;</content></level><level class="para1" eId="section-12-1-d"><num>(d)</num><content>costs incurred by the scheme or (as the case may be) arrangement;</content></level><level class="para1" eId="section-12-1-e"><num>(e)</num><content>charges on members or employers in relation to the scheme or (as the case may be) arrangement.</content></level></subsection><subsection eId="section-12-2"><num>(2)</num><intro>Value for money regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref> may—</intro><level class="para1" eId="section-12-2-a"><num>(a)</num><content>specify time limits within which metric data in respect of a VFM period must be published or shared;</content></level><level class="para1" eId="section-12-2-b"><num>(b)</num><content>make provision about the form in which and the means by which metric data is to be published or shared;</content></level><level class="para1" eId="section-12-2-c"><num>(c)</num><content>require the published or shared information to deal separately with different cohorts of members of the scheme or (as the case may be) arrangement;</content></level><level class="para1" eId="section-12-2-d"><num>(d)</num><content>require a person appointed under the regulations to make available, for the publication or sharing of metric data, an electronic database (operated by that person);</content></level><level class="para1" eId="section-12-2-e"><num>(e)</num><intro>require responsible trustees or managers, on publishing or sharing any information under regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref>, to notify the Pensions Regulator—</intro><level class="para2" eId="section-12-2-e-i"><num>(i)</num><content>of the publication of the information and where it is published, or</content></level><level class="para2" eId="section-12-2-e-ii"><num>(ii)</num><content>(as the case requires) of the sharing of the information.</content></level></level></subsection><subsection eId="section-12-3"><num>(3)</num><intro>Value for money regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref> may require the Pensions Regulator to—</intro><level class="para1" eId="section-12-3-a"><num>(a)</num><content>determine the form in which metric data must be published or shared, and</content></level><level class="para1" eId="section-12-3-b"><num>(b)</num><content>publish, or share with the Secretary of State and responsible trustees or managers, details of the form so determined.</content></level></subsection></section><section eId="section-13"><num>13</num><heading>VFM assessments</heading><subsection eId="section-13-1"><num>(1)</num><intro>Value for money regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-a">(a)</ref> may—</intro><level class="para1" eId="section-13-1-a"><num>(a)</num><intro>require responsible trustees or managers to compare (in respect of a VFM period) a scheme’s or arrangement’s metric data with—</intro><level class="para2" eId="section-13-1-a-i"><num>(i)</num><content>the metric data of a prescribed number (or prescribed minimum number) of other schemes or arrangements (“comparator” schemes or arrangements) selected by the trustees or managers, or</content></level><level class="para2" eId="section-13-1-a-ii"><num>(ii)</num><content>one or more relevant benchmarks;</content></level></level><level class="para1" eId="section-13-1-b"><num>(b)</num><intro>make other provision about the method for comparing and evaluating the performance of schemes or arrangements, for example provision about—</intro><level class="para2" eId="section-13-1-b-i"><num>(i)</num><content>factors that may or must be considered;</content></level><level class="para2" eId="section-13-1-b-ii"><num>(ii)</num><content>criteria to be used in comparing performance;</content></level><level class="para2" eId="section-13-1-b-iii"><num>(iii)</num><content>the use and evaluation of evidence;</content></level></level><level class="para1" eId="section-13-1-c"><num>(c)</num><content>make provision about how the results of comparisons are to be taken into account in making determinations under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref> (determinations for the purposes of assigning ratings);</content></level><level class="para1" eId="section-13-1-d"><num>(d)</num><intro>make provision about the eligibility of—</intro><level class="para2" eId="section-13-1-d-i"><num>(i)</num><content>relevant pension schemes for selection as comparator schemes;</content></level><level class="para2" eId="section-13-1-d-ii"><num>(ii)</num><content>arrangements under relevant pension schemes for selection as comparator arrangements;</content></level></level><level class="para1" eId="section-13-1-e"><num>(e)</num><content>specify factors that responsible trustees or managers must take into account when selecting comparator schemes or comparator arrangements.</content></level></subsection><subsection eId="section-13-2"><num>(2)</num><intro>Without prejudice to the breadth of <ref href="#section-13-1">subsection (1)</ref><ref href="#section-13-1-b">(b)</ref><ref href="#section-13-1-b-i">(i)</ref>, factors prescribed in accordance with that provision may for example include—</intro><level class="para1" eId="section-13-2-a"><num>(a)</num><content>factors relating to differences in the composition of the membership of different schemes or arrangements;</content></level><level class="para1" eId="section-13-2-b"><num>(b)</num><content>special features or characteristics of schemes or arrangements that are taken into account in their investment strategies.</content></level></subsection><subsection eId="section-13-3"><num>(3)</num><intro>In this section “<term refersTo="#term-relevant-benchmark" eId="term-relevant-benchmark">relevant benchmark</term>” means—</intro><level class="para1" eId="section-13-3-a"><num>(a)</num><content>a benchmark specified in value for money regulations;</content></level><level class="para1" eId="section-13-3-b"><num>(b)</num><content>if value for money regulations so provide, a benchmark approved and published by the Pensions Regulator.</content></level></subsection></section><section eId="section-14"><num>14</num><heading>Member satisfaction surveys</heading><subsection eId="section-14-1"><num>(1)</num><intro>Value for money regulations may—</intro><level class="para1" eId="section-14-1-a"><num>(a)</num><intro>require responsible trustees or managers to—</intro><level class="para2" eId="section-14-1-a-i"><num>(i)</num><content>issue VFM member satisfaction survey forms to relevant members from time to time as directed by the relevant authority;</content></level><level class="para2" eId="section-14-1-a-ii"><num>(ii)</num><content>make reports (“survey data reports”) of information returned in such forms;</content></level></level><level class="para1" eId="section-14-1-b"><num>(b)</num><content>provide that survey data reports (or survey data reports that meet prescribed conditions) relating to a VFM period are to be regarded as metric data for the purposes of this Chapter;</content></level><level class="para1" eId="section-14-1-c"><num>(c)</num><content>require the relevant authority to carry out consultation before issuing forms under <ref href="#section-14-1-a">paragraph (a)</ref>;</content></level><level class="para1" eId="section-14-1-d"><num>(d)</num><content>if regulations are made under <ref href="#section-14-1-c">paragraph (c)</ref>, make provision about who must be consulted.</content></level></subsection><subsection eId="section-14-2"><num>(2)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-relevant-authority" eId="term-relevant-authority">relevant authority</term>” means whichever of the Secretary of State or the Pensions Regulator is designated in the regulations as the relevant authority;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-member" eId="term-relevant-member">relevant member</term>” means—</intro><level class="para1"><num>(a)</num><content>in relation to a responsible trustee or manager within <ref href="#section-11">section 11</ref><ref href="#section-11-8">(8)</ref><ref href="#section-11-8-a">(a)</ref>, a member of the relevant pension scheme concerned;</content></level><level class="para1"><num>(b)</num><content>in relation to a responsible trustee or manager within <ref href="#section-11">section 11</ref><ref href="#section-11-8">(8)</ref><ref href="#section-11-8-b">(b)</ref>, a member of an arrangement by virtue of which the trustee or manager is a responsible trustee or manager;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-member-satisfaction-survey-form" eId="term-vfm-member-satisfaction-survey-form">VFM member satisfaction survey form</term>” means a request, in a form approved by the relevant authority, for inviting from relevant members information regarding their level of satisfaction with the service provided by the scheme or arrangement (as the case requires).</content></hcontainer></subsection></section><section eId="section-15"><num>15</num><heading>VFM ratings</heading><subsection eId="section-15-1"><num>(1)</num><intro>Responsible trustees or managers who are required by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-4">(4)</ref><ref href="#section-11-4-a">(a)</ref>to assign a VFM rating to a scheme or arrangement in respect of a VFM period (the “relevant period”) must assign to the scheme or (as the case requires) arrangement—</intro><level class="para1" eId="section-15-1-a"><num>(a)</num><content>a “fully delivering” rating if the responsible trustees or managers determine that the scheme or arrangement is delivering value for money;</content></level><level class="para1" eId="section-15-1-b"><num>(b)</num><intro>a “not delivering” rating if—</intro><level class="para2" eId="section-15-1-b-i"><num>(i)</num><content>the responsible trustees or managers determine that the scheme or arrangement is not delivering value for money, and</content></level><level class="para2" eId="section-15-1-b-ii"><num>(ii)</num><content>Condition A, B or C of <ref href="#section-15-2">subsection (2)</ref> is met;</content></level></level><level class="para1" eId="section-15-1-c"><num>(c)</num><content>in any other case, an intermediate rating.</content></level></subsection><subsection eId="section-15-2"><num>(2)</num><intro>For the purposes of <ref href="#section-15-1">subsection (1)</ref><ref href="#section-15-1-b">(b)</ref><ref href="#section-15-1-b-ii">(ii)</ref>—</intro><level class="para1" eId="section-15-2-a"><num>(a)</num><content>Condition A is met if the responsible trustees or managers determine that there is no realistic prospect of the scheme or (as the case may be) arrangement delivering value for money within a reasonable period;</content></level><level class="para1" eId="section-15-2-b"><num>(b)</num><content>Condition B is met if the responsible trustees or managers have assigned an intermediate rating to the scheme or arrangement in each of a prescribed number of VFM periods immediately preceding the relevant period;</content></level><level class="para1" eId="section-15-2-c"><num>(c)</num><intro>Condition C is met if the Pensions Regulator notifies the responsible trustees or managers that the Regulator—</intro><level class="para2" eId="section-15-2-c-i"><num>(i)</num><content>considers that the responsible trustees or managers have failed to comply with an improvement plan or an action plan relating to the scheme or arrangement (and the VFM period), and</content></level><level class="para2" eId="section-15-2-c-ii"><num>(ii)</num><content>does not consider the failures to be so minor that they should be ignored.</content></level></level></subsection><subsection eId="section-15-3"><num>(3)</num><content>Value for money regulations must specify the number of grades of intermediate rating.</content></subsection><subsection eId="section-15-4"><num>(4)</num><intro>If value for money regulations provide that there are to be two or more intermediate ratings, the regulations—</intro><level class="para1" eId="section-15-4-a"><num>(a)</num><content>may name each of those ratings;</content></level><level class="para1" eId="section-15-4-b"><num>(b)</num><content>must specify the conditions for assigning each of those ratings.</content></level></subsection><subsection eId="section-15-5"><num>(5)</num><content>Where, apart from this subsection, a scheme or arrangement would be assigned a “not delivering” rating in respect of a VFM period by virtue of Condition B of <ref href="#section-15-2">subsection (2)</ref> being met, the Pensions Regulator may, if it considers that prescribed conditions are met, by notice to the scheme or arrangement authorise the responsible trustees or managers to assign to the scheme or arrangement (instead of a “not delivering” rating) any intermediate rating the Pensions Regulator considers appropriate.</content></subsection><subsection eId="section-15-6"><num>(6)</num><intro>In this Chapter “<term refersTo="#term-action-plan" eId="term-action-plan">action plan</term>”, in relation to a regulated VFM scheme or regulated VFM arrangement, means a plan under <ref href="#section-16">section 16</ref><ref href="#section-16-2">(2)</ref><ref href="#section-16-2-c">(c)</ref> or <ref href="#section-17">17</ref><ref href="#section-17-1">(1)</ref><ref href="#section-17-1-a">(a)</ref> which—</intro><level class="para1" eId="section-15-6-a"><num>(a)</num><content>sets out the responsible trustees’ or managers’ assessment as to whether or not transferring the benefits of the members (under the scheme or arrangement) to another scheme or arrangement could reasonably be expected to result in the generality of those members receiving improved long-term value for money, and</content></level><level class="para1" eId="section-15-6-b"><num>(b)</num><content>proposes measures (or options for measures) for improving the position (with regard to value for money) of members or subsets of members of the scheme or arrangement.</content></level></subsection><subsection eId="section-15-7"><num>(7)</num><content>An action plan may not include a proposal to transfer the benefits (under the scheme or arrangement) of some or all of the members of that scheme or arrangement unless the responsible trustees or managers determine that the proposed transfer could reasonably be expected to result in the generality of those members receiving improved long-term value for money.</content></subsection><subsection eId="section-15-8"><num>(8)</num><content>Value for money regulations may make further provision about what may or must be included in an action plan.</content></subsection></section><section eId="section-16"><num>16</num><heading>Consequences of an intermediate rating</heading><subsection eId="section-16-1"><num>(1)</num><content>Value for money regulations may make provision about the consequences of the assigning under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref> of an intermediate rating to a regulated VFM scheme or regulated VFM arrangement in respect of a VFM period.</content></subsection><subsection eId="section-16-2"><num>(2)</num><intro>Without prejudice to the breadth of <ref href="#section-16-1">subsection (1)</ref>, value for money regulations may require responsible trustees or managers of a scheme or arrangement to which any grade of intermediate rating has been assigned to—</intro><level class="para1" eId="section-16-2-a"><num>(a)</num><content>prepare a plan (an “improvement plan”) specifying actions that the responsible trustees or managers propose to take with a view to improving the scheme’s or (as the case may be) arrangement’s performance with regard to the provision of value for money;</content></level><level class="para1" eId="section-16-2-b"><num>(b)</num><content>provide a copy of the plan to the Pensions Regulator;</content></level><level class="para1" eId="section-16-2-c"><num>(c)</num><content>prepare an action plan and provide a copy of it to the Pensions Regulator;</content></level><level class="para1" eId="section-16-2-d"><num>(d)</num><intro>give notice in a prescribed format to any person who is a participating employer in relation to the scheme or arrangement of—</intro><level class="para2" eId="section-16-2-d-i"><num>(i)</num><content>the VFM rating that has effect in relation to the scheme or arrangement;</content></level><level class="para2" eId="section-16-2-d-ii"><num>(ii)</num><content>any actions specified by virtue of <ref href="#section-16-2-a">paragraph (a)</ref> in an improvement plan;</content></level><level class="para2" eId="section-16-2-d-iii"><num>(iii)</num><content>any actions the trustees or managers consider it is appropriate for the employer to take having regard to the rating assigned to the scheme or arrangement;</content></level></level><level class="para1" eId="section-16-2-e"><num>(e)</num><content>ensure that no person becomes an employer in relation to the scheme or arrangement for as long as the scheme or (as the case may be) arrangement continues to have an intermediate rating;</content></level><level class="para1" eId="section-16-2-f"><num>(f)</num><content>take any other steps that may be prescribed.</content></level></subsection><subsection eId="section-16-3"><num>(3)</num><intro>Value for money regulations may—</intro><level class="para1" eId="section-16-3-a"><num>(a)</num><content>make further provision about what may or must be included in an improvement plan;</content></level><level class="para1" eId="section-16-3-b"><num>(b)</num><content>confer additional functions on the Pensions Regulator in connection with schemes that are assigned an intermediate rating.</content></level></subsection><subsection eId="section-16-4"><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-employer" eId="term-employer">employer</term>”, in relation to a regulated VFM scheme or regulated VFM arrangement, means a person who employs persons who are members of the scheme or (as the case requires) arrangement;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-participating-employer" eId="term-participating-employer">participating employer</term>” in relation to a regulated VFM scheme or regulated VFM arrangement, means an employer who is for the time being making contributions to the scheme or (as the case requires) arrangement.</content></hcontainer></subsection></section><section eId="section-17"><num>17</num><heading>Consequences of a “not delivering” rating</heading><subsection eId="section-17-1"><num>(1)</num><intro>A regulated VFM scheme or regulated VFM arrangement to which a “not delivering” rating has been assigned (an “affected” scheme or arrangement) must—</intro><level class="para1" eId="section-17-1-a"><num>(a)</num><content>prepare an action plan and provide a copy of it to the Pensions Regulator;</content></level><level class="para1" eId="section-17-1-b"><num>(b)</num><intro>give notice in a prescribed format to any person who is a participating employer in relation to the scheme or arrangement of—</intro><level class="para2" eId="section-17-1-b-i"><num>(i)</num><content>the VFM rating that has effect in relation to the scheme or arrangement;</content></level><level class="para2" eId="section-17-1-b-ii"><num>(ii)</num><content>any actions the trustees or managers consider it appropriate for the employer to take having regard to the “not delivering” rating;</content></level></level><level class="para1" eId="section-17-1-c"><num>(c)</num><content>ensure that with effect from the publication of the VFM assessment in which the rating is set out no person is to become an employer in relation to the scheme or (as the case may be) arrangement;</content></level><level class="para1" eId="section-17-1-d"><num>(d)</num><content>take any other steps that may be prescribed.</content></level></subsection><subsection eId="section-17-2"><num>(2)</num><intro>Where a transfer solution (see <ref href="#section-17-3">subsection (3)</ref>) applies to an affected scheme or arrangement, the Pensions Regulator may—</intro><level class="para1" eId="section-17-2-a"><num>(a)</num><intro>require the accrued rights and benefits of all (or a subset of) the members of the scheme or arrangement to be transferred to a pension scheme (or arrangement under a pension scheme) that—</intro><level class="para2" eId="section-17-2-a-i"><num>(i)</num><content>is selected by the responsible trustees or managers, and</content></level><level class="para2" eId="section-17-2-a-ii"><num>(ii)</num><content>meets prescribed conditions;</content></level></level><level class="para1" eId="section-17-2-b"><num>(b)</num><content>specify conditions that must be met by a scheme or arrangement selected under <ref href="#section-17-2-a">paragraph (a)</ref>.</content></level></subsection><subsection eId="section-17-3"><num>(3)</num><intro>For the purposes of <ref href="#section-17-2">subsection (2)</ref>, a transfer solution applies to an affected scheme or arrangement if—</intro><level class="para1" eId="section-17-3-a"><num>(a)</num><intro>the Pensions Regulator considers that—</intro><level class="para2" eId="section-17-3-a-i"><num>(i)</num><content>based on the assessment carried out by the responsible trustees or managers under section <ref href="#section-15">15</ref><ref href="#section-15-6">(6)</ref><ref href="#section-15-6-a">(a)</ref> in the action plan of the scheme or arrangement, transferring the benefits of all (or a subset of) the members of the scheme or arrangement to another pension scheme (or arrangement under a pension scheme) could reasonably be expected to result in the generality of the members of the scheme or arrangement receiving improved long-term value for money, and</content></level><level class="para2" eId="section-17-3-a-ii"><num>(ii)</num><content>any other measures proposed under <ref href="#section-15">section 15</ref><ref href="#section-15-6">(6)</ref><ref href="#section-15-6-b">(b)</ref> in the action plan of the scheme or arrangement are unlikely to result in its achieving an intermediate (or “fully delivering”) rating or substantially improving its performance with regard to the provision of value for money, and</content></level></level><level class="para1" eId="section-17-3-b"><num>(b)</num><content>any prescribed conditions are met.</content></level></subsection><subsection eId="section-17-4"><num>(4)</num><intro>Value for money regulations may make provision—</intro><level class="para1" eId="section-17-4-a"><num>(a)</num><content>about the process for transferring accrued rights and benefits under <ref href="#section-17-2">subsection (2)</ref> (which may for example include provision for restricting or prohibiting administrative costs and as to time limits);</content></level><level class="para1" eId="section-17-4-b"><num>(b)</num><content>conferring on the Pensions Regulator power to direct the trustees or managers of the affected scheme to do things permitted or required by the regulations;</content></level><level class="para1" eId="section-17-4-c"><num>(c)</num><content>conferring a discretion on the Pensions Regulator;</content></level><level class="para1" eId="section-17-4-d"><num>(d)</num><content>about the winding up of a relevant scheme in circumstances where the accrued rights and benefits of the members are, or are to be, transferred out of the scheme.</content></level></subsection><subsection eId="section-17-5"><num>(5)</num><intro>In <ref href="#section-17">this section</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-employer" eId="term-employer">employer</term>” has the same meaning as in <ref href="#section-16">section 16</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-participating-employer" eId="term-participating-employer">participating employer</term>” has the same meaning as in <ref href="#section-16">section 16</ref>.</content></hcontainer></subsection></section><section eId="section-18"><num>18</num><heading>Compliance and oversight</heading><subsection eId="section-18-1"><num>(1)</num><content>Value for money regulations may make provision for ensuring compliance with value for money provisions.</content></subsection><subsection eId="section-18-2"><num>(2)</num><content>In this section “<term refersTo="#term-value-for-money-provision" eId="term-value-for-money-provision">value for money provision</term>” means a provision of or made under any of sections <ref href="#section-11">11</ref> to <ref href="#section-17">17</ref>.</content></subsection><subsection eId="section-18-3"><num>(3)</num><intro>Value for money regulations may in particular—</intro><level class="para1" eId="section-18-3-a"><num>(a)</num><content>provide for the Pensions Regulator to issue a notice (a “<term refersTo="#term-compliance-notice" eId="term-compliance-notice">compliance notice</term>”) to a person with a view to ensuring the person's compliance with a value for money provision;</content></level><level class="para1" eId="section-18-3-b"><num>(b)</num><content>provide for the Pensions Regulator to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a value for money provision;</content></level><level class="para1" eId="section-18-3-c"><num>(c)</num><intro>provide for the Pensions Regulator to issue a notice (a “penalty notice”) imposing a penalty on a person where the Pensions Regulator is of the opinion that the person—</intro><level class="para2" eId="section-18-3-c-i"><num>(i)</num><content>has failed to comply with a compliance notice or third party compliance notice, or</content></level><level class="para2" eId="section-18-3-c-ii"><num>(ii)</num><content>has contravened a value for money provision;</content></level></level><level class="para1" eId="section-18-3-d"><num>(d)</num><content>provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty;</content></level><level class="para1" eId="section-18-3-e"><num>(e)</num><content>confer other functions on the Pensions Regulator.</content></level></subsection><subsection eId="section-18-4"><num>(4)</num><content>Value for money regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention.</content></subsection><subsection eId="section-18-5"><num>(5)</num><intro>The amount of a penalty imposed under value for money regulations in respect of a failure or contravention must not exceed—</intro><level class="para1" eId="section-18-5-a"><num>(a)</num><content>£10,000, in the case of an individual, and</content></level><level class="para1" eId="section-18-5-b"><num>(b)</num><content>£100,000, in any other case.</content></level></subsection><subsection eId="section-18-6"><num>(6)</num><intro>Value for money regulations may provide that where the Pensions Regulator has, in compliance with a requirement of regulations under <ref href="#section-18-3">subsection (3)</ref><ref href="#section-18-3-c">(c)</ref><ref href="#section-18-3-c-ii">(ii)</ref>, imposed a penalty on a person the Regulator is to be authorised to withdraw the penalty if—</intro><level class="para1" eId="section-18-6-a"><num>(a)</num><content>the Regulator considers it appropriate to do so having regard to the circumstances in which the contravention took place, and</content></level><level class="para1" eId="section-18-6-b"><num>(b)</num><content>any prescribed conditions are met.</content></level></subsection><subsection eId="section-18-7"><num>(7)</num><intro>Value for money regulations may provide—</intro><level class="para1" eId="section-18-7-a"><num>(a)</num><content>that if the Regulator determines that a rating assigned by responsible trustees or managers for the purposes of <ref href="#section-11">section 11</ref><ref href="#section-11-4">(4)</ref><ref href="#section-11-4-a">(a)</ref> is not correct, the Regulator may by a notice (a “directions notice”) substitute for that rating the rating the Regulator considers should have been assigned;</content></level><level class="para1" eId="section-18-7-b"><num>(b)</num><content>that, where the Pensions Regulator substitutes a rating by virtue of paragraph <ref href="#section-18-7-a">(a)</ref>, that rating is to be deemed for all purposes to be the rating assigned to the scheme under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref>.</content></level></subsection><subsection eId="section-18-8"><num>(8)</num><content>A directions notice under <ref href="#section-18-7">subsection (7)</ref> must set out the reasons for the Pensions Regulator’s determination.</content></subsection><subsection eId="section-18-9"><num>(9)</num><content>Value for money regulations may provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of a determination of the Pensions Regulator under <ref href="#section-18-7">subsection (7)</ref><ref href="#section-18-7-a">(a)</ref>.</content></subsection><subsection eId="section-18-10"><num>(10)</num><content>The Pensions Act 1995 is amended as follows.</content></subsection><subsection eId="section-18-11"><num>(11)</num><intro>In section 7 (appointment of trustees)—</intro><level class="para1" eId="section-18-11-a"><num>(a)</num><content><mod>in subsection (3), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><content>where subsection (3A) or (3B) applies, to secure that the trustees as a whole have the skills and knowledge necessary for ensuring that the scheme, or an arrangement under it, improves its performance as regards the provision of value for money;</content></level></quotedStructure></mod></content></level><level class="para1" eId="section-18-11-b"><num>(b)</num><content><mod>after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(3A)</num><intro>This subsection applies where—</intro><level class="para1"><num>(a)</num><content>the trust scheme is a regulated VFM scheme (as defined in <ref href="#section-11">section 11</ref><ref href="#section-11-1">(1)</ref><ref href="#section-11-1-a">(a)</ref> of the Pension Schemes Act 2026), and</content></level><level class="para1"><num>(b)</num><content>the most recent rating assigned to the scheme under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref> of that Act was an intermediate or “not delivering” rating.</content></level></subsection><subsection><num>(3B)</num><intro>This subsection applies where—</intro><level class="para1"><num>(a)</num><content>an arrangement under the trust scheme is a regulated VFM arrangement, and</content></level><level class="para1"><num>(b)</num><content>the most recent rating assigned to the arrangement under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref> of that Act was an intermediate or “not delivering” rating.</content></level></subsection></quotedStructure></mod></content></level><level class="para1" eId="section-18-11-c"><num>(c)</num><content><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><content>In this section “regulated VFM arrangement” and “regulated VFM scheme” are to be interpreted in accordance with <ref href="#section-21">section 21</ref> of the Pension Schemes Act 2026.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-18-12"><num>(12)</num><intro>In section 11 (powers to wind up schemes), in subsection (1)—</intro><level class="para1" eId="section-18-12-a"><num>(a)</num><content>omit the “or” after paragraph (b), and</content></level><level class="para1" eId="section-18-12-b"><num>(b)</num><content><mod>after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><intro>the scheme is a regulated VFM scheme and—</intro><level class="para2"><num>(i)</num><content>the rating most recently assigned to the scheme under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref> of the Pension Schemes Act 2026 is “not delivering”, and</content></level><level class="para2"><num>(ii)</num><content>the Authority are satisfied that the scheme is not capable of providing value for money, or</content></level></level><level class="para1"><num>(e)</num><intro>the following conditions are met in relation to a regulated VFM arrangement (“<term refersTo="#term-a">A</term>”) under the scheme—</intro><level class="para2"><num>(i)</num><content>that the rating most recently assigned to A under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref> of the Pension Schemes Act 2026 is “not delivering”, and</content></level><level class="para2"><num>(ii)</num><content>the Authority are satisfied that A is not capable of providing value for money.</content></level></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-18-12-c"><num>(c)</num><content><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(8)</num><intro>In subsection (1)—</intro><level class="para1"><num>(a)</num><content>“<term refersTo="#term-regulated-vfm-arrangement">regulated VFM arrangement</term>” and “<term refersTo="#term-regulated-vfm-scheme">regulated VFM scheme</term>” have the same meaning as in <ref href="#part-2-chapter-1">Chapter 1</ref> of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026 (see <ref href="#section-21">section 21</ref> of that Act);</content></level><level class="para1"><num>(b)</num><content>the reference to the provision of value for money is to be interpreted in accordance with that Chapter.</content></level></subsection></quotedStructure></mod></content></level></subsection></section><section eId="section-19"><num>19</num><heading>Sharing of database where FCA makes corresponding rules</heading><subsection eId="section-19-1"><num>(1)</num><content>This section applies if the Financial Conduct Authority makes rules, in relation to persons regulated by it, that correspond to value for money regulations.</content></subsection><subsection eId="section-19-2"><num>(2)</num><intro>The Secretary of State may by regulations make provision for the purpose of enabling or facilitating the use of the database mentioned in section <ref href="#section-12">12</ref><ref href="#section-12-2">(2)</ref><ref href="#section-12-2-d">(d)</ref> for the publication or sharing of information—</intro><level class="para1" eId="section-19-2-a"><num>(a)</num><content>that relates to persons to whom the rules made by the Financial Conduct Authority apply, and</content></level><level class="para1" eId="section-19-2-b"><num>(b)</num><content>that corresponds to metric data,</content></level><wrapUp>including provision conferring functions on a person appointed as mentioned in section <ref href="#section-12">12</ref><ref href="#section-12-2">(2)</ref><ref href="#section-12-2-d">(d)</ref>.</wrapUp></subsection><subsection eId="section-19-3"><num>(3)</num><content>Regulations under subsection <ref href="#section-19-2">(2)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-20"><num>20</num><heading>Crown application</heading><subsection eId="section-20-1"><num>(1)</num><content>This Chapter applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes.</content></subsection><subsection eId="section-20-2"><num>(2)</num><content>Accordingly, references in this Chapter to a person in their capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.</content></subsection><subsection eId="section-20-3"><num>(3)</num><content>This Chapter applies to persons employed by or under the Crown as it applies to persons employed by a private person.</content></subsection></section><section eId="section-21"><num>21</num><heading>Interpretation of Chapter</heading><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-action-plan" eId="term-action-plan">action plan</term>” has the meaning given by <ref href="#section-15">section 15</ref><ref href="#section-15-6">(6)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fully-delivering-rating" eId="term-fully-delivering-rating">fully delivering rating</term>” means a fully delivering VFM rating (see <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref><ref href="#section-15-1-a">(a)</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-improvement-plan" eId="term-improvement-plan">improvement plan</term>” is to be interpreted in accordance with <ref href="#section-16">section 16</ref><ref href="#section-16-2">(2)</ref><ref href="#section-16-2-a">(a)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-intermediate-rating" eId="term-intermediate-rating">intermediate rating</term>” means an “intermediate” VFM rating (<ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref><ref href="#section-15-1-c">(c)</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-metric-data" eId="term-metric-data">metric data</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 181 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-not-delivering-rating" eId="term-not-delivering-rating">not delivering rating</term>” means a “not delivering” VFM rating (see <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref><ref href="#section-15-1-b">(b)</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-occupational-pension-scheme" eId="term-occupational-pension-scheme">occupational pension scheme</term>” has the same meaning as in the <ref eId="c00004" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-prescribed" eId="term-prescribed">prescribed</term>” means prescribed by value for money regulations;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-regulated-vfm-arrangement" eId="term-regulated-vfm-arrangement">regulated VFM arrangement</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-1">(1)</ref><ref href="#section-11-1-b">(b)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-regulated-vfm-scheme" eId="term-regulated-vfm-scheme">regulated VFM scheme</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-1">(1)</ref><ref href="#section-11-1-a">(a)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-pension-scheme" eId="term-relevant-pension-scheme">relevant pension scheme</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-12">(12)</ref> and <ref href="#section-11-13">(13)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-responsible-trustees-or-managers" eId="term-responsible-trustees-or-managers">responsible trustees or managers</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-8">(8)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-trustee-or-manager" eId="term-trustee-or-manager">trustee or manager</term>” means—</intro><level class="para1"><num>(a)</num><content>in relation to a scheme established under a trust, the trustees;</content></level><level class="para1"><num>(b)</num><content>in relation to any other scheme, the managers,</content></level><wrapUp>(including in the words that define “responsible trustees or managers” in <ref href="#section-11">section 11</ref><ref href="#section-11-8">(8)</ref>);</wrapUp></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-value-for-money-regulations" eId="term-value-for-money-regulations">value for money regulations</term>” has the meaning given by <ref href="#section-11">section 11</ref><ref href="#section-11-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-assessment" eId="term-vfm-assessment">VFM assessment</term>” has the meaning given by <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-a">(a)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-period" eId="term-vfm-period">VFM period</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-a">(a)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-rating" eId="term-vfm-rating">VFM rating</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-4">(4)</ref><ref href="#section-11-4-a">(a)</ref>.</content></hcontainer></section></chapter><chapter eId="part-2-chapter-2"><num>Chapter 2</num><heading>Consolidation of small dormant pension pots</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-power-to-make-small-pots-regulations"><heading>Power to make small pots regulations</heading><section eId="section-22"><num>22</num><heading>Small pots regulations</heading><subsection eId="section-22-1"><num>(1)</num><intro>The Secretary of State may make regulations (“<term refersTo="#term-small-pots-regulations" eId="term-small-pots-regulations">small pots regulations</term>”) for the purpose of securing that small dormant pension pots held by auto-enrolment schemes are—</intro><level class="para1" eId="section-22-1-a"><num>(a)</num><content>held by consolidator schemes, and</content></level><level class="para1" eId="section-22-1-b"><num>(b)</num><content>in the case of consolidator schemes that have more than one arrangement, held subject to consolidator arrangements.</content></level></subsection><subsection eId="section-22-2"><num>(2)</num><content>A pension pot is “small” if its value, determined as at such time and in such manner as is prescribed, is £1,000 or less (but is not nil).</content></subsection><subsection eId="section-22-3"><num>(3)</num><intro>A pension pot is “dormant” if—</intro><level class="para1" eId="section-22-3-a"><num>(a)</num><content>no contributions were paid into the pension pot by, or on behalf or in respect of, the individual for whom the pot is held during such period of at least 12 months as is prescribed, and</content></level><level class="para1" eId="section-22-3-b"><num>(b)</num><content>the individual has, subject to any prescribed exceptions, taken no step to confirm or alter the way in which the pension pot is invested.</content></level></subsection><subsection eId="section-22-4"><num>(4)</num><content>The period that may be prescribed under <ref href="#section-22-3">subsection (3)</ref><ref href="#section-22-3-a">(a)</ref> in relation to a pension pot in existence at the time the regulations come into force may begin at any time after the coming into force of this section.</content></subsection><subsection eId="section-22-5"><num>(5)</num><intro>Small pots regulations—</intro><level class="para1" eId="section-22-5-a"><num>(a)</num><intro>are subject to the affirmative procedure if they—</intro><level class="para2" eId="section-22-5-a-i"><num>(i)</num><content>are the first such regulations,</content></level><level class="para2" eId="section-22-5-a-ii"><num>(ii)</num><content>prescribe a person under <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref> (determination of destinations for small pots),</content></level><level class="para2" eId="section-22-5-a-iii"><num>(iii)</num><content>include provision under <ref href="#section-24">section 24</ref><ref href="#section-24-1">(1)</ref> or <ref href="#section-26">26</ref><ref href="#section-26-1">(1)</ref> (requirements to send transfer notices or transfer pension pots), or</content></level><level class="para2" eId="section-22-5-a-iv"><num>(iv)</num><content>amend or repeal provision contained in an Act;</content></level></level><level class="para1" eId="section-22-5-b"><num>(b)</num><content>otherwise, are subject to the negative procedure.</content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-transfers"><heading>Transfers</heading><section eId="section-23"><num>23</num><heading>Determination of destinations for small pots</heading><subsection eId="section-23-1"><num>(1)</num><intro>Small pots regulations must require a prescribed person to make, in relation to each small dormant pension pot held by an auto-enrolment scheme—</intro><level class="para1" eId="section-23-1-a"><num>(a)</num><content>a proposal in relation to the pot (“the default proposal”), and</content></level><level class="para1" eId="section-23-1-b"><num>(b)</num><content>one or more other proposals in relation to the pot (“the alternative proposals”).</content></level></subsection><subsection eId="section-23-2"><num>(2)</num><intro>For the purposes of this Chapter a “<term refersTo="#term-proposal" eId="term-proposal">proposal</term>”, in relation to a small dormant pension pot, means a proposal that—</intro><level class="para1" eId="section-23-2-a"><num>(a)</num><content>the pot should be held by a specified consolidator scheme, and</content></level><level class="para1" eId="section-23-2-b"><num>(b)</num><content>if there is more than one arrangement under that scheme, the pot should be held subject to a specified arrangement under the scheme.</content></level><wrapUp>In this subsection “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the proposal.</wrapUp></subsection><subsection eId="section-23-3"><num>(3)</num><intro><ref href="#section-23-1">Subsection (1)</ref> does not apply in relation to a small dormant pension pot if—</intro><level class="para1" eId="section-23-3-a"><num>(a)</num><content>the auto-enrolment scheme that holds the pot is itself a consolidator scheme,</content></level><level class="para1" eId="section-23-3-b"><num>(b)</num><content>any of the sums or assets comprising the pot, or any sums or assets from which any of the sums or assets comprising the pot derive, were at any time comprised in a small dormant pension pot in respect of which a transfer notice was sent under small pots regulations, and</content></level><level class="para1" eId="section-23-3-c"><num>(c)</num><content>no response to that notice was received under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref>.</content></level></subsection><subsection eId="section-23-4"><num>(4)</num><content>A person prescribed under <ref href="#section-23-1">subsection (1)</ref> may be a body corporate established by or under the regulations.</content></subsection><subsection eId="section-23-5"><num>(5)</num><intro>Small pots regulations may, in compliance with <ref href="#section-23-1">subsection (1)</ref>—</intro><level class="para1" eId="section-23-5-a"><num>(a)</num><content>prescribe one person to make all of the proposals required to be made under <ref href="#section-23-1">that subsection</ref>, or</content></level><level class="para1" eId="section-23-5-b"><num>(b)</num><content>prescribe two or more persons in relation to different descriptions of those proposals.</content></level></subsection><subsection eId="section-23-6"><num>(6)</num><content>Small pots regulations must require a proposal made by virtue of subsection (1) to be notified to the trustees or managers of the auto-enrolment scheme that holds the pension pot to which the proposal relates (unless those trustees or managers are themselves the destination proposer).</content></subsection><subsection eId="section-23-7"><num>(7)</num><content>A person prescribed under <ref href="#section-23-1">subsection (1)</ref> is referred to in <ref href="#part-2-chapter-2">this Chapter</ref> as a “destination proposer”.</content></subsection></section><section eId="section-24"><num>24</num><heading>Transfer notices</heading><subsection eId="section-24-1"><num>(1)</num><content>Small pots regulations must require the trustees or managers of an auto-enrolment scheme to prepare a notice (“a transfer notice”) in respect of each small dormant pension pot held by the scheme that is not exempt and send it to the individual for whom the pot is held.</content></subsection><subsection eId="section-24-2"><num>(2)</num><content>Small pots regulations must require a transfer notice in respect of a pension pot to comply with the following provisions of this section.</content></subsection><subsection eId="section-24-3"><num>(3)</num><intro>The notice must—</intro><level class="para1" eId="section-24-3-a"><num>(a)</num><content>set out the default proposal in relation to the pot;</content></level><level class="para1" eId="section-24-3-b"><num>(b)</num><content>set out the alternative proposal or proposals in relation to the pot;</content></level><level class="para1" eId="section-24-3-c"><num>(c)</num><intro>state that, if the individual does not respond to the notice, the pot will—</intro><level class="para2" eId="section-24-3-c-i"><num>(i)</num><content>if the default proposal specifies that the pot be transferred to a consolidator scheme, be transferred to that scheme, and</content></level><level class="para2" eId="section-24-3-c-ii"><num>(ii)</num><content>if there is more than one arrangement under the consolidator scheme specified in the default proposal, be held subject to the arrangement so specified;</content></level></level><level class="para1" eId="section-24-3-d"><num>(d)</num><intro>invite the individual to consider whether they are content with the default proposal and, if not, to respond to the notice stating either—</intro><level class="para2" eId="section-24-3-d-i"><num>(i)</num><content>that they want to adopt one of the alternative proposals and if so which, or</content></level><level class="para2" eId="section-24-3-d-ii"><num>(ii)</num><content>that they do not want any action to be taken in relation to the pension pot.</content></level></level></subsection><subsection eId="section-24-4"><num>(4)</num><content>Where membership of a consolidator scheme or a consolidator arrangement specified in a proposal set out in a transfer notice entails being a party to a contract with the trustees or managers of the scheme, the notice must set out, or otherwise communicate, the terms of such a contract.</content></subsection><subsection eId="section-24-5"><num>(5)</num><intro>The notice must include such details as may be prescribed relating to—</intro><level class="para1" eId="section-24-5-a"><num>(a)</num><content>the pension pot,</content></level><level class="para1" eId="section-24-5-b"><num>(b)</num><content>the auto-enrolment scheme, and</content></level><level class="para1" eId="section-24-5-c"><num>(c)</num><content>the consolidator scheme or schemes, and any consolidator arrangements, specified in a proposal set out in the notice.</content></level></subsection></section><section eId="section-25"><num>25</num><heading>Exempt pots</heading><subsection eId="section-25-1"><num>(1)</num><intro>A small dormant pension pot is “exempt” if—</intro><level class="para1" eId="section-25-1-a"><num>(a)</num><content>prescribed conditions are met in relation to the pot, and</content></level><level class="para1" eId="section-25-1-b"><num>(b)</num><content>the trustees or managers of the scheme that holds it determine that it is in the best interests of the individual for whom the pot is held that it should not be transferred in accordance with small pots regulations.</content></level></subsection><subsection eId="section-25-2"><num>(2)</num><content>A determination in relation to an individual under <ref href="#section-25-1">subsection (1)</ref><ref href="#section-25-1-b">(b)</ref> may be made by reference to a class of individuals of which the individual in question is a member.</content></subsection><subsection eId="section-25-3"><num>(3)</num><content>Small pots regulations may include further provision about how determinations under <ref href="#section-25-1">subsection (1)</ref><ref href="#section-25-1-b">(b)</ref> are to be made.</content></subsection></section><section eId="section-26"><num>26</num><heading>Transfer etc of small dormant pension pots</heading><subsection eId="section-26-1"><num>(1)</num><content>Small pots regulations must require the trustees or managers of an auto-enrolment scheme, in relation to each small dormant pot held by the scheme in respect of which they have sent a transfer notice, to implement the proposals set out in the notice in accordance with this section.</content></subsection><subsection eId="section-26-2"><num>(2)</num><content>Subsection <ref href="#section-26-1">(1)</ref> does not apply to a pension pot if the trustees or managers have received a response under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref> in relation to it.</content></subsection><subsection eId="section-26-3"><num>(3)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-3-a"><num>(a)</num><content>the trustees or managers do not receive a response to the notice, and</content></level><level class="para1" eId="section-26-3-b"><num>(b)</num><content>the default proposal involves the transfer of the pot to a consolidator scheme,</content></level><wrapUp>the trustees or managers are required to transfer the pot to that scheme.</wrapUp></subsection><subsection eId="section-26-4"><num>(4)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-4-a"><num>(a)</num><content>the trustees or managers receive a response to the notice, and</content></level><level class="para1" eId="section-26-4-b"><num>(b)</num><content>the alternative option identified by the individual under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-i">(i)</ref> involves the transfer of the pot to a consolidator scheme,</content></level><wrapUp>the trustees or managers are required to transfer the pot to that scheme.</wrapUp></subsection><subsection eId="section-26-5"><num>(5)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-5-a"><num>(a)</num><content>the trustees or managers do not receive a response to the notice, and</content></level><level class="para1" eId="section-26-5-b"><num>(b)</num><content>the default proposal involves the pot being held by a consolidator scheme subject to an arrangement specified in the proposal,</content></level><wrapUp>the pot is required to be held subject to that arrangement.</wrapUp></subsection><subsection eId="section-26-6"><num>(6)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-6-a"><num>(a)</num><content>the trustees or managers receive a response to the notice, and</content></level><level class="para1" eId="section-26-6-b"><num>(b)</num><content>the alternative proposal identified by the individual under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-i">(i)</ref> involves the pot being held by an arrangement specified in the proposal,</content></level><wrapUp>the pot is required to be held subject to that arrangement.</wrapUp></subsection><subsection eId="section-26-7"><num>(7)</num><content>The trustees or managers may transfer a pension pot by virtue of <ref href="#section-26-3">subsection (3)</ref> or <ref href="#section-26-4">(4)</ref>, or change the arrangement subject to which a pension pot is held by virtue of <ref href="#section-26-5">subsection (5)</ref> or <ref href="#section-26-6">(6)</ref>, notwithstanding that it breaches a term of the scheme (such as a requirement for consent); and any such breach is to be disregarded for all purposes.</content></subsection></section><section eId="section-27"><num>27</num><heading>Effect of transfer on membership of scheme etc</heading><subsection eId="section-27-1"><num>(1)</num><content>Subsections <ref href="#section-27-2">(2)</ref> and <ref href="#section-27-3">(3)</ref> apply where a pension pot held for an individual is transferred by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref> to a different pension scheme (“<term refersTo="#term-the-receiving-scheme" eId="term-the-receiving-scheme">the receiving scheme</term>”).</content></subsection><subsection eId="section-27-2"><num>(2)</num><content>The individual becomes a member of the receiving scheme in relation to the pot, and acquires the rights, and becomes subject to the obligations, of membership.</content></subsection><subsection eId="section-27-3"><num>(3)</num><intro>Where membership of the receiving scheme in relation to the pot entails being a party to a contract with its trustees or managers, a contract is treated as entered into between the individual and the trustees or managers—</intro><level class="para1" eId="section-27-3-a"><num>(a)</num><content>at the time at which the pension pot is transferred to the receiving scheme, and</content></level><level class="para1" eId="section-27-3-b"><num>(b)</num><content>on the terms communicated to the individual by virtue of <ref href="#section-24">section 24</ref><ref href="#section-24-4">(4)</ref>.</content></level></subsection><subsection eId="section-27-4"><num>(4)</num><content>Subsections <ref href="#section-27-5">(5)</ref> and <ref href="#section-27-6">(6)</ref> apply where a pension pot is by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref> held subject to a different arrangement under the same pension scheme, or an arrangement under a different pension scheme.</content></subsection><subsection eId="section-27-5"><num>(5)</num><content>The individual becomes a member of the arrangement in relation to the pot, and acquires the rights, and becomes subject to the obligations, of membership.</content></subsection><subsection eId="section-27-6"><num>(6)</num><intro>Where membership of the arrangement in relation to the pot entails being a party to a contract with its trustees or managers of the pension scheme in question, a contract is treated as entered into between the individual and the trustees or managers—</intro><level class="para1" eId="section-27-6-a"><num>(a)</num><content>at the time at which the pension pot is first held subject to the arrangement, and</content></level><level class="para1" eId="section-27-6-b"><num>(b)</num><content>on the terms communicated to the individual by virtue of <ref href="#section-24">section 24</ref><ref href="#section-24-4">(4)</ref>.</content></level></subsection></section><section eId="section-28"><num>28</num><heading>Timing of transfers</heading><subsection eId="section-28-1"><num>(1)</num><content>Small pots regulations must prohibit the trustees or managers of an auto-enrolment scheme from transferring a pension pot by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref>, or changing the arrangement subject to which it is held by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref>, before the end of the required notice period.</content></subsection><subsection eId="section-28-2"><num>(2)</num><content>In <ref href="#section-28-1">subsection (1)</ref> “<term refersTo="#term-the-required-notice-period" eId="term-the-required-notice-period">the required notice period</term>”, in relation to a pension pot, means the period of 30 days, or such longer period as may be prescribed, beginning with the day on which the transfer notice in respect of the pot is sent.</content></subsection><subsection eId="section-28-3"><num>(3)</num><content>Small pots regulations must (subject to <ref href="#section-28-5">subsection (5)</ref>) require the trustees or managers of an auto-enrolment scheme to effect any transfer of a pension pot by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref>, and any change in the arrangement subject to which it is held by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref>, before the end of the required transfer period.</content></subsection><subsection eId="section-28-4"><num>(4)</num><intro>In subsection <ref href="#section-28-3">(3)</ref> “<term refersTo="#term-the-required-transfer-period" eId="term-the-required-transfer-period">the required transfer period</term>”, in relation to a pension pot, means the period of one year beginning with—</intro><level class="para1" eId="section-28-4-a"><num>(a)</num><content>the date on which the provision of the regulations under which the requirement is imposed comes into force, or</content></level><level class="para1" eId="section-28-4-b"><num>(b)</num><content>if later, the date on which the pension pot first becomes small and dormant.</content></level></subsection><subsection eId="section-28-5"><num>(5)</num><content>Small pots regulations may include provision extending the required transfer period until the end of a prescribed period beginning with the date on which the trustees or managers are notified of the proposals made by virtue of <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref> in respect of the pot.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-authorisation"><heading>Authorisation</heading><section eId="section-29"><num>29</num><heading>Authorisation of consolidator schemes etc by the Pensions Regulator</heading><subsection eId="section-29-1"><num>(1)</num><intro>Small pots regulations must permit the trustees or managers of an eligible Master Trust scheme to apply to the Pensions Regulator for authorisation of—</intro><level class="para1" eId="section-29-1-a"><num>(a)</num><content>the scheme, or</content></level><level class="para1" eId="section-29-1-b"><num>(b)</num><content>such arrangements under the scheme as are specified in the application.</content></level></subsection><subsection eId="section-29-2"><num>(2)</num><intro>Small pots regulations must require the Pensions Regulator to grant an application for authorisation where—</intro><level class="para1" eId="section-29-2-a"><num>(a)</num><content>the application is made in accordance with regulations made by virtue of <ref href="#section-29-1">subsection (1)</ref>, and</content></level><level class="para1" eId="section-29-2-b"><num>(b)</num><content>prescribed conditions are met.</content></level></subsection><subsection eId="section-29-3"><num>(3)</num><intro>Small pots regulations may permit or require the Pensions Regulator, where prescribed conditions are, or cease to be, met in relation to a consolidator scheme or arrangement—</intro><level class="para1" eId="section-29-3-a"><num>(a)</num><content>to require the trustees or managers to take prescribed steps;</content></level><level class="para1" eId="section-29-3-b"><num>(b)</num><content>to prohibit a destination proposer, in prescribed cases or in all cases, from specifying the scheme or arrangement in proposals under <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></level><level class="para1" eId="section-29-3-c"><num>(c)</num><content>to withdraw authorisation.</content></level></subsection><subsection eId="section-29-4"><num>(4)</num><intro>The conditions that may be prescribed under<ref href="#section-29-2">subsection (2)</ref><ref href="#section-29-2-b">(b)</ref> or <ref href="#section-29-3">(3)</ref> include conditions relating to—</intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content>the terms of the scheme,</content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content>the value of sums and assets held by the scheme for the purpose of providing money purchase benefits,</content></level><level class="para1" eId="section-29-4-c"><num>(c)</num><content>the fees charged by the scheme, or</content></level><level class="para1" eId="section-29-4-d"><num>(d)</num><content>a VFM rating assigned to the scheme or any arrangement under the scheme,</content></level><wrapUp>and include conditions that involve the exercise of a discretion by the Pensions Regulator.</wrapUp></subsection><subsection eId="section-29-5"><num>(5)</num><content>Small pots regulations may permit or require the Pensions Regulator, where it withdraws authorisation, to require the trustees or managers of the scheme in question to take prescribed steps in relation to relevant pension pots.</content></subsection><subsection eId="section-29-6"><num>(6)</num><content>The steps that may be required to be taken by virtue of <ref href="#section-29-5">subsection (5)</ref> include steps to limit the fees that may be charged.</content></subsection><subsection eId="section-29-7"><num>(7)</num><intro>For the purposes of <ref href="#section-29-5">subsection (5)</ref> a pension pot is “relevant” if—</intro><level class="para1" eId="section-29-7-a"><num>(a)</num><content>any of the sums or assets comprising the pot, or any sums or assets from which any of the sums or assets comprising the pot derive, were at any time comprised in a small dormant pension pot in respect of which a transfer notice was sent under small pots regulations, and</content></level><level class="para1" eId="section-29-7-b"><num>(b)</num><content>no response to that notice was received under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref>.</content></level></subsection><subsection eId="section-29-8"><num>(8)</num><content>For the purposes of this Chapter a Master Trust scheme is “eligible” if it is authorised under section 5 of the Pension Schemes Act 2017 (authorisation of Master Trust schemes).</content></subsection></section><section eId="section-30"><num>30</num><heading>Consolidator schemes and consolidator arrangements</heading><subsection eId="section-30-1"><num>(1)</num><intro>In this Chapter “<term refersTo="#term-consolidator-scheme" eId="term-consolidator-scheme">consolidator scheme</term>” means—</intro><level class="para1" eId="section-30-1-a"><num>(a)</num><intro>an eligible Master Trust scheme—</intro><level class="para2" eId="section-30-1-a-i"><num>(i)</num><content>that is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-a">(a)</ref>, or</content></level><level class="para2" eId="section-30-1-a-ii"><num>(ii)</num><content>any arrangement under which is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-b">(b)</ref>, or</content></level></level><level class="para1" eId="section-30-1-b"><num>(b)</num><content>an FCA-regulated pension scheme that is for the time being included on a list published by the FCA under <ref href="#d25e5535">section 137FBC</ref><ref href="#d25e5548">(2)</ref><ref href="#d25e5566">(b)</ref> of the Financial Services and Markets Act 2000.</content></level></subsection><subsection eId="section-30-2"><num>(2)</num><intro>In this Chapter “<term refersTo="#term-consolidator-arrangement" eId="term-consolidator-arrangement">consolidator arrangement</term>” means—</intro><level class="para1" eId="section-30-2-a"><num>(a)</num><intro>an arrangement under an eligible Master Trust scheme where—</intro><level class="para2" eId="section-30-2-a-i"><num>(i)</num><content>the scheme is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-a">(a)</ref>, or</content></level><level class="para2" eId="section-30-2-a-ii"><num>(ii)</num><content>the arrangement is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-b">(b)</ref>, or</content></level></level><level class="para1" eId="section-30-2-b"><num>(b)</num><content>an arrangement under an FCA-regulated pension scheme that is for the time being included on a list published by the FCA under <ref href="#d25e5535">section 137FBC</ref><ref href="#d25e5548">(2)</ref><ref href="#d25e5566">(b)</ref> of the Financial Services and Markets Act 2000.</content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-supplementary"><heading>Supplementary</heading><section eId="section-31"><num>31</num><heading>Further provision about contents of small pots regulations</heading><subsection eId="section-31-1"><num>(1)</num><intro>Small pots regulations may, in particular—</intro><level class="para1" eId="section-31-1-a"><num>(a)</num><content>authorise the Pensions Regulator to charge a prescribed fee in respect of an application for authorisation under the regulations;</content></level><level class="para1" eId="section-31-1-b"><num>(b)</num><content>confer a right of appeal to the First-tier Tribunal or the Upper Tribunal;</content></level><level class="para1" eId="section-31-1-c"><num>(c)</num><content>require the trustees or managers of a relevant pension scheme to take prescribed steps to improve the accuracy and completeness of information held by them;</content></level><level class="para1" eId="section-31-1-d"><num>(d)</num><intro>require a relevant person, other than the FCA, to provide prescribed information, in such form and at such time as may be prescribed, to—</intro><level class="para2" eId="section-31-1-d-i"><num>(i)</num><content>a relevant person, or</content></level><level class="para2" eId="section-31-1-d-ii"><num>(ii)</num><content>an individual for whom a relevant pension scheme holds a pension pot;</content></level></level><level class="para1" eId="section-31-1-e"><num>(e)</num><content>require the trustees or managers of a relevant pension scheme to keep, and retain for a prescribed period, prescribed records;</content></level><level class="para1" eId="section-31-1-f"><num>(f)</num><content>provide (otherwise than under paragraphs <ref href="#section-31-1-c">(c)</ref> to <ref href="#section-31-1-e">(e)</ref>) for the processing of information;</content></level><level class="para1" eId="section-31-1-g"><num>(g)</num><content>limit the fees that may be charged by a relevant pension scheme in connection with the transfer of a pension pot under the regulations;</content></level><level class="para1" eId="section-31-1-h"><num>(h)</num><content>require a destination proposer, the trustees or managers of a relevant pension scheme, or the Secretary of State, to pay compensation to an individual who has suffered a loss as a result of a breach of the regulations;</content></level><level class="para1" eId="section-31-1-i"><num>(i)</num><content>confer (otherwise than under any of paragraphs <ref href="#section-31-1-a">(a)</ref> to <ref href="#section-31-1-h">(h)</ref>) a function on a relevant person, including a function involving the exercise of a discretion;</content></level><level class="para1" eId="section-31-1-j"><num>(j)</num><content>provide for the delegation of a function conferred by the regulations.</content></level></subsection><subsection eId="section-31-2"><num>(2)</num><content>In <ref href="#section-31-1">subsection (1)</ref><ref href="#section-31-1-c">(c)</ref> to <ref href="#section-31-1-f">(f)</ref>, a reference to information includes personal data, and a reference to records includes records of personal data.</content></subsection><subsection eId="section-31-3"><num>(3)</num><intro>The processing of personal data in accordance with the regulations does not breach—</intro><level class="para1" eId="section-31-3-a"><num>(a)</num><content>any obligation of confidence owed by the person processing the personal data, or</content></level><level class="para1" eId="section-31-3-b"><num>(b)</num><content>any other restriction on the processing of personal data (however imposed).</content></level></subsection><subsection eId="section-31-4"><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-personal-data" eId="term-personal-data">personal data</term>” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-processing" eId="term-processing">processing</term>” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-pension-scheme" eId="term-relevant-pension-scheme">relevant pension scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>an auto-enrolment scheme, or</content></level><level class="para1"><num>(b)</num><content>a consolidator scheme;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-person" eId="term-relevant-person">relevant person</term>” means—</intro><level class="para1"><num>(a)</num><content>the Pensions Regulator,</content></level><level class="para1"><num>(b)</num><content>the FCA,</content></level><level class="para1"><num>(c)</num><content>a destination proposer, or</content></level><level class="para1"><num>(d)</num><content>the trustees or managers of a relevant pension scheme.</content></level></hcontainer></subsection><subsection eId="section-31-5"><num>(5)</num><content>The power to make small pots regulations is capable of being exercised so as to amend or repeal provision contained in an Act.</content></subsection><subsection eId="section-31-6"><num>(6)</num><intro>In particular, small pots regulations may—</intro><level class="para1" eId="section-31-6-a"><num>(a)</num><content>amend section 146 of the Pension Schemes Act 1993 (functions of the Pensions Ombudsman) so as to confer on the Pensions Ombudsman the function of investigating and determining complaints or disputes relating to a destination proposer;</content></level><level class="para1" eId="section-31-6-b"><num>(b)</num><intro>amend section 175 of that Act (levies towards certain expenditure) so as to include expenditure of—</intro><level class="para2" eId="section-31-6-b-i"><num>(i)</num><content>a destination proposer, or</content></level><level class="para2" eId="section-31-6-b-ii"><num>(ii)</num><content>the Secretary of State by virtue of section 31(1)(h) (compensation).</content></level></level></subsection></section><section eId="section-32"><num>32</num><heading>Enforcement by the Pensions Regulator</heading><subsection eId="section-32-1"><num>(1)</num><content>Small pots regulations may make provision with a view to ensuring the compliance of any person who is not FCA-regulated with any provision of the regulations.</content></subsection><subsection eId="section-32-2"><num>(2)</num><intro>The regulations may in particular—</intro><level class="para1" eId="section-32-2-a"><num>(a)</num><content>provide for the Pensions Regulator to issue a notice (a “<term refersTo="#term-compliance-notice" eId="term-compliance-notice">compliance notice</term>”) to a person with a view to ensuring the person's compliance with a provision of the regulations;</content></level><level class="para1" eId="section-32-2-b"><num>(b)</num><content>provide for the Pensions Regulator to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a provision of the regulations;</content></level><level class="para1" eId="section-32-2-c"><num>(c)</num><intro>provide for the Pensions Regulator to issue a notice (a “penalty notice”) imposing a penalty on a person where the person—</intro><level class="para2" eId="section-32-2-c-i"><num>(i)</num><content>has failed to comply with a compliance notice or third party compliance notice, or</content></level><level class="para2" eId="section-32-2-c-ii"><num>(ii)</num><content>has contravened a provision of the regulations;</content></level></level><level class="para1" eId="section-32-2-d"><num>(d)</num><content>provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level></subsection><subsection eId="section-32-3"><num>(3)</num><content>The regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention.</content></subsection><subsection eId="section-32-4"><num>(4)</num><intro>But the amount of a penalty imposed under the regulations in respect of a failure or contravention must not exceed—</intro><level class="para1" eId="section-32-4-a"><num>(a)</num><content>£10,000, in the case of an individual, and</content></level><level class="para1" eId="section-32-4-b"><num>(b)</num><content>£100,000, in any other case.</content></level></subsection><subsection eId="section-32-5"><num>(5)</num><content>Any penalty payable under the regulations is recoverable by the Regulator.</content></subsection><subsection eId="section-32-6"><num>(6)</num><content>In England and Wales, any such penalty is, if the county court so orders, recoverable under section 85 of the County Courts Act 1984 or otherwise as if it were payable under an order of that court.</content></subsection><subsection eId="section-32-7"><num>(7)</num><content>In Scotland, a penalty notice is enforceable as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom.</content></subsection><subsection eId="section-32-8"><num>(8)</num><content>The Regulator must pay into the Consolidated Fund any penalty recovered under this section.</content></subsection><subsection eId="section-32-9"><num>(9)</num><content>A reference in this section to a provision of small pots regulations includes a reference to a requirement or restriction imposed by the Pensions Regulator under the regulations.</content></subsection></section><section eId="section-33"><num>33</num><heading>Enforcement by the FCA</heading><subsection eId="section-33-1"><num>(1)</num><content>The Treasury may make regulations to enable the FCA to take action (in addition to any action it may otherwise take under the Financial Services and Markets Act 2000) for monitoring and enforcing compliance of an FCA-regulated person with any provision of small pots regulations.</content></subsection><subsection eId="section-33-2"><num>(2)</num><intro>The regulations may apply, or make provision corresponding to—</intro><level class="para1" eId="section-33-2-a"><num>(a)</num><content>provision contained in small pots regulations by virtue of <ref href="#section-32">section 32</ref>, or</content></level><level class="para1" eId="section-33-2-b"><num>(b)</num><content>any provision of the Financial Services and Markets Act 2000,</content></level><wrapUp>with or without modification.</wrapUp></subsection><subsection eId="section-33-3"><num>(3)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection><subsection eId="section-33-4"><num>(4)</num><content>For the purposes of this Chapter a person is “FCA-regulated” if they are an authorised person (within the meaning of the Financial Services and Markets Act 2000) in relation to the operation of a pension scheme.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-interpretation-etc"><heading>Interpretation etc</heading><section eId="section-34"><num>34</num><heading>Power to alter definition of “small”</heading><subsection eId="section-34-1"><num>(1)</num><content>The Secretary of State may by regulations amend <ref href="#section-22">section 22</ref><ref href="#section-22-2">(2)</ref> (definition of “<term refersTo="#term-small" eId="term-small">small</term>” in relation to a pension pot) so as to substitute a larger or smaller amount for the amount for the time being specified there.</content></subsection><subsection eId="section-34-2"><num>(2)</num><intro>Before making regulations under this section the Secretary of State must—</intro><level class="para1" eId="section-34-2-a"><num>(a)</num><content>consult such persons as the Secretary of State considers appropriate, and</content></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content>publish details of the proposed amendment, and the Secretary of State’s reasons for making the proposal, and consider any representations made.</content></level></subsection><subsection eId="section-34-3"><num>(3)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section><section eId="section-35"><num>35</num><heading>Crown application</heading><subsection eId="section-35-1"><num>(1)</num><content>This Chapter applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes.</content></subsection><subsection eId="section-35-2"><num>(2)</num><content>Accordingly, references in this Chapter to a person in their capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.</content></subsection><subsection eId="section-35-3"><num>(3)</num><content>This Chapter applies to persons employed by or under the Crown as it applies to persons employed by a private person.</content></subsection></section><section eId="section-36"><num>36</num><heading>Interpretation of Chapter</heading><subsection eId="section-36-1"><num>(1)</num><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-alternative-proposals" eId="term-the-alternative-proposals">the alternative proposals</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-auto-enrolment-scheme" eId="term-auto-enrolment-scheme">auto-enrolment scheme</term>” has the meaning given by <ref href="#section-36-5">subsection (5)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidator-arrangement" eId="term-consolidator-arrangement">consolidator arrangement</term>” has the meaning given by <ref href="#section-30">section 30</ref><ref href="#section-30-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidator-scheme" eId="term-consolidator-scheme">consolidator scheme</term>” has the meaning given by <ref href="#section-30">section 30</ref><ref href="#section-30-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-default-proposal" eId="term-the-default-proposal">the default proposal</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-destination-proposer" eId="term-destination-proposer">destination proposer</term>” has the meaning given by section 23<ref href="#section-23-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-dormant" eId="term-dormant">dormant</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-eligible" eId="term-eligible">eligible</term>”, in relation to a Master Trust scheme, has the meaning given by <ref href="#section-29">section 29</ref><ref href="#section-29-8">(8)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-exempt" eId="term-exempt">exempt</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-25">section 25</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-fca" eId="term-the-fca">the FCA</term>” means the Financial Conduct Authority;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given by <ref href="#d25e10834">subsection (2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a person, has the meaning given by <ref href="#section-33">section 33</ref><ref href="#section-33-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-functions" eId="term-functions">functions</term>” includes powers and duties;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-master-trust-scheme" eId="term-master-trust-scheme">Master Trust scheme</term>” has the same meaning as in the <ref eId="c00005" href="https://www.legislation.gov.uk/ukpga/2017/17/contents">Pension Schemes Act 2017</ref> (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the <ref eId="c00006" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (see section 181(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-pot" eId="term-pension-pot">pension pot</term>” has the meaning given by <ref href="#section-37">section 37</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme" eId="term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the <ref eId="c00007" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-prescribed" eId="term-prescribed">prescribed</term>” means specified in, or determined in accordance with, small pots regulations;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-proposal" eId="term-proposal">proposal</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-provider" eId="term-provider">provider</term>”, in relation to an FCA-regulated pension scheme, means the person mentioned in <ref href="#section-36-2">subsection (2)</ref><ref href="#section-36-2-b">(b)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-small" eId="term-small">small</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-small-pots-regulations" eId="term-small-pots-regulations">small pots regulations</term>” has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-terms" eId="term-terms">terms</term>”, in relation to a pension scheme, has the meaning given by <ref href="#section-36-3">subsection (3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer" eId="term-transfer">transfer</term>”, in relation to a pension pot, includes a transfer of an amount representing its value;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer-notice" eId="term-transfer-notice">transfer notice</term>” has the meaning given by <ref href="#section-24">section 24</ref><ref href="#section-24-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-trustees-or-managers" eId="term-trustees-or-managers">trustees or managers</term>”, in relation to a pension scheme, means (subject to <ref href="#section-36-4">subsection (4)</ref>)—</intro><level class="para1"><num>(a)</num><content>in the case of a scheme established under a trust, the trustees of the scheme, and</content></level><level class="para1"><num>(b)</num><content>in any other case, the persons responsible for the management of the scheme;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-rating" eId="term-vfm-rating">VFM rating</term>” has the same meaning as in <ref href="#part-2-chapter-1">Chapter 1</ref>.</content></hcontainer></subsection><subsection eId="section-36-2"><num>(2)</num><intro>A pension scheme is “FCA-regulated” if the operation of the scheme—</intro><level class="para1" eId="section-36-2-a"><num>(a)</num><content>is carried on in such a way as to be a regulated activity for the purposes of the Financial Services and Markets Act 2000, and</content></level><level class="para1" eId="section-36-2-b"><num>(b)</num><content>is carried on in the United Kingdom by a person who is in relation to that activity an authorised person under section 19 of that Act.</content></level></subsection><subsection eId="section-36-3"><num>(3)</num><intro>A reference in this Part to the terms of a pension scheme is to the terms of any instrument or agreement—</intro><level class="para1" eId="section-36-3-a"><num>(a)</num><content>in which the scheme is comprised, or</content></level><level class="para1" eId="section-36-3-b"><num>(b)</num><content>to which the provider of the scheme and any member are parties in connection with the scheme.</content></level></subsection><subsection eId="section-36-4"><num>(4)</num><content>A reference in this Chapter to the trustees or managers of a pension scheme is, where the scheme is FCA-regulated, a reference to the provider of the scheme.</content></subsection><subsection eId="section-36-5"><num>(5)</num><content>A pension scheme is an “auto-enrolment scheme” if any individual is or at any time was an active member of the scheme in consequence of arrangements under <ref eId="c00008" href="https://www.legislation.gov.uk/ukpga/2008/30/section/3">section 3</ref><ref eId="c00009" href="https://www.legislation.gov.uk/ukpga/2008/30/section/3">(2)</ref>, <ref eId="c00010" href="https://www.legislation.gov.uk/ukpga/2008/30/section/5">5</ref><ref eId="c00011" href="https://www.legislation.gov.uk/ukpga/2008/30/section/5">(2)</ref> or <ref eId="c00012" href="https://www.legislation.gov.uk/ukpga/2008/30/section/7">7</ref><ref eId="c00013" href="https://www.legislation.gov.uk/ukpga/2008/30/section/7">(3)</ref> of the <ref eId="c00014" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (arrangements for jobholder to become active member of automatic enrolment scheme).</content></subsection><subsection eId="section-36-6"><num>(6)</num><content>In <ref href="#section-36-5">subsection (5)</ref> “<term refersTo="#term-active-member" eId="term-active-member">active member</term>” has the same meaning as in <ref eId="c00015" href="https://www.legislation.gov.uk/ukpga/2008/30/part/1">Part 1</ref> of the <ref eId="c00016" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (see section 99 of that Act).</content></subsection></section><section eId="section-37"><num>37</num><heading>Meaning of “pension pot”</heading><subsection eId="section-37-1"><num>(1)</num><intro>In this Chapter, “<term refersTo="#term-pension-pot" eId="term-pension-pot">pension pot</term>” means sums or assets held for the purpose of providing money purchase benefits to or in respect of a member of a pension scheme; and—</intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content>a reference to the pension scheme that holds a pension pot is to that pension scheme;</content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content>a reference to the individual for whom a pension pot is held is to that member.</content></level></subsection><subsection eId="section-37-2"><num>(2)</num><intro>Where—</intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content>an individual is a member of an auto-enrolment scheme in relation to more than one employment, and</content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content>the sums or assets held by the scheme for the purpose of providing money purchase benefits to or in respect of the member in relation to those employments are accounted for separately by the scheme,</content></level><wrapUp>the sums or assets held in relation to each employment are regarded for the purposes of this Chapter as separate pension pots.</wrapUp></subsection><subsection eId="section-37-3"><num>(3)</num><content>In <ref href="#section-37-2">subsection (2)</ref> “<term refersTo="#term-employment" eId="term-employment">employment</term>” has the same meaning as in <ref eId="c00017" href="https://www.legislation.gov.uk/ukpga/2008/30/part/1">Part 1</ref> of the <ref eId="c00018" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (see section 99 of that Act).</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-amendments-of-other-acts"><heading>Amendments of other Acts</heading><section eId="section-38"><num>38</num><heading>Amendments of the Financial Services and Markets Act 2000</heading><subsection eId="section-38-1"><num>(1)</num><content>The Financial Services and Markets Act 2000 is amended as follows.</content></subsection><subsection eId="section-38-2"><num>(2)</num><content><mod>In section 1A (the Financial Conduct Authority), in subsection (6), after paragraph (czc) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(czd)</num><content><ref href="#part-2-chapter-2">Chapter 2</ref> of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026 (consolidation of small dormant pension pots);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-38-3"><num>(3)</num><content><mod>After section 137FBB insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e5535"><num>137FBC</num><heading>FCA general rules: regulation of consolidator pension schemes</heading><subsection eId="d25e5539"><num>(1)</num><content>The FCA may make general rules under which the provider of an FCA-regulated pension scheme is required to notify the FCA where it intends that the scheme should be a consolidator scheme, or an arrangement under the scheme should be a consolidator arrangement, for the purposes of <ref href="#part-2-chapter-2">Chapter 2</ref> of Part 2 of the Pension Schemes Act 2026.</content></subsection><subsection eId="d25e5548"><num>(2)</num><intro>If the FCA makes rules under <ref href="#d25e5539">subsection (1)</ref> it must—</intro><level class="para1" eId="d25e5557"><num>(a)</num><content>make general rules regulating pension schemes that have given (and not withdrawn) a notice of the kind mentioned in <ref href="#d25e5539">subsection (1)</ref>, and</content></level><level class="para1" eId="d25e5566"><num>(b)</num><content>publish and maintain a list of FCA-regulated pension schemes, and arrangements under such schemes, in accordance with subsections (3) and (4).</content></level></subsection><subsection><num>(3)</num><content>The list must, subject to subsection (4), include each FCA-regulated pension scheme, and each arrangement under an FCA-regulated scheme, in relation to which the FCA has received a notice by virtue of <ref href="#d25e5539">subsection (1)</ref>.</content></subsection><subsection><num>(4)</num><intro>The list must not include a scheme or arrangement if—</intro><level class="para1"><num>(a)</num><content>the notice in relation to it has been withdrawn by the provider of the scheme, or</content></level><level class="para1"><num>(b)</num><content>the FCA has determined that it is unlikely that rules made under <ref href="#d25e5539">subsection (1)</ref> or <ref href="#d25e5548">(2)</ref><ref href="#d25e5557">(a)</ref> will be complied with in relation to the scheme or arrangement within such period as the FCA considers reasonable.</content></level></subsection><subsection><num>(5)</num><content>In determining what provision to include in rules under <ref href="#d25e5548">subsection (2)</ref><ref href="#d25e5557">(a)</ref>, the FCA must have regard to any provision contained in small pots regulations by virtue of <ref href="#section-29">section 29</ref> of the Pension Schemes Act 2026 (authorisation of consolidator schemes etc by the Pensions Regulator).</content></subsection><subsection><num>(6)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given by <ref href="#d25e5660">subsection (7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the <ref eId="c00019" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-provider">provider</term>”, in relation to an FCA-regulated pension scheme, means the person referred to in <ref href="#d25e5660">subsection (7)</ref><ref href="#d25e5672">(b)</ref>.</content></hcontainer></subsection><subsection eId="d25e5660"><num>(7)</num><intro>A pension scheme is “FCA-regulated” if the operation of the scheme—</intro><level class="para1"><num>(a)</num><content>is a regulated activity, and</content></level><level class="para1" eId="d25e5672"><num>(b)</num><content>is carried on in the United Kingdom by an authorised person.</content></level></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-38-4"><num>(4)</num><intro>In section 204A (meaning of “<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” and “<term refersTo="#term-appropriate-regulator" eId="term-appropriate-regulator">appropriate regulator</term>”)—</intro><level class="para1" eId="section-38-4-a"><num>(a)</num><content><mod>in subsection (2), after paragraph (ab) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ac)</num><content>by small pots regulations within the meaning of <ref href="#part-2-chapter-2">Chapter 2</ref> of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026,</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-38-4-b"><num>(b)</num><content><mod>in subsection (6), after paragraph (ab) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ac)</num><content>by small pots regulations within the meaning of <ref href="#part-2-chapter-2">Chapter 2</ref> of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026;</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></level></subsection></section><section eId="section-39"><num>39</num><heading>Repeal of existing powers</heading><subsection eId="section-39-1"><num>(1)</num><intro>In the Pensions Act 2014, omit the following provisions (which contain powers that have not been brought into force to make provision for the automatic transfer of pension benefits etc)—</intro><level class="para1" eId="section-39-1-a"><num>(a)</num><content>section 33;</content></level><level class="para1" eId="section-39-1-b"><num>(b)</num><content>Schedule 17, except paragraph 15(1) (which contains interpretative provisions that apply for the purposes of Schedule 18 to that Act).</content></level></subsection><subsection eId="section-39-2"><num>(2)</num><content><mod>In Schedule 18 to that Act (power to restrict charges or impose requirements in relation to schemes), in paragraph 4 (interpretation), for sub-paragraph (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1)</num><content>The definitions in paragraph 15(1) of Schedule 17 apply for the purposes of this Schedule.</content></subparagraph></quotedStructure></mod></content></subsection><subsection eId="section-39-3"><num>(3)</num><content><mod>In consequence of <ref href="#section-39-1">subsection (1)</ref><ref href="#section-39-1-b">(b)</ref>, in section 256 of the Pensions Act 2004 (no indemnification for fines or civil penalties), in subsection (1)(b), for “that Act” substitute <quotedText>“the Pensions Act 2014”</quotedText>.</mod></content></subsection></section></hcontainer></chapter><chapter eId="part-2-chapter-3"><num>Chapter 3</num><heading>Scale and asset allocation</heading><section eId="section-40"><num>40</num><heading>Certain schemes providing money purchase benefits: scale and asset allocation</heading><subsection eId="section-40-1"><num>(1)</num><content>The Pensions Act 2008 is amended as follows.</content></subsection><subsection eId="section-40-2"><num>(2)</num><content>Section 20 (quality requirement: UK money purchase schemes) is amended as follows.</content></subsection><subsection eId="section-40-3"><num>(3)</num><content><mod>In subsection (1), after “purchase scheme” insert <quotedText>“that is not a relevant Master Trust and”</quotedText>.</mod></content></subsection><subsection eId="section-40-4"><num>(4)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e5826"><num>(1A)</num><content>A money purchase scheme that is a relevant Master Trust satisfies the quality requirement in relation to a jobholder if the conditions in subsection (1)(a) to (c) and Condition 1 and Condition 2 of this subsection are met.<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>Condition 1This Condition is that the relevant Master Trust—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>is approved under <ref href="#d25e6214">section 28A</ref> in respect of a main scale default arrangement,</item><item><num>(b)</num>is exempted by regulations from the requirement for approval,</item><item><num>(c)</num>has previously been approved under section <ref href="#d25e7377">28E</ref> (transition pathway relief) and is to be treated in accordance with regulations as if it had approval under <ref href="#d25e6214">section 28A</ref>,</item><item><num>(d)</num>qualifies under <ref href="#d25e7377">section 28E</ref> for transition pathway relief, or</item><item><num>(e)</num>qualifies under <ref href="#d25e7587">section 28F</ref> for new entrant pathway relief.</item></blockList></item><item>Condition 2This Condition is that the relevant Master Trust—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>is approved under <ref href="#d25e6894">section 28C</ref> in respect of the asset allocation requirement, or</item><item><num>(b)</num>is exempted by regulations from the requirement for approval.</item></blockList>See also section <ref href="#d25e7697">28G</ref> (suspension of asset allocation requirement: savers’ interest test) for provision about circumstances in which the asset allocation requirement is suspended.</item></blockList></content></subsection><subsection eId="d25e5903"><num>(1B)</num><intro>Regulations under Condition 1(b) or 2(b) of <ref href="#d25e5826">subsection (1A)</ref> may exempt any description of relevant Master Trust, for example those that are—</intro><level class="para1"><num>(a)</num><content>designed to meet the needs of persons with a protected characteristic within the meaning of the Equality Act 2010, or</content></level><level class="para1"><num>(b)</num><content>hybrid schemes.</content></level></subsection><subsection eId="d25e5924"><num>(1C)</num><intro>Regulations may—</intro><level class="para1" eId="d25e5930"><num>(a)</num><content>permit the Regulatory Authority to determine that a relevant Master Trust is to be treated for a period (“the protected period”) as meeting Condition 1 or Condition 2 of <ref href="#d25e5826">subsection (1A)</ref> for a period specified by the Regulatory Authority;</content></level><level class="para1"><num>(b)</num><content>specify circumstances in which a relevant Master Trust, which is treated as mentioned in paragraph (a) and meets prescribed conditions, is to be subject during a prescribed period (ending with the end of the protected period) to any requirements specified in the regulations; and provision under this paragraph may include provision corresponding to any provision that may be made under <ref href="#d25e6214">section 28A</ref><ref href="#d25e6431">(10)</ref>;</content></level><level class="para1" eId="d25e5950"><num>(c)</num><content>make provision about the Regulatory Authority requiring the trustees or managers of a relevant Master Trust to give the Regulatory Authority a plan showing how they propose to meet or continue to meet the scale requirement under section <ref href="#d25e6214">28A</ref> or the conditions for approval under <ref href="#d25e6894">section 28C</ref>.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-40-5"><num>(5)</num><content><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” is to be interpreted in accordance with <ref href="#d25e6214">section 28A</ref><ref href="#d25e6527">(13)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-master-trust-scheme">Master Trust scheme</term>” has the same meaning as in the <ref eId="c00020" href="https://www.legislation.gov.uk/ukpga/2017/17/contents">Pension Schemes Act 2017</ref> (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-master-trust">relevant Master Trust</term>” means a money purchase scheme that has its main administration in the United Kingdom and is an authorised Master Trust scheme.</content></hcontainer></subsection></quotedStructure></mod></content></subsection><subsection eId="section-40-6"><num>(6)</num><content><mod>In section 25 (quality requirement: non-UK occupational pension schemes) for “18(b) or (c)” substitute <quotedText>“18(c)”</quotedText>.</mod></content></subsection><subsection eId="section-40-7"><num>(7)</num><content>Section 26 (quality requirement: UK personal pension schemes) is amended as follows.</content></subsection><subsection eId="section-40-8"><num>(8)</num><content><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e6027"><num>(7A)</num><content>The fifth condition is that if the scheme is a group personal pension scheme of a prescribed description it must, unless <ref href="#d25e6051">subsection (7C)</ref> applies, hold an approval under section <ref href="#d25e6551">28B</ref> in respect of a main scale default arrangement.</content></subsection><subsection eId="d25e6039"><num>(7B)</num><content>The sixth condition is that if the scheme is a group personal pension scheme of a prescribed description it must hold an approval under <ref href="#d25e6894">section 28C</ref> in respect of the asset allocation requirement. See also section <ref href="#d25e7697">28G</ref> (suspension of asset allocation requirement: savers’ interest test) for provision about circumstances in which the asset allocation requirement is suspended.</content></subsection><subsection eId="d25e6051"><num>(7C)</num><intro>This subsection applies if the group personal pension scheme—</intro><level class="para1"><num>(a)</num><content>has previously been approved under section <ref href="#d25e7377">28E</ref> (transition pathway relief) and is to be treated in accordance with regulations as if it had approval under section <ref href="#d25e6551">28B</ref>,</content></level><level class="para1" eId="d25e6069"><num>(b)</num><content>qualifies under <ref href="#d25e7377">section 28E</ref> for transition pathway relief, or</content></level><level class="para1" eId="d25e6078"><num>(c)</num><content>qualifies under <ref href="#d25e7587">section 28F</ref> for new entrant pathway relief.</content></level></subsection><subsection eId="d25e6087"><num>(7D)</num><content>Regulations under subsection <ref href="#d25e6027">(7A)</ref> or <ref href="#d25e6039">(7B)</ref> may exempt any description of group personal pension schemes, for example those that are designed to meet the needs of persons with a protected characteristic within the meaning of the Equality Act 2010.</content></subsection><subsection eId="d25e6099"><num>(7E)</num><intro>Regulations may—</intro><level class="para1" eId="d25e6105"><num>(a)</num><content>permit the Regulatory Authority to determine that a group personal pension scheme is to be treated as meeting the fifth or sixth condition for a period (the “protected period”) specified by the Regulatory Authority;</content></level><level class="para1"><num>(b)</num><content>specify circumstances in which a group personal pension scheme which is treated as mentioned in <ref href="#d25e6105">paragraph (a)</ref> and meets prescribed conditions is to be subject during a prescribed period (which ends with the end of the protected period) to any requirements specified in the regulations; and provision under this paragraph may include provision corresponding to any provision that may be made under <ref href="#d25e6214">section 28A</ref><ref href="#d25e6431">(10)</ref>;</content></level><level class="para1" eId="d25e6125"><num>(c)</num><content>make provision about the Regulatory Authority requiring the provider of a group personal pension scheme to give the Regulatory Authority a plan showing how they propose to meet or continue to meet the scale requirement under section <ref href="#d25e6551">28B</ref> or the conditions for approval under section <ref href="#d25e6894">28C</ref>.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-40-9"><num>(9)</num><content><mod>After subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(10)</num><content>In this section “<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” is to be interpreted in accordance with section <ref href="#d25e6551">28B</ref><ref href="#d25e6870">(13)</ref>.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-40-10"><num>(10)</num><content>In section 28 (certification that quality requirement or alternative requirement is satisfied) in subsection (3A) omit paragraphs (a) and (c).</content></subsection><subsection eId="section-40-11"><num>(11)</num><intro>In section 28 (certification that quality requirement or alternative requirement is satisfied) in subsection (4) (definition of “relevant quality requirement”)—</intro><level class="para1" eId="section-40-11-a"><num>(a)</num><content><mod>in paragraph (a), at the end insert <quotedText>“, except so far as that quality requirement relates to Condition 1 or 2 in <ref href="#d25e5826">subsection (1A)</ref>”</quotedText>;</mod></content></level><level class="para1" eId="section-40-11-b"><num>(b)</num><content><mod>in paragraph (b), at the end insert <quotedText>“, except so far as that quality requirement relates to the fifth and sixth conditions”</quotedText>;</mod></content></level><level class="para1" eId="section-40-11-c"><num>(c)</num><content><mod>in paragraph (c), at the end insert <quotedText>“, except so far as those requirements relate to Condition 1 or 2 in section 20<ref href="#d25e5826">(1A)</ref>”</quotedText>.</mod></content></level></subsection><subsection eId="section-40-12"><num>(12)</num><content><mod>After section 28 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e6214"><num>28A</num><heading>MSDA approval: relevant Master Trusts</heading><subsection><num>(1)</num><intro>For the purposes of Condition 1 of section 20<ref href="#d25e5826">(1A)</ref>, the Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may approve a relevant Master Trust (“the RMT”) in respect of a main scale default arrangement if the Authority determines that—</intro><level class="para1"><num>(a)</num><content>the RMT meets the scale requirement by reference to the main scale default arrangement, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e6242"><num>(2)</num><content>The RMT meets the scale requirement by reference to a main scale default arrangement if the sum of the values mentioned in paragraphs <ref href="#d25e6275">(a)</ref> to <ref href="#d25e6328">(c)</ref> of <ref href="#d25e6266">subsection (4)</ref> is equal to or greater than the minimum amount.</content></subsection><subsection eId="d25e6257"><num>(3)</num><content>In this section “<term refersTo="#term-the-minimum-amount">the minimum amount</term>” means £25 billion.</content></subsection><subsection eId="d25e6266"><num>(4)</num><intro>Subject to <ref href="#d25e6384">subsection (7)</ref>, those values are—</intro><level class="para1" eId="d25e6275"><num>(a)</num><intro>the total value of assets of the RMT which—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of that scheme,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2" eId="d25e6293"><num>(iii)</num><content>are managed under a common investment strategy;</content></level></level><level class="para1"><num>(b)</num><intro>if one or more relevant Master Trusts are connected with the RMT, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of those schemes,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>;</content></level></level><level class="para1" eId="d25e6328"><num>(c)</num><intro>if one or more group personal pension schemes are connected with the RMT, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of those schemes,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>.</content></level></level></subsection><subsection eId="d25e6357"><num>(5)</num><content>A reference in subsection (4) to a relevant Master Trust or a group personal pension scheme being “connected” with the RMT is to a relevant Master Trust or a group personal pension scheme having a prescribed connection with the RMT.</content></subsection><subsection><num>(6)</num><intro>Regulations under <ref href="#d25e6357">subsection (5)</ref> may, for example, provide—</intro><level class="para1"><num>(a)</num><content>that a relevant Master Trust is connected with the RMT only if it has the same scheme funder or scheme strategist as the RMT, or</content></level><level class="para1"><num>(b)</num><content>that a group personal pension scheme is connected with the RMT only if its provider is also the scheme funder or scheme strategist of the RMT.</content></level></subsection><subsection eId="d25e6384"><num>(7)</num><content>Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under <ref href="#d25e6266">subsection (4)</ref><ref href="#d25e6275">(a)</ref> to <ref href="#d25e6328">(c)</ref>.</content></subsection><subsection><num>(8)</num><intro>Regulations may make provision about—</intro><level class="para1"><num>(a)</num><content>how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced;</content></level><level class="para1"><num>(b)</num><content>what it means for assets of a pension scheme to be managed under a “<term refersTo="#term-common-investment-strategy">common investment strategy</term>” (including in particular provision defining that expression by reference to whether or how far the assets relating to each member of the scheme are allocated in the same proportion to the same investments).</content></level></subsection><subsection><num>(9)</num><content>Regulations may make provision about how the value of assets is to be determined for the purposes of subsections <ref href="#d25e6242">(2)</ref> and <ref href="#d25e6266">(4)</ref>.</content></subsection><subsection eId="d25e6431"><num>(10)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>as to a time limit within which the Authority must decide an application for approval;</content></level><level class="para1"><num>(b)</num><content>as to procedures in connection with approvals or where an approval has been given;</content></level><level class="para1" eId="d25e6449"><num>(c)</num><content>about the withdrawal of approvals including conditions for, and procedures in connection with, withdrawals;</content></level><level class="para1"><num>(d)</num><content>for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal;</content></level><level class="para1"><num>(e)</num><content>for the Authority to maintain and publish a list of relevant Master Trusts that are approved under this section.</content></level></subsection><subsection eId="d25e6467"><num>(11)</num><intro>Regulations under <ref href="#d25e6431">subsection (10)</ref><ref href="#d25e6449">(c)</ref> may in particular make provision—</intro><level class="para1"><num>(a)</num><content>about steps, including communications with a relevant Master Trust, that the Authority must take before deciding to withdraw an approval;</content></level><level class="para1"><num>(b)</num><content>setting a minimum period that must elapse between a notification that approval is to be withdrawn and the withdrawal of the approval;</content></level><level class="para1"><num>(c)</num><intro>where the Authority has given notice to the trustees or managers of a relevant Master Trust that the approval (under this section) of that scheme is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers to—</intro><level class="para2"><num>(i)</num><content>act in relation to the scheme as if its approval has been withdrawn, and</content></level><level class="para2"><num>(ii)</num><content>take steps for ensuring that persons (such as employers) who may be affected in the event of the relevant Master Trust’s losing that approval are promptly informed if such a loss should occur;</content></level></level><level class="para1"><num>(d)</num><content>permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph (c), a penalty determined in accordance with the regulations that does not exceed £100,000;</content></level><level class="para1"><num>(e)</num><content>providing for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level></subsection><subsection><num>(12)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection><subsection eId="d25e6527"><num>(13)</num><intro>In this section “<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” means an arrangement—</intro><level class="para1"><num>(a)</num><content>that is used for the purposes of one or more pension schemes, and</content></level><level class="para1"><num>(b)</num><content>subject to which assets of any one of those schemes must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held.</content></level></subsection></section><section eId="d25e6551"><num>28B</num><heading>MSDA approval: group personal pension scheme</heading><subsection><num>(1)</num><intro>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may, for the purposes of the Condition in section 26<ref href="#d25e6027">(7A)</ref>, approve a group personal pension scheme (“the GPP”) in respect of a main scale default arrangement if the Authority determines that—</intro><level class="para1"><num>(a)</num><content>the GPP meets the scale requirement by reference to the main scale default arrangement, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e6579"><num>(2)</num><content>The GPP meets the scale requirement by reference to a main scale default arrangement if the sum of the values mentioned in paragraphs <ref href="#d25e6275">(a)</ref> to <ref href="#d25e6668">(c)</ref> of <ref href="#d25e6266">subsection (4)</ref> is equal to or greater than the minimum amount.</content></subsection><subsection eId="d25e6594"><num>(3)</num><content>In this section “<term refersTo="#term-the-minimum-amount">the minimum amount</term>” means £25 billion.</content></subsection><subsection eId="d25e6603"><num>(4)</num><intro>Subject to subsections <ref href="#d25e6697">(5)</ref> and <ref href="#d25e6711">(6)</ref>, those values are—</intro><level class="para1" eId="d25e6615"><num>(a)</num><intro>the total value of assets of the GPP which—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of the GPP,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under a common investment strategy;</content></level></level><level class="para1"><num>(b)</num><intro>if one or more group personal pension schemes are connected with the GPP, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of those schemes,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>;</content></level></level><level class="para1" eId="d25e6668"><num>(c)</num><intro>if one or more relevant Master Trusts are connected with the GPP, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of that scheme,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>.</content></level></level></subsection><subsection eId="d25e6697"><num>(5)</num><content>Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under subsection <ref href="#d25e6603">(4)</ref><ref href="#d25e6615">(a)</ref> to <ref href="#d25e6668">(c)</ref>.</content></subsection><subsection eId="d25e6711"><num>(6)</num><intro>Regulations may make provision about—</intro><level class="para1"><num>(a)</num><content>how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced;</content></level><level class="para1"><num>(b)</num><content>what it means for assets of a pension scheme to be managed under a “<term refersTo="#term-common-investment-strategy">common investment strategy</term>” (including in particular provision defining that expression by reference to whether or how far the assets relating to each member of the scheme are allocated in the same proportion to the same investments).</content></level></subsection><subsection><num>(7)</num><content>Regulations may make provision about how the value of assets is to be determined for the purposes of subsections <ref href="#d25e6242">(2)</ref> and <ref href="#d25e6266">(4)</ref>.</content></subsection><subsection eId="d25e6744"><num>(8)</num><content>A reference in subsection (4) to a group personal pension scheme or a relevant Master Trust being “connected” with the GPP is to a group personal pension scheme or a relevant Master Trust having a prescribed connection with the GPP.</content></subsection><subsection><num>(9)</num><intro>Regulations under <ref href="#d25e6744">subsection (8)</ref> may, for example, provide—</intro><level class="para1"><num>(a)</num><content>that a group personal pension scheme is connected with the GPP only if it has the same provider as the GPP, or</content></level><level class="para1"><num>(b)</num><content>that a relevant Master Trust is connected with the GPP only if its scheme funder or scheme strategist is also the provider of the GPP.</content></level></subsection><subsection eId="d25e6771"><num>(10)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>as to a time limit within which the Authority must decide an application for approval;</content></level><level class="para1"><num>(b)</num><content>as to procedures in connection with approvals or where an approval has been given;</content></level><level class="para1" eId="d25e6789"><num>(c)</num><content>about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals;</content></level><level class="para1"><num>(d)</num><content>for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal;</content></level><level class="para1"><num>(e)</num><content>for the Authority to maintain and publish a list of group personal pension schemes that are approved under this section.</content></level></subsection><subsection><num>(11)</num><intro>Regulations under <ref href="#d25e6771">subsection (10)</ref><ref href="#d25e6789">(c)</ref> may in particular make provision—</intro><level class="para1"><num>(a)</num><content>about steps, including communications with a group personal pension scheme, that the Authority must take before deciding to withdraw an approval;</content></level><level class="para1"><num>(b)</num><content>setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval;</content></level><level class="para1" eId="d25e6830"><num>(c)</num><intro>where the Authority has given notice to the provider of the GPP that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the provider to—</intro><level class="para2"><num>(i)</num><content>act in relation to the scheme as if its approval has been withdrawn, and</content></level><level class="para2"><num>(ii)</num><content>take steps for ensuring that persons (such as employers) who may be affected in the event of the GPP losing that approval are promptly informed if such a loss should occur;</content></level></level><level class="para1"><num>(d)</num><content>permitting the Authority to impose, on a person who fails to comply with a requirement under <ref href="#d25e6830">paragraph (c)</ref>, a penalty determined in accordance with the regulations that does not exceed £100,000;</content></level><level class="para1"><num>(e)</num><content>providing for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level></subsection><subsection><num>(12)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection><subsection eId="d25e6870"><num>(13)</num><intro>In this section “<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” means an arrangement—</intro><level class="para1"><num>(a)</num><content>that is used for the purposes of one or more pension schemes, and</content></level><level class="para1"><num>(b)</num><content>subject to which assets of any one of those schemes must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held.</content></level></subsection></section><section eId="d25e6894"><num>28C</num><heading>Approvals in respect of asset allocation</heading><subsection eId="d25e6898"><num>(1)</num><content>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may approve a relevant Master Trust or a group personal pension scheme in respect of the asset allocation requirement only if the Authority determines that at least the prescribed percentage (by value) of the assets held in main default funds of the scheme are qualifying assets.</content></subsection><subsection><num>(2)</num><intro>Regulations under subsection <ref href="#d25e6898">(1)</ref> may prescribe a percentage by reference to—</intro><level class="para1"><num>(a)</num><content>all of the assets of the scheme that are held in main default funds, or</content></level><level class="para1"><num>(b)</num><content>a prescribed description of the assets of the scheme that are so held.</content></level></subsection><subsection eId="d25e6928"><num>(3)</num><content>In this section “<term refersTo="#term-qualifying-asset">qualifying asset</term>” means an asset of a prescribed description that is held in a main default fund of a relevant Master Trust or group personal pension scheme.</content></subsection><subsection eId="d25e6937"><num>(4)</num><intro>A description of asset may be prescribed under subsection <ref href="#d25e6928">(3)</ref> only if it represents a direct or indirect holding in any of the following asset classes—</intro><level class="para1" eId="d25e6946"><num>(a)</num><content>private equity;</content></level><level class="para1"><num>(b)</num><content>venture capital;</content></level><level class="para1"><num>(c)</num><content>private credit;</content></level><level class="para1"><num>(d)</num><content>interests in land;</content></level><level class="para1" eId="d25e6970"><num>(e)</num><content>infrastructure;</content></level><level class="para1" eId="d25e6976"><num>(f)</num><content>unlisted equity securities not falling within paragraphs <ref href="#d25e6946">(a)</ref> to <ref href="#d25e6970">(e)</ref>.</content></level><wrapUp>In this subsection “<term refersTo="#term-unlisted-equity-securities">unlisted equity securities</term>” means equity securities not listed on a recognised stock exchange within the meaning of the Income Tax Acts (see section 1005 of the Income Tax Act 2007) (including equity securities admitted to trading that are not listed on such an exchange).</wrapUp></subsection><subsection><num>(5)</num><content>Regulations under subsection <ref href="#d25e6928">(3)</ref> must secure that a description of asset is prescribed under that subsection in respect of each asset class mentioned in subsection <ref href="#d25e6937">(4)</ref><ref href="#d25e6946">(a)</ref> to <ref href="#d25e6976">(f)</ref>.</content></subsection><subsection><num>(6)</num><intro>A description prescribed under subsection <ref href="#d25e6937">(4)</ref> may for example relate to—</intro><level class="para1"><num>(a)</num><content>whether an asset is located in the United Kingdom or elsewhere;</content></level><level class="para1"><num>(b)</num><content>the presence or absence of other prescribed factors linking an asset to economic activity in the United Kingdom.</content></level></subsection><subsection eId="d25e7032"><num>(7)</num><intro>Regulations under this section may not have the effect of requiring, as a condition of a scheme's approval under subsection (1)—</intro><level class="para1"><num>(a)</num><content>more than 10% (by value) of all of the assets of the scheme that are held in main default funds to be qualifying assets, or</content></level><level class="para1" eId="d25e7044"><num>(b)</num><content>more than 5% (by value) of all of the assets so held to be of a UK-specific description.</content></level></subsection><subsection><num>(8)</num><content>In subsection <ref href="#d25e7032">(7)</ref><ref href="#d25e7044">(b)</ref> “<term refersTo="#term-uk-specific-description">UK-specific description</term>” means a description framed by reference to whether an asset is located in the United Kingdom or meets any other condition linked to economic activity in the United Kingdom.</content></subsection><subsection><num>(9)</num><intro>For the purposes of this section assets of a relevant Master Trust or group personal pension scheme are held in “main default funds” if—</intro><level class="para1"><num>(a)</num><content>the jobholders by or in respect of whom contributions have been made to the scheme have not (or predominantly have not) expressed a choice as to where the contributions are allocated, and</content></level><level class="para1"><num>(b)</num><content>the arrangements under which the assets are held meet any other conditions that may be prescribed.</content></level></subsection><subsection><num>(10)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>about how the meeting of the asset allocation requirement is to be evidenced;</content></level><level class="para1"><num>(b)</num><content>requiring the trustees or managers of relevant Master Trusts or the providers of group personal pension schemes to have regard to any guidance issued by the Secretary of State about the effect of any regulations under this section.</content></level></subsection><subsection eId="d25e7100"><num>(11)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>as to a time limit within which the Authority must decide an application for approval;</content></level><level class="para1"><num>(b)</num><content>as to procedures in connection with approvals or where an approval has been given;</content></level><level class="para1"><num>(c)</num><content>about the period for which an approval has effect;</content></level><level class="para1" eId="d25e7124"><num>(d)</num><content>about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals;</content></level><level class="para1"><num>(e)</num><content>about the provision to the Authority of information required for the purposes of deciding applications (including any additional information the Authority may require in a particular case);</content></level><level class="para1" eId="d25e7136"><num>(f)</num><content>requiring the Authority to report to the Secretary of State any information the Secretary of State may require relating to the allocation of assets by relevant Master Trusts or group personal pension schemes;</content></level><level class="para1"><num>(g)</num><content>for the Authority’s decision on the application to be referred to the Upper Tribunal;</content></level><level class="para1"><num>(h)</num><intro>for the Authority to maintain and publish—</intro><level class="para2"><num>(i)</num><content>a list of relevant Master Trusts that are approved under this section, and</content></level><level class="para2"><num>(ii)</num><content>a list of group personal pension schemes that are approved under this section,</content></level><wrapUp>(or a single list of the pension schemes mentioned in sub-paragraphs (i) and (ii)).</wrapUp></level></subsection><subsection><num>(12)</num><intro>Regulations under subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7124">(d)</ref> may in particular make provision—</intro><level class="para1"><num>(a)</num><content>about steps, including communications with a relevant Master Trust or group personal pension scheme, that the Authority must take before deciding to withdraw an approval;</content></level><level class="para1"><num>(b)</num><content>setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval;</content></level><level class="para1" eId="d25e7192"><num>(c)</num><intro>where the Authority has given notice to the trustees or managers of a relevant Master Trust or the provider of a group personal pension that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers or provider to—</intro><level class="para2"><num>(i)</num><content>act in relation to the scheme as if its approval has been withdrawn, and</content></level><level class="para2"><num>(ii)</num><content>take steps for ensuring that persons (such as employers) who may be affected in the event of the scheme losing that approval are promptly informed if such a loss should occur;</content></level></level><level class="para1"><num>(d)</num><content>permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph <ref href="#d25e7192">(c)</ref>, a penalty determined in accordance with the regulations that does not exceed £100,000.</content></level></subsection><subsection eId="d25e7219"><num>(13)</num><intro>Before making regulations under <ref href="#d25e6898">subsection (1)</ref> the Secretary of State must prepare and publish a report setting out—</intro><level class="para1" eId="d25e7228"><num>(a)</num><content>a joint assessment by the Financial Conduct Authority and the Pensions Regulator of the extent to which there is evidence of competitive conditions restricting relevant Master Trusts and group personal pension schemes from investing in qualifying assets, including in circumstances where such investments may be in the best interests of members of such schemes;</content></level><level class="para1"><num>(b)</num><intro>the Secretary of State’s assessment of the extent to which relevant Master Trusts and group personal pension schemes have made progress towards achieving—</intro><level class="para2"><num>(i)</num><content>10% (by value) of scheme assets held in main default funds to be qualifying assets, and</content></level><level class="para2"><num>(ii)</num><content>5% (by value) of scheme assets so held to be of a UK-specific description (within the meaning of subsection <ref href="#d25e7032">(7)</ref><ref href="#d25e7044">(b)</ref>);</content></level></level><level class="para1"><num>(c)</num><content>the Secretary of State’s assessment of any barriers to relevant Master Trusts or group personal pension schemes investing in qualifying assets, including in particular where such assets are located in the United Kingdom;</content></level><level class="para1"><num>(d)</num><content>the steps taken by the Secretary of State or the Authority to address any such barriers;</content></level><level class="para1"><num>(e)</num><content>how the financial interests of members of relevant Master Trusts and group personal pension schemes are or would be affected by the proposed regulations;</content></level><level class="para1"><num>(f)</num><content>what effects the proposed measures could be expected to have on economic growth in the United Kingdom;</content></level><level class="para1"><num>(g)</num><content>any other matters the Secretary of State considers appropriate.</content></level></subsection><subsection><num>(14)</num><content>The power to make regulations under subsection (1) may only be exercised once.</content></subsection><subsection><num>(15)</num><content>Before making regulations under subsection <ref href="#d25e6898">(1)</ref>, the Secretary of State must have regard to the joint assessment of the Financial Conduct Authority and the Pensions Regulator mentioned in subsection <ref href="#d25e7219">(13)</ref><ref href="#d25e7228">(a)</ref>.</content></subsection><subsection><num>(16)</num><content>Before making regulations under this section, the Secretary of State must consult the Treasury.</content></subsection><subsection><num>(17)</num><content>The Secretary of State must consult such persons as the Secretary of State considers appropriate before publishing a report under <ref href="#d25e7219">subsection (13)</ref>.</content></subsection><subsection><num>(18)</num><content>The Secretary of State may not make regulations under subsection <ref href="#d25e6898">(1)</ref> before 1 January 2028.</content></subsection><subsection><num>(19)</num><content>Provision under this section overrides any provision of the trust deed or rules of the scheme in question, so far as they are in conflict (and for that purpose, a provision of the trust deed or rules of the scheme is “in conflict” with provision under this section so far as the former does not allow for the assets of the scheme to be managed in such a way as to meet the conditions for approval under this section).</content></subsection></section><section><num>28D</num><heading>Information</heading><subsection><num>(1)</num><content>Regulations may make provision about information that the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme must give to the Regulatory Authority about the allocation of assets of the relevant Master Trust or group personal pension scheme.</content></subsection><subsection><num>(2)</num><intro>The regulations may make provision about—</intro><level class="para1"><num>(a)</num><content>the types of information that must be given;</content></level><level class="para1"><num>(b)</num><content>when it must be given;</content></level><level class="para1"><num>(c)</num><content>the form and manner in which it must be given.</content></level></subsection></section><section eId="d25e7377"><num>28E</num><heading>Transition pathway relief</heading><subsection eId="d25e7381"><num>(1)</num><intro>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may approve a relevant Master Trust as qualifying for transition pathway relief if the Authority determines that—</intro><level class="para1" eId="d25e7390"><num>(a)</num><content>the condition in <ref href="#d25e7405">subsection (2)</ref> is met, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e7405"><num>(2)</num><intro>The condition mentioned in <ref href="#d25e7381">subsection (1)</ref><ref href="#d25e7390">(a)</ref> is that the Authority determines that the relevant Master Trust—</intro><level class="para1"><num>(a)</num><content>would qualify for approval under <ref href="#d25e6214">section 28A</ref> (MSDA approval: relevant Master Trusts) if the amount specified in <ref href="#d25e6214">section 28A</ref><ref href="#d25e6257">(3)</ref> were £10 billion, and</content></level><level class="para1"><num>(b)</num><content>has a credible plan in place for meeting the scale requirement within the meaning of section <ref href="#d25e6214">28A</ref><ref href="#d25e6242">(2)</ref>.</content></level></subsection><subsection eId="d25e7441"><num>(3)</num><intro>The Authority may approve a group personal pension scheme as qualifying for transition pathway relief if the Authority determines that—</intro><level class="para1" eId="d25e7447"><num>(a)</num><content>the condition in <ref href="#d25e7462">subsection (4)</ref> is met, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e7462"><num>(4)</num><intro>The condition mentioned in subsection <ref href="#d25e7441">(3)</ref><ref href="#d25e7447">(a)</ref> is that the Authority determines that the group personal pension scheme—</intro><level class="para1"><num>(a)</num><content>would qualify for approval under <ref href="#d25e6551">section 28B</ref> (MSDA approval: group personal pension schemes) if the amount specified in <ref href="#d25e6551">section 28B</ref><ref href="#d25e6594">(3)</ref> were £10 billion, and</content></level><level class="para1"><num>(b)</num><content>has a credible plan in place for meeting the scale requirement within the meaning of <ref href="#d25e6551">section 28B</ref><ref href="#d25e6579">(2)</ref>.</content></level></subsection><subsection><num>(5)</num><intro>Regulations may require trustees or managers of schemes that are authorised under this section to take prescribed steps, for example—</intro><level class="para1"><num>(a)</num><content>to produce plans for increasing the scale of their schemes’ holdings or to take other actions that may facilitate progress towards approval under <ref href="#d25e6214">section 28A</ref> or <ref href="#d25e6551">28B</ref>, or</content></level><level class="para1"><num>(b)</num><content>in connection with governance and investment capability.</content></level></subsection><subsection><num>(6)</num><content>Regulations must make provision about the criteria for making any determinations under <ref href="#d25e7381">subsection (1)</ref> or <ref href="#d25e7441">(3)</ref>.</content></subsection><subsection><num>(7)</num><intro>Regulations may make provision of a kind mentioned in section <ref href="#d25e6214">28A</ref><ref href="#d25e6431">(10)</ref> or <ref href="#d25e6467">(11)</ref>; and for this purpose a reference in those provisions—</intro><level class="para1"><num>(a)</num><content>to an approval under section <ref href="#d25e6214">28A</ref> is to be read as a reference to an approval under this section;</content></level><level class="para1"><num>(b)</num><content>to a relevant Master Trust is to be read as a reference to a relevant Master Trust or a group personal pension scheme;</content></level><level class="para1"><num>(c)</num><content>to the trustees or managers of a relevant Master Trust is to be read as a reference to the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme.</content></level></subsection><subsection><num>(8)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection><subsection><num>(9)</num><content>In this section “<term refersTo="#term-relevant-master-trust">relevant Master Trust</term>” has the same meaning as in section 20.</content></subsection></section><section eId="d25e7587"><num>28F</num><heading>New entrant pathway relief</heading><subsection><num>(1)</num><content>A relevant Master Trust or group personal pension scheme qualifies for new entrant pathway relief for the purposes of Condition 1<ref href="#d25e5870">(e)</ref> of section 20(1A) or section 26<ref href="#d25e6051">(7C)</ref><ref href="#d25e6078">(c)</ref> if the relevant Master Trust or group personal pension scheme is approved by the Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) under this section.</content></subsection><subsection><num>(2)</num><intro>The Authority may approve a relevant Master Trust or a group personal pension scheme under this section only if the Authority determines that—</intro><level class="para1"><num>(a)</num><content>the scheme in question does not yet have any members,</content></level><level class="para1"><num>(b)</num><content>the scheme in question has strong potential to grow so as to meet the scale requirement under section <ref href="#d25e6214">28A</ref> or <ref href="#d25e6551">28B</ref>,</content></level><level class="para1"><num>(c)</num><content>the scheme in question has an innovative product design, and</content></level><level class="para1"><num>(d)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection><num>(3)</num><intro>Regulations may make provision of a kind mentioned in section <ref href="#d25e6214">28A</ref><ref href="#d25e6431">(10)</ref> or <ref href="#d25e6467">(11)</ref>; and for this purpose a reference in those provisions—</intro><level class="para1"><num>(a)</num><content>to an approval under section <ref href="#d25e6214">28A</ref> is to be read as a reference to an approval under this section;</content></level><level class="para1"><num>(b)</num><content>to a relevant Master Trust is to be read as a reference to a relevant Master Trust or a group personal pension scheme;</content></level><level class="para1"><num>(c)</num><content>to the trustees or managers of a relevant Master Trust is to be read as a reference to the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme.</content></level></subsection><subsection><num>(4)</num><content>Regulations may make provision about the meaning of “strong potential to grow” and “<term refersTo="#term-innovative-product-design">innovative product design</term>” (including how it can be demonstrated that a scheme has strong potential to grow or an innovative product design).</content></subsection><subsection><num>(5)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection></section><section eId="d25e7697"><num>28G</num><heading>Suspension of asset allocation requirement: savers’ interest test</heading><subsection eId="d25e7701"><num>(1)</num><content>Regulations must make provision for authorising the Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”), on an application by a relevant Master Trust or group personal pension scheme, to determine that the scheme in question is to be treated, for a period specified by the Authority, as if that scheme were exempted from the requirement for approval under <ref href="#d25e6894">section 28C</ref>.</content></subsection><subsection><num>(2)</num><content>The Secretary of State must make regulations under subsection (1) so that they have effect whenever regulations under section 28C(1) or (2) have effect.</content></subsection><subsection><num>(3)</num><intro>Regulations under <ref href="#d25e7701">subsection (1)</ref>—</intro><level class="para1"><num>(a)</num><content>may make provision about the form and content of an application, including about the evidence to be provided as part of an application;</content></level><level class="para1"><num>(b)</num><intro>must make provision requiring an application to include a statement—</intro><level class="para2"><num>(i)</num><content>that the applicant concludes that meeting the asset allocation requirement is likely not to be in the best interests of members of the scheme, and</content></level><level class="para2"><num>(ii)</num><content>setting out the basis on which the applicant reached the conclusion;</content></level></level><level class="para1"><num>(c)</num><intro>must make provision requiring the Authority to determine that the applicant is to be treated as mentioned in subsection <ref href="#d25e7701">(1)</ref> in cases where—</intro><level class="para2"><num>(i)</num><content>the application complies with the requirements of regulations made under subsection <ref href="#d25e7701">(1)</ref>, and</content></level><level class="para2"><num>(ii)</num><content>the Authority is of the view that it is reasonable for the applicant to have reached the conclusion that meeting the asset allocation requirement is likely not to be in the best interests of members of the scheme;</content></level></level><level class="para1"><num>(d)</num><content>may make provision about the basis on which the Authority may or must form such a view, including about the evidence which the Authority may or must take into account;</content></level><level class="para1"><num>(e)</num><intro>may make provision as to the process for making a determination, including as to—</intro><level class="para2"><num>(i)</num><content>the level of detail of enquiry required in different cases;</content></level><level class="para2"><num>(ii)</num><content>a time limit within which the Authority must decide an application;</content></level><level class="para2"><num>(iii)</num><content>procedures in connection with applications;</content></level></level><level class="para1"><num>(f)</num><content>must require the Authority to provide reasons for any determination not to approve an application;</content></level><level class="para1"><num>(g)</num><content>must provide for the Authority’s determination on an application to be referred to the Upper Tribunal.</content></level></subsection></section><section eId="d25e7821"><num>28H</num><heading>Risk notices</heading><subsection eId="d25e7825"><num>(1)</num><intro>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may give a risk notice to the trustees or managers of a relevant Master Trust if the Authority considers that—</intro><level class="para1"><num>(a)</num><content>there is an issue of concern in relation to the relevant Master Trust, and</content></level><level class="para1"><num>(b)</num><content>the relevant Master Trust will, or is likely to, cease to meet the conditions for approval under <ref href="#d25e6214">section 28A</ref> or <ref href="#d25e6894">28C</ref> if the issue is not resolved.</content></level></subsection><subsection><num>(2)</num><content>A “risk notice” is a notice that requires the trustees or managers of a relevant Master Trust to submit to the Authority a plan (a “resolution plan”) setting out proposals for resolving the issue of concern.</content></subsection><subsection eId="d25e7858"><num>(3)</num><intro>A risk notice must—</intro><level class="para1"><num>(a)</num><content>identify the issue of concern;</content></level><level class="para1" eId="d25e7870"><num>(b)</num><content>specify the date by which the resolution plan is to be submitted.</content></level></subsection><subsection eId="d25e7876"><num>(4)</num><content>If the Authority is not satisfied that the proposals in a resolution plan are likely to be adequate to resolve the issue of concern, the Authority may give a further notice to the trustees or managers requiring them to submit a revised plan by a date specified in the notice.</content></subsection><subsection eId="d25e7882"><num>(5)</num><intro>The trustees or managers must implement the proposals in a resolution plan if the Authority—</intro><level class="para1"><num>(a)</num><content>is satisfied that the proposals are likely to be adequate to resolve the issue of concern, and</content></level><level class="para1"><num>(b)</num><content>notifies the trustees or managers accordingly.</content></level></subsection><subsection eId="d25e7900"><num>(6)</num><content>The Authority may direct the trustees or managers to comply with the requirement imposed by <ref href="#d25e7882">subsection (5)</ref>.</content></subsection><subsection eId="d25e7909"><num>(7)</num><intro>Where the trustees or managers are required by <ref href="#d25e7882">subsection (5)</ref> to implement the proposals in a resolution plan, they must—</intro><level class="para1"><num>(a)</num><content>submit to the Authority, before the end of a period specified in regulations, a report setting out what progress they are making in implementing the proposals (a “progress report”);</content></level><level class="para1"><num>(b)</num><content>submit further progress reports to the Authority at intervals specified by the Authority.</content></level></subsection><subsection eId="d25e7930"><num>(8)</num><content>Resolution plans and progress reports must be provided in the manner and form specified by the Authority.</content></subsection><subsection><num>(9)</num><content>A reference to a resolution plan in <ref href="#d25e7876">subsections (4)</ref> to <ref href="#d25e7930">(8)</ref> includes a reference to a resolution plan as revised under <ref href="#d25e7876">subsection (4)</ref>.</content></subsection><subsection><num>(10)</num><intro>Regulations may—</intro><level class="para1"><num>(a)</num><content>specify information that a risk notice must contain;</content></level><level class="para1"><num>(b)</num><content>provide that the date referred to in <ref href="#d25e7858">subsection (3)</ref><ref href="#d25e7870">(b)</ref> or <ref href="#d25e7876">(4)</ref> must fall before the end of a period specified in the regulations.</content></level></subsection><subsection><num>(11)</num><intro>Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee or manager of a relevant Master Trust who fails to comply with—</intro><level class="para1"><num>(a)</num><content>a notice under <ref href="#d25e7825">subsection (1)</ref> or <ref href="#d25e7876">(4)</ref>,</content></level><level class="para1"><num>(b)</num><content>a direction under <ref href="#d25e7900">subsection (6)</ref>, or</content></level><level class="para1"><num>(c)</num><content>a requirement imposed by <ref href="#d25e7909">subsection (7)</ref>.</content></level></subsection></section><section eId="d25e8016"><num>28I</num><heading>Penalties</heading><subsection eId="d25e8020"><num>(1)</num><intro>Regulations may make provision about the imposition by the Regulatory Authority of a penalty on the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme where the scheme—</intro><level class="para1" eId="d25e8026"><num>(a)</num><content>fails to meet the condition in section 20<ref href="#d25e5826">(1A)</ref> by virtue of not being approved under <ref href="#d25e6214">section 28A</ref> or <ref href="#d25e6894">28C</ref>, and</content></level><level class="para1" eId="d25e8041"><num>(b)</num><content>accepts contributions from an employer in relation to a jobholder on the basis that it is an automatic enrolment scheme in relation to that jobholder.</content></level></subsection><subsection eId="d25e8047"><num>(2)</num><intro>Regulations may make provision about the imposition by the Regulatory Authority of a penalty on the provider of a group personal pension scheme where the scheme—</intro><level class="para1" eId="d25e8053"><num>(a)</num><content>fails to meet the condition in section 26<ref href="#d25e6027">(7A)</ref> or <ref href="#d25e6039">(7B)</ref>, and</content></level><level class="para1" eId="d25e8065"><num>(b)</num><content>accepts contributions from an employer in relation to a jobholder on the basis that it is an automatic enrolment scheme in relation to that jobholder.</content></level></subsection><subsection><num>(3)</num><intro>The regulations must provide—</intro><level class="para1"><num>(a)</num><content>that a penalty must not exceed £100,000 in relation to each employer from which contributions are accepted as mentioned in <ref href="#d25e8020">subsection (1)</ref><ref href="#d25e8041">(b)</ref> or <ref href="#d25e8047">(2)</ref><ref href="#d25e8065">(b)</ref>, and</content></level><level class="para1"><num>(b)</num><content>that there is a right of appeal against the imposition of the penalty.</content></level></subsection></section><section eId="d25e8102"><num>28J</num><heading>Enforcement by the Financial Conduct Authority</heading><subsection><num>(1)</num><content>The Treasury may make regulations to enable the Financial Conduct Authority to take action (in addition to any action it may otherwise take under the Financial Services and Markets Act 2000) for monitoring and enforcing compliance of any FCA-regulated person with any provision of or under this Chapter.</content></subsection><subsection><num>(2)</num><intro>The regulations may apply, or make provision corresponding to—</intro><level class="para1"><num>(a)</num><content>provision made by or under this Part in relation to the Regulatory Authority, or</content></level><level class="para1"><num>(b)</num><content>any provision of the Financial Services and Markets Act 2000,</content></level><wrapUp>with or without modification.</wrapUp></subsection><subsection><num>(3)</num><content>In this section, “<term refersTo="#term-fca-regulated-person">FCA-regulated person</term>” means an authorised person (within the meaning of the Financial Services and Markets Act 2000).</content></subsection></section><section><num>28K</num><heading>Report about effects of pension scheme consolidation</heading><subsection><num>(1)</num><content>The Secretary of State must prepare and publish a report about the effects of consolidation on innovation in the design and operation of relevant Master Trusts and group personal pension schemes.</content></subsection><subsection><num>(2)</num><intro>The report may in particular include information about—</intro><level class="para1"><num>(a)</num><content>the extent to which consolidated schemes adopt or maintain innovative product designs of constituent schemes;</content></level><level class="para1"><num>(b)</num><content>barriers to consolidated schemes adopting or maintaining such innovative product designs.</content></level></subsection><subsection><num>(3)</num><content>The Pensions Regulator and the FCA must provide such information and assistance as the Secretary of State may require for the purposes of the report.</content></subsection><subsection><num>(4)</num><content>The report under this section must be published before the end of the period of 12 months beginning with the day on which this section comes into force.</content></subsection><subsection><num>(5)</num><content>In this section “<term refersTo="#term-consolidation">consolidation</term>” means the consolidation of a relevant Master Trust or group personal pension scheme with one or more other schemes.</content></subsection></section><section><num>28L</num><heading>Regulations about quality requirements</heading><intro>In making regulations under section 20<ref href="#d25e5826">(1A)</ref> or <ref href="#d25e5924">(1C)</ref>, 26<ref href="#d25e6027">(7A)</ref>, <ref href="#d25e6214">28A</ref>, <ref href="#d25e6551">28B</ref>, <ref href="#d25e7377">28E</ref> or <ref href="#d25e7587">28F</ref>, the Secretary of State must have regard to the importance of—</intro><level class="para1"><num>(a)</num><content>innovation in the design and operation of relevant Master Trusts and group personal pension schemes;</content></level><level class="para1"><num>(b)</num><content>competition among relevant Master Trusts and group personal pension schemes;</content></level><level class="para1"><num>(c)</num><content>improving outcomes for members of relevant Master Trusts and group personal pension schemes;</content></level><level class="para1"><num>(d)</num><content>relevant Master Trusts and group personal pension schemes achieving an appropriate scale;</content></level><level class="para1"><num>(e)</num><content>relevant Master Trusts and group personal pension schemes having effective governance.</content></level></section></quotedStructure></mod></content></subsection><subsection eId="section-40-13"><num>(13)</num><content><mod>Before section 31 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e8267"><num>30A</num><heading>Review of exercise of powers under <ref href="#d25e6894">section 28C</ref></heading><subsection eId="d25e8271"><num>(1)</num><intro>The Secretary of State must—</intro><level class="para1"><num>(a)</num><content>review the effects of any regulations under <ref href="#d25e6894">section 28C</ref> (approvals in respect of asset allocation), and</content></level><level class="para1"><num>(b)</num><content>prepare, publish and lay before Parliament, a report of the review.</content></level></subsection><subsection><num>(2)</num><content>A review under <ref href="#d25e8271">subsection (1)</ref> must be conducted before the end of the period of 5 years beginning with the day on which the regulations in question come into force.</content></subsection><subsection><num>(3)</num><intro>In carrying out the review the Secretary of State must take the following into account—</intro><level class="para1"><num>(a)</num><content>whether and how the financial interests of members of Master Trust schemes and savers in group personal pension schemes have been affected by the regulations;</content></level><level class="para1"><num>(b)</num><content>the effects (if any) of the measures on economic growth in the United Kingdom;</content></level><level class="para1"><num>(c)</num><content>any other matters the Secretary of State considers appropriate.</content></level></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-40-14"><num>(14)</num><intro>In section 99 (interpretation of Part)—</intro><level class="para1" eId="section-40-14-a"><num>(a)</num><content>the existing words become subsection (1);</content></level><level class="para1" eId="section-40-14-b"><num>(b)</num><intro>in that subsection, at the appropriate places insert—</intro><hcontainer name="definition"><intro>““<term refersTo="#term-group-personal-pension-scheme" eId="term-group-personal-pension-scheme">group personal pension scheme</term>” means a personal pension scheme which is available, or intended to be available, to employees of the same employer or of employers within a group, but does not include—</intro><level class="para1"><num>(a)</num><content>a stakeholder pension scheme (as defined in section 1 of the Welfare Reform and Pensions Act 1999), or</content></level><level class="para1"><num>(b)</num><content>any pension scheme that requires all its members to make a choice as to how their contributions are invested;”;</content></level></hcontainer><hcontainer name="definition"><content>““<term refersTo="#term-regulatory-authority" eId="term-regulatory-authority">Regulatory Authority</term>” has the meaning given by regulations under subsection (2);”;</content></hcontainer><hcontainer name="definition"><content>““<term refersTo="#term-relevant-master-trust" eId="term-relevant-master-trust">relevant Master Trust</term>” has the meaning given by section 20(4);”;</content></hcontainer></level><level class="para1" eId="section-40-14-c"><num>(c)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content>The Secretary of State may by regulations define “<term refersTo="#term-regulatory-authority">Regulatory Authority</term>” for the purposes of this Part.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-40-15"><num>(15)</num><intro>In section 143 (orders and regulations) in subsection (5)(a)—</intro><level class="para1" eId="section-40-15-a"><num>(a)</num><content><mod>after “17(1)(c),” insert <quotedText>“20, 26<ref href="#d25e6027">(7A)</ref>, <ref href="#d25e6039">(7B)</ref>, <ref href="#d25e6051">(7C)</ref> or <ref href="#d25e6099">(7E)</ref>,”</quotedText>;</mod></content></level><level class="para1" eId="section-40-15-b"><num>(b)</num><content><mod>after “28,” insert <quotedText>“<ref href="#d25e6214">28A</ref>, <ref href="#d25e6551">28B</ref>, <ref href="#d25e6894">28C</ref> (other than subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7136">(f)</ref>), <ref href="#d25e7377">28E</ref>, <ref href="#d25e7587">28F</ref>, <ref href="#d25e7697">28G</ref>, <ref href="#d25e8016">28I</ref>, <ref href="#d25e8102">28J</ref>,”</quotedText>.</mod></content></level></subsection><subsection eId="section-40-16"><num>(16)</num><intro>The following provisions of the Pensions Act 2008 (which relate to transition pathway relief) are repealed at the end of the period of 5 years beginning with the day on which the provisions mentioned in paragraphs (a) and (b) come into force—</intro><level class="para1" eId="section-40-16-a"><num>(a)</num><content>paragraph <ref href="#d25e5863">(d)</ref> of Condition 1 in section 20<ref href="#d25e5826">(1A)</ref>;</content></level><level class="para1" eId="section-40-16-b"><num>(b)</num><content>section 26<ref href="#d25e6051">(7C)</ref><ref href="#d25e6069">(b)</ref>;</content></level><level class="para1" eId="section-40-16-c"><num>(c)</num><content>section <ref href="#d25e7377">28E</ref>;</content></level><level class="para1" eId="section-40-16-d"><num>(d)</num><content>the word “<ref href="#d25e7377">28E</ref>” in section 143(5)(a).</content></level></subsection><subsection eId="section-40-17"><num>(17)</num><intro>The following provisions are repealed at the end of 2035—</intro><level class="para1" eId="section-40-17-a"><num>(a)</num><intro>in <ref eId="c00021" href="https://www.legislation.gov.uk/ukpga/2000/8/section/204A">section 204A</ref> of the <ref eId="c00022" href="https://www.legislation.gov.uk/ukpga/2000/8/contents">Financial Services and Markets Act 2000</ref> (meaning of “<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” and “<term refersTo="#term-appropriate-regulator" eId="term-appropriate-regulator">appropriate regulator</term>”)—</intro><level class="para2" eId="section-40-17-a-i"><num>(i)</num><content>in subsection (2)(aza), the words “or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>”;</content></level><level class="para2" eId="section-40-17-a-ii"><num>(ii)</num><content>in subsection (6)(aza), the words “or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>”;</content></level></level><level class="para1" eId="section-40-17-b"><num>(b)</num><content>in section 90(6)<ref href="#d25e24762">(da)</ref> of the Pensions Act 2004, the words “and the asset allocation requirement”;</content></level><level class="para1" eId="section-40-17-c"><num>(c)</num><content>the relevant asset allocation provisions of the <ref eId="c00023" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref>.</content></level></subsection><subsection eId="section-40-18"><num>(18)</num><intro>For the purposes of subsection <ref href="#section-40-17">(17)</ref>, the “relevant asset allocation provisions” of the Pensions Act 2008 are the following—</intro><level class="para1" eId="section-40-18-a"><num>(a)</num><intro>in section 20<ref href="#d25e5826">(1A)</ref> (asset allocation requirement: Master Trusts)—</intro><level class="para2" eId="section-40-18-a-i"><num>(i)</num><content>in the opening words, the words “and Condition 2”;</content></level><level class="para2" eId="section-40-18-a-ii"><num>(ii)</num><content>Condition 2;</content></level></level><level class="para1" eId="section-40-18-b"><num>(b)</num><content>in section 20<ref href="#d25e5903">(1B)</ref> (exemptions), the words “or 2<ref href="#d25e5893">(b)</ref>”;</content></level><level class="para1" eId="section-40-18-c"><num>(c)</num><intro>in section 20<ref href="#d25e5924">(1C)</ref> (protected period)—</intro><level class="para2" eId="section-40-18-c-i"><num>(i)</num><content>in paragraph <ref href="#d25e5930">(a)</ref>, the words “or Condition 2”;</content></level><level class="para2" eId="section-40-18-c-ii"><num>(ii)</num><content>in paragraph <ref href="#d25e5950">(c)</ref>, the words “or the conditions for approval under section <ref href="#d25e6894">28C</ref>”;</content></level></level><level class="para1" eId="section-40-18-d"><num>(d)</num><intro>in section 26 (quality requirement: UK personal pension schemes)—</intro><level class="para2" eId="section-40-18-d-i"><num>(i)</num><content>subsection <ref href="#d25e6039">(7B)</ref>;</content></level><level class="para2" eId="section-40-18-d-ii"><num>(ii)</num><content>in subsection <ref href="#d25e6087">(7D)</ref>, the words “or <ref href="#d25e6039">(7B)</ref>”;</content></level><level class="para2" eId="section-40-18-d-iii"><num>(iii)</num><content>in subsection <ref href="#d25e6099">(7E)</ref><ref href="#d25e6105">(a)</ref>, the words “or sixth”;</content></level><level class="para2" eId="section-40-18-d-iv"><num>(iv)</num><content>in subsection <ref href="#d25e6099">(7E)</ref><ref href="#d25e6125">(c)</ref>, the words “or the conditions for approval under section <ref href="#d25e6894">28C</ref>”;</content></level></level><level class="para1" eId="section-40-18-e"><num>(e)</num><intro>in section 28 (certification that quality requirement or alternative requirement is satisfied)—</intro><level class="para2" eId="section-40-18-e-i"><num>(i)</num><content>in subsection (4)(a), the words “or 2”;</content></level><level class="para2" eId="section-40-18-e-ii"><num>(ii)</num><content>in subsection (4)(b), the words “and sixth”;</content></level><level class="para2" eId="section-40-18-e-iii"><num>(iii)</num><content>in subsection (4)(c), the words “or 2”;</content></level></level><level class="para1" eId="section-40-18-f"><num>(f)</num><content>section <ref href="#d25e6894">28C</ref> (approvals in respect of asset allocation);</content></level><level class="para1" eId="section-40-18-g"><num>(g)</num><content>section <ref href="#d25e7697">28G</ref> (suspension of asset allocation requirement: savers’ interest test);</content></level><level class="para1" eId="section-40-18-h"><num>(h)</num><content>in section <ref href="#d25e7821">28H</ref> (risk notices), in subsection (1)(b), the words “or <ref href="#d25e6894">28C</ref>”;</content></level><level class="para1" eId="section-40-18-i"><num>(i)</num><intro>in section <ref href="#d25e8016">28I</ref> (penalties)—</intro><level class="para2" eId="section-40-18-i-i"><num>(i)</num><content>in subsection <ref href="#d25e8020">(1)</ref><ref href="#d25e8026">(a)</ref>, the words “or <ref href="#d25e6894">28C</ref>”;</content></level><level class="para2" eId="section-40-18-i-ii"><num>(ii)</num><content>in subsection <ref href="#d25e8047">(2)</ref><ref href="#d25e8053">(a)</ref>, the words “or <ref href="#d25e6039">(7B)</ref>”;</content></level></level><level class="para1" eId="section-40-18-j"><num>(j)</num><content>section <ref href="#d25e8267">30A</ref> (review of exercise of powers under section <ref href="#d25e6894">28C</ref>);</content></level><level class="para1" eId="section-40-18-k"><num>(k)</num><intro>in section 143(5)(a) (orders and regulations)—</intro><level class="para2" eId="section-40-18-k-i"><num>(i)</num><content>the word “<ref href="#d25e6039">(7B)</ref>”;</content></level><level class="para2" eId="section-40-18-k-ii"><num>(ii)</num><content>the words “<ref href="#d25e6894">28C</ref> (other than subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7136">(f)</ref>)”;</content></level><level class="para2" eId="section-40-18-k-iii"><num>(iii)</num><content>the word “<ref href="#d25e7697">28G</ref>”.</content></level></level></subsection><subsection eId="section-40-19"><num>(19)</num><intro>In consequence of the repeals under subsection <ref href="#section-40-17">(17)</ref>, at the end of 2035—</intro><level class="para1" eId="section-40-19-a"><num>(a)</num><content><mod>in section 73(2)<ref href="#d25e24389">(dza)</ref> of the Pensions Act 2004 (inspection of premises), for “<ref href="#d25e7697">28G</ref> of the Pensions Act 2008 (scale and asset allocation)” substitute <quotedText>“<ref href="#d25e7587">28F</ref> of the Pensions Act 2008 (scale)”</quotedText>;</mod></content></level><level class="para1" eId="section-40-19-b"><num>(b)</num><content><mod>in section 28(4)(b) of the Pensions Act 2008 (certification that quality requirement or alternative requirement is satisfied), for “conditions” substitute <quotedText>“condition”</quotedText>.</mod></content></level></subsection><subsection eId="section-40-20"><num>(20)</num><content>The Secretary of State may by regulations make transitional or saving provision in connection with any repeal or amendment under subsection <ref href="#section-40-17">(17)</ref> or <ref href="#section-40-19">(19)</ref>.</content></subsection><subsection eId="section-40-21"><num>(21)</num><content>If this section is repealed under section <ref href="#section-133">133</ref><ref href="#section-133-6">(6)</ref> (repeal where asset allocation requirement uncommenced) in respect of the insertion of the provisions mentioned in that subsection, the Secretary of State may by regulations amend this section, section 41 or the Schedule in consequence of that repeal.</content></subsection><subsection eId="section-40-22"><num>(22)</num><content>Regulations under subsection <ref href="#section-40-20">(20)</ref> or <ref href="#section-40-21">(21)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-41"><num>41</num><heading>Amendments related to section <ref href="#section-40">40</ref></heading><subsection eId="section-41-1"><num>(1)</num><content>The Financial Services and Markets Act 2000 is amended as follows.</content></subsection><subsection eId="section-41-2"><num>(2)</num><content><mod>In section 1A (the Financial Conduct Authority), in subsection (6), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><content>the Pensions Act 2008,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-41-3"><num>(3)</num><content>Section 204A (meaning of “<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” and “<term refersTo="#term-appropriate-regulator" eId="term-appropriate-regulator">appropriate regulator</term>”) is amended as follows.</content></subsection><subsection eId="section-41-4"><num>(4)</num><content><mod>In subsection (2), after paragraph (aa) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aza)</num><content>by or under Part 1 of the Pensions Act 2008 in relation to the scale requirement in section <ref href="#d25e6551">28B</ref> or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-41-5"><num>(5)</num><content><mod>In subsection (6), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aza)</num><content>by or under Part 1 of the Pensions Act 2008 in relation to the scale requirement in section <ref href="#d25e6551">28B</ref> or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-41-6"><num>(6)</num><content>Part 1 (Master Trusts) of the Pension Schemes Act 2017 is amended as follows.</content></subsection><subsection eId="section-41-7"><num>(7)</num><intro>In section 5 (decision on application), in subsection (3)—</intro><level class="para1" eId="section-41-7-a"><num>(a)</num><content>omit the “and” before paragraph (e);</content></level><level class="para1" eId="section-41-7-b"><num>(b)</num><content><mod>after paragraph (e) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(f)</num><content>that it has sufficient investment capability (see section 12A), and</content></level><level class="para1"><num>(g)</num><content>(in the case of an applicant that has its main administration in the United Kingdom) that the scheme meets Condition 1 of section 20(1A) (scale requirement) of the Pensions Act 2008.</content></level></quotedStructure></mod></content></level></subsection><subsection eId="section-41-8"><num>(8)</num><content><mod>After section 12 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>12A</num><heading>Investment capability</heading><subsection eId="d25e9036"><num>(1)</num><content>This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that a Master Trust scheme (that has its main administration in the United Kingdom) has sufficient investment capability (see section 5(3)(f)).</content></subsection><subsection eId="d25e9042"><num>(2)</num><intro>In order to be satisfied that the Master Trust scheme has sufficient investment capability the Pensions Regulator must be satisfied—</intro><level class="para1"><num>(a)</num><content>that appropriate systems are in place for managing the investment strategy and monitoring outcomes,</content></level><level class="para1"><num>(b)</num><content>that the scheme has appropriate systems for delivering effective governance, and</content></level><level class="para1"><num>(c)</num><content>that there are appropriate strategies for recruiting and retaining expert staff.</content></level></subsection><subsection><num>(3)</num><content>In deciding whether it is satisfied about the matters mentioned in <ref href="#d25e9036">subsection (1)</ref>, the Pensions Regulator must take account of any factors specified in <ref href="#d25e9042">subsection (2)</ref>.</content></subsection><subsection><num>(4)</num><intro>The Secretary of State may by regulations—</intro><level class="para1"><num>(a)</num><content>make provision about the meaning of terms used in subsection <ref href="#d25e9042">(2)</ref>;</content></level><level class="para1"><num>(b)</num><content>specify further factors that the Pensions Regulator must take into account in deciding whether it is satisfied about the matters mentioned in subsection <ref href="#d25e9036">(1)</ref>.</content></level></subsection><subsection><num>(5)</num><content>The first regulations that are made under this section are subject to affirmative resolution procedure.</content></subsection><subsection><num>(6)</num><content>Any other regulations under this section are subject to negative resolution procedure.</content></subsection></section><section><num>12B</num><heading>Scale requirement</heading><subsection><num>(1)</num><content>The Secretary of State may by regulations make provision about how the Pensions Regulator is to decide whether it is satisfied that a Master Trust scheme that has its main administration in the United Kingdom meets Condition 1 in section 20<ref href="#d25e5826">(1A)</ref> (scale requirement) of the Pensions Act 2008.</content></subsection><subsection><num>(2)</num><content>The regulations may, among other things, specify matters which the Pensions Regulator must take into account in making its assessment.</content></subsection><subsection><num>(3)</num><content>The first regulations under this section are subject to affirmative resolution procedure.</content></subsection><subsection><num>(4)</num><content>Any subsequent regulations under this section are subject to negative resolution procedure.</content></subsection></section></quotedStructure></mod></content></subsection></section></chapter><chapter eId="part-2-chapter-4"><num>Chapter 4</num><heading>Default arrangements</heading><section eId="section-42"><num>42</num><heading>Regulations restricting creation of new non-scale default arrangements</heading><subsection eId="section-42-1"><num>(1)</num><content>The appropriate authority may make regulations for the purpose of restricting the ability of the provider of a pension scheme to begin operating a non-scale default arrangement.</content></subsection><subsection eId="section-42-2"><num>(2)</num><intro>The regulations may, in particular, make provision—</intro><level class="para1" eId="section-42-2-a"><num>(a)</num><content>prohibiting the provider of a pension scheme from beginning to operate a non-scale default arrangement unless the arrangement is approved by the appropriate regulator;</content></level><level class="para1" eId="section-42-2-b"><num>(b)</num><content>about the criteria which the appropriate regulator must apply in deciding whether to approve a non-scale default arrangement;</content></level><level class="para1" eId="section-42-2-c"><num>(c)</num><content>about the conditions which the appropriate regulator may or must attach to approval;</content></level><level class="para1" eId="section-42-2-d"><num>(d)</num><content>about the ongoing requirements to which the provider of a pension scheme is to be subject in relation to a non-scale default arrangement approved under the regulations;</content></level><level class="para1" eId="section-42-2-e"><num>(e)</num><content>where assets of a pension scheme are held subject to a non-scale default arrangement that is being operated in breach of the regulations, requiring the provider of the pension scheme in question to ensure that the assets are held subject to a different arrangement of a description specified in the regulations;</content></level><level class="para1" eId="section-42-2-f"><num>(f)</num><content>conferring functions on the appropriate regulator, including functions involving the exercise of a discretion;</content></level><level class="para1" eId="section-42-2-g"><num>(g)</num><content>for ensuring compliance with the regulations, including provision for the imposition of civil penalties not exceeding £100,000;</content></level><level class="para1" eId="section-42-2-h"><num>(h)</num><content>for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of anything done under the regulations.</content></level></subsection><subsection eId="section-42-3"><num>(3)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section><section eId="section-43"><num>43</num><heading>Review in relation to non-scale default arrangements</heading><subsection eId="section-43-1"><num>(1)</num><content>The Secretary of State and the Treasury (“the reviewers”), acting jointly, must carry out a review of the non-scale default arrangements operated by providers of pension schemes.</content></subsection><subsection eId="section-43-2"><num>(2)</num><intro>The review must consider the following (as well as any other matters that the reviewers consider relevant)—</intro><level class="para1" eId="section-43-2-a"><num>(a)</num><content>the number of non-scale default arrangements being operated by providers;</content></level><level class="para1" eId="section-43-2-b"><num>(b)</num><content>the extent to which non-scale default arrangements operated by providers have been consolidated, or are likely to be consolidated, into approved main scale default arrangements;</content></level><level class="para1" eId="section-43-2-c"><num>(c)</num><content>where non-scale default arrangements have not been so consolidated, the reasons why;</content></level><level class="para1" eId="section-43-2-d"><num>(d)</num><content>the circumstances in which it may be appropriate for non-scale default arrangements not to be so consolidated.</content></level></subsection><subsection eId="section-43-3"><num>(3)</num><content>The reviewers must publish a report on the review as soon as reasonably practicable after the review is completed.</content></subsection><subsection eId="section-43-4"><num>(4)</num><content>The Pensions Regulator and the FCA must provide such information and assistance as the reviewers may require for the purposes of the review.</content></subsection><subsection eId="section-43-5"><num>(5)</num><content>Neither section 348 of the Financial Services and Markets Act 2000 nor section 82 of the Pensions Act 2004 prohibits the disclosure by the reviewers, the Pensions Regulator or the FCA of any information where the disclosure is made for the purpose of enabling or facilitating any person’s compliance with this section.</content></subsection></section><section eId="section-44"><num>44</num><heading>Regulations about consolidation of non-scale default arrangements</heading><subsection eId="section-44-1"><num>(1)</num><content>The appropriate authority may make regulations about the consolidation of non-scale default arrangements into approved main scale default arrangements.</content></subsection><subsection eId="section-44-2"><num>(2)</num><intro>The regulations may, in particular, make provision—</intro><level class="para1" eId="section-44-2-a"><num>(a)</num><content>requiring the provider of a pension scheme, subject to any exemptions specified in the regulations, to consolidate a non-scale default arrangement operated by it into an approved main scale default arrangement operated by it;</content></level><level class="para1" eId="section-44-2-b"><num>(b)</num><content>requiring the provider of a pension scheme to prepare, and provide the appropriate regulator with, an action plan about how and when a non-scale default arrangement operated by it is to be so consolidated;</content></level><level class="para1" eId="section-44-2-c"><num>(c)</num><content>conferring functions on the appropriate regulator, including functions involving the exercise of a discretion;</content></level><level class="para1" eId="section-44-2-d"><num>(d)</num><content>for ensuring compliance with the regulations, including provision for the imposition of civil penalties not exceeding £100,000;</content></level><level class="para1" eId="section-44-2-e"><num>(e)</num><content>for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of a decision made under the regulations.</content></level></subsection><subsection eId="section-44-3"><num>(3)</num><intro>Regulations under this section—</intro><level class="para1" eId="section-44-3-a"><num>(a)</num><content>may not be made until the review under section <ref href="#section-43">43</ref> has been completed and the report on it published, and</content></level><level class="para1" eId="section-44-3-b"><num>(b)</num><content>must take account of the review’s conclusions.</content></level></subsection><subsection eId="section-44-4"><num>(4)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section><section eId="section-45"><num>45</num><heading>Regulations about default arrangements</heading><intro>In making regulations under section <ref href="#section-42">42</ref> or <ref href="#section-44">44</ref>, the appropriate authority must have regard to the importance of—</intro><level class="para1" eId="section-45-a"><num>(a)</num><content>innovation in the design and operation of pension schemes;</content></level><level class="para1" eId="section-45-b"><num>(b)</num><content>competition among providers of pension schemes;</content></level><level class="para1" eId="section-45-c"><num>(c)</num><content>improving outcomes for members of pension schemes;</content></level><level class="para1" eId="section-45-d"><num>(d)</num><content>pension schemes having effective governance.</content></level></section><section eId="section-46"><num>46</num><heading>Amendments of the Financial Services and Markets Act 2000</heading><subsection eId="section-46-1"><num>(1)</num><content>The Financial Services and Markets Act 2000 is amended as follows.</content></subsection><subsection eId="section-46-2"><num>(2)</num><content><mod>In section 1A (the Financial Conduct Authority), in subsection (6), before paragraph (ca) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(cze)</num><content>Chapter 4 of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026 (default arrangements);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-46-3"><num>(3)</num><intro>In section 204A (meaning of “<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” and “<term refersTo="#term-appropriate-regulator" eId="term-appropriate-regulator">appropriate regulator</term>”)—</intro><level class="para1" eId="section-46-3-a"><num>(a)</num><content><mod>in subsection (2), before paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ad)</num><content>by or under Chapter 4 of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026 (default arrangements),</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-46-3-b"><num>(b)</num><content><mod>in subsection (6), before paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ad)</num><content>by or under Chapter 4 of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026 (default arrangements);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></level></subsection></section><section eId="section-47"><num>47</num><heading>Crown application</heading><subsection eId="section-47-1"><num>(1)</num><content>This Chapter applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes.</content></subsection><subsection eId="section-47-2"><num>(2)</num><content>Accordingly, references in this Chapter to a person in their capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.</content></subsection><subsection eId="section-47-3"><num>(3)</num><content>This Chapter applies to persons employed by or under the Crown as it applies to persons employed by a private person.</content></subsection></section><section eId="section-48"><num>48</num><heading>Interpretation of Chapter</heading><subsection eId="section-48-1"><num>(1)</num><intro>In this Chapter—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-the-appropriate-authority" eId="term-the-appropriate-authority">the appropriate authority</term>”, in relation to the making of regulations, means—</intro><level class="para1"><num>(a)</num><content>where the only pension schemes to which the regulations apply are FCA-regulated pension schemes, the Treasury;</content></level><level class="para1"><num>(b)</num><content>where the only pension schemes to which the regulations apply are not FCA-regulated pension schemes, the Secretary of State;</content></level><level class="para1"><num>(c)</num><content>in any other case, the Treasury and the Secretary of State acting jointly;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-appropriate-regulator" eId="term-the-appropriate-regulator">the appropriate regulator</term>”, in relation to a pension scheme, means—</intro><level class="para1"><num>(a)</num><content>in relation to an FCA-regulated pension scheme, the FCA;</content></level><level class="para1"><num>(b)</num><content>in relation to any other pension scheme, the Pensions Regulator;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-approved-main-scale-default-arrangement" eId="term-approved-main-scale-default-arrangement">approved main scale default arrangement</term>”, in relation to a pension scheme, means a main scale default arrangement in respect of which the pension scheme is approved under section <ref href="#d25e6214">28A</ref> or <ref href="#d25e6551">28B</ref> of the Pensions Act 2008;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidating" eId="term-consolidating">consolidating</term>” a non-scale default arrangement into an approved main scale default arrangement means ensuring that any assets held subject to the non-scale default arrangement are instead held subject to the approved main scale default arrangement;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-fca" eId="term-the-fca">the FCA</term>” means the Financial Conduct Authority;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given in <ref href="#section-48-2">subsection (2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-main-scale-default-arrangement" eId="term-main-scale-default-arrangement">main scale default arrangement</term>”, in relation to a pension scheme, has the same meaning as in section <ref href="#d25e6214">28A</ref> and <ref href="#d25e6551">28B</ref> of the Pensions Act 2008;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 181 of that Act);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-non-scale-default-arrangement" eId="term-non-scale-default-arrangement">non-scale default arrangement</term>”, in relation to a pension scheme, means an arrangement—</intro><level class="para1"><num>(a)</num><content>which is not an approved main scale default arrangement, and</content></level><level class="para1"><num>(b)</num><content>subject to which assets of the scheme must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-operate" eId="term-operate">operate</term>”, in relation to a default arrangement, has the meaning given in <ref href="#section-48-3">subsection (3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme" eId="term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the Pension Schemes Act 1993;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-provider" eId="term-the-provider">the provider</term>” of a pension scheme means—</intro><level class="para1"><num>(a)</num><content>in relation to an FCA-regulated pension scheme, the person mentioned in <ref href="#section-48-2">subsection (2)</ref><ref href="#section-48-2-b">(b)</ref>;</content></level><level class="para1"><num>(b)</num><content>in any other case, the trustees or managers;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-trustees-or-managers" eId="term-the-trustees-or-managers">the trustees or managers</term>”, in relation to a pension scheme, means—</intro><level class="para1"><num>(a)</num><content>in the case of a scheme established under a trust, the trustees of the scheme, and</content></level><level class="para1"><num>(b)</num><content>in any other case, the persons responsible for the management of the scheme.</content></level></hcontainer></subsection><subsection eId="section-48-2"><num>(2)</num><intro>A pension scheme is “FCA-regulated” if the operation of the scheme—</intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content>is carried on in such a way as to be a regulated activity for the purposes of the Financial Services and Markets Act 2000, and</content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content>is carried on in the United Kingdom by a person who is in relation to that activity an authorised person under section 19 of that Act.</content></level></subsection><subsection eId="section-48-3"><num>(3)</num><content>The provider of a pension scheme “operates” a non-scale default arrangement or main scale default arrangement if any assets held for the purposes of the scheme are held subject to the non-scale default arrangement or main scale default arrangement.</content></subsection></section></chapter><chapter eId="part-2-chapter-5"><num>Chapter 5</num><heading>FCA-regulated pension schemes: contractual override</heading><section eId="section-49"><num>49</num><heading>FCA-regulated pension schemes: contractual override</heading><subsection eId="section-49-1"><num>(1)</num><content>The Financial Services and Markets Act 2000 is amended as follows.</content></subsection><subsection eId="section-49-2"><num>(2)</num><content><mod>After Part 7 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><part eId="d25e9741"><num>Part 7A</num><heading>Unilateral changes to pension schemes</heading><section eId="d25e9749"><num>117A</num><heading>Pension schemes to which this Part applies</heading><subsection><num>(1)</num><intro>This Part applies to a pension scheme—</intro><level class="para1"><num>(a)</num><content>that is FCA-regulated, and</content></level><level class="para1"><num>(b)</num><content>in relation to which any of the following conditions is met.</content></level></subsection><subsection eId="d25e9771"><num>(2)</num><intro>The conditions are—</intro><level class="para1" eId="d25e9777"><num>(a)</num><content>that the scheme is an auto-enrolment scheme;</content></level><level class="para1" eId="d25e9783"><num>(b)</num><content>that the scheme is a workplace personal pension scheme that is not an auto-enrolment scheme;</content></level><level class="para1"><num>(c)</num><content>that the scheme is a pension scheme of a prescribed description.</content></level></subsection><subsection eId="d25e9795"><num>(3)</num><content>For the purposes of <ref href="#d25e9771">subsection (2)</ref><ref href="#d25e9777">(a)</ref> and <ref href="#d25e9906">(b)</ref> a pension scheme is an “auto-enrolment scheme” if any individual is or at any time was an active member of the scheme in consequence of arrangements under <ref eId="c00024" href="https://www.legislation.gov.uk/ukpga/2008/30/section/3">section 3</ref><ref eId="c00025" href="https://www.legislation.gov.uk/ukpga/2008/30/section/3">(2)</ref>, <ref eId="c00026" href="https://www.legislation.gov.uk/ukpga/2008/30/section/5">5</ref><ref eId="c00027" href="https://www.legislation.gov.uk/ukpga/2008/30/section/5">(2)</ref> or <ref eId="c00028" href="https://www.legislation.gov.uk/ukpga/2008/30/section/7">7</ref><ref eId="c00029" href="https://www.legislation.gov.uk/ukpga/2008/30/section/7">(3)</ref> of the <ref eId="c00030" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> or section 3(2), 5(2) or 7(3) of the Pensions (No. 2) Act (Northern Ireland) <ref eId="c00031" href="http://www.legislation.gov.uk/id/nia/2008/13">2008 (c. 13 (N.I.))</ref> (arrangements for jobholder to become active member of automatic enrolment scheme).</content></subsection><subsection><num>(4)</num><content>In <ref href="#d25e9795">subsection (3)</ref> “<term refersTo="#term-active-member">active member</term>” means an active member within the meaning of Part 1 of the Pensions Act 2008 (see section 99 of that Act) or Part 1 of the Pensions (No. 2) Act (Northern Ireland) <ref eId="c00032" href="http://www.legislation.gov.uk/id/nia/2008/13">2008 (c. 13 (N.I.))</ref> (see section 78 of that Act).</content></subsection><subsection eId="d25e9846"><num>(5)</num><intro>For the purposes of <ref href="#d25e9771">subsection (2)</ref><ref href="#d25e9783">(b)</ref> a pension scheme is a “workplace personal pension scheme” if—</intro><level class="para1"><num>(a)</num><content>the scheme is a personal pension scheme,</content></level><level class="para1"><num>(b)</num><content>direct payment arrangements exist, or have at any time existed, in relation to the scheme, and</content></level><level class="para1"><num>(c)</num><content>contributions have been paid under the arrangements in respect of, or on behalf of, two or more employees.</content></level></subsection><subsection><num>(6)</num><content>In <ref href="#d25e9846">subsection (5)</ref> “<term refersTo="#term-direct-payment-arrangements">direct payment arrangements</term>” means direct payment arrangements within the meaning of section 111A of the Pension Schemes Act 1993 or section 107A of the Pension Schemes (Northern Ireland) Act 1993.</content></subsection></section><section eId="d25e9890"><num>117B</num><heading>Unilateral changes</heading><subsection eId="d25e9894"><num>(1)</num><intro>The provider of a pension scheme to which this Part applies may—</intro><level class="para1" eId="d25e9900"><num>(a)</num><content>amend the terms of the scheme as regards a description of pension pot held by the scheme,</content></level><level class="para1" eId="d25e9906"><num>(b)</num><content>change the investments comprised in a description of pension pot held by the scheme,</content></level><level class="para1" eId="d25e9912"><num>(c)</num><content>transfer a description of pension pot held by the scheme to a different pension scheme operated by the same provider, or</content></level><level class="para1" eId="d25e9918"><num>(d)</num><content>transfer a description of pension pot held by the scheme to a pension scheme operated by a different provider.</content></level></subsection><subsection><num>(2)</num><content>A change or transfer within <ref href="#d25e9894">subsection (1)</ref><ref href="#d25e9906">(b)</ref> to <ref href="#d25e9918">(d)</ref> may be effected notwithstanding that it breaches a term of the pension scheme (such as a requirement for consent); and any such breach is to be disregarded for all purposes.</content></subsection><subsection eId="d25e9938"><num>(3)</num><intro><ref href="#d25e9894">Subsection (1)</ref> is subject to—</intro><level class="para1"><num>(a)</num><content><ref href="#d25e9990">subsection (5)</ref>, sections <ref href="#d25e10118">117D</ref> to <ref href="#d25e10384">117F</ref> and any regulations under <ref href="#d25e10551">section 117H</ref><ref href="#d25e10555">(1)</ref><ref href="#d25e10581">(c)</ref>, and</content></level><level class="para1"><num>(b)</num><content>any other provision of legislation (including any rule) which restricts or otherwise affects the provider’s power to do anything within <ref href="#d25e9894">subsection (1)</ref>.</content></level></subsection><subsection><num>(4)</num><content>In <ref href="#d25e9894">subsection (1)</ref><ref href="#d25e9912">(c)</ref> and <ref href="#d25e9918">(d)</ref>, a reference to a pension scheme to which a description of pension pot may be transferred includes a pension scheme to which this Part does not apply.</content></subsection><subsection eId="d25e9990"><num>(5)</num><content>A transfer to a pension scheme operated by a different provider may not be effected under <ref href="#d25e9894">subsection (1)</ref><ref href="#d25e9918">(d)</ref> without the consent of that provider.</content></subsection><subsection eId="d25e10001"><num>(6)</num><intro>A reference in this Part to the terms of a pension scheme is to the terms of any instrument or agreement—</intro><level class="para1"><num>(a)</num><content>in which the scheme is comprised, or</content></level><level class="para1"><num>(b)</num><content>to which the provider of the scheme and any member are parties in connection with the scheme.</content></level></subsection><subsection eId="d25e10019"><num>(7)</num><content>In this Part, “<term refersTo="#term-unilateral-change">unilateral change</term>” means an amendment, change or transfer within any of paragraphs <ref href="#d25e9900">(a)</ref> to <ref href="#d25e9918">(d)</ref> of <ref href="#d25e9894">subsection (1)</ref>.</content></subsection></section><section><num>117C</num><heading>Effect of transfer of pension pot on membership of scheme etc</heading><subsection><num>(1)</num><content>This section applies where a pension pot is transferred under <ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref><ref href="#d25e9912">(c)</ref> or <ref href="#d25e9918">(d)</ref> to a different pension scheme (“<term refersTo="#term-the-receiving-scheme">the receiving scheme</term>”).</content></subsection><subsection><num>(2)</num><intro>The individual—</intro><level class="para1"><num>(a)</num><content>becomes a member of the receiving scheme in relation to the pot, and</content></level><level class="para1"><num>(b)</num><content>in a case in which there is more than one arrangement under the receiving scheme, becomes, in relation to the pot, a member of the arrangement specified in the unilateral change notice under <ref href="#d25e10384">section 117F</ref><ref href="#d25e10420">(3)</ref><ref href="#d25e10448">(b)</ref>,</content></level><wrapUp>and acquires the rights, and becomes subject to the obligations, of membership.</wrapUp></subsection><subsection><num>(3)</num><intro>Where being a member of the receiving scheme in relation to the pot, or of the arrangement under the receiving scheme under which the pot is to be held, entails being a party to a contract with the provider of the receiving scheme, a contract is treated as entered into between the individual and the provider—</intro><level class="para1"><num>(a)</num><content>at the time at which the pension pot is transferred to the receiving scheme, and</content></level><level class="para1"><num>(b)</num><content>on the terms communicated to the individual in the unilateral change notice under <ref href="#d25e10384">section 117F</ref><ref href="#d25e10420">(3)</ref><ref href="#d25e10454">(c)</ref>.</content></level></subsection></section><section eId="d25e10118"><num>117D</num><heading>Best interests test</heading><subsection><num>(1)</num><intro>The provider of a pension scheme to which this Part applies may effect a unilateral change under <ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref> only if—</intro><level class="para1"><num>(a)</num><content>the provider concludes, before doing so, that the best interests test is met in relation to the unilateral change, and</content></level><level class="para1"><num>(b)</num><content>it is reasonable for the provider to have reached that conclusion at that time.</content></level></subsection><subsection eId="d25e10145"><num>(2)</num><intro>“<term refersTo="#term-the-best-interests-test">The best interests test</term>”, in relation to a unilateral change, is that it is reasonably likely that effecting it will achieve—</intro><level class="para1"><num>(a)</num><content>a better outcome for the directly affected members of the scheme (taken as a whole), and</content></level><level class="para1"><num>(b)</num><content>no worse an outcome for the other members of the scheme (taken as a whole),</content></level><wrapUp>than the relevant alternative action or, where there is more than one alternative action, each of them.</wrapUp></subsection><subsection eId="d25e10168"><num>(3)</num><content>For the purposes of this Part, the members of a pension scheme who are “directly affected” by a unilateral change are the members for whom the scheme holds pension pots of the description in question.</content></subsection><subsection><num>(4)</num><intro>The following are “<term refersTo="#term-relevant-alternative-actions">relevant alternative actions</term>” for the purposes of <ref href="#d25e10145">subsection (2)</ref> in relation to a unilateral change—</intro><level class="para1"><num>(a)</num><content>not effecting the unilateral change, and</content></level><level class="para1"><num>(b)</num><content>where the unilateral change is an internal change, each other internal change that could be made in accordance with this Part in relation to pension pots of the description in question.</content></level></subsection><subsection><num>(5)</num><intro>In subsection (4) “<term refersTo="#term-internal-change">internal change</term>” means a unilateral change that results in a description of pension pot held by the scheme being held—</intro><level class="para1"><num>(a)</num><content>subject to a different arrangement under the same scheme, or</content></level><level class="para1"><num>(b)</num><content>subject to a particular arrangement under a different pension scheme operated by the same provider (including where there is only one arrangement under that scheme).</content></level></subsection><subsection><num>(6)</num><content>The FCA must make general rules specifying considerations or information that must be taken into account in determining whether the best interests test is met.</content></subsection></section><section eId="d25e10228"><num>117E</num><heading>Certification by independent person</heading><subsection eId="d25e10232"><num>(1)</num><intro>The provider of a pension scheme to which this Part applies may effect a unilateral change under <ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref> only if, before effecting it—</intro><level class="para1" eId="d25e10243"><num>(a)</num><content>the provider has appointed a person to review the proposed unilateral change, and</content></level><level class="para1"><num>(b)</num><content>the person appointed has given the provider a certificate under this section in relation to the proposed unilateral change.</content></level></subsection><subsection><num>(2)</num><intro>The person appointed must—</intro><level class="para1"><num>(a)</num><content>be independent of the provider, and</content></level><level class="para1"><num>(b)</num><content>have such expertise as is specified in general rules made by the FCA.</content></level></subsection><subsection><num>(3)</num><intro>The certificate must certify that, in the opinion of the independent person—</intro><level class="para1"><num>(a)</num><content>the pension scheme is a pension scheme to which this Part applies,</content></level><level class="para1"><num>(b)</num><content>the proposed unilateral change is within <ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref><ref href="#d25e9900">(a)</ref> to <ref href="#d25e9918">(d)</ref>,</content></level><level class="para1"><num>(c)</num><content><ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref> is not disapplied in relation to the proposed unilateral change by regulations under <ref href="#d25e10551">section 117H</ref><ref href="#d25e10555">(1)</ref><ref href="#d25e10561">(a)</ref>,</content></level><level class="para1"><num>(d)</num><content>any conditions prescribed under <ref href="#d25e10551">section 117H</ref><ref href="#d25e10555">(1)</ref><ref href="#d25e10581">(c)</ref> are met,</content></level><level class="para1"><num>(e)</num><content>the best interests test is met in relation to the proposed unilateral change, and</content></level><level class="para1"><num>(f)</num><content>the provider has complied with such other requirements as may be specified in general rules made by the FCA.</content></level></subsection><subsection eId="d25e10343"><num>(4)</num><intro>The FCA must make general rules about appointments and certification under this section, including provision—</intro><level class="para1" eId="d25e10349"><num>(a)</num><content>for determining for the purposes of this section whether a person is independent of the provider of a pension scheme;</content></level><level class="para1" eId="d25e10355"><num>(b)</num><content>specifying terms on which an appointment under this section must be made;</content></level><level class="para1"><num>(c)</num><content>about the form of a certificate and when it must be given.</content></level></subsection><subsection eId="d25e10367"><num>(5)</num><content>In this Part “<term refersTo="#term-the-independent-person">the independent person</term>”, in relation to a proposed unilateral change, means the person appointed under <ref href="#d25e10232">subsection (1)</ref><ref href="#d25e10243">(a)</ref> to review it.</content></subsection></section><section eId="d25e10384"><num>117F</num><heading>Unilateral change notice</heading><subsection><num>(1)</num><intro>The provider of a pension scheme to which this Part applies may effect a unilateral change under <ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref> only after—</intro><level class="para1"><num>(a)</num><content>the provider has sent a unilateral change notice to each of the required recipients, and</content></level><level class="para1"><num>(b)</num><content>the required notice period has expired.</content></level></subsection><subsection eId="d25e10411"><num>(2)</num><content>“<term refersTo="#term-a-unilateral-change-notice">A unilateral change notice</term>” means a notice that includes such information relating to the unilateral change as is specified in general rules made by the FCA.</content></subsection><subsection eId="d25e10420"><num>(3)</num><intro>General rules made pursuant to <ref href="#d25e10411">subsection (2)</ref> must, in the case of a unilateral change under <ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref><ref href="#d25e9912">(c)</ref> or <ref href="#d25e9918">(d)</ref>, require the unilateral change notice to—</intro><level class="para1"><num>(a)</num><content>specify the pension scheme (“<term refersTo="#term-the-receiving-scheme">the receiving scheme</term>”) to which it is proposed the pensions pots in question are to be transferred,</content></level><level class="para1" eId="d25e10448"><num>(b)</num><content>specify, in a case in which there is more than one arrangement under the receiving scheme, the arrangement subject to which it is proposed the pots be held after the transfer, and</content></level><level class="para1" eId="d25e10454"><num>(c)</num><content>where membership of the receiving scheme, or of an arrangement specified under paragraph (b), entails being a party to a contract with the provider of the receiving scheme, set out, or otherwise communicate, the terms of such a contract.</content></level></subsection><subsection><num>(4)</num><intro>“<term refersTo="#term-the-required-recipients">The required recipients</term>” means—</intro><level class="para1"><num>(a)</num><content>the members of the scheme directly affected by the change, and</content></level><level class="para1"><num>(b)</num><content>such other persons as may be specified in general rules made by the FCA.</content></level></subsection><subsection><num>(5)</num><content>A unilateral change notice must be in such form, and be sent by such means, as is specified in general rules made by the FCA.</content></subsection><subsection><num>(6)</num><content>In subsection (1) “<term refersTo="#term-the-required-notice-period">the required notice period</term>” means such period as is specified in general rules made by the FCA.</content></subsection></section><section><num>117G</num><heading>Further duties to make FCA general rules</heading><subsection><num>(1)</num><intro>The FCA must make general rules—</intro><level class="para1"><num>(a)</num><content>about the fees that may or may not be charged by the provider of a pension scheme in relation to unilateral changes effected under <ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref>;</content></level><level class="para1"><num>(b)</num><content>imposing requirements on the provider of a pension scheme who proposes to effect, or effects, a unilateral change under <ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref> to provide information to the independent person;</content></level><level class="para1"><num>(c)</num><content>imposing requirements on the provider of a pension scheme who proposes to effect, or effects, a unilateral change under <ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref>, as to the records they must keep and retain for the purposes of this Part.</content></level></subsection><subsection><num>(2)</num><content>The rules made by virtue of subsection (1) must apply in relation to pension schemes established before, as well as those established after, those rules (or this section) came into force.</content></subsection></section><section eId="d25e10551"><num>117H</num><heading>Treasury regulations</heading><subsection eId="d25e10555"><num>(1)</num><intro>The Treasury may by regulations—</intro><level class="para1" eId="d25e10561"><num>(a)</num><content>provide that <ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref> does not apply in relation to unilateral changes of a description specified in the regulations;</content></level><level class="para1"><num>(b)</num><content>amend <ref href="#d25e10118">section 117D</ref> (best interests test);</content></level><level class="para1" eId="d25e10581"><num>(c)</num><content>prescribe further conditions (in addition to those in <ref href="#d25e10118">sections 117D</ref> to <ref href="#d25e10384">117F</ref>) that must be met in relation to a unilateral change for it to be permitted under <ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref>;</content></level><level class="para1"><num>(d)</num><content>require the FCA to make general rules in compliance with <ref href="#d25e10228">section 117E</ref><ref href="#d25e10343">(4)</ref><ref href="#d25e10355">(b)</ref> that require the inclusion, in the terms of an appointment under that section, of a term providing that members of the pension scheme may in their own right enforce the terms of appointment under section 1 of the Contracts (Rights of Third Parties) Act 1999;</content></level><level class="para1"><num>(e)</num><content>disapply any legislation, or require the FCA to disapply any general rule, so far as it restricts or otherwise affects the power in <ref href="#d25e9890">section 117B</ref><ref href="#d25e9894">(1)</ref>;</content></level><level class="para1"><num>(f)</num><content>make provision consequential on this Part.</content></level></subsection><subsection eId="d25e10628"><num>(2)</num><content>The Treasury must by regulations require the FCA to include provision of a description specified in the regulations in general rules made in compliance with section <ref href="#d25e10228">117E</ref><ref href="#d25e10343">(4)</ref><ref href="#d25e10349">(a)</ref> (how to determine whether a person is independent), alongside any other provision included in such general rules.</content></subsection><subsection><num>(3)</num><content>Regulations under subsection <ref href="#d25e10628">(2)</ref> must in particular require the FCA to include in such general rules provision designed to ensure that the independent person does not have a conflict of interest.</content></subsection><subsection><num>(4)</num><content>The power to make regulations under <ref href="#d25e10555">subsection (1)</ref> is capable of being exercised so as to amend or repeal any provision of primary legislation.</content></subsection></section><section><num>117I</num><heading>Interpretation of Part</heading><subsection><num>(1)</num><intro>In this Part—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-best-interests-test">the best interests test</term>” has the meaning given by <ref href="#d25e10118">section 117D</ref><ref href="#d25e10145">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-directly-affected">directly affected</term>”, in relation to a unilateral change, has the meaning given by <ref href="#d25e10118">section 117D</ref><ref href="#d25e10168">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given by <ref href="#d25e10834">subsection (2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-independent-person">the independent person</term>”, in relation to a proposed unilateral change, has the meaning given by <ref href="#d25e10228">section 117E</ref><ref href="#d25e10367">(5)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits">money purchase benefits</term>” means money purchase benefits within the meaning of the Pension Schemes Act 1993 (see section 181(1) of that Act) or the Pension Schemes (Northern Ireland) Act 1993 (see section 176(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-pot">pension pot</term>” has the meaning given by <ref href="#d25e10852">subsection (3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the <ref eId="c00033" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-personal-pension-scheme">personal pension scheme</term>” means a personal pension scheme within the meaning of the Pension Schemes Act 1993 (see section 1(1) of that Act) or the Pension Schemes (Northern Ireland) Act 1993 (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-provider">provider</term>”—</intro><level class="para1"><num>(a)</num><content>in relation to an FCA-regulated pension scheme, means the person referred to in <ref href="#d25e10834">subsection (2)</ref><ref href="#d25e10846">(b)</ref>;</content></level><level class="para1"><num>(b)</num><content>in relation to any other pension scheme, means the trustees or managers of the scheme;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-terms">terms</term>” , in relation to a pension scheme, has the meaning given by <ref href="#d25e9890">section 117B</ref><ref href="#d25e10001">(6)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer">transfer</term>”, in relation to a pension pot, includes a transfer of an amount representing its value;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-trustees-or-managers">trustees or managers</term>”, in relation to a pension scheme, means—</intro><level class="para1"><num>(a)</num><content>in the case of a scheme established under a trust, the trustees of the scheme, and</content></level><level class="para1"><num>(b)</num><content>in any other case, the persons responsible for the management of the scheme;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-unilateral-change">unilateral change</term>” has the meaning given by <ref href="#d25e9890">section 117B</ref><ref href="#d25e10019">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-unilateral-change-notice">unilateral change notice</term>” has the meaning given by <ref href="#d25e10384">section 117F</ref><ref href="#d25e10411">(2)</ref>.</content></hcontainer></subsection><subsection eId="d25e10834"><num>(2)</num><intro>A pension scheme is “FCA-regulated” if the operation of the scheme—</intro><level class="para1"><num>(a)</num><content>is a regulated activity, and</content></level><level class="para1" eId="d25e10846"><num>(b)</num><content>is carried on in the United Kingdom by an authorised person.</content></level></subsection><subsection eId="d25e10852"><num>(3)</num><intro>“<term refersTo="#term-pension-pot">Pension pot</term>” means sums or assets held for the purpose of providing money purchase benefits to or in respect of a member of a pension scheme; and—</intro><level class="para1"><num>(a)</num><content>a reference to the pension scheme that holds a pension pot is to that pension scheme;</content></level><level class="para1"><num>(b)</num><content>a reference to the individual for whom a pension pot is held is to that member.</content></level></subsection></section></part></quotedStructure></mod></content></subsection><subsection eId="section-49-3"><num>(3)</num><content><mod>In section 105 (insurance business transfer schemes), in subsection (3), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>Case 6Where the scheme is effected under <ref href="#d25e9741">Part 7A</ref> (unilateral changes to pension schemes).</item></blockList></quotedStructure></mod></content></subsection><subsection eId="section-49-4"><num>(4)</num><content><mod>In section 168 (appointment of persons to carry out investigations in particular cases), in subsection (4), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(iza)</num><content>a person has effected, or has purported to effect, a unilateral change under <ref href="#d25e9894">subsection (1)</ref> of <ref href="#d25e9890">section 117B</ref> (unilateral changes by providers of pension schemes), but any of the provisions mentioned in <ref href="#d25e9938">subsection (3)</ref> of that section may have been contravened in relation to it;</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-49-5"><num>(5)</num><content><mod>In section 429 (Parliamentary control of statutory instruments), in subsection (2B), after paragraph (ab) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ac)</num><content>provision made under <ref href="#d25e10551">section 117H</ref> which amends or repeals any provision of primary legislation;</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection></section></chapter><chapter eId="part-2-chapter-6"><num>Chapter 6</num><heading>Guided retirement</heading><section eId="section-50"><num>50</num><heading>Default pension benefit solutions</heading><subsection eId="section-50-1"><num>(1)</num><intro>Subject to <ref href="#section-51">section 51</ref><ref href="#section-51-1">(1)</ref>, the trustees or managers of a relevant scheme must—</intro><level class="para1" eId="section-50-1-a"><num>(a)</num><content>design, and make available to each eligible member of the scheme, one or more default pension benefit solutions;</content></level><level class="para1" eId="section-50-1-b"><num>(b)</num><content>at least in such circumstances or at such times or intervals as may be prescribed, review the design (and if appropriate the number) of the default pension benefit solutions.</content></level></subsection><subsection eId="section-50-2"><num>(2)</num><content>In this Chapter “<term refersTo="#term-pension-benefit-solution" eId="term-pension-benefit-solution">pension benefit solution</term>”, in relation to a pension scheme, means a contractual or other arrangement for making pension payments in respect of members’ accrued rights.</content></subsection><subsection eId="section-50-3"><num>(3)</num><intro>In this Chapter “<term refersTo="#term-default-pension-benefit-solution" eId="term-default-pension-benefit-solution">default pension benefit solution</term>”, in relation to a relevant scheme, means a pension benefit solution which—</intro><level class="para1" eId="section-50-3-a"><num>(a)</num><intro>is designed for delivering money purchase benefits under the scheme to—</intro><level class="para2" eId="section-50-3-a-i"><num>(i)</num><content>the eligible members of the scheme generally, or</content></level><level class="para2" eId="section-50-3-a-ii"><num>(ii)</num><content>a subset of those eligible members,</content></level></level><level class="para1" eId="section-50-3-b"><num>(b)</num><content>is designed to provide a regular income for the eligible members concerned in their retirement (whether or not together with other benefits),</content></level><level class="para1" eId="section-50-3-c"><num>(c)</num><intro>is for the time being designated by the trustees or managers of the scheme as the pension benefit solution under which—</intro><level class="para2" eId="section-50-3-c-i"><num>(i)</num><content>the eligible members of the scheme generally, or</content></level><level class="para2" eId="section-50-3-c-ii"><num>(ii)</num><content>a subset of those eligible members,</content></level><wrapUp>will receive pension payments unless they choose to receive pension payments under a different pension benefit solution, and</wrapUp></level><level class="para1" eId="section-50-3-d"><num>(d)</num><content>meets any other conditions that may be prescribed.</content></level></subsection><subsection eId="section-50-4"><num>(4)</num><intro>The trustees or managers of a relevant scheme must, in determining what default pension benefit solutions the scheme should make available (generally or to subsets of eligible members), take account of—</intro><level class="para1" eId="section-50-4-a"><num>(a)</num><intro>the needs and interests of—</intro><level class="para2" eId="section-50-4-a-i"><num>(i)</num><content>the scheme’s membership as a whole, and</content></level><level class="para2" eId="section-50-4-a-ii"><num>(ii)</num><content>any subset of the scheme’s membership that the trustees or managers consider appropriate;</content></level></level><level class="para1" eId="section-50-4-b"><num>(b)</num><content>the circumstances of different eligible members of the scheme (for example the normal pension ages of such members or the value or expected value of their money purchase benefits under the scheme);</content></level><level class="para1" eId="section-50-4-c"><num>(c)</num><content>the possibility that a member may already have received some of their benefits (for example as a lump sum) before deciding to make use of a default pension benefit solution;</content></level><level class="para1" eId="section-50-4-d"><num>(d)</num><content>such other factors as may be prescribed.</content></level></subsection><subsection eId="section-50-5"><num>(5)</num><content>Regulations may make provision about how trustees or managers of a scheme are to assess the needs and interests of the scheme’s membership for the purposes of <ref href="#section-50-4">subsection (4)</ref><ref href="#section-50-4-a">(a)</ref>.</content></subsection><subsection eId="section-50-6"><num>(6)</num><intro>Regulations may—</intro><level class="para1" eId="section-50-6-a"><num>(a)</num><content>specify descriptions of eligible members in relation to which subsection (3) is to have effect with the omission of paragraph (b) of that subsection;</content></level><level class="para1" eId="section-50-6-b"><num>(b)</num><intro>make provision about the meaning for the purposes of subsection <ref href="#section-50-3">(3)</ref><ref href="#section-50-3-b">(b)</ref> of—</intro><level class="para2" eId="section-50-6-b-i"><num>(i)</num><content>“designed to provide a regular income”;</content></level><level class="para2" eId="section-50-6-b-ii"><num>(ii)</num><content>“retirement”.</content></level></level></subsection><subsection eId="section-50-7"><num>(7)</num><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-eligible-member" eId="term-eligible-member">eligible member</term>”, in relation to a relevant scheme, means any member who is accruing, or has an actual or prospective right to, benefits falling within paragraph (a) of the definition of “money purchase benefits” in section 181(1) of the Pension Schemes Act 1993 and is not of a description excepted by regulations;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-scheme" eId="term-relevant-scheme">relevant scheme</term>” means an occupational pension scheme which—</intro><level class="para1"><num>(a)</num><content>provides benefits falling within paragraph (a) of the definition of “money purchase benefits” in section 181(1) of the Pension Schemes Act 1993,</content></level><level class="para1"><num>(b)</num><content>is a registered pension scheme, and</content></level><level class="para1"><num>(c)</num><content>is not of a description excepted by regulations.</content></level></hcontainer></subsection><subsection eId="section-50-8"><num>(8)</num><intro>Regulations under this section—</intro><level class="para1" eId="section-50-8-a"><num>(a)</num><content>are subject to the negative procedure if they are made under <ref href="#section-50-1">subsection (1)</ref><ref href="#section-50-1-b">(b)</ref> or <ref href="#section-50-6">(6)</ref><ref href="#section-50-6-a">(a)</ref> </content></level><level class="para1" eId="section-50-8-b"><num>(b)</num><content>otherwise, are subject to the affirmative procedure.</content></level></subsection></section><section eId="section-51"><num>51</num><heading>Transferable members</heading><subsection eId="section-51-1"><num>(1)</num><content>The trustees or managers of a relevant scheme (“<term refersTo="#term-the-principal-scheme" eId="term-the-principal-scheme">the principal scheme</term>”) are not required to comply with <ref href="#section-50">section 50</ref><ref href="#section-50-1">(1)</ref> in relation to eligible members of the scheme (whether comprising the members of the scheme generally or a subset of those members) in relation to whom the first or second condition is met; and such members are referred to in this Chapter as “<term refersTo="#term-transferable-members" eId="term-transferable-members">transferable members</term>”.</content></subsection><subsection eId="section-51-2"><num>(2)</num><content>The first condition is that the trustees or managers of the principal scheme have determined that it is not reasonably practicable for them to design and make available to the members concerned default pension benefit solutions.</content></subsection><subsection eId="section-51-3"><num>(3)</num><content>The second condition is that the trustees or managers of the principal scheme have determined that a qualifying pension benefit solution of a qualifying scheme (other than the principal scheme) will provide a better outcome for the members concerned than any default pension benefit solution that the trustees or managers of the principal scheme could design and make available to them.</content></subsection><subsection eId="section-51-4"><num>(4)</num><content>Where the principal scheme has transferable members, the trustees or managers must take the steps set out in <ref href="#section-51-5">subsection (5)</ref> in respect of them.</content></subsection><subsection eId="section-51-5"><num>(5)</num><intro>The steps mentioned in <ref href="#section-51-4">subsection (4)</ref> are to—</intro><level class="para1" eId="section-51-5-a"><num>(a)</num><intro>identify a qualifying scheme (the “receiving scheme”) that is able to and agrees to—</intro><level class="para2" eId="section-51-5-a-i"><num>(i)</num><content>receive a transfer in respect of the accrued rights of the transferable member (a “relevant transfer”), and</content></level><level class="para2" eId="section-51-5-a-ii"><num>(ii)</num><content>make a qualifying pension benefit solution available to the transferable member;</content></level></level><level class="para1" eId="section-51-5-b"><num>(b)</num><content>at such times or in such circumstances as may be prescribed, enter into arrangements (“transfer arrangements”) with the receiving scheme with a view to effecting a relevant transfer to that scheme;</content></level><level class="para1" eId="section-51-5-c"><num>(c)</num><content>take any other prescribed steps.</content></level></subsection><subsection eId="section-51-6"><num>(6)</num><content>In carrying out the step in subsection <ref href="#section-51-5">(5)</ref><ref href="#section-51-5-a">(a)</ref>, the trustees or managers of the principal scheme must have regard to the matters mentioned in <ref href="#section-50">section 50</ref><ref href="#section-50-4">(4)</ref> (and for that purpose references in those paragraphs to “the scheme” are to the principal scheme).</content></subsection><subsection eId="section-51-7"><num>(7)</num><content><ref href="#section-50">Section 50</ref><ref href="#section-50-5">(5)</ref> applies for the purposes of <ref href="#section-51-6">subsection (6)</ref> as it applies for the purposes of <ref href="#section-50">section 50</ref><ref href="#section-50-4">(4)</ref>.</content></subsection><subsection eId="section-51-8"><num>(8)</num><content>The trustees or managers of the principal scheme must, at least in such circumstances or at such times or intervals as may be prescribed, review the suitability of any qualifying pension benefit solution in respect of which they have identified a qualifying scheme as mentioned in subsection <ref href="#section-51-5">(5)</ref><ref href="#section-51-5-a">(a)</ref>.</content></subsection><subsection eId="section-51-9"><num>(9)</num><intro>In this Chapter, “<term refersTo="#term-qualifying-pension-benefit-solution" eId="term-qualifying-pension-benefit-solution">qualifying pension benefit solution</term>”, in relation to a qualifying scheme, means a pension benefit solution designed and maintained by the trustees or managers of the scheme that—</intro><level class="para1" eId="section-51-9-a"><num>(a)</num><intro>is designed for delivering money purchase benefits under that scheme to—</intro><level class="para2" eId="section-51-9-a-i"><num>(i)</num><content>the members of the scheme generally, or</content></level><level class="para2" eId="section-51-9-a-ii"><num>(ii)</num><content>a subset of those members,</content></level></level><level class="para1" eId="section-51-9-b"><num>(b)</num><content>is designed to provide a regular income for the members concerned in their retirement (whether or not together with other benefits), and</content></level><level class="para1" eId="section-51-9-c"><num>(c)</num><content>meets any other conditions that may be prescribed.</content></level></subsection><subsection eId="section-51-10"><num>(10)</num><content>Nothing in this Chapter authorises any transfer in respect of a person’s accrued rights under a relevant scheme without that person’s consent.</content></subsection><subsection eId="section-51-11"><num>(11)</num><intro>In this section “<term refersTo="#term-qualifying-scheme" eId="term-qualifying-scheme">qualifying scheme</term>” means—</intro><level class="para1" eId="section-51-11-a"><num>(a)</num><content>an occupational pension scheme, or</content></level><level class="para1" eId="section-51-11-b"><num>(b)</num><content>a personal pension scheme,</content></level><wrapUp>that is a registered scheme and meets any prescribed conditions.</wrapUp></subsection><subsection eId="section-51-12"><num>(12)</num><intro>If a transferable member accepts in writing a proposal of the principal scheme for the transferable member’s accrued rights to be transferred to the receiving scheme—</intro><level class="para1" eId="section-51-12-a"><num>(a)</num><content>the trustees or managers of the principal scheme must communicate that proposal to the receiving scheme, and</content></level><level class="para1" eId="section-51-12-b"><num>(b)</num><content>the proposal is to be treated as requiring the receiving scheme to enrol the transferable member as a member of the receiving scheme and use the cash equivalent to provide rights for the member under that scheme.</content></level></subsection><subsection eId="section-51-13"><num>(13)</num><content>Regulations may make provision about the conditions in subsections <ref href="#section-51-2">(2)</ref> and <ref href="#section-51-3">(3)</ref>, including about the basis on which the determinations mentioned in those subsections are to be made.</content></subsection><subsection eId="section-51-14"><num>(14)</num><intro>Regulations may require a pension scheme of a prescribed description to agree to receive a transfer in respect of the accrued rights of a transferable member where—</intro><level class="para1" eId="section-51-14-a"><num>(a)</num><content>the principal scheme has been unable, having used reasonable endeavours, to identify a qualifying scheme that is able and willing to do so, and</content></level><level class="para1" eId="section-51-14-b"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="section-51-15"><num>(15)</num><intro>A requirement under subsection <ref href="#section-51-14">(14)</ref> may only be imposed on a pension scheme that is one or both of the following—</intro><level class="para1" eId="section-51-15-a"><num>(a)</num><content>a Master Trust scheme within the meaning of the Pension Schemes Act 2017;</content></level><level class="para1" eId="section-51-15-b"><num>(b)</num><content>a consolidator scheme within the meaning of Chapter 2 of Part 2 (consolidation of small dormant pension pots).</content></level></subsection><subsection eId="section-51-16"><num>(16)</num><content>Regulations may prohibit or limit the charging of fees in respect of transfers made under transfer arrangements.</content></subsection><subsection eId="section-51-17"><num>(17)</num><content>Regulations may provide for the manner in which cash equivalents are to be calculated and verified.</content></subsection><subsection eId="section-51-18"><num>(18)</num><content>Regulations under subsection <ref href="#section-51-8">(8)</ref>, <ref href="#section-51-16">(16)</ref> or <ref href="#section-51-17">(17)</ref> are subject to the negative procedure; and other regulations under this section are subject to the affirmative procedure.</content></subsection></section><section eId="section-52"><num>52</num><heading>Provision and gathering of information</heading><subsection eId="section-52-1"><num>(1)</num><intro>Where only one pension benefit solution is available to the members of a relevant scheme, the trustees or managers must ensure that each eligible member of the scheme is given at a prescribed time a communication which—</intro><level class="para1" eId="section-52-1-a"><num>(a)</num><content>describes the pension benefit solution, and</content></level><level class="para1" eId="section-52-1-b"><num>(b)</num><content>sets out the trustees’ or managers’ opinion as to what might be the circumstances (in terms of age, pension savings etc) of a person for whom the pension benefit solution is suitable.</content></level></subsection><subsection eId="section-52-2"><num>(2)</num><intro>Where more than one pension benefit solution is available to the eligible members of a relevant scheme, the trustees or managers must ensure that, at a prescribed time, each eligible member of the scheme is given a communication which—</intro><level class="para1" eId="section-52-2-a"><num>(a)</num><content>describes the default pension benefit solution or qualifying pension benefit solution that the trustees or managers consider to be the most appropriate to the member (“the specified solution”), and</content></level><level class="para1" eId="section-52-2-b"><num>(b)</num><content>sets out the trustees’ or managers’ opinion as to what might be the circumstances (in terms of age, pension savings etc) of a person for whom the specified solution is suitable.</content></level></subsection><subsection eId="section-52-3"><num>(3)</num><content>Regulations may make provision about how a pension benefit solution is to be presented to a member when the member applies to receive benefits.</content></subsection><subsection eId="section-52-4"><num>(4)</num><intro>The trustees or managers of a relevant scheme must ensure that each eligible member of the scheme is given at prescribed times or intervals—</intro><level class="para1" eId="section-52-4-a"><num>(a)</num><intro>information about basic features of the member’s pension, including that it has—</intro><level class="para2" eId="section-52-4-a-i"><num>(i)</num><content>an accumulation phase, and</content></level><level class="para2" eId="section-52-4-a-ii"><num>(ii)</num><content>a decumulation phase;</content></level></level><level class="para1" eId="section-52-4-b"><num>(b)</num><content>general information about the availability to the member of a default pension benefit solution or qualifying pension benefit solution and an explanation that such a solution is designed to provide a regular income during retirement.</content></level></subsection><subsection eId="section-52-5"><num>(5)</num><intro>Regulations may require the trustees or managers of a relevant scheme to communicate to each eligible member at prescribed times or intervals—</intro><level class="para1" eId="section-52-5-a"><num>(a)</num><content>information about the pension benefit solutions available to the eligible members;</content></level><level class="para1" eId="section-52-5-b"><num>(b)</num><content>general information about other options that may be available to the member for receiving benefits in respect of their contributions;</content></level><level class="para1" eId="section-52-5-c"><num>(c)</num><content>information describing a particular pension benefit solution that the trustees or managers consider to be suitable for the eligible member in question;</content></level><level class="para1" eId="section-52-5-d"><num>(d)</num><content>where information within <ref href="#section-52-5-c">paragraph (c)</ref> is included in a communication, the trustees’ or managers’ opinion as to what might be the circumstances (in terms of age, pension savings etc) of a person for whom the pension benefit solution is suitable;</content></level><level class="para1" eId="section-52-5-e"><num>(e)</num><content>any general information prescribed for the purpose of assisting eligible members in deciding how to receive their pension benefits.</content></level></subsection><subsection eId="section-52-6"><num>(6)</num><content>Communications made under or by virtue of any of subsections <ref href="#section-52-1">(1)</ref> to <ref href="#section-52-5">(5)</ref> must be in clear and plain language.</content></subsection><subsection eId="section-52-7"><num>(7)</num><intro>The trustees or managers of a relevant scheme may request from eligible members of the scheme any information the trustees or managers consider reasonably necessary for the purpose of—</intro><level class="para1" eId="section-52-7-a"><num>(a)</num><content>designing or reviewing, or in the case of transferable members identifying, pension benefit solutions;</content></level><level class="para1" eId="section-52-7-b"><num>(b)</num><content>determining what pension benefit solution may be appropriate for the member, including what rate of decumulation may be appropriate,</content></level><wrapUp>which may for example include information about the member’s financial circumstances or plans for retirement.</wrapUp></subsection><subsection eId="section-52-8"><num>(8)</num><content>Regulations may require the trustees or managers of relevant schemes to request from eligible members any information the trustees or managers consider appropriate for the purposes specified in <ref href="#section-52-7">subsection (7)</ref>.</content></subsection><subsection eId="section-52-9"><num>(9)</num><content>In exercising their functions under subsection <ref href="#section-52-7">(7)</ref> trustees and managers must comply with any requirements that may be prescribed.</content></subsection><subsection eId="section-52-10"><num>(10)</num><content>Regulations may make provision about the format of any communications authorised or required to be made under <ref href="#section-52">this section</ref>.</content></subsection><subsection eId="section-52-11"><num>(11)</num><content>Before making regulations under <ref href="#section-52">this section</ref> the Secretary of State must consult any persons the Secretary of State thinks appropriate.</content></subsection><subsection eId="section-52-12"><num>(12)</num><content>Regulations under <ref href="#section-52">this section</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-53"><num>53</num><heading>Information etc in connection with selection of benefit solution</heading><subsection eId="section-53-1"><num>(1)</num><intro>Regulations may require trustees or managers of a relevant scheme to provide or make available to eligible members, at prescribed times or intervals, information expressed in clear and plain language which would or may assist in—</intro><level class="para1" eId="section-53-1-a"><num>(a)</num><content>the selection of a pension benefit solution, or</content></level><level class="para1" eId="section-53-1-b"><num>(b)</num><content>decisions that may need to be made with respect to a pension benefit solution.</content></level></subsection><subsection eId="section-53-2"><num>(2)</num><content>Regulations may require that information provided or made available to a member by virtue of <ref href="#section-53-1">subsection (1)</ref> must, as far as possible, be based on information about the member’s circumstances.</content></subsection><subsection eId="section-53-3"><num>(3)</num><intro>Regulations may require trustees or managers of a relevant scheme to—</intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content>monitor the rate of decumulation under pension benefit solutions used by members, and</content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content>inform the member concerned if the trustees or managers consider that the rate of decumulation should be reviewed.</content></level></subsection><subsection eId="section-53-4"><num>(4)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section><section eId="section-54"><num>54</num><heading>Pension benefits strategy</heading><subsection eId="section-54-1"><num>(1)</num><intro>The trustees or managers of a relevant scheme must determine, and from time to time review and if necessary revise, a strategy (a “pension benefits strategy”) for ensuring that the trustees or managers—</intro><level class="para1" eId="section-54-1-a"><num>(a)</num><content>identify and carry out the steps they need to take for the purpose of understanding the requirements of eligible members of the scheme with regard to pension benefit solutions;</content></level><level class="para1" eId="section-54-1-b"><num>(b)</num><content>design, or in the case of transferable members identify, pension benefit solutions that take account of those needs;</content></level><level class="para1" eId="section-54-1-c"><num>(c)</num><content>communicate effectively with eligible members of the scheme with regard to pension benefit solutions and comply with any regulations under section <ref href="#section-53">53</ref>.</content></level></subsection><subsection eId="section-54-2"><num>(2)</num><intro>The trustees or managers must publish the strategy and ensure that a copy of it is provided on request to—</intro><level class="para1" eId="section-54-2-a"><num>(a)</num><content>the Pensions Regulator;</content></level><level class="para1" eId="section-54-2-b"><num>(b)</num><content>any member of the scheme.</content></level></subsection><subsection eId="section-54-3"><num>(3)</num><intro>Regulations may—</intro><level class="para1" eId="section-54-3-a"><num>(a)</num><content>specify any objectives, principles or matters the trustees or managers must take into account in determining or revising a strategy;</content></level><level class="para1" eId="section-54-3-b"><num>(b)</num><content>make provision about the level of detail required in a pensions benefit strategy;</content></level><level class="para1" eId="section-54-3-c"><num>(c)</num><intro>authorise the Secretary of State to—</intro><level class="para2" eId="section-54-3-c-i"><num>(i)</num><content>determine the format in which a benefits strategy is to be set out, or</content></level><level class="para2" eId="section-54-3-c-ii"><num>(ii)</num><content>delegate that function to the Pensions Regulator;</content></level></level><level class="para1" eId="section-54-3-d"><num>(d)</num><content>make provision as to the period within which a pension benefits strategy must be determined;</content></level><level class="para1" eId="section-54-3-e"><num>(e)</num><content>specify the intervals at which the strategy must be reviewed;</content></level><level class="para1" eId="section-54-3-f"><num>(f)</num><intro>require the trustees or managers of relevant schemes to—</intro><level class="para2" eId="section-54-3-f-i"><num>(i)</num><content>to take account, in determining or revising a strategy, any guidance issued by the Pensions Regulator;</content></level><level class="para2" eId="section-54-3-f-ii"><num>(ii)</num><content>provide in the strategy evidence of how they have taken account of any matters prescribed by virtue of <ref href="#section-54-3">subsection (3)</ref><ref href="#section-54-3-a">(a)</ref>.</content></level></level></subsection><subsection eId="section-54-4"><num>(4)</num><content>Regulations may require the trustees or managers of a relevant scheme to publish, alongside a pension benefits strategy (or revised pension benefits strategy), prescribed information or evidence as to whether and how they have complied with the requirements imposed by virtue of this Chapter.</content></subsection><subsection eId="section-54-5"><num>(5)</num><intro>Regulations under this section—</intro><level class="para1" eId="section-54-5-a"><num>(a)</num><content>are subject to the affirmative procedure if they are under <ref href="#section-54-3">subsection (3)</ref><ref href="#section-54-3-a">(a)</ref>;</content></level><level class="para1" eId="section-54-5-b"><num>(b)</num><content>otherwise are subject to the negative procedure.</content></level></subsection></section><section eId="section-55"><num>55</num><heading>Enforcement and compliance</heading><subsection eId="section-55-1"><num>(1)</num><content>Regulations may make provision with a view to ensuring the compliance of any person with any provision of or under this Chapter.</content></subsection><subsection eId="section-55-2"><num>(2)</num><intro>The regulations may in particular—</intro><level class="para1" eId="section-55-2-a"><num>(a)</num><content>provide for the Pensions Regulator to issue a notice (a “<term refersTo="#term-compliance-notice" eId="term-compliance-notice">compliance notice</term>”) to a person with a view to ensuring the person's compliance with a provision of or under this Chapter;</content></level><level class="para1" eId="section-55-2-b"><num>(b)</num><content>provide for the Pensions Regulator to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a provision of or under this Chapter;</content></level><level class="para1" eId="section-55-2-c"><num>(c)</num><intro>provide for the Pensions Regulator to issue a notice (a “penalty notice”) imposing a penalty on a person where the person—</intro><level class="para2" eId="section-55-2-c-i"><num>(i)</num><content>has failed to comply with a compliance notice or third party compliance notice, or</content></level><level class="para2" eId="section-55-2-c-ii"><num>(ii)</num><content>has contravened a provision of or under this Chapter;</content></level></level><level class="para1" eId="section-55-2-d"><num>(d)</num><content>provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty;</content></level><level class="para1" eId="section-55-2-e"><num>(e)</num><content>confer other functions on the Regulator.</content></level></subsection><subsection eId="section-55-3"><num>(3)</num><content>The regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention.</content></subsection><subsection eId="section-55-4"><num>(4)</num><intro>But the amount of a penalty imposed under the regulations in respect of a failure or contravention must not exceed—</intro><level class="para1" eId="section-55-4-a"><num>(a)</num><content>£10,000, in the case of an individual, and</content></level><level class="para1" eId="section-55-4-b"><num>(b)</num><content>£100,000, in any other case.</content></level></subsection><subsection eId="section-55-5"><num>(5)</num><content>Any penalty payable under the regulations is recoverable by the Regulator.</content></subsection><subsection eId="section-55-6"><num>(6)</num><content>In England and Wales, any such penalty is, if the county court so orders, recoverable under section 85 of the County Courts Act 1984 or otherwise as if it were payable under an order of that court.</content></subsection><subsection eId="section-55-7"><num>(7)</num><content>In Scotland, a penalty notice is enforceable as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom.</content></subsection><subsection eId="section-55-8"><num>(8)</num><content>The Regulator must pay into the Consolidated Fund any penalty recovered under this section.</content></subsection><subsection eId="section-55-9"><num>(9)</num><content>Section 7 of the Pensions Act 1995 (appointment of trustees) is amended as follows.</content></subsection><subsection eId="section-55-10"><num>(10)</num><content><mod>In subsection (3), at the end of paragraph (c) omit “or”, and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><content>to secure compliance with the duties of trustees under <ref href="#part-2-chapter-6">Chapter 6</ref> of Part 2 of the Pension Schemes Act 2026, or</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-55-11"><num>(11)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section><section eId="section-56"><num>56</num><heading>Crown application</heading><subsection eId="section-56-1"><num>(1)</num><content>This Chapter applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes.</content></subsection><subsection eId="section-56-2"><num>(2)</num><content>Accordingly, references in this Chapter to a person in their capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.</content></subsection><subsection eId="section-56-3"><num>(3)</num><content>This Chapter applies to persons employed by or under the Crown as it applies to persons employed by a private person.</content></subsection></section><section eId="section-57"><num>57</num><heading>Interpretation of Chapter</heading><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-default-pension-benefit-solution" eId="term-default-pension-benefit-solution">default pension benefit solution</term>” has the meaning given by <ref href="#section-50">section 50</ref><ref href="#section-50-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-eligible-member" eId="term-eligible-member">eligible member</term>” has the meaning given by <ref href="#section-50">section 50</ref><ref href="#section-50-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 181 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-occupational-pension-scheme" eId="term-occupational-pension-scheme">occupational pension scheme</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-benefit-solution" eId="term-pension-benefit-solution">pension benefit solution</term>” has the meaning given by <ref href="#section-50">section 50</ref><ref href="#section-50-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme" eId="term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the Pension Schemes Act 1993;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-personal-pension-scheme" eId="term-personal-pension-scheme">personal pension scheme</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-prescribed" eId="term-prescribed">prescribed</term>” means prescribed by regulations;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-principal-scheme" eId="term-principal-scheme">principal scheme</term>” is to be interpreted in accordance with <ref href="#section-51">section 51</ref><ref href="#section-51-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-qualifying-pension-benefit-solution" eId="term-qualifying-pension-benefit-solution">qualifying pension benefit solution</term>” has the meaning given by <ref href="#section-51">section 51</ref><ref href="#section-51-9">(9)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-registered-pension-scheme" eId="term-registered-pension-scheme">registered pension scheme</term>” has the meaning given in Part 4 of the Finance Act 2004;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-regulations" eId="term-regulations">regulations</term>” means regulations made by the Secretary of State under this Chapter;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-scheme" eId="term-relevant-scheme">relevant scheme</term>” has the meaning given by <ref href="#section-50">section 50</ref><ref href="#section-50-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transferable-member" eId="term-transferable-member">transferable member</term>” is to be interpreted in accordance with <ref href="#section-51">section 51</ref><ref href="#section-51-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-trustees-or-managers" eId="term-trustees-or-managers">trustees or managers</term>”, in relation to a pension scheme, means—</intro><level class="para1"><num>(a)</num><content>where the scheme is established under a trust, the trustees of the scheme;</content></level><level class="para1"><num>(b)</num><content>in any other case, the managers of the scheme.</content></level></hcontainer></section><section eId="section-58"><num>58</num><heading>Corresponding provision in relation to FCA-regulated schemes</heading><content><mod>In the Financial Services and Markets Act 2000, before section 137FC insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>137FBD</num><heading>FCA general rules: guided retirement</heading><subsection><num>(1)</num><content>The FCA must make general rules for the purpose of ensuring that default or qualifying pension benefit solutions are made available to members of relevant pension schemes.</content></subsection><subsection><num>(2)</num><intro>In determining what provision to include in the rules, the FCA—</intro><level class="para1"><num>(a)</num><content>must have regard to provision made by, and any provision made under, <ref href="#part-2-chapter-6">Chapter 6</ref> of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026 (guided retirement: schemes regulated by the Pensions Regulator), and</content></level><level class="para1"><num>(b)</num><content>must aim to ensure, so far as possible, that the outcomes achieved by the rules in relation to relevant pension schemes correspond to those achieved by that Chapter, and any regulations made under it, in relation to pension schemes to which that Chapter applies.</content></level></subsection><subsection><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-default-or-qualifying-pension-benefit-solution">default or qualifying pension benefit solution</term>” means a pension benefit solution which—</intro><level class="para1"><num>(a)</num><content>is designed for delivering money purchase benefits under a pension scheme to some or all of the members of the scheme,</content></level><level class="para1"><num>(b)</num><content>is designed to provide a regular income for the members concerned in their retirement (whether or not together with other benefits), and</content></level><level class="para1"><num>(c)</num><content>meets any other prescribed conditions;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-fca-regulated-pension-scheme">FCA-regulated pension scheme</term>” means a pension scheme whose operation—</intro><level class="para1"><num>(a)</num><content>is a regulated activity, and</content></level><level class="para1"><num>(b)</num><content>is carried on in the United Kingdom by an authorised person;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 181 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-benefit-solution">pension benefit solution</term>”, in relation to a pension scheme, means a contractual or other arrangement for making pension payments in respect of members’ accrued rights;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme">pension scheme</term>” has the meaning given in section 1(5) of the Pension Schemes Act 1993;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-pension-scheme">relevant pension scheme</term>” means an FCA-regulated pension scheme that is—</intro><level class="para1"><num>(a)</num><content>an auto-enrolment scheme,</content></level><level class="para1"><num>(b)</num><content>a workplace personal pension scheme that is not an auto-enrolment scheme, or</content></level><level class="para1"><num>(c)</num><content>a pension scheme of a prescribed description,</content></level><wrapUp>and for that purpose “<term refersTo="#term-auto-enrolment-scheme">auto-enrolment scheme</term>” has the meaning given in section <ref href="#d25e9749">117A</ref><ref href="#d25e9795">(3)</ref> and “<term refersTo="#term-workplace-personal-pension-scheme">workplace personal pension scheme</term>” has the meaning given in section <ref href="#d25e9749">117A</ref><ref href="#d25e9846">(5)</ref>.</wrapUp></hcontainer></subsection></section></quotedStructure></mod></content></section></chapter></part>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11"><num>11</num><heading>Relevant schemes: value for money</heading><subsection eId="section-11-1"><num>(1)</num><intro>The Secretary of State may make regulations (“<term refersTo="#term-value-for-money-regulations" eId="term-value-for-money-regulations">value for money regulations</term>”) for the purpose of evaluating, and promoting best practice with regard to, the provision of value for money by—</intro><level class="para1" eId="section-11-1-a"><num>(a)</num><content>prescribed descriptions of relevant pension schemes (“regulated VFM schemes”), and</content></level><level class="para1" eId="section-11-1-b"><num>(b)</num><content>prescribed descriptions of arrangements under relevant pension schemes (“regulated VFM arrangements”).</content></level></subsection><subsection eId="section-11-2"><num>(2)</num><intro>Value for money regulations may in particular require responsible trustees or managers to—</intro><level class="para1" eId="section-11-2-a"><num>(a)</num><intro>make, and publish (in whole or part) reports of, assessments (“VFM assessments”) of the performance of—</intro><level class="para2" eId="section-11-2-a-i"><num>(i)</num><content>regulated VFM schemes, or</content></level><level class="para2" eId="section-11-2-a-ii"><num>(ii)</num><content>regulated VFM arrangements,</content></level><wrapUp>with regard to the provision of value for money in respect of prescribed periods (“VFM periods”);</wrapUp></level><level class="para1" eId="section-11-2-b"><num>(b)</num><content>notify the Pensions Regulator of any publication they make under <ref href="#section-11-2-a">paragraph (a)</ref>;</content></level><level class="para1" eId="section-11-2-c"><num>(c)</num><intro>publish or share with prescribed persons in respect of—</intro><level class="para2" eId="section-11-2-c-i"><num>(i)</num><content>regulated VFM schemes or (as the case may be) regulated VFM arrangements, and</content></level><level class="para2" eId="section-11-2-c-ii"><num>(ii)</num><content>VFM periods,</content></level><wrapUp>prescribed categories of information (“metric data”) for the purpose of enabling VFM assessments to be made (with respect to the scheme or arrangement in question and other regulated VFM schemes or regulated VFM arrangements).</wrapUp></level></subsection><subsection eId="section-11-3"><num>(3)</num><content>A duty to publish information under <ref href="#section-11-2">subsection (2)</ref><ref href="#section-11-2-c">(c)</ref> may be a duty to publish the information for a specified period.</content></subsection><subsection eId="section-11-4"><num>(4)</num><intro>Where value for money regulations require responsible trustees or managers to make a VFM assessment with respect to a scheme or arrangement, the regulations may require those trustees or managers to—</intro><level class="para1" eId="section-11-4-a"><num>(a)</num><content>assign to the scheme or arrangement, and set out in the VFM assessment, a rating for that period (a “VFM rating”), and</content></level><level class="para1" eId="section-11-4-b"><num>(b)</num><content>notify the Pensions Regulator of the rating.</content></level></subsection><subsection eId="section-11-5"><num>(5)</num><intro>Value for money regulations may specify—</intro><level class="para1" eId="section-11-5-a"><num>(a)</num><content>the method for calculating anything that is to be calculated under the regulations;</content></level><level class="para1" eId="section-11-5-b"><num>(b)</num><content>the time at or by which anything required to be done under the regulations must be done.</content></level></subsection><subsection eId="section-11-6"><num>(6)</num><content>In complying with value for money regulations a person must have regard to any guidance issued from time to time by the Secretary of State.</content></subsection><subsection eId="section-11-7"><num>(7)</num><intro>The Secretary of State must consult with such persons as the Secretary of State considers appropriate before—</intro><level class="para1" eId="section-11-7-a"><num>(a)</num><content>making value for money regulations;</content></level><level class="para1" eId="section-11-7-b"><num>(b)</num><content>issuing guidance under <ref href="#section-11-6">subsection (6)</ref>.</content></level></subsection><subsection eId="section-11-8"><num>(8)</num><intro>In this Chapter “<term refersTo="#term-responsible-trustees-or-managers" eId="term-responsible-trustees-or-managers">responsible trustees or managers</term>” means any of the following—</intro><level class="para1" eId="section-11-8-a"><num>(a)</num><content>trustees or managers of a regulated VFM scheme;</content></level><level class="para1" eId="section-11-8-b"><num>(b)</num><content>trustees or managers of a relevant pension scheme any arrangements under which are regulated VFM arrangements.</content></level></subsection><subsection eId="section-11-9"><num>(9)</num><content>Nothing in this Chapter prejudices the breadth of subsections <ref href="#section-11-1">(1)</ref> and <ref href="#section-11-2">(2)</ref>.</content></subsection><subsection eId="section-11-10"><num>(10)</num><content>Subject to <ref href="#section-11-11">subsection (11)</ref>, value for money regulations are subject to the affirmative procedure.</content></subsection><subsection eId="section-11-11"><num>(11)</num><content>Any exercise, after the first, of the power to prescribe categories of information by virtue of <ref href="#section-11-2">subsection (2)</ref><ref href="#section-11-2-c">(c)</ref> is subject to the negative procedure.</content></subsection><subsection eId="section-11-12"><num>(12)</num><content>Subject to <ref href="#section-11-13">subsection (13)</ref>, in this Chapter “<term refersTo="#term-relevant-pension-scheme" eId="term-relevant-pension-scheme">relevant pension scheme</term>” means an occupational pension scheme that provides money purchase benefits.</content></subsection><subsection eId="section-11-13"><num>(13)</num><content>Value for money regulations may provide that where an occupational pension scheme provides money purchase benefits in conjunction with other benefits, references in this Chapter (other than this subsection) to the occupational pension scheme are to an occupational pension scheme only to the extent that it provides money purchase benefits.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-1"><num>(1)</num><intro>The Secretary of State may make regulations (“<term refersTo="#term-value-for-money-regulations" eId="term-value-for-money-regulations">value for money regulations</term>”) for the purpose of evaluating, and promoting best practice with regard to, the provision of value for money by—</intro><level class="para1" eId="section-11-1-a"><num>(a)</num><content>prescribed descriptions of relevant pension schemes (“regulated VFM schemes”), and</content></level><level class="para1" eId="section-11-1-b"><num>(b)</num><content>prescribed descriptions of arrangements under relevant pension schemes (“regulated VFM arrangements”).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-2"><num>(2)</num><intro>Value for money regulations may in particular require responsible trustees or managers to—</intro><level class="para1" eId="section-11-2-a"><num>(a)</num><intro>make, and publish (in whole or part) reports of, assessments (“VFM assessments”) of the performance of—</intro><level class="para2" eId="section-11-2-a-i"><num>(i)</num><content>regulated VFM schemes, or</content></level><level class="para2" eId="section-11-2-a-ii"><num>(ii)</num><content>regulated VFM arrangements,</content></level><wrapUp>with regard to the provision of value for money in respect of prescribed periods (“VFM periods”);</wrapUp></level><level class="para1" eId="section-11-2-b"><num>(b)</num><content>notify the Pensions Regulator of any publication they make under <ref href="#section-11-2-a">paragraph (a)</ref>;</content></level><level class="para1" eId="section-11-2-c"><num>(c)</num><intro>publish or share with prescribed persons in respect of—</intro><level class="para2" eId="section-11-2-c-i"><num>(i)</num><content>regulated VFM schemes or (as the case may be) regulated VFM arrangements, and</content></level><level class="para2" eId="section-11-2-c-ii"><num>(ii)</num><content>VFM periods,</content></level><wrapUp>prescribed categories of information (“metric data”) for the purpose of enabling VFM assessments to be made (with respect to the scheme or arrangement in question and other regulated VFM schemes or regulated VFM arrangements).</wrapUp></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-2-a"><num>(a)</num><intro>make, and publish (in whole or part) reports of, assessments (“VFM assessments”) of the performance of—</intro><level class="para2" eId="section-11-2-a-i"><num>(i)</num><content>regulated VFM schemes, or</content></level><level class="para2" eId="section-11-2-a-ii"><num>(ii)</num><content>regulated VFM arrangements,</content></level><wrapUp>with regard to the provision of value for money in respect of prescribed periods (“VFM periods”);</wrapUp></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-2-b"><num>(b)</num><content>notify the Pensions Regulator of any publication they make under <ref href="#section-11-2-a">paragraph (a)</ref>;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-2-c"><num>(c)</num><intro>publish or share with prescribed persons in respect of—</intro><level class="para2" eId="section-11-2-c-i"><num>(i)</num><content>regulated VFM schemes or (as the case may be) regulated VFM arrangements, and</content></level><level class="para2" eId="section-11-2-c-ii"><num>(ii)</num><content>VFM periods,</content></level><wrapUp>prescribed categories of information (“metric data”) for the purpose of enabling VFM assessments to be made (with respect to the scheme or arrangement in question and other regulated VFM schemes or regulated VFM arrangements).</wrapUp></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-3"><num>(3)</num><content>A duty to publish information under <ref href="#section-11-2">subsection (2)</ref><ref href="#section-11-2-c">(c)</ref> may be a duty to publish the information for a specified period.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-4"><num>(4)</num><intro>Where value for money regulations require responsible trustees or managers to make a VFM assessment with respect to a scheme or arrangement, the regulations may require those trustees or managers to—</intro><level class="para1" eId="section-11-4-a"><num>(a)</num><content>assign to the scheme or arrangement, and set out in the VFM assessment, a rating for that period (a “VFM rating”), and</content></level><level class="para1" eId="section-11-4-b"><num>(b)</num><content>notify the Pensions Regulator of the rating.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-5"><num>(5)</num><intro>Value for money regulations may specify—</intro><level class="para1" eId="section-11-5-a"><num>(a)</num><content>the method for calculating anything that is to be calculated under the regulations;</content></level><level class="para1" eId="section-11-5-b"><num>(b)</num><content>the time at or by which anything required to be done under the regulations must be done.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-6"><num>(6)</num><content>In complying with value for money regulations a person must have regard to any guidance issued from time to time by the Secretary of State.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-7"><num>(7)</num><intro>The Secretary of State must consult with such persons as the Secretary of State considers appropriate before—</intro><level class="para1" eId="section-11-7-a"><num>(a)</num><content>making value for money regulations;</content></level><level class="para1" eId="section-11-7-b"><num>(b)</num><content>issuing guidance under <ref href="#section-11-6">subsection (6)</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-8"><num>(8)</num><intro>In this Chapter “<term refersTo="#term-responsible-trustees-or-managers" eId="term-responsible-trustees-or-managers">responsible trustees or managers</term>” means any of the following—</intro><level class="para1" eId="section-11-8-a"><num>(a)</num><content>trustees or managers of a regulated VFM scheme;</content></level><level class="para1" eId="section-11-8-b"><num>(b)</num><content>trustees or managers of a relevant pension scheme any arrangements under which are regulated VFM arrangements.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-9"><num>(9)</num><content>Nothing in this Chapter prejudices the breadth of subsections <ref href="#section-11-1">(1)</ref> and <ref href="#section-11-2">(2)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-10"><num>(10)</num><content>Subject to <ref href="#section-11-11">subsection (11)</ref>, value for money regulations are subject to the affirmative procedure.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-11"><num>(11)</num><content>Any exercise, after the first, of the power to prescribe categories of information by virtue of <ref href="#section-11-2">subsection (2)</ref><ref href="#section-11-2-c">(c)</ref> is subject to the negative procedure.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-12"><num>(12)</num><content>Subject to <ref href="#section-11-13">subsection (13)</ref>, in this Chapter “<term refersTo="#term-relevant-pension-scheme" eId="term-relevant-pension-scheme">relevant pension scheme</term>” means an occupational pension scheme that provides money purchase benefits.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-13"><num>(13)</num><content>Value for money regulations may provide that where an occupational pension scheme provides money purchase benefits in conjunction with other benefits, references in this Chapter (other than this subsection) to the occupational pension scheme are to an occupational pension scheme only to the extent that it provides money purchase benefits.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12"><num>12</num><heading>Publication etc of metric data</heading><subsection eId="section-12-1"><num>(1)</num><intro>Categories of information prescribed under section <ref href="#section-11">11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref> may for example relate to—</intro><level class="para1" eId="section-12-1-a"><num>(a)</num><content>the quality of services provided to members of the scheme or (as the case may be) arrangement;</content></level><level class="para1" eId="section-12-1-b"><num>(b)</num><content>classes of assets invested in;</content></level><level class="para1" eId="section-12-1-c"><num>(c)</num><content>investment performance;</content></level><level class="para1" eId="section-12-1-d"><num>(d)</num><content>costs incurred by the scheme or (as the case may be) arrangement;</content></level><level class="para1" eId="section-12-1-e"><num>(e)</num><content>charges on members or employers in relation to the scheme or (as the case may be) arrangement.</content></level></subsection><subsection eId="section-12-2"><num>(2)</num><intro>Value for money regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref> may—</intro><level class="para1" eId="section-12-2-a"><num>(a)</num><content>specify time limits within which metric data in respect of a VFM period must be published or shared;</content></level><level class="para1" eId="section-12-2-b"><num>(b)</num><content>make provision about the form in which and the means by which metric data is to be published or shared;</content></level><level class="para1" eId="section-12-2-c"><num>(c)</num><content>require the published or shared information to deal separately with different cohorts of members of the scheme or (as the case may be) arrangement;</content></level><level class="para1" eId="section-12-2-d"><num>(d)</num><content>require a person appointed under the regulations to make available, for the publication or sharing of metric data, an electronic database (operated by that person);</content></level><level class="para1" eId="section-12-2-e"><num>(e)</num><intro>require responsible trustees or managers, on publishing or sharing any information under regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref>, to notify the Pensions Regulator—</intro><level class="para2" eId="section-12-2-e-i"><num>(i)</num><content>of the publication of the information and where it is published, or</content></level><level class="para2" eId="section-12-2-e-ii"><num>(ii)</num><content>(as the case requires) of the sharing of the information.</content></level></level></subsection><subsection eId="section-12-3"><num>(3)</num><intro>Value for money regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref> may require the Pensions Regulator to—</intro><level class="para1" eId="section-12-3-a"><num>(a)</num><content>determine the form in which metric data must be published or shared, and</content></level><level class="para1" eId="section-12-3-b"><num>(b)</num><content>publish, or share with the Secretary of State and responsible trustees or managers, details of the form so determined.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-1"><num>(1)</num><intro>Categories of information prescribed under section <ref href="#section-11">11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref> may for example relate to—</intro><level class="para1" eId="section-12-1-a"><num>(a)</num><content>the quality of services provided to members of the scheme or (as the case may be) arrangement;</content></level><level class="para1" eId="section-12-1-b"><num>(b)</num><content>classes of assets invested in;</content></level><level class="para1" eId="section-12-1-c"><num>(c)</num><content>investment performance;</content></level><level class="para1" eId="section-12-1-d"><num>(d)</num><content>costs incurred by the scheme or (as the case may be) arrangement;</content></level><level class="para1" eId="section-12-1-e"><num>(e)</num><content>charges on members or employers in relation to the scheme or (as the case may be) arrangement.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-2"><num>(2)</num><intro>Value for money regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref> may—</intro><level class="para1" eId="section-12-2-a"><num>(a)</num><content>specify time limits within which metric data in respect of a VFM period must be published or shared;</content></level><level class="para1" eId="section-12-2-b"><num>(b)</num><content>make provision about the form in which and the means by which metric data is to be published or shared;</content></level><level class="para1" eId="section-12-2-c"><num>(c)</num><content>require the published or shared information to deal separately with different cohorts of members of the scheme or (as the case may be) arrangement;</content></level><level class="para1" eId="section-12-2-d"><num>(d)</num><content>require a person appointed under the regulations to make available, for the publication or sharing of metric data, an electronic database (operated by that person);</content></level><level class="para1" eId="section-12-2-e"><num>(e)</num><intro>require responsible trustees or managers, on publishing or sharing any information under regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref>, to notify the Pensions Regulator—</intro><level class="para2" eId="section-12-2-e-i"><num>(i)</num><content>of the publication of the information and where it is published, or</content></level><level class="para2" eId="section-12-2-e-ii"><num>(ii)</num><content>(as the case requires) of the sharing of the information.</content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-2-a"><num>(a)</num><content>specify time limits within which metric data in respect of a VFM period must be published or shared;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-2-b"><num>(b)</num><content>make provision about the form in which and the means by which metric data is to be published or shared;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-2-c"><num>(c)</num><content>require the published or shared information to deal separately with different cohorts of members of the scheme or (as the case may be) arrangement;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-2-d"><num>(d)</num><content>require a person appointed under the regulations to make available, for the publication or sharing of metric data, an electronic database (operated by that person);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-12-2-e"><num>(e)</num><intro>require responsible trustees or managers, on publishing or sharing any information under regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref>, to notify the Pensions Regulator—</intro><level class="para2" eId="section-12-2-e-i"><num>(i)</num><content>of the publication of the information and where it is published, or</content></level><level class="para2" eId="section-12-2-e-ii"><num>(ii)</num><content>(as the case requires) of the sharing of the information.</content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-3"><num>(3)</num><intro>Value for money regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref> may require the Pensions Regulator to—</intro><level class="para1" eId="section-12-3-a"><num>(a)</num><content>determine the form in which metric data must be published or shared, and</content></level><level class="para1" eId="section-12-3-b"><num>(b)</num><content>publish, or share with the Secretary of State and responsible trustees or managers, details of the form so determined.</content></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13"><num>13</num><heading>VFM assessments</heading><subsection eId="section-13-1"><num>(1)</num><intro>Value for money regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-a">(a)</ref> may—</intro><level class="para1" eId="section-13-1-a"><num>(a)</num><intro>require responsible trustees or managers to compare (in respect of a VFM period) a scheme’s or arrangement’s metric data with—</intro><level class="para2" eId="section-13-1-a-i"><num>(i)</num><content>the metric data of a prescribed number (or prescribed minimum number) of other schemes or arrangements (“comparator” schemes or arrangements) selected by the trustees or managers, or</content></level><level class="para2" eId="section-13-1-a-ii"><num>(ii)</num><content>one or more relevant benchmarks;</content></level></level><level class="para1" eId="section-13-1-b"><num>(b)</num><intro>make other provision about the method for comparing and evaluating the performance of schemes or arrangements, for example provision about—</intro><level class="para2" eId="section-13-1-b-i"><num>(i)</num><content>factors that may or must be considered;</content></level><level class="para2" eId="section-13-1-b-ii"><num>(ii)</num><content>criteria to be used in comparing performance;</content></level><level class="para2" eId="section-13-1-b-iii"><num>(iii)</num><content>the use and evaluation of evidence;</content></level></level><level class="para1" eId="section-13-1-c"><num>(c)</num><content>make provision about how the results of comparisons are to be taken into account in making determinations under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref> (determinations for the purposes of assigning ratings);</content></level><level class="para1" eId="section-13-1-d"><num>(d)</num><intro>make provision about the eligibility of—</intro><level class="para2" eId="section-13-1-d-i"><num>(i)</num><content>relevant pension schemes for selection as comparator schemes;</content></level><level class="para2" eId="section-13-1-d-ii"><num>(ii)</num><content>arrangements under relevant pension schemes for selection as comparator arrangements;</content></level></level><level class="para1" eId="section-13-1-e"><num>(e)</num><content>specify factors that responsible trustees or managers must take into account when selecting comparator schemes or comparator arrangements.</content></level></subsection><subsection eId="section-13-2"><num>(2)</num><intro>Without prejudice to the breadth of <ref href="#section-13-1">subsection (1)</ref><ref href="#section-13-1-b">(b)</ref><ref href="#section-13-1-b-i">(i)</ref>, factors prescribed in accordance with that provision may for example include—</intro><level class="para1" eId="section-13-2-a"><num>(a)</num><content>factors relating to differences in the composition of the membership of different schemes or arrangements;</content></level><level class="para1" eId="section-13-2-b"><num>(b)</num><content>special features or characteristics of schemes or arrangements that are taken into account in their investment strategies.</content></level></subsection><subsection eId="section-13-3"><num>(3)</num><intro>In this section “<term refersTo="#term-relevant-benchmark" eId="term-relevant-benchmark">relevant benchmark</term>” means—</intro><level class="para1" eId="section-13-3-a"><num>(a)</num><content>a benchmark specified in value for money regulations;</content></level><level class="para1" eId="section-13-3-b"><num>(b)</num><content>if value for money regulations so provide, a benchmark approved and published by the Pensions Regulator.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13-1"><num>(1)</num><intro>Value for money regulations made by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-a">(a)</ref> may—</intro><level class="para1" eId="section-13-1-a"><num>(a)</num><intro>require responsible trustees or managers to compare (in respect of a VFM period) a scheme’s or arrangement’s metric data with—</intro><level class="para2" eId="section-13-1-a-i"><num>(i)</num><content>the metric data of a prescribed number (or prescribed minimum number) of other schemes or arrangements (“comparator” schemes or arrangements) selected by the trustees or managers, or</content></level><level class="para2" eId="section-13-1-a-ii"><num>(ii)</num><content>one or more relevant benchmarks;</content></level></level><level class="para1" eId="section-13-1-b"><num>(b)</num><intro>make other provision about the method for comparing and evaluating the performance of schemes or arrangements, for example provision about—</intro><level class="para2" eId="section-13-1-b-i"><num>(i)</num><content>factors that may or must be considered;</content></level><level class="para2" eId="section-13-1-b-ii"><num>(ii)</num><content>criteria to be used in comparing performance;</content></level><level class="para2" eId="section-13-1-b-iii"><num>(iii)</num><content>the use and evaluation of evidence;</content></level></level><level class="para1" eId="section-13-1-c"><num>(c)</num><content>make provision about how the results of comparisons are to be taken into account in making determinations under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref> (determinations for the purposes of assigning ratings);</content></level><level class="para1" eId="section-13-1-d"><num>(d)</num><intro>make provision about the eligibility of—</intro><level class="para2" eId="section-13-1-d-i"><num>(i)</num><content>relevant pension schemes for selection as comparator schemes;</content></level><level class="para2" eId="section-13-1-d-ii"><num>(ii)</num><content>arrangements under relevant pension schemes for selection as comparator arrangements;</content></level></level><level class="para1" eId="section-13-1-e"><num>(e)</num><content>specify factors that responsible trustees or managers must take into account when selecting comparator schemes or comparator arrangements.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-1-a"><num>(a)</num><intro>require responsible trustees or managers to compare (in respect of a VFM period) a scheme’s or arrangement’s metric data with—</intro><level class="para2" eId="section-13-1-a-i"><num>(i)</num><content>the metric data of a prescribed number (or prescribed minimum number) of other schemes or arrangements (“comparator” schemes or arrangements) selected by the trustees or managers, or</content></level><level class="para2" eId="section-13-1-a-ii"><num>(ii)</num><content>one or more relevant benchmarks;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-1-b"><num>(b)</num><intro>make other provision about the method for comparing and evaluating the performance of schemes or arrangements, for example provision about—</intro><level class="para2" eId="section-13-1-b-i"><num>(i)</num><content>factors that may or must be considered;</content></level><level class="para2" eId="section-13-1-b-ii"><num>(ii)</num><content>criteria to be used in comparing performance;</content></level><level class="para2" eId="section-13-1-b-iii"><num>(iii)</num><content>the use and evaluation of evidence;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-1-c"><num>(c)</num><content>make provision about how the results of comparisons are to be taken into account in making determinations under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref> (determinations for the purposes of assigning ratings);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-1-d"><num>(d)</num><intro>make provision about the eligibility of—</intro><level class="para2" eId="section-13-1-d-i"><num>(i)</num><content>relevant pension schemes for selection as comparator schemes;</content></level><level class="para2" eId="section-13-1-d-ii"><num>(ii)</num><content>arrangements under relevant pension schemes for selection as comparator arrangements;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-1-e"><num>(e)</num><content>specify factors that responsible trustees or managers must take into account when selecting comparator schemes or comparator arrangements.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13-2"><num>(2)</num><intro>Without prejudice to the breadth of <ref href="#section-13-1">subsection (1)</ref><ref href="#section-13-1-b">(b)</ref><ref href="#section-13-1-b-i">(i)</ref>, factors prescribed in accordance with that provision may for example include—</intro><level class="para1" eId="section-13-2-a"><num>(a)</num><content>factors relating to differences in the composition of the membership of different schemes or arrangements;</content></level><level class="para1" eId="section-13-2-b"><num>(b)</num><content>special features or characteristics of schemes or arrangements that are taken into account in their investment strategies.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13-3"><num>(3)</num><intro>In this section “<term refersTo="#term-relevant-benchmark" eId="term-relevant-benchmark">relevant benchmark</term>” means—</intro><level class="para1" eId="section-13-3-a"><num>(a)</num><content>a benchmark specified in value for money regulations;</content></level><level class="para1" eId="section-13-3-b"><num>(b)</num><content>if value for money regulations so provide, a benchmark approved and published by the Pensions Regulator.</content></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-14"><num>14</num><heading>Member satisfaction surveys</heading><subsection eId="section-14-1"><num>(1)</num><intro>Value for money regulations may—</intro><level class="para1" eId="section-14-1-a"><num>(a)</num><intro>require responsible trustees or managers to—</intro><level class="para2" eId="section-14-1-a-i"><num>(i)</num><content>issue VFM member satisfaction survey forms to relevant members from time to time as directed by the relevant authority;</content></level><level class="para2" eId="section-14-1-a-ii"><num>(ii)</num><content>make reports (“survey data reports”) of information returned in such forms;</content></level></level><level class="para1" eId="section-14-1-b"><num>(b)</num><content>provide that survey data reports (or survey data reports that meet prescribed conditions) relating to a VFM period are to be regarded as metric data for the purposes of this Chapter;</content></level><level class="para1" eId="section-14-1-c"><num>(c)</num><content>require the relevant authority to carry out consultation before issuing forms under <ref href="#section-14-1-a">paragraph (a)</ref>;</content></level><level class="para1" eId="section-14-1-d"><num>(d)</num><content>if regulations are made under <ref href="#section-14-1-c">paragraph (c)</ref>, make provision about who must be consulted.</content></level></subsection><subsection eId="section-14-2"><num>(2)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-relevant-authority" eId="term-relevant-authority">relevant authority</term>” means whichever of the Secretary of State or the Pensions Regulator is designated in the regulations as the relevant authority;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-member" eId="term-relevant-member">relevant member</term>” means—</intro><level class="para1"><num>(a)</num><content>in relation to a responsible trustee or manager within <ref href="#section-11">section 11</ref><ref href="#section-11-8">(8)</ref><ref href="#section-11-8-a">(a)</ref>, a member of the relevant pension scheme concerned;</content></level><level class="para1"><num>(b)</num><content>in relation to a responsible trustee or manager within <ref href="#section-11">section 11</ref><ref href="#section-11-8">(8)</ref><ref href="#section-11-8-b">(b)</ref>, a member of an arrangement by virtue of which the trustee or manager is a responsible trustee or manager;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-member-satisfaction-survey-form" eId="term-vfm-member-satisfaction-survey-form">VFM member satisfaction survey form</term>” means a request, in a form approved by the relevant authority, for inviting from relevant members information regarding their level of satisfaction with the service provided by the scheme or arrangement (as the case requires).</content></hcontainer></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-14-1"><num>(1)</num><intro>Value for money regulations may—</intro><level class="para1" eId="section-14-1-a"><num>(a)</num><intro>require responsible trustees or managers to—</intro><level class="para2" eId="section-14-1-a-i"><num>(i)</num><content>issue VFM member satisfaction survey forms to relevant members from time to time as directed by the relevant authority;</content></level><level class="para2" eId="section-14-1-a-ii"><num>(ii)</num><content>make reports (“survey data reports”) of information returned in such forms;</content></level></level><level class="para1" eId="section-14-1-b"><num>(b)</num><content>provide that survey data reports (or survey data reports that meet prescribed conditions) relating to a VFM period are to be regarded as metric data for the purposes of this Chapter;</content></level><level class="para1" eId="section-14-1-c"><num>(c)</num><content>require the relevant authority to carry out consultation before issuing forms under <ref href="#section-14-1-a">paragraph (a)</ref>;</content></level><level class="para1" eId="section-14-1-d"><num>(d)</num><content>if regulations are made under <ref href="#section-14-1-c">paragraph (c)</ref>, make provision about who must be consulted.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-1-a"><num>(a)</num><intro>require responsible trustees or managers to—</intro><level class="para2" eId="section-14-1-a-i"><num>(i)</num><content>issue VFM member satisfaction survey forms to relevant members from time to time as directed by the relevant authority;</content></level><level class="para2" eId="section-14-1-a-ii"><num>(ii)</num><content>make reports (“survey data reports”) of information returned in such forms;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-1-b"><num>(b)</num><content>provide that survey data reports (or survey data reports that meet prescribed conditions) relating to a VFM period are to be regarded as metric data for the purposes of this Chapter;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-1-c"><num>(c)</num><content>require the relevant authority to carry out consultation before issuing forms under <ref href="#section-14-1-a">paragraph (a)</ref>;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-1-d"><num>(d)</num><content>if regulations are made under <ref href="#section-14-1-c">paragraph (c)</ref>, make provision about who must be consulted.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-14-2"><num>(2)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-relevant-authority" eId="term-relevant-authority">relevant authority</term>” means whichever of the Secretary of State or the Pensions Regulator is designated in the regulations as the relevant authority;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-member" eId="term-relevant-member">relevant member</term>” means—</intro><level class="para1"><num>(a)</num><content>in relation to a responsible trustee or manager within <ref href="#section-11">section 11</ref><ref href="#section-11-8">(8)</ref><ref href="#section-11-8-a">(a)</ref>, a member of the relevant pension scheme concerned;</content></level><level class="para1"><num>(b)</num><content>in relation to a responsible trustee or manager within <ref href="#section-11">section 11</ref><ref href="#section-11-8">(8)</ref><ref href="#section-11-8-b">(b)</ref>, a member of an arrangement by virtue of which the trustee or manager is a responsible trustee or manager;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-member-satisfaction-survey-form" eId="term-vfm-member-satisfaction-survey-form">VFM member satisfaction survey form</term>” means a request, in a form approved by the relevant authority, for inviting from relevant members information regarding their level of satisfaction with the service provided by the scheme or arrangement (as the case requires).</content></hcontainer></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15"><num>15</num><heading>VFM ratings</heading><subsection eId="section-15-1"><num>(1)</num><intro>Responsible trustees or managers who are required by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-4">(4)</ref><ref href="#section-11-4-a">(a)</ref>to assign a VFM rating to a scheme or arrangement in respect of a VFM period (the “relevant period”) must assign to the scheme or (as the case requires) arrangement—</intro><level class="para1" eId="section-15-1-a"><num>(a)</num><content>a “fully delivering” rating if the responsible trustees or managers determine that the scheme or arrangement is delivering value for money;</content></level><level class="para1" eId="section-15-1-b"><num>(b)</num><intro>a “not delivering” rating if—</intro><level class="para2" eId="section-15-1-b-i"><num>(i)</num><content>the responsible trustees or managers determine that the scheme or arrangement is not delivering value for money, and</content></level><level class="para2" eId="section-15-1-b-ii"><num>(ii)</num><content>Condition A, B or C of <ref href="#section-15-2">subsection (2)</ref> is met;</content></level></level><level class="para1" eId="section-15-1-c"><num>(c)</num><content>in any other case, an intermediate rating.</content></level></subsection><subsection eId="section-15-2"><num>(2)</num><intro>For the purposes of <ref href="#section-15-1">subsection (1)</ref><ref href="#section-15-1-b">(b)</ref><ref href="#section-15-1-b-ii">(ii)</ref>—</intro><level class="para1" eId="section-15-2-a"><num>(a)</num><content>Condition A is met if the responsible trustees or managers determine that there is no realistic prospect of the scheme or (as the case may be) arrangement delivering value for money within a reasonable period;</content></level><level class="para1" eId="section-15-2-b"><num>(b)</num><content>Condition B is met if the responsible trustees or managers have assigned an intermediate rating to the scheme or arrangement in each of a prescribed number of VFM periods immediately preceding the relevant period;</content></level><level class="para1" eId="section-15-2-c"><num>(c)</num><intro>Condition C is met if the Pensions Regulator notifies the responsible trustees or managers that the Regulator—</intro><level class="para2" eId="section-15-2-c-i"><num>(i)</num><content>considers that the responsible trustees or managers have failed to comply with an improvement plan or an action plan relating to the scheme or arrangement (and the VFM period), and</content></level><level class="para2" eId="section-15-2-c-ii"><num>(ii)</num><content>does not consider the failures to be so minor that they should be ignored.</content></level></level></subsection><subsection eId="section-15-3"><num>(3)</num><content>Value for money regulations must specify the number of grades of intermediate rating.</content></subsection><subsection eId="section-15-4"><num>(4)</num><intro>If value for money regulations provide that there are to be two or more intermediate ratings, the regulations—</intro><level class="para1" eId="section-15-4-a"><num>(a)</num><content>may name each of those ratings;</content></level><level class="para1" eId="section-15-4-b"><num>(b)</num><content>must specify the conditions for assigning each of those ratings.</content></level></subsection><subsection eId="section-15-5"><num>(5)</num><content>Where, apart from this subsection, a scheme or arrangement would be assigned a “not delivering” rating in respect of a VFM period by virtue of Condition B of <ref href="#section-15-2">subsection (2)</ref> being met, the Pensions Regulator may, if it considers that prescribed conditions are met, by notice to the scheme or arrangement authorise the responsible trustees or managers to assign to the scheme or arrangement (instead of a “not delivering” rating) any intermediate rating the Pensions Regulator considers appropriate.</content></subsection><subsection eId="section-15-6"><num>(6)</num><intro>In this Chapter “<term refersTo="#term-action-plan" eId="term-action-plan">action plan</term>”, in relation to a regulated VFM scheme or regulated VFM arrangement, means a plan under <ref href="#section-16">section 16</ref><ref href="#section-16-2">(2)</ref><ref href="#section-16-2-c">(c)</ref> or <ref href="#section-17">17</ref><ref href="#section-17-1">(1)</ref><ref href="#section-17-1-a">(a)</ref> which—</intro><level class="para1" eId="section-15-6-a"><num>(a)</num><content>sets out the responsible trustees’ or managers’ assessment as to whether or not transferring the benefits of the members (under the scheme or arrangement) to another scheme or arrangement could reasonably be expected to result in the generality of those members receiving improved long-term value for money, and</content></level><level class="para1" eId="section-15-6-b"><num>(b)</num><content>proposes measures (or options for measures) for improving the position (with regard to value for money) of members or subsets of members of the scheme or arrangement.</content></level></subsection><subsection eId="section-15-7"><num>(7)</num><content>An action plan may not include a proposal to transfer the benefits (under the scheme or arrangement) of some or all of the members of that scheme or arrangement unless the responsible trustees or managers determine that the proposed transfer could reasonably be expected to result in the generality of those members receiving improved long-term value for money.</content></subsection><subsection eId="section-15-8"><num>(8)</num><content>Value for money regulations may make further provision about what may or must be included in an action plan.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-1"><num>(1)</num><intro>Responsible trustees or managers who are required by virtue of <ref href="#section-11">section 11</ref><ref href="#section-11-4">(4)</ref><ref href="#section-11-4-a">(a)</ref>to assign a VFM rating to a scheme or arrangement in respect of a VFM period (the “relevant period”) must assign to the scheme or (as the case requires) arrangement—</intro><level class="para1" eId="section-15-1-a"><num>(a)</num><content>a “fully delivering” rating if the responsible trustees or managers determine that the scheme or arrangement is delivering value for money;</content></level><level class="para1" eId="section-15-1-b"><num>(b)</num><intro>a “not delivering” rating if—</intro><level class="para2" eId="section-15-1-b-i"><num>(i)</num><content>the responsible trustees or managers determine that the scheme or arrangement is not delivering value for money, and</content></level><level class="para2" eId="section-15-1-b-ii"><num>(ii)</num><content>Condition A, B or C of <ref href="#section-15-2">subsection (2)</ref> is met;</content></level></level><level class="para1" eId="section-15-1-c"><num>(c)</num><content>in any other case, an intermediate rating.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-1-a"><num>(a)</num><content>a “fully delivering” rating if the responsible trustees or managers determine that the scheme or arrangement is delivering value for money;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-1-b"><num>(b)</num><intro>a “not delivering” rating if—</intro><level class="para2" eId="section-15-1-b-i"><num>(i)</num><content>the responsible trustees or managers determine that the scheme or arrangement is not delivering value for money, and</content></level><level class="para2" eId="section-15-1-b-ii"><num>(ii)</num><content>Condition A, B or C of <ref href="#section-15-2">subsection (2)</ref> is met;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-1-c"><num>(c)</num><content>in any other case, an intermediate rating.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-2"><num>(2)</num><intro>For the purposes of <ref href="#section-15-1">subsection (1)</ref><ref href="#section-15-1-b">(b)</ref><ref href="#section-15-1-b-ii">(ii)</ref>—</intro><level class="para1" eId="section-15-2-a"><num>(a)</num><content>Condition A is met if the responsible trustees or managers determine that there is no realistic prospect of the scheme or (as the case may be) arrangement delivering value for money within a reasonable period;</content></level><level class="para1" eId="section-15-2-b"><num>(b)</num><content>Condition B is met if the responsible trustees or managers have assigned an intermediate rating to the scheme or arrangement in each of a prescribed number of VFM periods immediately preceding the relevant period;</content></level><level class="para1" eId="section-15-2-c"><num>(c)</num><intro>Condition C is met if the Pensions Regulator notifies the responsible trustees or managers that the Regulator—</intro><level class="para2" eId="section-15-2-c-i"><num>(i)</num><content>considers that the responsible trustees or managers have failed to comply with an improvement plan or an action plan relating to the scheme or arrangement (and the VFM period), and</content></level><level class="para2" eId="section-15-2-c-ii"><num>(ii)</num><content>does not consider the failures to be so minor that they should be ignored.</content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-2-a"><num>(a)</num><content>Condition A is met if the responsible trustees or managers determine that there is no realistic prospect of the scheme or (as the case may be) arrangement delivering value for money within a reasonable period;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-2-b"><num>(b)</num><content>Condition B is met if the responsible trustees or managers have assigned an intermediate rating to the scheme or arrangement in each of a prescribed number of VFM periods immediately preceding the relevant period;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-2-c"><num>(c)</num><intro>Condition C is met if the Pensions Regulator notifies the responsible trustees or managers that the Regulator—</intro><level class="para2" eId="section-15-2-c-i"><num>(i)</num><content>considers that the responsible trustees or managers have failed to comply with an improvement plan or an action plan relating to the scheme or arrangement (and the VFM period), and</content></level><level class="para2" eId="section-15-2-c-ii"><num>(ii)</num><content>does not consider the failures to be so minor that they should be ignored.</content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-3"><num>(3)</num><content>Value for money regulations must specify the number of grades of intermediate rating.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-4"><num>(4)</num><intro>If value for money regulations provide that there are to be two or more intermediate ratings, the regulations—</intro><level class="para1" eId="section-15-4-a"><num>(a)</num><content>may name each of those ratings;</content></level><level class="para1" eId="section-15-4-b"><num>(b)</num><content>must specify the conditions for assigning each of those ratings.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-5"><num>(5)</num><content>Where, apart from this subsection, a scheme or arrangement would be assigned a “not delivering” rating in respect of a VFM period by virtue of Condition B of <ref href="#section-15-2">subsection (2)</ref> being met, the Pensions Regulator may, if it considers that prescribed conditions are met, by notice to the scheme or arrangement authorise the responsible trustees or managers to assign to the scheme or arrangement (instead of a “not delivering” rating) any intermediate rating the Pensions Regulator considers appropriate.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-6"><num>(6)</num><intro>In this Chapter “<term refersTo="#term-action-plan" eId="term-action-plan">action plan</term>”, in relation to a regulated VFM scheme or regulated VFM arrangement, means a plan under <ref href="#section-16">section 16</ref><ref href="#section-16-2">(2)</ref><ref href="#section-16-2-c">(c)</ref> or <ref href="#section-17">17</ref><ref href="#section-17-1">(1)</ref><ref href="#section-17-1-a">(a)</ref> which—</intro><level class="para1" eId="section-15-6-a"><num>(a)</num><content>sets out the responsible trustees’ or managers’ assessment as to whether or not transferring the benefits of the members (under the scheme or arrangement) to another scheme or arrangement could reasonably be expected to result in the generality of those members receiving improved long-term value for money, and</content></level><level class="para1" eId="section-15-6-b"><num>(b)</num><content>proposes measures (or options for measures) for improving the position (with regard to value for money) of members or subsets of members of the scheme or arrangement.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-7"><num>(7)</num><content>An action plan may not include a proposal to transfer the benefits (under the scheme or arrangement) of some or all of the members of that scheme or arrangement unless the responsible trustees or managers determine that the proposed transfer could reasonably be expected to result in the generality of those members receiving improved long-term value for money.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-8"><num>(8)</num><content>Value for money regulations may make further provision about what may or must be included in an action plan.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16"><num>16</num><heading>Consequences of an intermediate rating</heading><subsection eId="section-16-1"><num>(1)</num><content>Value for money regulations may make provision about the consequences of the assigning under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref> of an intermediate rating to a regulated VFM scheme or regulated VFM arrangement in respect of a VFM period.</content></subsection><subsection eId="section-16-2"><num>(2)</num><intro>Without prejudice to the breadth of <ref href="#section-16-1">subsection (1)</ref>, value for money regulations may require responsible trustees or managers of a scheme or arrangement to which any grade of intermediate rating has been assigned to—</intro><level class="para1" eId="section-16-2-a"><num>(a)</num><content>prepare a plan (an “improvement plan”) specifying actions that the responsible trustees or managers propose to take with a view to improving the scheme’s or (as the case may be) arrangement’s performance with regard to the provision of value for money;</content></level><level class="para1" eId="section-16-2-b"><num>(b)</num><content>provide a copy of the plan to the Pensions Regulator;</content></level><level class="para1" eId="section-16-2-c"><num>(c)</num><content>prepare an action plan and provide a copy of it to the Pensions Regulator;</content></level><level class="para1" eId="section-16-2-d"><num>(d)</num><intro>give notice in a prescribed format to any person who is a participating employer in relation to the scheme or arrangement of—</intro><level class="para2" eId="section-16-2-d-i"><num>(i)</num><content>the VFM rating that has effect in relation to the scheme or arrangement;</content></level><level class="para2" eId="section-16-2-d-ii"><num>(ii)</num><content>any actions specified by virtue of <ref href="#section-16-2-a">paragraph (a)</ref> in an improvement plan;</content></level><level class="para2" eId="section-16-2-d-iii"><num>(iii)</num><content>any actions the trustees or managers consider it is appropriate for the employer to take having regard to the rating assigned to the scheme or arrangement;</content></level></level><level class="para1" eId="section-16-2-e"><num>(e)</num><content>ensure that no person becomes an employer in relation to the scheme or arrangement for as long as the scheme or (as the case may be) arrangement continues to have an intermediate rating;</content></level><level class="para1" eId="section-16-2-f"><num>(f)</num><content>take any other steps that may be prescribed.</content></level></subsection><subsection eId="section-16-3"><num>(3)</num><intro>Value for money regulations may—</intro><level class="para1" eId="section-16-3-a"><num>(a)</num><content>make further provision about what may or must be included in an improvement plan;</content></level><level class="para1" eId="section-16-3-b"><num>(b)</num><content>confer additional functions on the Pensions Regulator in connection with schemes that are assigned an intermediate rating.</content></level></subsection><subsection eId="section-16-4"><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-employer" eId="term-employer">employer</term>”, in relation to a regulated VFM scheme or regulated VFM arrangement, means a person who employs persons who are members of the scheme or (as the case requires) arrangement;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-participating-employer" eId="term-participating-employer">participating employer</term>” in relation to a regulated VFM scheme or regulated VFM arrangement, means an employer who is for the time being making contributions to the scheme or (as the case requires) arrangement.</content></hcontainer></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-1"><num>(1)</num><content>Value for money regulations may make provision about the consequences of the assigning under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref> of an intermediate rating to a regulated VFM scheme or regulated VFM arrangement in respect of a VFM period.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-2"><num>(2)</num><intro>Without prejudice to the breadth of <ref href="#section-16-1">subsection (1)</ref>, value for money regulations may require responsible trustees or managers of a scheme or arrangement to which any grade of intermediate rating has been assigned to—</intro><level class="para1" eId="section-16-2-a"><num>(a)</num><content>prepare a plan (an “improvement plan”) specifying actions that the responsible trustees or managers propose to take with a view to improving the scheme’s or (as the case may be) arrangement’s performance with regard to the provision of value for money;</content></level><level class="para1" eId="section-16-2-b"><num>(b)</num><content>provide a copy of the plan to the Pensions Regulator;</content></level><level class="para1" eId="section-16-2-c"><num>(c)</num><content>prepare an action plan and provide a copy of it to the Pensions Regulator;</content></level><level class="para1" eId="section-16-2-d"><num>(d)</num><intro>give notice in a prescribed format to any person who is a participating employer in relation to the scheme or arrangement of—</intro><level class="para2" eId="section-16-2-d-i"><num>(i)</num><content>the VFM rating that has effect in relation to the scheme or arrangement;</content></level><level class="para2" eId="section-16-2-d-ii"><num>(ii)</num><content>any actions specified by virtue of <ref href="#section-16-2-a">paragraph (a)</ref> in an improvement plan;</content></level><level class="para2" eId="section-16-2-d-iii"><num>(iii)</num><content>any actions the trustees or managers consider it is appropriate for the employer to take having regard to the rating assigned to the scheme or arrangement;</content></level></level><level class="para1" eId="section-16-2-e"><num>(e)</num><content>ensure that no person becomes an employer in relation to the scheme or arrangement for as long as the scheme or (as the case may be) arrangement continues to have an intermediate rating;</content></level><level class="para1" eId="section-16-2-f"><num>(f)</num><content>take any other steps that may be prescribed.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-2-a"><num>(a)</num><content>prepare a plan (an “improvement plan”) specifying actions that the responsible trustees or managers propose to take with a view to improving the scheme’s or (as the case may be) arrangement’s performance with regard to the provision of value for money;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-2-b"><num>(b)</num><content>provide a copy of the plan to the Pensions Regulator;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-2-c"><num>(c)</num><content>prepare an action plan and provide a copy of it to the Pensions Regulator;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-2-d"><num>(d)</num><intro>give notice in a prescribed format to any person who is a participating employer in relation to the scheme or arrangement of—</intro><level class="para2" eId="section-16-2-d-i"><num>(i)</num><content>the VFM rating that has effect in relation to the scheme or arrangement;</content></level><level class="para2" eId="section-16-2-d-ii"><num>(ii)</num><content>any actions specified by virtue of <ref href="#section-16-2-a">paragraph (a)</ref> in an improvement plan;</content></level><level class="para2" eId="section-16-2-d-iii"><num>(iii)</num><content>any actions the trustees or managers consider it is appropriate for the employer to take having regard to the rating assigned to the scheme or arrangement;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-2-e"><num>(e)</num><content>ensure that no person becomes an employer in relation to the scheme or arrangement for as long as the scheme or (as the case may be) arrangement continues to have an intermediate rating;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-2-f"><num>(f)</num><content>take any other steps that may be prescribed.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-3"><num>(3)</num><intro>Value for money regulations may—</intro><level class="para1" eId="section-16-3-a"><num>(a)</num><content>make further provision about what may or must be included in an improvement plan;</content></level><level class="para1" eId="section-16-3-b"><num>(b)</num><content>confer additional functions on the Pensions Regulator in connection with schemes that are assigned an intermediate rating.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-4"><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-employer" eId="term-employer">employer</term>”, in relation to a regulated VFM scheme or regulated VFM arrangement, means a person who employs persons who are members of the scheme or (as the case requires) arrangement;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-participating-employer" eId="term-participating-employer">participating employer</term>” in relation to a regulated VFM scheme or regulated VFM arrangement, means an employer who is for the time being making contributions to the scheme or (as the case requires) arrangement.</content></hcontainer></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17"><num>17</num><heading>Consequences of a “not delivering” rating</heading><subsection eId="section-17-1"><num>(1)</num><intro>A regulated VFM scheme or regulated VFM arrangement to which a “not delivering” rating has been assigned (an “affected” scheme or arrangement) must—</intro><level class="para1" eId="section-17-1-a"><num>(a)</num><content>prepare an action plan and provide a copy of it to the Pensions Regulator;</content></level><level class="para1" eId="section-17-1-b"><num>(b)</num><intro>give notice in a prescribed format to any person who is a participating employer in relation to the scheme or arrangement of—</intro><level class="para2" eId="section-17-1-b-i"><num>(i)</num><content>the VFM rating that has effect in relation to the scheme or arrangement;</content></level><level class="para2" eId="section-17-1-b-ii"><num>(ii)</num><content>any actions the trustees or managers consider it appropriate for the employer to take having regard to the “not delivering” rating;</content></level></level><level class="para1" eId="section-17-1-c"><num>(c)</num><content>ensure that with effect from the publication of the VFM assessment in which the rating is set out no person is to become an employer in relation to the scheme or (as the case may be) arrangement;</content></level><level class="para1" eId="section-17-1-d"><num>(d)</num><content>take any other steps that may be prescribed.</content></level></subsection><subsection eId="section-17-2"><num>(2)</num><intro>Where a transfer solution (see <ref href="#section-17-3">subsection (3)</ref>) applies to an affected scheme or arrangement, the Pensions Regulator may—</intro><level class="para1" eId="section-17-2-a"><num>(a)</num><intro>require the accrued rights and benefits of all (or a subset of) the members of the scheme or arrangement to be transferred to a pension scheme (or arrangement under a pension scheme) that—</intro><level class="para2" eId="section-17-2-a-i"><num>(i)</num><content>is selected by the responsible trustees or managers, and</content></level><level class="para2" eId="section-17-2-a-ii"><num>(ii)</num><content>meets prescribed conditions;</content></level></level><level class="para1" eId="section-17-2-b"><num>(b)</num><content>specify conditions that must be met by a scheme or arrangement selected under <ref href="#section-17-2-a">paragraph (a)</ref>.</content></level></subsection><subsection eId="section-17-3"><num>(3)</num><intro>For the purposes of <ref href="#section-17-2">subsection (2)</ref>, a transfer solution applies to an affected scheme or arrangement if—</intro><level class="para1" eId="section-17-3-a"><num>(a)</num><intro>the Pensions Regulator considers that—</intro><level class="para2" eId="section-17-3-a-i"><num>(i)</num><content>based on the assessment carried out by the responsible trustees or managers under section <ref href="#section-15">15</ref><ref href="#section-15-6">(6)</ref><ref href="#section-15-6-a">(a)</ref> in the action plan of the scheme or arrangement, transferring the benefits of all (or a subset of) the members of the scheme or arrangement to another pension scheme (or arrangement under a pension scheme) could reasonably be expected to result in the generality of the members of the scheme or arrangement receiving improved long-term value for money, and</content></level><level class="para2" eId="section-17-3-a-ii"><num>(ii)</num><content>any other measures proposed under <ref href="#section-15">section 15</ref><ref href="#section-15-6">(6)</ref><ref href="#section-15-6-b">(b)</ref> in the action plan of the scheme or arrangement are unlikely to result in its achieving an intermediate (or “fully delivering”) rating or substantially improving its performance with regard to the provision of value for money, and</content></level></level><level class="para1" eId="section-17-3-b"><num>(b)</num><content>any prescribed conditions are met.</content></level></subsection><subsection eId="section-17-4"><num>(4)</num><intro>Value for money regulations may make provision—</intro><level class="para1" eId="section-17-4-a"><num>(a)</num><content>about the process for transferring accrued rights and benefits under <ref href="#section-17-2">subsection (2)</ref> (which may for example include provision for restricting or prohibiting administrative costs and as to time limits);</content></level><level class="para1" eId="section-17-4-b"><num>(b)</num><content>conferring on the Pensions Regulator power to direct the trustees or managers of the affected scheme to do things permitted or required by the regulations;</content></level><level class="para1" eId="section-17-4-c"><num>(c)</num><content>conferring a discretion on the Pensions Regulator;</content></level><level class="para1" eId="section-17-4-d"><num>(d)</num><content>about the winding up of a relevant scheme in circumstances where the accrued rights and benefits of the members are, or are to be, transferred out of the scheme.</content></level></subsection><subsection eId="section-17-5"><num>(5)</num><intro>In <ref href="#section-17">this section</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-employer" eId="term-employer">employer</term>” has the same meaning as in <ref href="#section-16">section 16</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-participating-employer" eId="term-participating-employer">participating employer</term>” has the same meaning as in <ref href="#section-16">section 16</ref>.</content></hcontainer></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-1"><num>(1)</num><intro>A regulated VFM scheme or regulated VFM arrangement to which a “not delivering” rating has been assigned (an “affected” scheme or arrangement) must—</intro><level class="para1" eId="section-17-1-a"><num>(a)</num><content>prepare an action plan and provide a copy of it to the Pensions Regulator;</content></level><level class="para1" eId="section-17-1-b"><num>(b)</num><intro>give notice in a prescribed format to any person who is a participating employer in relation to the scheme or arrangement of—</intro><level class="para2" eId="section-17-1-b-i"><num>(i)</num><content>the VFM rating that has effect in relation to the scheme or arrangement;</content></level><level class="para2" eId="section-17-1-b-ii"><num>(ii)</num><content>any actions the trustees or managers consider it appropriate for the employer to take having regard to the “not delivering” rating;</content></level></level><level class="para1" eId="section-17-1-c"><num>(c)</num><content>ensure that with effect from the publication of the VFM assessment in which the rating is set out no person is to become an employer in relation to the scheme or (as the case may be) arrangement;</content></level><level class="para1" eId="section-17-1-d"><num>(d)</num><content>take any other steps that may be prescribed.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-1-a"><num>(a)</num><content>prepare an action plan and provide a copy of it to the Pensions Regulator;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-1-b"><num>(b)</num><intro>give notice in a prescribed format to any person who is a participating employer in relation to the scheme or arrangement of—</intro><level class="para2" eId="section-17-1-b-i"><num>(i)</num><content>the VFM rating that has effect in relation to the scheme or arrangement;</content></level><level class="para2" eId="section-17-1-b-ii"><num>(ii)</num><content>any actions the trustees or managers consider it appropriate for the employer to take having regard to the “not delivering” rating;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-1-c"><num>(c)</num><content>ensure that with effect from the publication of the VFM assessment in which the rating is set out no person is to become an employer in relation to the scheme or (as the case may be) arrangement;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-1-d"><num>(d)</num><content>take any other steps that may be prescribed.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-2"><num>(2)</num><intro>Where a transfer solution (see <ref href="#section-17-3">subsection (3)</ref>) applies to an affected scheme or arrangement, the Pensions Regulator may—</intro><level class="para1" eId="section-17-2-a"><num>(a)</num><intro>require the accrued rights and benefits of all (or a subset of) the members of the scheme or arrangement to be transferred to a pension scheme (or arrangement under a pension scheme) that—</intro><level class="para2" eId="section-17-2-a-i"><num>(i)</num><content>is selected by the responsible trustees or managers, and</content></level><level class="para2" eId="section-17-2-a-ii"><num>(ii)</num><content>meets prescribed conditions;</content></level></level><level class="para1" eId="section-17-2-b"><num>(b)</num><content>specify conditions that must be met by a scheme or arrangement selected under <ref href="#section-17-2-a">paragraph (a)</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-3"><num>(3)</num><intro>For the purposes of <ref href="#section-17-2">subsection (2)</ref>, a transfer solution applies to an affected scheme or arrangement if—</intro><level class="para1" eId="section-17-3-a"><num>(a)</num><intro>the Pensions Regulator considers that—</intro><level class="para2" eId="section-17-3-a-i"><num>(i)</num><content>based on the assessment carried out by the responsible trustees or managers under section <ref href="#section-15">15</ref><ref href="#section-15-6">(6)</ref><ref href="#section-15-6-a">(a)</ref> in the action plan of the scheme or arrangement, transferring the benefits of all (or a subset of) the members of the scheme or arrangement to another pension scheme (or arrangement under a pension scheme) could reasonably be expected to result in the generality of the members of the scheme or arrangement receiving improved long-term value for money, and</content></level><level class="para2" eId="section-17-3-a-ii"><num>(ii)</num><content>any other measures proposed under <ref href="#section-15">section 15</ref><ref href="#section-15-6">(6)</ref><ref href="#section-15-6-b">(b)</ref> in the action plan of the scheme or arrangement are unlikely to result in its achieving an intermediate (or “fully delivering”) rating or substantially improving its performance with regard to the provision of value for money, and</content></level></level><level class="para1" eId="section-17-3-b"><num>(b)</num><content>any prescribed conditions are met.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-3-a"><num>(a)</num><intro>the Pensions Regulator considers that—</intro><level class="para2" eId="section-17-3-a-i"><num>(i)</num><content>based on the assessment carried out by the responsible trustees or managers under section <ref href="#section-15">15</ref><ref href="#section-15-6">(6)</ref><ref href="#section-15-6-a">(a)</ref> in the action plan of the scheme or arrangement, transferring the benefits of all (or a subset of) the members of the scheme or arrangement to another pension scheme (or arrangement under a pension scheme) could reasonably be expected to result in the generality of the members of the scheme or arrangement receiving improved long-term value for money, and</content></level><level class="para2" eId="section-17-3-a-ii"><num>(ii)</num><content>any other measures proposed under <ref href="#section-15">section 15</ref><ref href="#section-15-6">(6)</ref><ref href="#section-15-6-b">(b)</ref> in the action plan of the scheme or arrangement are unlikely to result in its achieving an intermediate (or “fully delivering”) rating or substantially improving its performance with regard to the provision of value for money, and</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-3-b"><num>(b)</num><content>any prescribed conditions are met.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-4"><num>(4)</num><intro>Value for money regulations may make provision—</intro><level class="para1" eId="section-17-4-a"><num>(a)</num><content>about the process for transferring accrued rights and benefits under <ref href="#section-17-2">subsection (2)</ref> (which may for example include provision for restricting or prohibiting administrative costs and as to time limits);</content></level><level class="para1" eId="section-17-4-b"><num>(b)</num><content>conferring on the Pensions Regulator power to direct the trustees or managers of the affected scheme to do things permitted or required by the regulations;</content></level><level class="para1" eId="section-17-4-c"><num>(c)</num><content>conferring a discretion on the Pensions Regulator;</content></level><level class="para1" eId="section-17-4-d"><num>(d)</num><content>about the winding up of a relevant scheme in circumstances where the accrued rights and benefits of the members are, or are to be, transferred out of the scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-5"><num>(5)</num><intro>In <ref href="#section-17">this section</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-employer" eId="term-employer">employer</term>” has the same meaning as in <ref href="#section-16">section 16</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-participating-employer" eId="term-participating-employer">participating employer</term>” has the same meaning as in <ref href="#section-16">section 16</ref>.</content></hcontainer></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-1"><num>(1)</num><content>Value for money regulations may make provision for ensuring compliance with value for money provisions.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-2"><num>(2)</num><content>In this section “<term refersTo="#term-value-for-money-provision" eId="term-value-for-money-provision">value for money provision</term>” means a provision of or made under any of sections <ref href="#section-11">11</ref> to <ref href="#section-17">17</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-3"><num>(3)</num><intro>Value for money regulations may in particular—</intro><level class="para1" eId="section-18-3-a"><num>(a)</num><content>provide for the Pensions Regulator to issue a notice (a “<term refersTo="#term-compliance-notice" eId="term-compliance-notice">compliance notice</term>”) to a person with a view to ensuring the person's compliance with a value for money provision;</content></level><level class="para1" eId="section-18-3-b"><num>(b)</num><content>provide for the Pensions Regulator to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a value for money provision;</content></level><level class="para1" eId="section-18-3-c"><num>(c)</num><intro>provide for the Pensions Regulator to issue a notice (a “penalty notice”) imposing a penalty on a person where the Pensions Regulator is of the opinion that the person—</intro><level class="para2" eId="section-18-3-c-i"><num>(i)</num><content>has failed to comply with a compliance notice or third party compliance notice, or</content></level><level class="para2" eId="section-18-3-c-ii"><num>(ii)</num><content>has contravened a value for money provision;</content></level></level><level class="para1" eId="section-18-3-d"><num>(d)</num><content>provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty;</content></level><level class="para1" eId="section-18-3-e"><num>(e)</num><content>confer other functions on the Pensions Regulator.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-18-3-a"><num>(a)</num><content>provide for the Pensions Regulator to issue a notice (a “<term refersTo="#term-compliance-notice" eId="term-compliance-notice">compliance notice</term>”) to a person with a view to ensuring the person's compliance with a value for money provision;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-18-3-b"><num>(b)</num><content>provide for the Pensions Regulator to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a value for money provision;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-18-3-c"><num>(c)</num><intro>provide for the Pensions Regulator to issue a notice (a “penalty notice”) imposing a penalty on a person where the Pensions Regulator is of the opinion that the person—</intro><level class="para2" eId="section-18-3-c-i"><num>(i)</num><content>has failed to comply with a compliance notice or third party compliance notice, or</content></level><level class="para2" eId="section-18-3-c-ii"><num>(ii)</num><content>has contravened a value for money provision;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-18-3-d"><num>(d)</num><content>provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-18-3-e"><num>(e)</num><content>confer other functions on the Pensions Regulator.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-4"><num>(4)</num><content>Value for money regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-5"><num>(5)</num><intro>The amount of a penalty imposed under value for money regulations in respect of a failure or contravention must not exceed—</intro><level class="para1" eId="section-18-5-a"><num>(a)</num><content>£10,000, in the case of an individual, and</content></level><level class="para1" eId="section-18-5-b"><num>(b)</num><content>£100,000, in any other case.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-6"><num>(6)</num><intro>Value for money regulations may provide that where the Pensions Regulator has, in compliance with a requirement of regulations under <ref href="#section-18-3">subsection (3)</ref><ref href="#section-18-3-c">(c)</ref><ref href="#section-18-3-c-ii">(ii)</ref>, imposed a penalty on a person the Regulator is to be authorised to withdraw the penalty if—</intro><level class="para1" eId="section-18-6-a"><num>(a)</num><content>the Regulator considers it appropriate to do so having regard to the circumstances in which the contravention took place, and</content></level><level class="para1" eId="section-18-6-b"><num>(b)</num><content>any prescribed conditions are met.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-7"><num>(7)</num><intro>Value for money regulations may provide—</intro><level class="para1" eId="section-18-7-a"><num>(a)</num><content>that if the Regulator determines that a rating assigned by responsible trustees or managers for the purposes of <ref href="#section-11">section 11</ref><ref href="#section-11-4">(4)</ref><ref href="#section-11-4-a">(a)</ref> is not correct, the Regulator may by a notice (a “directions notice”) substitute for that rating the rating the Regulator considers should have been assigned;</content></level><level class="para1" eId="section-18-7-b"><num>(b)</num><content>that, where the Pensions Regulator substitutes a rating by virtue of paragraph <ref href="#section-18-7-a">(a)</ref>, that rating is to be deemed for all purposes to be the rating assigned to the scheme under <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-8"><num>(8)</num><content>A directions notice under <ref href="#section-18-7">subsection (7)</ref> must set out the reasons for the Pensions Regulator’s determination.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-9"><num>(9)</num><content>Value for money regulations may provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of a determination of the Pensions Regulator under <ref href="#section-18-7">subsection (7)</ref><ref href="#section-18-7-a">(a)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-10"><num>(10)</num><content>The Pensions Act 1995 is amended as follows.</content></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-18-12-a"><num>(a)</num><content>omit the “or” after paragraph (b), and</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19"><num>19</num><heading>Sharing of database where FCA makes corresponding rules</heading><subsection eId="section-19-1"><num>(1)</num><content>This section applies if the Financial Conduct Authority makes rules, in relation to persons regulated by it, that correspond to value for money regulations.</content></subsection><subsection eId="section-19-2"><num>(2)</num><intro>The Secretary of State may by regulations make provision for the purpose of enabling or facilitating the use of the database mentioned in section <ref href="#section-12">12</ref><ref href="#section-12-2">(2)</ref><ref href="#section-12-2-d">(d)</ref> for the publication or sharing of information—</intro><level class="para1" eId="section-19-2-a"><num>(a)</num><content>that relates to persons to whom the rules made by the Financial Conduct Authority apply, and</content></level><level class="para1" eId="section-19-2-b"><num>(b)</num><content>that corresponds to metric data,</content></level><wrapUp>including provision conferring functions on a person appointed as mentioned in section <ref href="#section-12">12</ref><ref href="#section-12-2">(2)</ref><ref href="#section-12-2-d">(d)</ref>.</wrapUp></subsection><subsection eId="section-19-3"><num>(3)</num><content>Regulations under subsection <ref href="#section-19-2">(2)</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-1"><num>(1)</num><content>This section applies if the Financial Conduct Authority makes rules, in relation to persons regulated by it, that correspond to value for money regulations.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-2"><num>(2)</num><intro>The Secretary of State may by regulations make provision for the purpose of enabling or facilitating the use of the database mentioned in section <ref href="#section-12">12</ref><ref href="#section-12-2">(2)</ref><ref href="#section-12-2-d">(d)</ref> for the publication or sharing of information—</intro><level class="para1" eId="section-19-2-a"><num>(a)</num><content>that relates to persons to whom the rules made by the Financial Conduct Authority apply, and</content></level><level class="para1" eId="section-19-2-b"><num>(b)</num><content>that corresponds to metric data,</content></level><wrapUp>including provision conferring functions on a person appointed as mentioned in section <ref href="#section-12">12</ref><ref href="#section-12-2">(2)</ref><ref href="#section-12-2-d">(d)</ref>.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-3"><num>(3)</num><content>Regulations under subsection <ref href="#section-19-2">(2)</ref> are subject to the negative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20"><num>20</num><heading>Crown application</heading><subsection eId="section-20-1"><num>(1)</num><content>This Chapter applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes.</content></subsection><subsection eId="section-20-2"><num>(2)</num><content>Accordingly, references in this Chapter to a person in their capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.</content></subsection><subsection eId="section-20-3"><num>(3)</num><content>This Chapter applies to persons employed by or under the Crown as it applies to persons employed by a private person.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-21"><num>21</num><heading>Interpretation of Chapter</heading><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-action-plan" eId="term-action-plan">action plan</term>” has the meaning given by <ref href="#section-15">section 15</ref><ref href="#section-15-6">(6)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fully-delivering-rating" eId="term-fully-delivering-rating">fully delivering rating</term>” means a fully delivering VFM rating (see <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref><ref href="#section-15-1-a">(a)</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-improvement-plan" eId="term-improvement-plan">improvement plan</term>” is to be interpreted in accordance with <ref href="#section-16">section 16</ref><ref href="#section-16-2">(2)</ref><ref href="#section-16-2-a">(a)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-intermediate-rating" eId="term-intermediate-rating">intermediate rating</term>” means an “intermediate” VFM rating (<ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref><ref href="#section-15-1-c">(c)</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-metric-data" eId="term-metric-data">metric data</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-c">(c)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 181 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-not-delivering-rating" eId="term-not-delivering-rating">not delivering rating</term>” means a “not delivering” VFM rating (see <ref href="#section-15">section 15</ref><ref href="#section-15-1">(1)</ref><ref href="#section-15-1-b">(b)</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-occupational-pension-scheme" eId="term-occupational-pension-scheme">occupational pension scheme</term>” has the same meaning as in the <ref eId="c00004" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-prescribed" eId="term-prescribed">prescribed</term>” means prescribed by value for money regulations;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-regulated-vfm-arrangement" eId="term-regulated-vfm-arrangement">regulated VFM arrangement</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-1">(1)</ref><ref href="#section-11-1-b">(b)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-regulated-vfm-scheme" eId="term-regulated-vfm-scheme">regulated VFM scheme</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-1">(1)</ref><ref href="#section-11-1-a">(a)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-pension-scheme" eId="term-relevant-pension-scheme">relevant pension scheme</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-12">(12)</ref> and <ref href="#section-11-13">(13)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-responsible-trustees-or-managers" eId="term-responsible-trustees-or-managers">responsible trustees or managers</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-8">(8)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-trustee-or-manager" eId="term-trustee-or-manager">trustee or manager</term>” means—</intro><level class="para1"><num>(a)</num><content>in relation to a scheme established under a trust, the trustees;</content></level><level class="para1"><num>(b)</num><content>in relation to any other scheme, the managers,</content></level><wrapUp>(including in the words that define “responsible trustees or managers” in <ref href="#section-11">section 11</ref><ref href="#section-11-8">(8)</ref>);</wrapUp></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-value-for-money-regulations" eId="term-value-for-money-regulations">value for money regulations</term>” has the meaning given by <ref href="#section-11">section 11</ref><ref href="#section-11-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-assessment" eId="term-vfm-assessment">VFM assessment</term>” has the meaning given by <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-a">(a)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-period" eId="term-vfm-period">VFM period</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-2">(2)</ref><ref href="#section-11-2-a">(a)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-rating" eId="term-vfm-rating">VFM rating</term>” is to be interpreted in accordance with <ref href="#section-11">section 11</ref><ref href="#section-11-4">(4)</ref><ref href="#section-11-4-a">(a)</ref>.</content></hcontainer></section>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-2-chapter-2"><num>Chapter 2</num><heading>Consolidation of small dormant pension pots</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-power-to-make-small-pots-regulations"><heading>Power to make small pots regulations</heading><section eId="section-22"><num>22</num><heading>Small pots regulations</heading><subsection eId="section-22-1"><num>(1)</num><intro>The Secretary of State may make regulations (“<term refersTo="#term-small-pots-regulations" eId="term-small-pots-regulations">small pots regulations</term>”) for the purpose of securing that small dormant pension pots held by auto-enrolment schemes are—</intro><level class="para1" eId="section-22-1-a"><num>(a)</num><content>held by consolidator schemes, and</content></level><level class="para1" eId="section-22-1-b"><num>(b)</num><content>in the case of consolidator schemes that have more than one arrangement, held subject to consolidator arrangements.</content></level></subsection><subsection eId="section-22-2"><num>(2)</num><content>A pension pot is “small” if its value, determined as at such time and in such manner as is prescribed, is £1,000 or less (but is not nil).</content></subsection><subsection eId="section-22-3"><num>(3)</num><intro>A pension pot is “dormant” if—</intro><level class="para1" eId="section-22-3-a"><num>(a)</num><content>no contributions were paid into the pension pot by, or on behalf or in respect of, the individual for whom the pot is held during such period of at least 12 months as is prescribed, and</content></level><level class="para1" eId="section-22-3-b"><num>(b)</num><content>the individual has, subject to any prescribed exceptions, taken no step to confirm or alter the way in which the pension pot is invested.</content></level></subsection><subsection eId="section-22-4"><num>(4)</num><content>The period that may be prescribed under <ref href="#section-22-3">subsection (3)</ref><ref href="#section-22-3-a">(a)</ref> in relation to a pension pot in existence at the time the regulations come into force may begin at any time after the coming into force of this section.</content></subsection><subsection eId="section-22-5"><num>(5)</num><intro>Small pots regulations—</intro><level class="para1" eId="section-22-5-a"><num>(a)</num><intro>are subject to the affirmative procedure if they—</intro><level class="para2" eId="section-22-5-a-i"><num>(i)</num><content>are the first such regulations,</content></level><level class="para2" eId="section-22-5-a-ii"><num>(ii)</num><content>prescribe a person under <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref> (determination of destinations for small pots),</content></level><level class="para2" eId="section-22-5-a-iii"><num>(iii)</num><content>include provision under <ref href="#section-24">section 24</ref><ref href="#section-24-1">(1)</ref> or <ref href="#section-26">26</ref><ref href="#section-26-1">(1)</ref> (requirements to send transfer notices or transfer pension pots), or</content></level><level class="para2" eId="section-22-5-a-iv"><num>(iv)</num><content>amend or repeal provision contained in an Act;</content></level></level><level class="para1" eId="section-22-5-b"><num>(b)</num><content>otherwise, are subject to the negative procedure.</content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-transfers"><heading>Transfers</heading><section eId="section-23"><num>23</num><heading>Determination of destinations for small pots</heading><subsection eId="section-23-1"><num>(1)</num><intro>Small pots regulations must require a prescribed person to make, in relation to each small dormant pension pot held by an auto-enrolment scheme—</intro><level class="para1" eId="section-23-1-a"><num>(a)</num><content>a proposal in relation to the pot (“the default proposal”), and</content></level><level class="para1" eId="section-23-1-b"><num>(b)</num><content>one or more other proposals in relation to the pot (“the alternative proposals”).</content></level></subsection><subsection eId="section-23-2"><num>(2)</num><intro>For the purposes of this Chapter a “<term refersTo="#term-proposal" eId="term-proposal">proposal</term>”, in relation to a small dormant pension pot, means a proposal that—</intro><level class="para1" eId="section-23-2-a"><num>(a)</num><content>the pot should be held by a specified consolidator scheme, and</content></level><level class="para1" eId="section-23-2-b"><num>(b)</num><content>if there is more than one arrangement under that scheme, the pot should be held subject to a specified arrangement under the scheme.</content></level><wrapUp>In this subsection “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the proposal.</wrapUp></subsection><subsection eId="section-23-3"><num>(3)</num><intro><ref href="#section-23-1">Subsection (1)</ref> does not apply in relation to a small dormant pension pot if—</intro><level class="para1" eId="section-23-3-a"><num>(a)</num><content>the auto-enrolment scheme that holds the pot is itself a consolidator scheme,</content></level><level class="para1" eId="section-23-3-b"><num>(b)</num><content>any of the sums or assets comprising the pot, or any sums or assets from which any of the sums or assets comprising the pot derive, were at any time comprised in a small dormant pension pot in respect of which a transfer notice was sent under small pots regulations, and</content></level><level class="para1" eId="section-23-3-c"><num>(c)</num><content>no response to that notice was received under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref>.</content></level></subsection><subsection eId="section-23-4"><num>(4)</num><content>A person prescribed under <ref href="#section-23-1">subsection (1)</ref> may be a body corporate established by or under the regulations.</content></subsection><subsection eId="section-23-5"><num>(5)</num><intro>Small pots regulations may, in compliance with <ref href="#section-23-1">subsection (1)</ref>—</intro><level class="para1" eId="section-23-5-a"><num>(a)</num><content>prescribe one person to make all of the proposals required to be made under <ref href="#section-23-1">that subsection</ref>, or</content></level><level class="para1" eId="section-23-5-b"><num>(b)</num><content>prescribe two or more persons in relation to different descriptions of those proposals.</content></level></subsection><subsection eId="section-23-6"><num>(6)</num><content>Small pots regulations must require a proposal made by virtue of subsection (1) to be notified to the trustees or managers of the auto-enrolment scheme that holds the pension pot to which the proposal relates (unless those trustees or managers are themselves the destination proposer).</content></subsection><subsection eId="section-23-7"><num>(7)</num><content>A person prescribed under <ref href="#section-23-1">subsection (1)</ref> is referred to in <ref href="#part-2-chapter-2">this Chapter</ref> as a “destination proposer”.</content></subsection></section><section eId="section-24"><num>24</num><heading>Transfer notices</heading><subsection eId="section-24-1"><num>(1)</num><content>Small pots regulations must require the trustees or managers of an auto-enrolment scheme to prepare a notice (“a transfer notice”) in respect of each small dormant pension pot held by the scheme that is not exempt and send it to the individual for whom the pot is held.</content></subsection><subsection eId="section-24-2"><num>(2)</num><content>Small pots regulations must require a transfer notice in respect of a pension pot to comply with the following provisions of this section.</content></subsection><subsection eId="section-24-3"><num>(3)</num><intro>The notice must—</intro><level class="para1" eId="section-24-3-a"><num>(a)</num><content>set out the default proposal in relation to the pot;</content></level><level class="para1" eId="section-24-3-b"><num>(b)</num><content>set out the alternative proposal or proposals in relation to the pot;</content></level><level class="para1" eId="section-24-3-c"><num>(c)</num><intro>state that, if the individual does not respond to the notice, the pot will—</intro><level class="para2" eId="section-24-3-c-i"><num>(i)</num><content>if the default proposal specifies that the pot be transferred to a consolidator scheme, be transferred to that scheme, and</content></level><level class="para2" eId="section-24-3-c-ii"><num>(ii)</num><content>if there is more than one arrangement under the consolidator scheme specified in the default proposal, be held subject to the arrangement so specified;</content></level></level><level class="para1" eId="section-24-3-d"><num>(d)</num><intro>invite the individual to consider whether they are content with the default proposal and, if not, to respond to the notice stating either—</intro><level class="para2" eId="section-24-3-d-i"><num>(i)</num><content>that they want to adopt one of the alternative proposals and if so which, or</content></level><level class="para2" eId="section-24-3-d-ii"><num>(ii)</num><content>that they do not want any action to be taken in relation to the pension pot.</content></level></level></subsection><subsection eId="section-24-4"><num>(4)</num><content>Where membership of a consolidator scheme or a consolidator arrangement specified in a proposal set out in a transfer notice entails being a party to a contract with the trustees or managers of the scheme, the notice must set out, or otherwise communicate, the terms of such a contract.</content></subsection><subsection eId="section-24-5"><num>(5)</num><intro>The notice must include such details as may be prescribed relating to—</intro><level class="para1" eId="section-24-5-a"><num>(a)</num><content>the pension pot,</content></level><level class="para1" eId="section-24-5-b"><num>(b)</num><content>the auto-enrolment scheme, and</content></level><level class="para1" eId="section-24-5-c"><num>(c)</num><content>the consolidator scheme or schemes, and any consolidator arrangements, specified in a proposal set out in the notice.</content></level></subsection></section><section eId="section-25"><num>25</num><heading>Exempt pots</heading><subsection eId="section-25-1"><num>(1)</num><intro>A small dormant pension pot is “exempt” if—</intro><level class="para1" eId="section-25-1-a"><num>(a)</num><content>prescribed conditions are met in relation to the pot, and</content></level><level class="para1" eId="section-25-1-b"><num>(b)</num><content>the trustees or managers of the scheme that holds it determine that it is in the best interests of the individual for whom the pot is held that it should not be transferred in accordance with small pots regulations.</content></level></subsection><subsection eId="section-25-2"><num>(2)</num><content>A determination in relation to an individual under <ref href="#section-25-1">subsection (1)</ref><ref href="#section-25-1-b">(b)</ref> may be made by reference to a class of individuals of which the individual in question is a member.</content></subsection><subsection eId="section-25-3"><num>(3)</num><content>Small pots regulations may include further provision about how determinations under <ref href="#section-25-1">subsection (1)</ref><ref href="#section-25-1-b">(b)</ref> are to be made.</content></subsection></section><section eId="section-26"><num>26</num><heading>Transfer etc of small dormant pension pots</heading><subsection eId="section-26-1"><num>(1)</num><content>Small pots regulations must require the trustees or managers of an auto-enrolment scheme, in relation to each small dormant pot held by the scheme in respect of which they have sent a transfer notice, to implement the proposals set out in the notice in accordance with this section.</content></subsection><subsection eId="section-26-2"><num>(2)</num><content>Subsection <ref href="#section-26-1">(1)</ref> does not apply to a pension pot if the trustees or managers have received a response under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref> in relation to it.</content></subsection><subsection eId="section-26-3"><num>(3)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-3-a"><num>(a)</num><content>the trustees or managers do not receive a response to the notice, and</content></level><level class="para1" eId="section-26-3-b"><num>(b)</num><content>the default proposal involves the transfer of the pot to a consolidator scheme,</content></level><wrapUp>the trustees or managers are required to transfer the pot to that scheme.</wrapUp></subsection><subsection eId="section-26-4"><num>(4)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-4-a"><num>(a)</num><content>the trustees or managers receive a response to the notice, and</content></level><level class="para1" eId="section-26-4-b"><num>(b)</num><content>the alternative option identified by the individual under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-i">(i)</ref> involves the transfer of the pot to a consolidator scheme,</content></level><wrapUp>the trustees or managers are required to transfer the pot to that scheme.</wrapUp></subsection><subsection eId="section-26-5"><num>(5)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-5-a"><num>(a)</num><content>the trustees or managers do not receive a response to the notice, and</content></level><level class="para1" eId="section-26-5-b"><num>(b)</num><content>the default proposal involves the pot being held by a consolidator scheme subject to an arrangement specified in the proposal,</content></level><wrapUp>the pot is required to be held subject to that arrangement.</wrapUp></subsection><subsection eId="section-26-6"><num>(6)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-6-a"><num>(a)</num><content>the trustees or managers receive a response to the notice, and</content></level><level class="para1" eId="section-26-6-b"><num>(b)</num><content>the alternative proposal identified by the individual under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-i">(i)</ref> involves the pot being held by an arrangement specified in the proposal,</content></level><wrapUp>the pot is required to be held subject to that arrangement.</wrapUp></subsection><subsection eId="section-26-7"><num>(7)</num><content>The trustees or managers may transfer a pension pot by virtue of <ref href="#section-26-3">subsection (3)</ref> or <ref href="#section-26-4">(4)</ref>, or change the arrangement subject to which a pension pot is held by virtue of <ref href="#section-26-5">subsection (5)</ref> or <ref href="#section-26-6">(6)</ref>, notwithstanding that it breaches a term of the scheme (such as a requirement for consent); and any such breach is to be disregarded for all purposes.</content></subsection></section><section eId="section-27"><num>27</num><heading>Effect of transfer on membership of scheme etc</heading><subsection eId="section-27-1"><num>(1)</num><content>Subsections <ref href="#section-27-2">(2)</ref> and <ref href="#section-27-3">(3)</ref> apply where a pension pot held for an individual is transferred by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref> to a different pension scheme (“<term refersTo="#term-the-receiving-scheme" eId="term-the-receiving-scheme">the receiving scheme</term>”).</content></subsection><subsection eId="section-27-2"><num>(2)</num><content>The individual becomes a member of the receiving scheme in relation to the pot, and acquires the rights, and becomes subject to the obligations, of membership.</content></subsection><subsection eId="section-27-3"><num>(3)</num><intro>Where membership of the receiving scheme in relation to the pot entails being a party to a contract with its trustees or managers, a contract is treated as entered into between the individual and the trustees or managers—</intro><level class="para1" eId="section-27-3-a"><num>(a)</num><content>at the time at which the pension pot is transferred to the receiving scheme, and</content></level><level class="para1" eId="section-27-3-b"><num>(b)</num><content>on the terms communicated to the individual by virtue of <ref href="#section-24">section 24</ref><ref href="#section-24-4">(4)</ref>.</content></level></subsection><subsection eId="section-27-4"><num>(4)</num><content>Subsections <ref href="#section-27-5">(5)</ref> and <ref href="#section-27-6">(6)</ref> apply where a pension pot is by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref> held subject to a different arrangement under the same pension scheme, or an arrangement under a different pension scheme.</content></subsection><subsection eId="section-27-5"><num>(5)</num><content>The individual becomes a member of the arrangement in relation to the pot, and acquires the rights, and becomes subject to the obligations, of membership.</content></subsection><subsection eId="section-27-6"><num>(6)</num><intro>Where membership of the arrangement in relation to the pot entails being a party to a contract with its trustees or managers of the pension scheme in question, a contract is treated as entered into between the individual and the trustees or managers—</intro><level class="para1" eId="section-27-6-a"><num>(a)</num><content>at the time at which the pension pot is first held subject to the arrangement, and</content></level><level class="para1" eId="section-27-6-b"><num>(b)</num><content>on the terms communicated to the individual by virtue of <ref href="#section-24">section 24</ref><ref href="#section-24-4">(4)</ref>.</content></level></subsection></section><section eId="section-28"><num>28</num><heading>Timing of transfers</heading><subsection eId="section-28-1"><num>(1)</num><content>Small pots regulations must prohibit the trustees or managers of an auto-enrolment scheme from transferring a pension pot by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref>, or changing the arrangement subject to which it is held by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref>, before the end of the required notice period.</content></subsection><subsection eId="section-28-2"><num>(2)</num><content>In <ref href="#section-28-1">subsection (1)</ref> “<term refersTo="#term-the-required-notice-period" eId="term-the-required-notice-period">the required notice period</term>”, in relation to a pension pot, means the period of 30 days, or such longer period as may be prescribed, beginning with the day on which the transfer notice in respect of the pot is sent.</content></subsection><subsection eId="section-28-3"><num>(3)</num><content>Small pots regulations must (subject to <ref href="#section-28-5">subsection (5)</ref>) require the trustees or managers of an auto-enrolment scheme to effect any transfer of a pension pot by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref>, and any change in the arrangement subject to which it is held by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref>, before the end of the required transfer period.</content></subsection><subsection eId="section-28-4"><num>(4)</num><intro>In subsection <ref href="#section-28-3">(3)</ref> “<term refersTo="#term-the-required-transfer-period" eId="term-the-required-transfer-period">the required transfer period</term>”, in relation to a pension pot, means the period of one year beginning with—</intro><level class="para1" eId="section-28-4-a"><num>(a)</num><content>the date on which the provision of the regulations under which the requirement is imposed comes into force, or</content></level><level class="para1" eId="section-28-4-b"><num>(b)</num><content>if later, the date on which the pension pot first becomes small and dormant.</content></level></subsection><subsection eId="section-28-5"><num>(5)</num><content>Small pots regulations may include provision extending the required transfer period until the end of a prescribed period beginning with the date on which the trustees or managers are notified of the proposals made by virtue of <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref> in respect of the pot.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-authorisation"><heading>Authorisation</heading><section eId="section-29"><num>29</num><heading>Authorisation of consolidator schemes etc by the Pensions Regulator</heading><subsection eId="section-29-1"><num>(1)</num><intro>Small pots regulations must permit the trustees or managers of an eligible Master Trust scheme to apply to the Pensions Regulator for authorisation of—</intro><level class="para1" eId="section-29-1-a"><num>(a)</num><content>the scheme, or</content></level><level class="para1" eId="section-29-1-b"><num>(b)</num><content>such arrangements under the scheme as are specified in the application.</content></level></subsection><subsection eId="section-29-2"><num>(2)</num><intro>Small pots regulations must require the Pensions Regulator to grant an application for authorisation where—</intro><level class="para1" eId="section-29-2-a"><num>(a)</num><content>the application is made in accordance with regulations made by virtue of <ref href="#section-29-1">subsection (1)</ref>, and</content></level><level class="para1" eId="section-29-2-b"><num>(b)</num><content>prescribed conditions are met.</content></level></subsection><subsection eId="section-29-3"><num>(3)</num><intro>Small pots regulations may permit or require the Pensions Regulator, where prescribed conditions are, or cease to be, met in relation to a consolidator scheme or arrangement—</intro><level class="para1" eId="section-29-3-a"><num>(a)</num><content>to require the trustees or managers to take prescribed steps;</content></level><level class="para1" eId="section-29-3-b"><num>(b)</num><content>to prohibit a destination proposer, in prescribed cases or in all cases, from specifying the scheme or arrangement in proposals under <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></level><level class="para1" eId="section-29-3-c"><num>(c)</num><content>to withdraw authorisation.</content></level></subsection><subsection eId="section-29-4"><num>(4)</num><intro>The conditions that may be prescribed under<ref href="#section-29-2">subsection (2)</ref><ref href="#section-29-2-b">(b)</ref> or <ref href="#section-29-3">(3)</ref> include conditions relating to—</intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content>the terms of the scheme,</content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content>the value of sums and assets held by the scheme for the purpose of providing money purchase benefits,</content></level><level class="para1" eId="section-29-4-c"><num>(c)</num><content>the fees charged by the scheme, or</content></level><level class="para1" eId="section-29-4-d"><num>(d)</num><content>a VFM rating assigned to the scheme or any arrangement under the scheme,</content></level><wrapUp>and include conditions that involve the exercise of a discretion by the Pensions Regulator.</wrapUp></subsection><subsection eId="section-29-5"><num>(5)</num><content>Small pots regulations may permit or require the Pensions Regulator, where it withdraws authorisation, to require the trustees or managers of the scheme in question to take prescribed steps in relation to relevant pension pots.</content></subsection><subsection eId="section-29-6"><num>(6)</num><content>The steps that may be required to be taken by virtue of <ref href="#section-29-5">subsection (5)</ref> include steps to limit the fees that may be charged.</content></subsection><subsection eId="section-29-7"><num>(7)</num><intro>For the purposes of <ref href="#section-29-5">subsection (5)</ref> a pension pot is “relevant” if—</intro><level class="para1" eId="section-29-7-a"><num>(a)</num><content>any of the sums or assets comprising the pot, or any sums or assets from which any of the sums or assets comprising the pot derive, were at any time comprised in a small dormant pension pot in respect of which a transfer notice was sent under small pots regulations, and</content></level><level class="para1" eId="section-29-7-b"><num>(b)</num><content>no response to that notice was received under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref>.</content></level></subsection><subsection eId="section-29-8"><num>(8)</num><content>For the purposes of this Chapter a Master Trust scheme is “eligible” if it is authorised under section 5 of the Pension Schemes Act 2017 (authorisation of Master Trust schemes).</content></subsection></section><section eId="section-30"><num>30</num><heading>Consolidator schemes and consolidator arrangements</heading><subsection eId="section-30-1"><num>(1)</num><intro>In this Chapter “<term refersTo="#term-consolidator-scheme" eId="term-consolidator-scheme">consolidator scheme</term>” means—</intro><level class="para1" eId="section-30-1-a"><num>(a)</num><intro>an eligible Master Trust scheme—</intro><level class="para2" eId="section-30-1-a-i"><num>(i)</num><content>that is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-a">(a)</ref>, or</content></level><level class="para2" eId="section-30-1-a-ii"><num>(ii)</num><content>any arrangement under which is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-b">(b)</ref>, or</content></level></level><level class="para1" eId="section-30-1-b"><num>(b)</num><content>an FCA-regulated pension scheme that is for the time being included on a list published by the FCA under <ref href="#d25e5535">section 137FBC</ref><ref href="#d25e5548">(2)</ref><ref href="#d25e5566">(b)</ref> of the Financial Services and Markets Act 2000.</content></level></subsection><subsection eId="section-30-2"><num>(2)</num><intro>In this Chapter “<term refersTo="#term-consolidator-arrangement" eId="term-consolidator-arrangement">consolidator arrangement</term>” means—</intro><level class="para1" eId="section-30-2-a"><num>(a)</num><intro>an arrangement under an eligible Master Trust scheme where—</intro><level class="para2" eId="section-30-2-a-i"><num>(i)</num><content>the scheme is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-a">(a)</ref>, or</content></level><level class="para2" eId="section-30-2-a-ii"><num>(ii)</num><content>the arrangement is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-b">(b)</ref>, or</content></level></level><level class="para1" eId="section-30-2-b"><num>(b)</num><content>an arrangement under an FCA-regulated pension scheme that is for the time being included on a list published by the FCA under <ref href="#d25e5535">section 137FBC</ref><ref href="#d25e5548">(2)</ref><ref href="#d25e5566">(b)</ref> of the Financial Services and Markets Act 2000.</content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-supplementary"><heading>Supplementary</heading><section eId="section-31"><num>31</num><heading>Further provision about contents of small pots regulations</heading><subsection eId="section-31-1"><num>(1)</num><intro>Small pots regulations may, in particular—</intro><level class="para1" eId="section-31-1-a"><num>(a)</num><content>authorise the Pensions Regulator to charge a prescribed fee in respect of an application for authorisation under the regulations;</content></level><level class="para1" eId="section-31-1-b"><num>(b)</num><content>confer a right of appeal to the First-tier Tribunal or the Upper Tribunal;</content></level><level class="para1" eId="section-31-1-c"><num>(c)</num><content>require the trustees or managers of a relevant pension scheme to take prescribed steps to improve the accuracy and completeness of information held by them;</content></level><level class="para1" eId="section-31-1-d"><num>(d)</num><intro>require a relevant person, other than the FCA, to provide prescribed information, in such form and at such time as may be prescribed, to—</intro><level class="para2" eId="section-31-1-d-i"><num>(i)</num><content>a relevant person, or</content></level><level class="para2" eId="section-31-1-d-ii"><num>(ii)</num><content>an individual for whom a relevant pension scheme holds a pension pot;</content></level></level><level class="para1" eId="section-31-1-e"><num>(e)</num><content>require the trustees or managers of a relevant pension scheme to keep, and retain for a prescribed period, prescribed records;</content></level><level class="para1" eId="section-31-1-f"><num>(f)</num><content>provide (otherwise than under paragraphs <ref href="#section-31-1-c">(c)</ref> to <ref href="#section-31-1-e">(e)</ref>) for the processing of information;</content></level><level class="para1" eId="section-31-1-g"><num>(g)</num><content>limit the fees that may be charged by a relevant pension scheme in connection with the transfer of a pension pot under the regulations;</content></level><level class="para1" eId="section-31-1-h"><num>(h)</num><content>require a destination proposer, the trustees or managers of a relevant pension scheme, or the Secretary of State, to pay compensation to an individual who has suffered a loss as a result of a breach of the regulations;</content></level><level class="para1" eId="section-31-1-i"><num>(i)</num><content>confer (otherwise than under any of paragraphs <ref href="#section-31-1-a">(a)</ref> to <ref href="#section-31-1-h">(h)</ref>) a function on a relevant person, including a function involving the exercise of a discretion;</content></level><level class="para1" eId="section-31-1-j"><num>(j)</num><content>provide for the delegation of a function conferred by the regulations.</content></level></subsection><subsection eId="section-31-2"><num>(2)</num><content>In <ref href="#section-31-1">subsection (1)</ref><ref href="#section-31-1-c">(c)</ref> to <ref href="#section-31-1-f">(f)</ref>, a reference to information includes personal data, and a reference to records includes records of personal data.</content></subsection><subsection eId="section-31-3"><num>(3)</num><intro>The processing of personal data in accordance with the regulations does not breach—</intro><level class="para1" eId="section-31-3-a"><num>(a)</num><content>any obligation of confidence owed by the person processing the personal data, or</content></level><level class="para1" eId="section-31-3-b"><num>(b)</num><content>any other restriction on the processing of personal data (however imposed).</content></level></subsection><subsection eId="section-31-4"><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-personal-data" eId="term-personal-data">personal data</term>” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-processing" eId="term-processing">processing</term>” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-pension-scheme" eId="term-relevant-pension-scheme">relevant pension scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>an auto-enrolment scheme, or</content></level><level class="para1"><num>(b)</num><content>a consolidator scheme;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-person" eId="term-relevant-person">relevant person</term>” means—</intro><level class="para1"><num>(a)</num><content>the Pensions Regulator,</content></level><level class="para1"><num>(b)</num><content>the FCA,</content></level><level class="para1"><num>(c)</num><content>a destination proposer, or</content></level><level class="para1"><num>(d)</num><content>the trustees or managers of a relevant pension scheme.</content></level></hcontainer></subsection><subsection eId="section-31-5"><num>(5)</num><content>The power to make small pots regulations is capable of being exercised so as to amend or repeal provision contained in an Act.</content></subsection><subsection eId="section-31-6"><num>(6)</num><intro>In particular, small pots regulations may—</intro><level class="para1" eId="section-31-6-a"><num>(a)</num><content>amend section 146 of the Pension Schemes Act 1993 (functions of the Pensions Ombudsman) so as to confer on the Pensions Ombudsman the function of investigating and determining complaints or disputes relating to a destination proposer;</content></level><level class="para1" eId="section-31-6-b"><num>(b)</num><intro>amend section 175 of that Act (levies towards certain expenditure) so as to include expenditure of—</intro><level class="para2" eId="section-31-6-b-i"><num>(i)</num><content>a destination proposer, or</content></level><level class="para2" eId="section-31-6-b-ii"><num>(ii)</num><content>the Secretary of State by virtue of section 31(1)(h) (compensation).</content></level></level></subsection></section><section eId="section-32"><num>32</num><heading>Enforcement by the Pensions Regulator</heading><subsection eId="section-32-1"><num>(1)</num><content>Small pots regulations may make provision with a view to ensuring the compliance of any person who is not FCA-regulated with any provision of the regulations.</content></subsection><subsection eId="section-32-2"><num>(2)</num><intro>The regulations may in particular—</intro><level class="para1" eId="section-32-2-a"><num>(a)</num><content>provide for the Pensions Regulator to issue a notice (a “<term refersTo="#term-compliance-notice" eId="term-compliance-notice">compliance notice</term>”) to a person with a view to ensuring the person's compliance with a provision of the regulations;</content></level><level class="para1" eId="section-32-2-b"><num>(b)</num><content>provide for the Pensions Regulator to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a provision of the regulations;</content></level><level class="para1" eId="section-32-2-c"><num>(c)</num><intro>provide for the Pensions Regulator to issue a notice (a “penalty notice”) imposing a penalty on a person where the person—</intro><level class="para2" eId="section-32-2-c-i"><num>(i)</num><content>has failed to comply with a compliance notice or third party compliance notice, or</content></level><level class="para2" eId="section-32-2-c-ii"><num>(ii)</num><content>has contravened a provision of the regulations;</content></level></level><level class="para1" eId="section-32-2-d"><num>(d)</num><content>provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level></subsection><subsection eId="section-32-3"><num>(3)</num><content>The regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention.</content></subsection><subsection eId="section-32-4"><num>(4)</num><intro>But the amount of a penalty imposed under the regulations in respect of a failure or contravention must not exceed—</intro><level class="para1" eId="section-32-4-a"><num>(a)</num><content>£10,000, in the case of an individual, and</content></level><level class="para1" eId="section-32-4-b"><num>(b)</num><content>£100,000, in any other case.</content></level></subsection><subsection eId="section-32-5"><num>(5)</num><content>Any penalty payable under the regulations is recoverable by the Regulator.</content></subsection><subsection eId="section-32-6"><num>(6)</num><content>In England and Wales, any such penalty is, if the county court so orders, recoverable under section 85 of the County Courts Act 1984 or otherwise as if it were payable under an order of that court.</content></subsection><subsection eId="section-32-7"><num>(7)</num><content>In Scotland, a penalty notice is enforceable as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom.</content></subsection><subsection eId="section-32-8"><num>(8)</num><content>The Regulator must pay into the Consolidated Fund any penalty recovered under this section.</content></subsection><subsection eId="section-32-9"><num>(9)</num><content>A reference in this section to a provision of small pots regulations includes a reference to a requirement or restriction imposed by the Pensions Regulator under the regulations.</content></subsection></section><section eId="section-33"><num>33</num><heading>Enforcement by the FCA</heading><subsection eId="section-33-1"><num>(1)</num><content>The Treasury may make regulations to enable the FCA to take action (in addition to any action it may otherwise take under the Financial Services and Markets Act 2000) for monitoring and enforcing compliance of an FCA-regulated person with any provision of small pots regulations.</content></subsection><subsection eId="section-33-2"><num>(2)</num><intro>The regulations may apply, or make provision corresponding to—</intro><level class="para1" eId="section-33-2-a"><num>(a)</num><content>provision contained in small pots regulations by virtue of <ref href="#section-32">section 32</ref>, or</content></level><level class="para1" eId="section-33-2-b"><num>(b)</num><content>any provision of the Financial Services and Markets Act 2000,</content></level><wrapUp>with or without modification.</wrapUp></subsection><subsection eId="section-33-3"><num>(3)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection><subsection eId="section-33-4"><num>(4)</num><content>For the purposes of this Chapter a person is “FCA-regulated” if they are an authorised person (within the meaning of the Financial Services and Markets Act 2000) in relation to the operation of a pension scheme.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-interpretation-etc"><heading>Interpretation etc</heading><section eId="section-34"><num>34</num><heading>Power to alter definition of “small”</heading><subsection eId="section-34-1"><num>(1)</num><content>The Secretary of State may by regulations amend <ref href="#section-22">section 22</ref><ref href="#section-22-2">(2)</ref> (definition of “<term refersTo="#term-small" eId="term-small">small</term>” in relation to a pension pot) so as to substitute a larger or smaller amount for the amount for the time being specified there.</content></subsection><subsection eId="section-34-2"><num>(2)</num><intro>Before making regulations under this section the Secretary of State must—</intro><level class="para1" eId="section-34-2-a"><num>(a)</num><content>consult such persons as the Secretary of State considers appropriate, and</content></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content>publish details of the proposed amendment, and the Secretary of State’s reasons for making the proposal, and consider any representations made.</content></level></subsection><subsection eId="section-34-3"><num>(3)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section><section eId="section-35"><num>35</num><heading>Crown application</heading><subsection eId="section-35-1"><num>(1)</num><content>This Chapter applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes.</content></subsection><subsection eId="section-35-2"><num>(2)</num><content>Accordingly, references in this Chapter to a person in their capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.</content></subsection><subsection eId="section-35-3"><num>(3)</num><content>This Chapter applies to persons employed by or under the Crown as it applies to persons employed by a private person.</content></subsection></section><section eId="section-36"><num>36</num><heading>Interpretation of Chapter</heading><subsection eId="section-36-1"><num>(1)</num><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-alternative-proposals" eId="term-the-alternative-proposals">the alternative proposals</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-auto-enrolment-scheme" eId="term-auto-enrolment-scheme">auto-enrolment scheme</term>” has the meaning given by <ref href="#section-36-5">subsection (5)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidator-arrangement" eId="term-consolidator-arrangement">consolidator arrangement</term>” has the meaning given by <ref href="#section-30">section 30</ref><ref href="#section-30-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidator-scheme" eId="term-consolidator-scheme">consolidator scheme</term>” has the meaning given by <ref href="#section-30">section 30</ref><ref href="#section-30-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-default-proposal" eId="term-the-default-proposal">the default proposal</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-destination-proposer" eId="term-destination-proposer">destination proposer</term>” has the meaning given by section 23<ref href="#section-23-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-dormant" eId="term-dormant">dormant</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-eligible" eId="term-eligible">eligible</term>”, in relation to a Master Trust scheme, has the meaning given by <ref href="#section-29">section 29</ref><ref href="#section-29-8">(8)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-exempt" eId="term-exempt">exempt</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-25">section 25</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-fca" eId="term-the-fca">the FCA</term>” means the Financial Conduct Authority;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given by <ref href="#d25e10834">subsection (2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a person, has the meaning given by <ref href="#section-33">section 33</ref><ref href="#section-33-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-functions" eId="term-functions">functions</term>” includes powers and duties;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-master-trust-scheme" eId="term-master-trust-scheme">Master Trust scheme</term>” has the same meaning as in the <ref eId="c00005" href="https://www.legislation.gov.uk/ukpga/2017/17/contents">Pension Schemes Act 2017</ref> (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the <ref eId="c00006" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (see section 181(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-pot" eId="term-pension-pot">pension pot</term>” has the meaning given by <ref href="#section-37">section 37</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme" eId="term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the <ref eId="c00007" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-prescribed" eId="term-prescribed">prescribed</term>” means specified in, or determined in accordance with, small pots regulations;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-proposal" eId="term-proposal">proposal</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-provider" eId="term-provider">provider</term>”, in relation to an FCA-regulated pension scheme, means the person mentioned in <ref href="#section-36-2">subsection (2)</ref><ref href="#section-36-2-b">(b)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-small" eId="term-small">small</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-small-pots-regulations" eId="term-small-pots-regulations">small pots regulations</term>” has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-terms" eId="term-terms">terms</term>”, in relation to a pension scheme, has the meaning given by <ref href="#section-36-3">subsection (3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer" eId="term-transfer">transfer</term>”, in relation to a pension pot, includes a transfer of an amount representing its value;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer-notice" eId="term-transfer-notice">transfer notice</term>” has the meaning given by <ref href="#section-24">section 24</ref><ref href="#section-24-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-trustees-or-managers" eId="term-trustees-or-managers">trustees or managers</term>”, in relation to a pension scheme, means (subject to <ref href="#section-36-4">subsection (4)</ref>)—</intro><level class="para1"><num>(a)</num><content>in the case of a scheme established under a trust, the trustees of the scheme, and</content></level><level class="para1"><num>(b)</num><content>in any other case, the persons responsible for the management of the scheme;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-rating" eId="term-vfm-rating">VFM rating</term>” has the same meaning as in <ref href="#part-2-chapter-1">Chapter 1</ref>.</content></hcontainer></subsection><subsection eId="section-36-2"><num>(2)</num><intro>A pension scheme is “FCA-regulated” if the operation of the scheme—</intro><level class="para1" eId="section-36-2-a"><num>(a)</num><content>is carried on in such a way as to be a regulated activity for the purposes of the Financial Services and Markets Act 2000, and</content></level><level class="para1" eId="section-36-2-b"><num>(b)</num><content>is carried on in the United Kingdom by a person who is in relation to that activity an authorised person under section 19 of that Act.</content></level></subsection><subsection eId="section-36-3"><num>(3)</num><intro>A reference in this Part to the terms of a pension scheme is to the terms of any instrument or agreement—</intro><level class="para1" eId="section-36-3-a"><num>(a)</num><content>in which the scheme is comprised, or</content></level><level class="para1" eId="section-36-3-b"><num>(b)</num><content>to which the provider of the scheme and any member are parties in connection with the scheme.</content></level></subsection><subsection eId="section-36-4"><num>(4)</num><content>A reference in this Chapter to the trustees or managers of a pension scheme is, where the scheme is FCA-regulated, a reference to the provider of the scheme.</content></subsection><subsection eId="section-36-5"><num>(5)</num><content>A pension scheme is an “auto-enrolment scheme” if any individual is or at any time was an active member of the scheme in consequence of arrangements under <ref eId="c00008" href="https://www.legislation.gov.uk/ukpga/2008/30/section/3">section 3</ref><ref eId="c00009" href="https://www.legislation.gov.uk/ukpga/2008/30/section/3">(2)</ref>, <ref eId="c00010" href="https://www.legislation.gov.uk/ukpga/2008/30/section/5">5</ref><ref eId="c00011" href="https://www.legislation.gov.uk/ukpga/2008/30/section/5">(2)</ref> or <ref eId="c00012" href="https://www.legislation.gov.uk/ukpga/2008/30/section/7">7</ref><ref eId="c00013" href="https://www.legislation.gov.uk/ukpga/2008/30/section/7">(3)</ref> of the <ref eId="c00014" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (arrangements for jobholder to become active member of automatic enrolment scheme).</content></subsection><subsection eId="section-36-6"><num>(6)</num><content>In <ref href="#section-36-5">subsection (5)</ref> “<term refersTo="#term-active-member" eId="term-active-member">active member</term>” has the same meaning as in <ref eId="c00015" href="https://www.legislation.gov.uk/ukpga/2008/30/part/1">Part 1</ref> of the <ref eId="c00016" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (see section 99 of that Act).</content></subsection></section><section eId="section-37"><num>37</num><heading>Meaning of “pension pot”</heading><subsection eId="section-37-1"><num>(1)</num><intro>In this Chapter, “<term refersTo="#term-pension-pot" eId="term-pension-pot">pension pot</term>” means sums or assets held for the purpose of providing money purchase benefits to or in respect of a member of a pension scheme; and—</intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content>a reference to the pension scheme that holds a pension pot is to that pension scheme;</content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content>a reference to the individual for whom a pension pot is held is to that member.</content></level></subsection><subsection eId="section-37-2"><num>(2)</num><intro>Where—</intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content>an individual is a member of an auto-enrolment scheme in relation to more than one employment, and</content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content>the sums or assets held by the scheme for the purpose of providing money purchase benefits to or in respect of the member in relation to those employments are accounted for separately by the scheme,</content></level><wrapUp>the sums or assets held in relation to each employment are regarded for the purposes of this Chapter as separate pension pots.</wrapUp></subsection><subsection eId="section-37-3"><num>(3)</num><content>In <ref href="#section-37-2">subsection (2)</ref> “<term refersTo="#term-employment" eId="term-employment">employment</term>” has the same meaning as in <ref eId="c00017" href="https://www.legislation.gov.uk/ukpga/2008/30/part/1">Part 1</ref> of the <ref eId="c00018" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (see section 99 of that Act).</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-amendments-of-other-acts"><heading>Amendments of other Acts</heading><section eId="section-38"><num>38</num><heading>Amendments of the Financial Services and Markets Act 2000</heading><subsection eId="section-38-1"><num>(1)</num><content>The Financial Services and Markets Act 2000 is amended as follows.</content></subsection><subsection eId="section-38-2"><num>(2)</num><content><mod>In section 1A (the Financial Conduct Authority), in subsection (6), after paragraph (czc) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(czd)</num><content><ref href="#part-2-chapter-2">Chapter 2</ref> of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026 (consolidation of small dormant pension pots);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-38-3"><num>(3)</num><content><mod>After section 137FBB insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e5535"><num>137FBC</num><heading>FCA general rules: regulation of consolidator pension schemes</heading><subsection eId="d25e5539"><num>(1)</num><content>The FCA may make general rules under which the provider of an FCA-regulated pension scheme is required to notify the FCA where it intends that the scheme should be a consolidator scheme, or an arrangement under the scheme should be a consolidator arrangement, for the purposes of <ref href="#part-2-chapter-2">Chapter 2</ref> of Part 2 of the Pension Schemes Act 2026.</content></subsection><subsection eId="d25e5548"><num>(2)</num><intro>If the FCA makes rules under <ref href="#d25e5539">subsection (1)</ref> it must—</intro><level class="para1" eId="d25e5557"><num>(a)</num><content>make general rules regulating pension schemes that have given (and not withdrawn) a notice of the kind mentioned in <ref href="#d25e5539">subsection (1)</ref>, and</content></level><level class="para1" eId="d25e5566"><num>(b)</num><content>publish and maintain a list of FCA-regulated pension schemes, and arrangements under such schemes, in accordance with subsections (3) and (4).</content></level></subsection><subsection><num>(3)</num><content>The list must, subject to subsection (4), include each FCA-regulated pension scheme, and each arrangement under an FCA-regulated scheme, in relation to which the FCA has received a notice by virtue of <ref href="#d25e5539">subsection (1)</ref>.</content></subsection><subsection><num>(4)</num><intro>The list must not include a scheme or arrangement if—</intro><level class="para1"><num>(a)</num><content>the notice in relation to it has been withdrawn by the provider of the scheme, or</content></level><level class="para1"><num>(b)</num><content>the FCA has determined that it is unlikely that rules made under <ref href="#d25e5539">subsection (1)</ref> or <ref href="#d25e5548">(2)</ref><ref href="#d25e5557">(a)</ref> will be complied with in relation to the scheme or arrangement within such period as the FCA considers reasonable.</content></level></subsection><subsection><num>(5)</num><content>In determining what provision to include in rules under <ref href="#d25e5548">subsection (2)</ref><ref href="#d25e5557">(a)</ref>, the FCA must have regard to any provision contained in small pots regulations by virtue of <ref href="#section-29">section 29</ref> of the Pension Schemes Act 2026 (authorisation of consolidator schemes etc by the Pensions Regulator).</content></subsection><subsection><num>(6)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given by <ref href="#d25e5660">subsection (7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the <ref eId="c00019" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-provider">provider</term>”, in relation to an FCA-regulated pension scheme, means the person referred to in <ref href="#d25e5660">subsection (7)</ref><ref href="#d25e5672">(b)</ref>.</content></hcontainer></subsection><subsection eId="d25e5660"><num>(7)</num><intro>A pension scheme is “FCA-regulated” if the operation of the scheme—</intro><level class="para1"><num>(a)</num><content>is a regulated activity, and</content></level><level class="para1" eId="d25e5672"><num>(b)</num><content>is carried on in the United Kingdom by an authorised person.</content></level></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-38-4"><num>(4)</num><intro>In section 204A (meaning of “<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” and “<term refersTo="#term-appropriate-regulator" eId="term-appropriate-regulator">appropriate regulator</term>”)—</intro><level class="para1" eId="section-38-4-a"><num>(a)</num><content><mod>in subsection (2), after paragraph (ab) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ac)</num><content>by small pots regulations within the meaning of <ref href="#part-2-chapter-2">Chapter 2</ref> of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026,</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-38-4-b"><num>(b)</num><content><mod>in subsection (6), after paragraph (ab) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ac)</num><content>by small pots regulations within the meaning of <ref href="#part-2-chapter-2">Chapter 2</ref> of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026;</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></level></subsection></section><section eId="section-39"><num>39</num><heading>Repeal of existing powers</heading><subsection eId="section-39-1"><num>(1)</num><intro>In the Pensions Act 2014, omit the following provisions (which contain powers that have not been brought into force to make provision for the automatic transfer of pension benefits etc)—</intro><level class="para1" eId="section-39-1-a"><num>(a)</num><content>section 33;</content></level><level class="para1" eId="section-39-1-b"><num>(b)</num><content>Schedule 17, except paragraph 15(1) (which contains interpretative provisions that apply for the purposes of Schedule 18 to that Act).</content></level></subsection><subsection eId="section-39-2"><num>(2)</num><content><mod>In Schedule 18 to that Act (power to restrict charges or impose requirements in relation to schemes), in paragraph 4 (interpretation), for sub-paragraph (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1)</num><content>The definitions in paragraph 15(1) of Schedule 17 apply for the purposes of this Schedule.</content></subparagraph></quotedStructure></mod></content></subsection><subsection eId="section-39-3"><num>(3)</num><content><mod>In consequence of <ref href="#section-39-1">subsection (1)</ref><ref href="#section-39-1-b">(b)</ref>, in section 256 of the Pensions Act 2004 (no indemnification for fines or civil penalties), in subsection (1)(b), for “that Act” substitute <quotedText>“the Pensions Act 2014”</quotedText>.</mod></content></subsection></section></hcontainer></chapter>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22"><num>22</num><heading>Small pots regulations</heading><subsection eId="section-22-1"><num>(1)</num><intro>The Secretary of State may make regulations (“<term refersTo="#term-small-pots-regulations" eId="term-small-pots-regulations">small pots regulations</term>”) for the purpose of securing that small dormant pension pots held by auto-enrolment schemes are—</intro><level class="para1" eId="section-22-1-a"><num>(a)</num><content>held by consolidator schemes, and</content></level><level class="para1" eId="section-22-1-b"><num>(b)</num><content>in the case of consolidator schemes that have more than one arrangement, held subject to consolidator arrangements.</content></level></subsection><subsection eId="section-22-2"><num>(2)</num><content>A pension pot is “small” if its value, determined as at such time and in such manner as is prescribed, is £1,000 or less (but is not nil).</content></subsection><subsection eId="section-22-3"><num>(3)</num><intro>A pension pot is “dormant” if—</intro><level class="para1" eId="section-22-3-a"><num>(a)</num><content>no contributions were paid into the pension pot by, or on behalf or in respect of, the individual for whom the pot is held during such period of at least 12 months as is prescribed, and</content></level><level class="para1" eId="section-22-3-b"><num>(b)</num><content>the individual has, subject to any prescribed exceptions, taken no step to confirm or alter the way in which the pension pot is invested.</content></level></subsection><subsection eId="section-22-4"><num>(4)</num><content>The period that may be prescribed under <ref href="#section-22-3">subsection (3)</ref><ref href="#section-22-3-a">(a)</ref> in relation to a pension pot in existence at the time the regulations come into force may begin at any time after the coming into force of this section.</content></subsection><subsection eId="section-22-5"><num>(5)</num><intro>Small pots regulations—</intro><level class="para1" eId="section-22-5-a"><num>(a)</num><intro>are subject to the affirmative procedure if they—</intro><level class="para2" eId="section-22-5-a-i"><num>(i)</num><content>are the first such regulations,</content></level><level class="para2" eId="section-22-5-a-ii"><num>(ii)</num><content>prescribe a person under <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref> (determination of destinations for small pots),</content></level><level class="para2" eId="section-22-5-a-iii"><num>(iii)</num><content>include provision under <ref href="#section-24">section 24</ref><ref href="#section-24-1">(1)</ref> or <ref href="#section-26">26</ref><ref href="#section-26-1">(1)</ref> (requirements to send transfer notices or transfer pension pots), or</content></level><level class="para2" eId="section-22-5-a-iv"><num>(iv)</num><content>amend or repeal provision contained in an Act;</content></level></level><level class="para1" eId="section-22-5-b"><num>(b)</num><content>otherwise, are subject to the negative procedure.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-1"><num>(1)</num><intro>The Secretary of State may make regulations (“<term refersTo="#term-small-pots-regulations" eId="term-small-pots-regulations">small pots regulations</term>”) for the purpose of securing that small dormant pension pots held by auto-enrolment schemes are—</intro><level class="para1" eId="section-22-1-a"><num>(a)</num><content>held by consolidator schemes, and</content></level><level class="para1" eId="section-22-1-b"><num>(b)</num><content>in the case of consolidator schemes that have more than one arrangement, held subject to consolidator arrangements.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-2"><num>(2)</num><content>A pension pot is “small” if its value, determined as at such time and in such manner as is prescribed, is £1,000 or less (but is not nil).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-3"><num>(3)</num><intro>A pension pot is “dormant” if—</intro><level class="para1" eId="section-22-3-a"><num>(a)</num><content>no contributions were paid into the pension pot by, or on behalf or in respect of, the individual for whom the pot is held during such period of at least 12 months as is prescribed, and</content></level><level class="para1" eId="section-22-3-b"><num>(b)</num><content>the individual has, subject to any prescribed exceptions, taken no step to confirm or alter the way in which the pension pot is invested.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-4"><num>(4)</num><content>The period that may be prescribed under <ref href="#section-22-3">subsection (3)</ref><ref href="#section-22-3-a">(a)</ref> in relation to a pension pot in existence at the time the regulations come into force may begin at any time after the coming into force of this section.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-5"><num>(5)</num><intro>Small pots regulations—</intro><level class="para1" eId="section-22-5-a"><num>(a)</num><intro>are subject to the affirmative procedure if they—</intro><level class="para2" eId="section-22-5-a-i"><num>(i)</num><content>are the first such regulations,</content></level><level class="para2" eId="section-22-5-a-ii"><num>(ii)</num><content>prescribe a person under <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref> (determination of destinations for small pots),</content></level><level class="para2" eId="section-22-5-a-iii"><num>(iii)</num><content>include provision under <ref href="#section-24">section 24</ref><ref href="#section-24-1">(1)</ref> or <ref href="#section-26">26</ref><ref href="#section-26-1">(1)</ref> (requirements to send transfer notices or transfer pension pots), or</content></level><level class="para2" eId="section-22-5-a-iv"><num>(iv)</num><content>amend or repeal provision contained in an Act;</content></level></level><level class="para1" eId="section-22-5-b"><num>(b)</num><content>otherwise, are subject to the negative procedure.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-5-a"><num>(a)</num><intro>are subject to the affirmative procedure if they—</intro><level class="para2" eId="section-22-5-a-i"><num>(i)</num><content>are the first such regulations,</content></level><level class="para2" eId="section-22-5-a-ii"><num>(ii)</num><content>prescribe a person under <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref> (determination of destinations for small pots),</content></level><level class="para2" eId="section-22-5-a-iii"><num>(iii)</num><content>include provision under <ref href="#section-24">section 24</ref><ref href="#section-24-1">(1)</ref> or <ref href="#section-26">26</ref><ref href="#section-26-1">(1)</ref> (requirements to send transfer notices or transfer pension pots), or</content></level><level class="para2" eId="section-22-5-a-iv"><num>(iv)</num><content>amend or repeal provision contained in an Act;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-5-b"><num>(b)</num><content>otherwise, are subject to the negative procedure.</content></level>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-transfers"><heading>Transfers</heading><section eId="section-23"><num>23</num><heading>Determination of destinations for small pots</heading><subsection eId="section-23-1"><num>(1)</num><intro>Small pots regulations must require a prescribed person to make, in relation to each small dormant pension pot held by an auto-enrolment scheme—</intro><level class="para1" eId="section-23-1-a"><num>(a)</num><content>a proposal in relation to the pot (“the default proposal”), and</content></level><level class="para1" eId="section-23-1-b"><num>(b)</num><content>one or more other proposals in relation to the pot (“the alternative proposals”).</content></level></subsection><subsection eId="section-23-2"><num>(2)</num><intro>For the purposes of this Chapter a “<term refersTo="#term-proposal" eId="term-proposal">proposal</term>”, in relation to a small dormant pension pot, means a proposal that—</intro><level class="para1" eId="section-23-2-a"><num>(a)</num><content>the pot should be held by a specified consolidator scheme, and</content></level><level class="para1" eId="section-23-2-b"><num>(b)</num><content>if there is more than one arrangement under that scheme, the pot should be held subject to a specified arrangement under the scheme.</content></level><wrapUp>In this subsection “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the proposal.</wrapUp></subsection><subsection eId="section-23-3"><num>(3)</num><intro><ref href="#section-23-1">Subsection (1)</ref> does not apply in relation to a small dormant pension pot if—</intro><level class="para1" eId="section-23-3-a"><num>(a)</num><content>the auto-enrolment scheme that holds the pot is itself a consolidator scheme,</content></level><level class="para1" eId="section-23-3-b"><num>(b)</num><content>any of the sums or assets comprising the pot, or any sums or assets from which any of the sums or assets comprising the pot derive, were at any time comprised in a small dormant pension pot in respect of which a transfer notice was sent under small pots regulations, and</content></level><level class="para1" eId="section-23-3-c"><num>(c)</num><content>no response to that notice was received under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref>.</content></level></subsection><subsection eId="section-23-4"><num>(4)</num><content>A person prescribed under <ref href="#section-23-1">subsection (1)</ref> may be a body corporate established by or under the regulations.</content></subsection><subsection eId="section-23-5"><num>(5)</num><intro>Small pots regulations may, in compliance with <ref href="#section-23-1">subsection (1)</ref>—</intro><level class="para1" eId="section-23-5-a"><num>(a)</num><content>prescribe one person to make all of the proposals required to be made under <ref href="#section-23-1">that subsection</ref>, or</content></level><level class="para1" eId="section-23-5-b"><num>(b)</num><content>prescribe two or more persons in relation to different descriptions of those proposals.</content></level></subsection><subsection eId="section-23-6"><num>(6)</num><content>Small pots regulations must require a proposal made by virtue of subsection (1) to be notified to the trustees or managers of the auto-enrolment scheme that holds the pension pot to which the proposal relates (unless those trustees or managers are themselves the destination proposer).</content></subsection><subsection eId="section-23-7"><num>(7)</num><content>A person prescribed under <ref href="#section-23-1">subsection (1)</ref> is referred to in <ref href="#part-2-chapter-2">this Chapter</ref> as a “destination proposer”.</content></subsection></section><section eId="section-24"><num>24</num><heading>Transfer notices</heading><subsection eId="section-24-1"><num>(1)</num><content>Small pots regulations must require the trustees or managers of an auto-enrolment scheme to prepare a notice (“a transfer notice”) in respect of each small dormant pension pot held by the scheme that is not exempt and send it to the individual for whom the pot is held.</content></subsection><subsection eId="section-24-2"><num>(2)</num><content>Small pots regulations must require a transfer notice in respect of a pension pot to comply with the following provisions of this section.</content></subsection><subsection eId="section-24-3"><num>(3)</num><intro>The notice must—</intro><level class="para1" eId="section-24-3-a"><num>(a)</num><content>set out the default proposal in relation to the pot;</content></level><level class="para1" eId="section-24-3-b"><num>(b)</num><content>set out the alternative proposal or proposals in relation to the pot;</content></level><level class="para1" eId="section-24-3-c"><num>(c)</num><intro>state that, if the individual does not respond to the notice, the pot will—</intro><level class="para2" eId="section-24-3-c-i"><num>(i)</num><content>if the default proposal specifies that the pot be transferred to a consolidator scheme, be transferred to that scheme, and</content></level><level class="para2" eId="section-24-3-c-ii"><num>(ii)</num><content>if there is more than one arrangement under the consolidator scheme specified in the default proposal, be held subject to the arrangement so specified;</content></level></level><level class="para1" eId="section-24-3-d"><num>(d)</num><intro>invite the individual to consider whether they are content with the default proposal and, if not, to respond to the notice stating either—</intro><level class="para2" eId="section-24-3-d-i"><num>(i)</num><content>that they want to adopt one of the alternative proposals and if so which, or</content></level><level class="para2" eId="section-24-3-d-ii"><num>(ii)</num><content>that they do not want any action to be taken in relation to the pension pot.</content></level></level></subsection><subsection eId="section-24-4"><num>(4)</num><content>Where membership of a consolidator scheme or a consolidator arrangement specified in a proposal set out in a transfer notice entails being a party to a contract with the trustees or managers of the scheme, the notice must set out, or otherwise communicate, the terms of such a contract.</content></subsection><subsection eId="section-24-5"><num>(5)</num><intro>The notice must include such details as may be prescribed relating to—</intro><level class="para1" eId="section-24-5-a"><num>(a)</num><content>the pension pot,</content></level><level class="para1" eId="section-24-5-b"><num>(b)</num><content>the auto-enrolment scheme, and</content></level><level class="para1" eId="section-24-5-c"><num>(c)</num><content>the consolidator scheme or schemes, and any consolidator arrangements, specified in a proposal set out in the notice.</content></level></subsection></section><section eId="section-25"><num>25</num><heading>Exempt pots</heading><subsection eId="section-25-1"><num>(1)</num><intro>A small dormant pension pot is “exempt” if—</intro><level class="para1" eId="section-25-1-a"><num>(a)</num><content>prescribed conditions are met in relation to the pot, and</content></level><level class="para1" eId="section-25-1-b"><num>(b)</num><content>the trustees or managers of the scheme that holds it determine that it is in the best interests of the individual for whom the pot is held that it should not be transferred in accordance with small pots regulations.</content></level></subsection><subsection eId="section-25-2"><num>(2)</num><content>A determination in relation to an individual under <ref href="#section-25-1">subsection (1)</ref><ref href="#section-25-1-b">(b)</ref> may be made by reference to a class of individuals of which the individual in question is a member.</content></subsection><subsection eId="section-25-3"><num>(3)</num><content>Small pots regulations may include further provision about how determinations under <ref href="#section-25-1">subsection (1)</ref><ref href="#section-25-1-b">(b)</ref> are to be made.</content></subsection></section><section eId="section-26"><num>26</num><heading>Transfer etc of small dormant pension pots</heading><subsection eId="section-26-1"><num>(1)</num><content>Small pots regulations must require the trustees or managers of an auto-enrolment scheme, in relation to each small dormant pot held by the scheme in respect of which they have sent a transfer notice, to implement the proposals set out in the notice in accordance with this section.</content></subsection><subsection eId="section-26-2"><num>(2)</num><content>Subsection <ref href="#section-26-1">(1)</ref> does not apply to a pension pot if the trustees or managers have received a response under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref> in relation to it.</content></subsection><subsection eId="section-26-3"><num>(3)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-3-a"><num>(a)</num><content>the trustees or managers do not receive a response to the notice, and</content></level><level class="para1" eId="section-26-3-b"><num>(b)</num><content>the default proposal involves the transfer of the pot to a consolidator scheme,</content></level><wrapUp>the trustees or managers are required to transfer the pot to that scheme.</wrapUp></subsection><subsection eId="section-26-4"><num>(4)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-4-a"><num>(a)</num><content>the trustees or managers receive a response to the notice, and</content></level><level class="para1" eId="section-26-4-b"><num>(b)</num><content>the alternative option identified by the individual under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-i">(i)</ref> involves the transfer of the pot to a consolidator scheme,</content></level><wrapUp>the trustees or managers are required to transfer the pot to that scheme.</wrapUp></subsection><subsection eId="section-26-5"><num>(5)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-5-a"><num>(a)</num><content>the trustees or managers do not receive a response to the notice, and</content></level><level class="para1" eId="section-26-5-b"><num>(b)</num><content>the default proposal involves the pot being held by a consolidator scheme subject to an arrangement specified in the proposal,</content></level><wrapUp>the pot is required to be held subject to that arrangement.</wrapUp></subsection><subsection eId="section-26-6"><num>(6)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-6-a"><num>(a)</num><content>the trustees or managers receive a response to the notice, and</content></level><level class="para1" eId="section-26-6-b"><num>(b)</num><content>the alternative proposal identified by the individual under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-i">(i)</ref> involves the pot being held by an arrangement specified in the proposal,</content></level><wrapUp>the pot is required to be held subject to that arrangement.</wrapUp></subsection><subsection eId="section-26-7"><num>(7)</num><content>The trustees or managers may transfer a pension pot by virtue of <ref href="#section-26-3">subsection (3)</ref> or <ref href="#section-26-4">(4)</ref>, or change the arrangement subject to which a pension pot is held by virtue of <ref href="#section-26-5">subsection (5)</ref> or <ref href="#section-26-6">(6)</ref>, notwithstanding that it breaches a term of the scheme (such as a requirement for consent); and any such breach is to be disregarded for all purposes.</content></subsection></section><section eId="section-27"><num>27</num><heading>Effect of transfer on membership of scheme etc</heading><subsection eId="section-27-1"><num>(1)</num><content>Subsections <ref href="#section-27-2">(2)</ref> and <ref href="#section-27-3">(3)</ref> apply where a pension pot held for an individual is transferred by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref> to a different pension scheme (“<term refersTo="#term-the-receiving-scheme" eId="term-the-receiving-scheme">the receiving scheme</term>”).</content></subsection><subsection eId="section-27-2"><num>(2)</num><content>The individual becomes a member of the receiving scheme in relation to the pot, and acquires the rights, and becomes subject to the obligations, of membership.</content></subsection><subsection eId="section-27-3"><num>(3)</num><intro>Where membership of the receiving scheme in relation to the pot entails being a party to a contract with its trustees or managers, a contract is treated as entered into between the individual and the trustees or managers—</intro><level class="para1" eId="section-27-3-a"><num>(a)</num><content>at the time at which the pension pot is transferred to the receiving scheme, and</content></level><level class="para1" eId="section-27-3-b"><num>(b)</num><content>on the terms communicated to the individual by virtue of <ref href="#section-24">section 24</ref><ref href="#section-24-4">(4)</ref>.</content></level></subsection><subsection eId="section-27-4"><num>(4)</num><content>Subsections <ref href="#section-27-5">(5)</ref> and <ref href="#section-27-6">(6)</ref> apply where a pension pot is by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref> held subject to a different arrangement under the same pension scheme, or an arrangement under a different pension scheme.</content></subsection><subsection eId="section-27-5"><num>(5)</num><content>The individual becomes a member of the arrangement in relation to the pot, and acquires the rights, and becomes subject to the obligations, of membership.</content></subsection><subsection eId="section-27-6"><num>(6)</num><intro>Where membership of the arrangement in relation to the pot entails being a party to a contract with its trustees or managers of the pension scheme in question, a contract is treated as entered into between the individual and the trustees or managers—</intro><level class="para1" eId="section-27-6-a"><num>(a)</num><content>at the time at which the pension pot is first held subject to the arrangement, and</content></level><level class="para1" eId="section-27-6-b"><num>(b)</num><content>on the terms communicated to the individual by virtue of <ref href="#section-24">section 24</ref><ref href="#section-24-4">(4)</ref>.</content></level></subsection></section><section eId="section-28"><num>28</num><heading>Timing of transfers</heading><subsection eId="section-28-1"><num>(1)</num><content>Small pots regulations must prohibit the trustees or managers of an auto-enrolment scheme from transferring a pension pot by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref>, or changing the arrangement subject to which it is held by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref>, before the end of the required notice period.</content></subsection><subsection eId="section-28-2"><num>(2)</num><content>In <ref href="#section-28-1">subsection (1)</ref> “<term refersTo="#term-the-required-notice-period" eId="term-the-required-notice-period">the required notice period</term>”, in relation to a pension pot, means the period of 30 days, or such longer period as may be prescribed, beginning with the day on which the transfer notice in respect of the pot is sent.</content></subsection><subsection eId="section-28-3"><num>(3)</num><content>Small pots regulations must (subject to <ref href="#section-28-5">subsection (5)</ref>) require the trustees or managers of an auto-enrolment scheme to effect any transfer of a pension pot by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref>, and any change in the arrangement subject to which it is held by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref>, before the end of the required transfer period.</content></subsection><subsection eId="section-28-4"><num>(4)</num><intro>In subsection <ref href="#section-28-3">(3)</ref> “<term refersTo="#term-the-required-transfer-period" eId="term-the-required-transfer-period">the required transfer period</term>”, in relation to a pension pot, means the period of one year beginning with—</intro><level class="para1" eId="section-28-4-a"><num>(a)</num><content>the date on which the provision of the regulations under which the requirement is imposed comes into force, or</content></level><level class="para1" eId="section-28-4-b"><num>(b)</num><content>if later, the date on which the pension pot first becomes small and dormant.</content></level></subsection><subsection eId="section-28-5"><num>(5)</num><content>Small pots regulations may include provision extending the required transfer period until the end of a prescribed period beginning with the date on which the trustees or managers are notified of the proposals made by virtue of <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref> in respect of the pot.</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23"><num>23</num><heading>Determination of destinations for small pots</heading><subsection eId="section-23-1"><num>(1)</num><intro>Small pots regulations must require a prescribed person to make, in relation to each small dormant pension pot held by an auto-enrolment scheme—</intro><level class="para1" eId="section-23-1-a"><num>(a)</num><content>a proposal in relation to the pot (“the default proposal”), and</content></level><level class="para1" eId="section-23-1-b"><num>(b)</num><content>one or more other proposals in relation to the pot (“the alternative proposals”).</content></level></subsection><subsection eId="section-23-2"><num>(2)</num><intro>For the purposes of this Chapter a “<term refersTo="#term-proposal" eId="term-proposal">proposal</term>”, in relation to a small dormant pension pot, means a proposal that—</intro><level class="para1" eId="section-23-2-a"><num>(a)</num><content>the pot should be held by a specified consolidator scheme, and</content></level><level class="para1" eId="section-23-2-b"><num>(b)</num><content>if there is more than one arrangement under that scheme, the pot should be held subject to a specified arrangement under the scheme.</content></level><wrapUp>In this subsection “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the proposal.</wrapUp></subsection><subsection eId="section-23-3"><num>(3)</num><intro><ref href="#section-23-1">Subsection (1)</ref> does not apply in relation to a small dormant pension pot if—</intro><level class="para1" eId="section-23-3-a"><num>(a)</num><content>the auto-enrolment scheme that holds the pot is itself a consolidator scheme,</content></level><level class="para1" eId="section-23-3-b"><num>(b)</num><content>any of the sums or assets comprising the pot, or any sums or assets from which any of the sums or assets comprising the pot derive, were at any time comprised in a small dormant pension pot in respect of which a transfer notice was sent under small pots regulations, and</content></level><level class="para1" eId="section-23-3-c"><num>(c)</num><content>no response to that notice was received under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref>.</content></level></subsection><subsection eId="section-23-4"><num>(4)</num><content>A person prescribed under <ref href="#section-23-1">subsection (1)</ref> may be a body corporate established by or under the regulations.</content></subsection><subsection eId="section-23-5"><num>(5)</num><intro>Small pots regulations may, in compliance with <ref href="#section-23-1">subsection (1)</ref>—</intro><level class="para1" eId="section-23-5-a"><num>(a)</num><content>prescribe one person to make all of the proposals required to be made under <ref href="#section-23-1">that subsection</ref>, or</content></level><level class="para1" eId="section-23-5-b"><num>(b)</num><content>prescribe two or more persons in relation to different descriptions of those proposals.</content></level></subsection><subsection eId="section-23-6"><num>(6)</num><content>Small pots regulations must require a proposal made by virtue of subsection (1) to be notified to the trustees or managers of the auto-enrolment scheme that holds the pension pot to which the proposal relates (unless those trustees or managers are themselves the destination proposer).</content></subsection><subsection eId="section-23-7"><num>(7)</num><content>A person prescribed under <ref href="#section-23-1">subsection (1)</ref> is referred to in <ref href="#part-2-chapter-2">this Chapter</ref> as a “destination proposer”.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-1"><num>(1)</num><intro>Small pots regulations must require a prescribed person to make, in relation to each small dormant pension pot held by an auto-enrolment scheme—</intro><level class="para1" eId="section-23-1-a"><num>(a)</num><content>a proposal in relation to the pot (“the default proposal”), and</content></level><level class="para1" eId="section-23-1-b"><num>(b)</num><content>one or more other proposals in relation to the pot (“the alternative proposals”).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-2"><num>(2)</num><intro>For the purposes of this Chapter a “<term refersTo="#term-proposal" eId="term-proposal">proposal</term>”, in relation to a small dormant pension pot, means a proposal that—</intro><level class="para1" eId="section-23-2-a"><num>(a)</num><content>the pot should be held by a specified consolidator scheme, and</content></level><level class="para1" eId="section-23-2-b"><num>(b)</num><content>if there is more than one arrangement under that scheme, the pot should be held subject to a specified arrangement under the scheme.</content></level><wrapUp>In this subsection “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the proposal.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-3"><num>(3)</num><intro><ref href="#section-23-1">Subsection (1)</ref> does not apply in relation to a small dormant pension pot if—</intro><level class="para1" eId="section-23-3-a"><num>(a)</num><content>the auto-enrolment scheme that holds the pot is itself a consolidator scheme,</content></level><level class="para1" eId="section-23-3-b"><num>(b)</num><content>any of the sums or assets comprising the pot, or any sums or assets from which any of the sums or assets comprising the pot derive, were at any time comprised in a small dormant pension pot in respect of which a transfer notice was sent under small pots regulations, and</content></level><level class="para1" eId="section-23-3-c"><num>(c)</num><content>no response to that notice was received under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-4"><num>(4)</num><content>A person prescribed under <ref href="#section-23-1">subsection (1)</ref> may be a body corporate established by or under the regulations.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-5"><num>(5)</num><intro>Small pots regulations may, in compliance with <ref href="#section-23-1">subsection (1)</ref>—</intro><level class="para1" eId="section-23-5-a"><num>(a)</num><content>prescribe one person to make all of the proposals required to be made under <ref href="#section-23-1">that subsection</ref>, or</content></level><level class="para1" eId="section-23-5-b"><num>(b)</num><content>prescribe two or more persons in relation to different descriptions of those proposals.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-6"><num>(6)</num><content>Small pots regulations must require a proposal made by virtue of subsection (1) to be notified to the trustees or managers of the auto-enrolment scheme that holds the pension pot to which the proposal relates (unless those trustees or managers are themselves the destination proposer).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-7"><num>(7)</num><content>A person prescribed under <ref href="#section-23-1">subsection (1)</ref> is referred to in <ref href="#part-2-chapter-2">this Chapter</ref> as a “destination proposer”.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-24"><num>24</num><heading>Transfer notices</heading><subsection eId="section-24-1"><num>(1)</num><content>Small pots regulations must require the trustees or managers of an auto-enrolment scheme to prepare a notice (“a transfer notice”) in respect of each small dormant pension pot held by the scheme that is not exempt and send it to the individual for whom the pot is held.</content></subsection><subsection eId="section-24-2"><num>(2)</num><content>Small pots regulations must require a transfer notice in respect of a pension pot to comply with the following provisions of this section.</content></subsection><subsection eId="section-24-3"><num>(3)</num><intro>The notice must—</intro><level class="para1" eId="section-24-3-a"><num>(a)</num><content>set out the default proposal in relation to the pot;</content></level><level class="para1" eId="section-24-3-b"><num>(b)</num><content>set out the alternative proposal or proposals in relation to the pot;</content></level><level class="para1" eId="section-24-3-c"><num>(c)</num><intro>state that, if the individual does not respond to the notice, the pot will—</intro><level class="para2" eId="section-24-3-c-i"><num>(i)</num><content>if the default proposal specifies that the pot be transferred to a consolidator scheme, be transferred to that scheme, and</content></level><level class="para2" eId="section-24-3-c-ii"><num>(ii)</num><content>if there is more than one arrangement under the consolidator scheme specified in the default proposal, be held subject to the arrangement so specified;</content></level></level><level class="para1" eId="section-24-3-d"><num>(d)</num><intro>invite the individual to consider whether they are content with the default proposal and, if not, to respond to the notice stating either—</intro><level class="para2" eId="section-24-3-d-i"><num>(i)</num><content>that they want to adopt one of the alternative proposals and if so which, or</content></level><level class="para2" eId="section-24-3-d-ii"><num>(ii)</num><content>that they do not want any action to be taken in relation to the pension pot.</content></level></level></subsection><subsection eId="section-24-4"><num>(4)</num><content>Where membership of a consolidator scheme or a consolidator arrangement specified in a proposal set out in a transfer notice entails being a party to a contract with the trustees or managers of the scheme, the notice must set out, or otherwise communicate, the terms of such a contract.</content></subsection><subsection eId="section-24-5"><num>(5)</num><intro>The notice must include such details as may be prescribed relating to—</intro><level class="para1" eId="section-24-5-a"><num>(a)</num><content>the pension pot,</content></level><level class="para1" eId="section-24-5-b"><num>(b)</num><content>the auto-enrolment scheme, and</content></level><level class="para1" eId="section-24-5-c"><num>(c)</num><content>the consolidator scheme or schemes, and any consolidator arrangements, specified in a proposal set out in the notice.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-24-1"><num>(1)</num><content>Small pots regulations must require the trustees or managers of an auto-enrolment scheme to prepare a notice (“a transfer notice”) in respect of each small dormant pension pot held by the scheme that is not exempt and send it to the individual for whom the pot is held.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-24-2"><num>(2)</num><content>Small pots regulations must require a transfer notice in respect of a pension pot to comply with the following provisions of this section.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-24-3"><num>(3)</num><intro>The notice must—</intro><level class="para1" eId="section-24-3-a"><num>(a)</num><content>set out the default proposal in relation to the pot;</content></level><level class="para1" eId="section-24-3-b"><num>(b)</num><content>set out the alternative proposal or proposals in relation to the pot;</content></level><level class="para1" eId="section-24-3-c"><num>(c)</num><intro>state that, if the individual does not respond to the notice, the pot will—</intro><level class="para2" eId="section-24-3-c-i"><num>(i)</num><content>if the default proposal specifies that the pot be transferred to a consolidator scheme, be transferred to that scheme, and</content></level><level class="para2" eId="section-24-3-c-ii"><num>(ii)</num><content>if there is more than one arrangement under the consolidator scheme specified in the default proposal, be held subject to the arrangement so specified;</content></level></level><level class="para1" eId="section-24-3-d"><num>(d)</num><intro>invite the individual to consider whether they are content with the default proposal and, if not, to respond to the notice stating either—</intro><level class="para2" eId="section-24-3-d-i"><num>(i)</num><content>that they want to adopt one of the alternative proposals and if so which, or</content></level><level class="para2" eId="section-24-3-d-ii"><num>(ii)</num><content>that they do not want any action to be taken in relation to the pension pot.</content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-24-3-a"><num>(a)</num><content>set out the default proposal in relation to the pot;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-24-3-b"><num>(b)</num><content>set out the alternative proposal or proposals in relation to the pot;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-24-3-c"><num>(c)</num><intro>state that, if the individual does not respond to the notice, the pot will—</intro><level class="para2" eId="section-24-3-c-i"><num>(i)</num><content>if the default proposal specifies that the pot be transferred to a consolidator scheme, be transferred to that scheme, and</content></level><level class="para2" eId="section-24-3-c-ii"><num>(ii)</num><content>if there is more than one arrangement under the consolidator scheme specified in the default proposal, be held subject to the arrangement so specified;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-24-3-d"><num>(d)</num><intro>invite the individual to consider whether they are content with the default proposal and, if not, to respond to the notice stating either—</intro><level class="para2" eId="section-24-3-d-i"><num>(i)</num><content>that they want to adopt one of the alternative proposals and if so which, or</content></level><level class="para2" eId="section-24-3-d-ii"><num>(ii)</num><content>that they do not want any action to be taken in relation to the pension pot.</content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-24-4"><num>(4)</num><content>Where membership of a consolidator scheme or a consolidator arrangement specified in a proposal set out in a transfer notice entails being a party to a contract with the trustees or managers of the scheme, the notice must set out, or otherwise communicate, the terms of such a contract.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-24-5"><num>(5)</num><intro>The notice must include such details as may be prescribed relating to—</intro><level class="para1" eId="section-24-5-a"><num>(a)</num><content>the pension pot,</content></level><level class="para1" eId="section-24-5-b"><num>(b)</num><content>the auto-enrolment scheme, and</content></level><level class="para1" eId="section-24-5-c"><num>(c)</num><content>the consolidator scheme or schemes, and any consolidator arrangements, specified in a proposal set out in the notice.</content></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-25"><num>25</num><heading>Exempt pots</heading><subsection eId="section-25-1"><num>(1)</num><intro>A small dormant pension pot is “exempt” if—</intro><level class="para1" eId="section-25-1-a"><num>(a)</num><content>prescribed conditions are met in relation to the pot, and</content></level><level class="para1" eId="section-25-1-b"><num>(b)</num><content>the trustees or managers of the scheme that holds it determine that it is in the best interests of the individual for whom the pot is held that it should not be transferred in accordance with small pots regulations.</content></level></subsection><subsection eId="section-25-2"><num>(2)</num><content>A determination in relation to an individual under <ref href="#section-25-1">subsection (1)</ref><ref href="#section-25-1-b">(b)</ref> may be made by reference to a class of individuals of which the individual in question is a member.</content></subsection><subsection eId="section-25-3"><num>(3)</num><content>Small pots regulations may include further provision about how determinations under <ref href="#section-25-1">subsection (1)</ref><ref href="#section-25-1-b">(b)</ref> are to be made.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-25-1"><num>(1)</num><intro>A small dormant pension pot is “exempt” if—</intro><level class="para1" eId="section-25-1-a"><num>(a)</num><content>prescribed conditions are met in relation to the pot, and</content></level><level class="para1" eId="section-25-1-b"><num>(b)</num><content>the trustees or managers of the scheme that holds it determine that it is in the best interests of the individual for whom the pot is held that it should not be transferred in accordance with small pots regulations.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-25-2"><num>(2)</num><content>A determination in relation to an individual under <ref href="#section-25-1">subsection (1)</ref><ref href="#section-25-1-b">(b)</ref> may be made by reference to a class of individuals of which the individual in question is a member.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-25-3"><num>(3)</num><content>Small pots regulations may include further provision about how determinations under <ref href="#section-25-1">subsection (1)</ref><ref href="#section-25-1-b">(b)</ref> are to be made.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26"><num>26</num><heading>Transfer etc of small dormant pension pots</heading><subsection eId="section-26-1"><num>(1)</num><content>Small pots regulations must require the trustees or managers of an auto-enrolment scheme, in relation to each small dormant pot held by the scheme in respect of which they have sent a transfer notice, to implement the proposals set out in the notice in accordance with this section.</content></subsection><subsection eId="section-26-2"><num>(2)</num><content>Subsection <ref href="#section-26-1">(1)</ref> does not apply to a pension pot if the trustees or managers have received a response under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref> in relation to it.</content></subsection><subsection eId="section-26-3"><num>(3)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-3-a"><num>(a)</num><content>the trustees or managers do not receive a response to the notice, and</content></level><level class="para1" eId="section-26-3-b"><num>(b)</num><content>the default proposal involves the transfer of the pot to a consolidator scheme,</content></level><wrapUp>the trustees or managers are required to transfer the pot to that scheme.</wrapUp></subsection><subsection eId="section-26-4"><num>(4)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-4-a"><num>(a)</num><content>the trustees or managers receive a response to the notice, and</content></level><level class="para1" eId="section-26-4-b"><num>(b)</num><content>the alternative option identified by the individual under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-i">(i)</ref> involves the transfer of the pot to a consolidator scheme,</content></level><wrapUp>the trustees or managers are required to transfer the pot to that scheme.</wrapUp></subsection><subsection eId="section-26-5"><num>(5)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-5-a"><num>(a)</num><content>the trustees or managers do not receive a response to the notice, and</content></level><level class="para1" eId="section-26-5-b"><num>(b)</num><content>the default proposal involves the pot being held by a consolidator scheme subject to an arrangement specified in the proposal,</content></level><wrapUp>the pot is required to be held subject to that arrangement.</wrapUp></subsection><subsection eId="section-26-6"><num>(6)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-6-a"><num>(a)</num><content>the trustees or managers receive a response to the notice, and</content></level><level class="para1" eId="section-26-6-b"><num>(b)</num><content>the alternative proposal identified by the individual under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-i">(i)</ref> involves the pot being held by an arrangement specified in the proposal,</content></level><wrapUp>the pot is required to be held subject to that arrangement.</wrapUp></subsection><subsection eId="section-26-7"><num>(7)</num><content>The trustees or managers may transfer a pension pot by virtue of <ref href="#section-26-3">subsection (3)</ref> or <ref href="#section-26-4">(4)</ref>, or change the arrangement subject to which a pension pot is held by virtue of <ref href="#section-26-5">subsection (5)</ref> or <ref href="#section-26-6">(6)</ref>, notwithstanding that it breaches a term of the scheme (such as a requirement for consent); and any such breach is to be disregarded for all purposes.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-1"><num>(1)</num><content>Small pots regulations must require the trustees or managers of an auto-enrolment scheme, in relation to each small dormant pot held by the scheme in respect of which they have sent a transfer notice, to implement the proposals set out in the notice in accordance with this section.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-2"><num>(2)</num><content>Subsection <ref href="#section-26-1">(1)</ref> does not apply to a pension pot if the trustees or managers have received a response under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref> in relation to it.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-3"><num>(3)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-3-a"><num>(a)</num><content>the trustees or managers do not receive a response to the notice, and</content></level><level class="para1" eId="section-26-3-b"><num>(b)</num><content>the default proposal involves the transfer of the pot to a consolidator scheme,</content></level><wrapUp>the trustees or managers are required to transfer the pot to that scheme.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-4"><num>(4)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-4-a"><num>(a)</num><content>the trustees or managers receive a response to the notice, and</content></level><level class="para1" eId="section-26-4-b"><num>(b)</num><content>the alternative option identified by the individual under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-i">(i)</ref> involves the transfer of the pot to a consolidator scheme,</content></level><wrapUp>the trustees or managers are required to transfer the pot to that scheme.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-5"><num>(5)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-5-a"><num>(a)</num><content>the trustees or managers do not receive a response to the notice, and</content></level><level class="para1" eId="section-26-5-b"><num>(b)</num><content>the default proposal involves the pot being held by a consolidator scheme subject to an arrangement specified in the proposal,</content></level><wrapUp>the pot is required to be held subject to that arrangement.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-6"><num>(6)</num><intro>Small pots regulations must secure that if—</intro><level class="para1" eId="section-26-6-a"><num>(a)</num><content>the trustees or managers receive a response to the notice, and</content></level><level class="para1" eId="section-26-6-b"><num>(b)</num><content>the alternative proposal identified by the individual under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-i">(i)</ref> involves the pot being held by an arrangement specified in the proposal,</content></level><wrapUp>the pot is required to be held subject to that arrangement.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-7"><num>(7)</num><content>The trustees or managers may transfer a pension pot by virtue of <ref href="#section-26-3">subsection (3)</ref> or <ref href="#section-26-4">(4)</ref>, or change the arrangement subject to which a pension pot is held by virtue of <ref href="#section-26-5">subsection (5)</ref> or <ref href="#section-26-6">(6)</ref>, notwithstanding that it breaches a term of the scheme (such as a requirement for consent); and any such breach is to be disregarded for all purposes.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27"><num>27</num><heading>Effect of transfer on membership of scheme etc</heading><subsection eId="section-27-1"><num>(1)</num><content>Subsections <ref href="#section-27-2">(2)</ref> and <ref href="#section-27-3">(3)</ref> apply where a pension pot held for an individual is transferred by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref> to a different pension scheme (“<term refersTo="#term-the-receiving-scheme" eId="term-the-receiving-scheme">the receiving scheme</term>”).</content></subsection><subsection eId="section-27-2"><num>(2)</num><content>The individual becomes a member of the receiving scheme in relation to the pot, and acquires the rights, and becomes subject to the obligations, of membership.</content></subsection><subsection eId="section-27-3"><num>(3)</num><intro>Where membership of the receiving scheme in relation to the pot entails being a party to a contract with its trustees or managers, a contract is treated as entered into between the individual and the trustees or managers—</intro><level class="para1" eId="section-27-3-a"><num>(a)</num><content>at the time at which the pension pot is transferred to the receiving scheme, and</content></level><level class="para1" eId="section-27-3-b"><num>(b)</num><content>on the terms communicated to the individual by virtue of <ref href="#section-24">section 24</ref><ref href="#section-24-4">(4)</ref>.</content></level></subsection><subsection eId="section-27-4"><num>(4)</num><content>Subsections <ref href="#section-27-5">(5)</ref> and <ref href="#section-27-6">(6)</ref> apply where a pension pot is by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref> held subject to a different arrangement under the same pension scheme, or an arrangement under a different pension scheme.</content></subsection><subsection eId="section-27-5"><num>(5)</num><content>The individual becomes a member of the arrangement in relation to the pot, and acquires the rights, and becomes subject to the obligations, of membership.</content></subsection><subsection eId="section-27-6"><num>(6)</num><intro>Where membership of the arrangement in relation to the pot entails being a party to a contract with its trustees or managers of the pension scheme in question, a contract is treated as entered into between the individual and the trustees or managers—</intro><level class="para1" eId="section-27-6-a"><num>(a)</num><content>at the time at which the pension pot is first held subject to the arrangement, and</content></level><level class="para1" eId="section-27-6-b"><num>(b)</num><content>on the terms communicated to the individual by virtue of <ref href="#section-24">section 24</ref><ref href="#section-24-4">(4)</ref>.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-1"><num>(1)</num><content>Subsections <ref href="#section-27-2">(2)</ref> and <ref href="#section-27-3">(3)</ref> apply where a pension pot held for an individual is transferred by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref> to a different pension scheme (“<term refersTo="#term-the-receiving-scheme" eId="term-the-receiving-scheme">the receiving scheme</term>”).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-2"><num>(2)</num><content>The individual becomes a member of the receiving scheme in relation to the pot, and acquires the rights, and becomes subject to the obligations, of membership.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-3"><num>(3)</num><intro>Where membership of the receiving scheme in relation to the pot entails being a party to a contract with its trustees or managers, a contract is treated as entered into between the individual and the trustees or managers—</intro><level class="para1" eId="section-27-3-a"><num>(a)</num><content>at the time at which the pension pot is transferred to the receiving scheme, and</content></level><level class="para1" eId="section-27-3-b"><num>(b)</num><content>on the terms communicated to the individual by virtue of <ref href="#section-24">section 24</ref><ref href="#section-24-4">(4)</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-4"><num>(4)</num><content>Subsections <ref href="#section-27-5">(5)</ref> and <ref href="#section-27-6">(6)</ref> apply where a pension pot is by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref> held subject to a different arrangement under the same pension scheme, or an arrangement under a different pension scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-5"><num>(5)</num><content>The individual becomes a member of the arrangement in relation to the pot, and acquires the rights, and becomes subject to the obligations, of membership.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-6"><num>(6)</num><intro>Where membership of the arrangement in relation to the pot entails being a party to a contract with its trustees or managers of the pension scheme in question, a contract is treated as entered into between the individual and the trustees or managers—</intro><level class="para1" eId="section-27-6-a"><num>(a)</num><content>at the time at which the pension pot is first held subject to the arrangement, and</content></level><level class="para1" eId="section-27-6-b"><num>(b)</num><content>on the terms communicated to the individual by virtue of <ref href="#section-24">section 24</ref><ref href="#section-24-4">(4)</ref>.</content></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28"><num>28</num><heading>Timing of transfers</heading><subsection eId="section-28-1"><num>(1)</num><content>Small pots regulations must prohibit the trustees or managers of an auto-enrolment scheme from transferring a pension pot by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref>, or changing the arrangement subject to which it is held by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref>, before the end of the required notice period.</content></subsection><subsection eId="section-28-2"><num>(2)</num><content>In <ref href="#section-28-1">subsection (1)</ref> “<term refersTo="#term-the-required-notice-period" eId="term-the-required-notice-period">the required notice period</term>”, in relation to a pension pot, means the period of 30 days, or such longer period as may be prescribed, beginning with the day on which the transfer notice in respect of the pot is sent.</content></subsection><subsection eId="section-28-3"><num>(3)</num><content>Small pots regulations must (subject to <ref href="#section-28-5">subsection (5)</ref>) require the trustees or managers of an auto-enrolment scheme to effect any transfer of a pension pot by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref>, and any change in the arrangement subject to which it is held by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref>, before the end of the required transfer period.</content></subsection><subsection eId="section-28-4"><num>(4)</num><intro>In subsection <ref href="#section-28-3">(3)</ref> “<term refersTo="#term-the-required-transfer-period" eId="term-the-required-transfer-period">the required transfer period</term>”, in relation to a pension pot, means the period of one year beginning with—</intro><level class="para1" eId="section-28-4-a"><num>(a)</num><content>the date on which the provision of the regulations under which the requirement is imposed comes into force, or</content></level><level class="para1" eId="section-28-4-b"><num>(b)</num><content>if later, the date on which the pension pot first becomes small and dormant.</content></level></subsection><subsection eId="section-28-5"><num>(5)</num><content>Small pots regulations may include provision extending the required transfer period until the end of a prescribed period beginning with the date on which the trustees or managers are notified of the proposals made by virtue of <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref> in respect of the pot.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-1"><num>(1)</num><content>Small pots regulations must prohibit the trustees or managers of an auto-enrolment scheme from transferring a pension pot by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref>, or changing the arrangement subject to which it is held by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref>, before the end of the required notice period.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-2"><num>(2)</num><content>In <ref href="#section-28-1">subsection (1)</ref> “<term refersTo="#term-the-required-notice-period" eId="term-the-required-notice-period">the required notice period</term>”, in relation to a pension pot, means the period of 30 days, or such longer period as may be prescribed, beginning with the day on which the transfer notice in respect of the pot is sent.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-3"><num>(3)</num><content>Small pots regulations must (subject to <ref href="#section-28-5">subsection (5)</ref>) require the trustees or managers of an auto-enrolment scheme to effect any transfer of a pension pot by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-3">(3)</ref> or <ref href="#section-26-4">(4)</ref>, and any change in the arrangement subject to which it is held by virtue of <ref href="#section-26">section 26</ref><ref href="#section-26-5">(5)</ref> or <ref href="#section-26-6">(6)</ref>, before the end of the required transfer period.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-4"><num>(4)</num><intro>In subsection <ref href="#section-28-3">(3)</ref> “<term refersTo="#term-the-required-transfer-period" eId="term-the-required-transfer-period">the required transfer period</term>”, in relation to a pension pot, means the period of one year beginning with—</intro><level class="para1" eId="section-28-4-a"><num>(a)</num><content>the date on which the provision of the regulations under which the requirement is imposed comes into force, or</content></level><level class="para1" eId="section-28-4-b"><num>(b)</num><content>if later, the date on which the pension pot first becomes small and dormant.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-5"><num>(5)</num><content>Small pots regulations may include provision extending the required transfer period until the end of a prescribed period beginning with the date on which the trustees or managers are notified of the proposals made by virtue of <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref> in respect of the pot.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29"><num>29</num><heading>Authorisation of consolidator schemes etc by the Pensions Regulator</heading><subsection eId="section-29-1"><num>(1)</num><intro>Small pots regulations must permit the trustees or managers of an eligible Master Trust scheme to apply to the Pensions Regulator for authorisation of—</intro><level class="para1" eId="section-29-1-a"><num>(a)</num><content>the scheme, or</content></level><level class="para1" eId="section-29-1-b"><num>(b)</num><content>such arrangements under the scheme as are specified in the application.</content></level></subsection><subsection eId="section-29-2"><num>(2)</num><intro>Small pots regulations must require the Pensions Regulator to grant an application for authorisation where—</intro><level class="para1" eId="section-29-2-a"><num>(a)</num><content>the application is made in accordance with regulations made by virtue of <ref href="#section-29-1">subsection (1)</ref>, and</content></level><level class="para1" eId="section-29-2-b"><num>(b)</num><content>prescribed conditions are met.</content></level></subsection><subsection eId="section-29-3"><num>(3)</num><intro>Small pots regulations may permit or require the Pensions Regulator, where prescribed conditions are, or cease to be, met in relation to a consolidator scheme or arrangement—</intro><level class="para1" eId="section-29-3-a"><num>(a)</num><content>to require the trustees or managers to take prescribed steps;</content></level><level class="para1" eId="section-29-3-b"><num>(b)</num><content>to prohibit a destination proposer, in prescribed cases or in all cases, from specifying the scheme or arrangement in proposals under <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></level><level class="para1" eId="section-29-3-c"><num>(c)</num><content>to withdraw authorisation.</content></level></subsection><subsection eId="section-29-4"><num>(4)</num><intro>The conditions that may be prescribed under<ref href="#section-29-2">subsection (2)</ref><ref href="#section-29-2-b">(b)</ref> or <ref href="#section-29-3">(3)</ref> include conditions relating to—</intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content>the terms of the scheme,</content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content>the value of sums and assets held by the scheme for the purpose of providing money purchase benefits,</content></level><level class="para1" eId="section-29-4-c"><num>(c)</num><content>the fees charged by the scheme, or</content></level><level class="para1" eId="section-29-4-d"><num>(d)</num><content>a VFM rating assigned to the scheme or any arrangement under the scheme,</content></level><wrapUp>and include conditions that involve the exercise of a discretion by the Pensions Regulator.</wrapUp></subsection><subsection eId="section-29-5"><num>(5)</num><content>Small pots regulations may permit or require the Pensions Regulator, where it withdraws authorisation, to require the trustees or managers of the scheme in question to take prescribed steps in relation to relevant pension pots.</content></subsection><subsection eId="section-29-6"><num>(6)</num><content>The steps that may be required to be taken by virtue of <ref href="#section-29-5">subsection (5)</ref> include steps to limit the fees that may be charged.</content></subsection><subsection eId="section-29-7"><num>(7)</num><intro>For the purposes of <ref href="#section-29-5">subsection (5)</ref> a pension pot is “relevant” if—</intro><level class="para1" eId="section-29-7-a"><num>(a)</num><content>any of the sums or assets comprising the pot, or any sums or assets from which any of the sums or assets comprising the pot derive, were at any time comprised in a small dormant pension pot in respect of which a transfer notice was sent under small pots regulations, and</content></level><level class="para1" eId="section-29-7-b"><num>(b)</num><content>no response to that notice was received under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref>.</content></level></subsection><subsection eId="section-29-8"><num>(8)</num><content>For the purposes of this Chapter a Master Trust scheme is “eligible” if it is authorised under section 5 of the Pension Schemes Act 2017 (authorisation of Master Trust schemes).</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-1"><num>(1)</num><intro>Small pots regulations must permit the trustees or managers of an eligible Master Trust scheme to apply to the Pensions Regulator for authorisation of—</intro><level class="para1" eId="section-29-1-a"><num>(a)</num><content>the scheme, or</content></level><level class="para1" eId="section-29-1-b"><num>(b)</num><content>such arrangements under the scheme as are specified in the application.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-2"><num>(2)</num><intro>Small pots regulations must require the Pensions Regulator to grant an application for authorisation where—</intro><level class="para1" eId="section-29-2-a"><num>(a)</num><content>the application is made in accordance with regulations made by virtue of <ref href="#section-29-1">subsection (1)</ref>, and</content></level><level class="para1" eId="section-29-2-b"><num>(b)</num><content>prescribed conditions are met.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-3"><num>(3)</num><intro>Small pots regulations may permit or require the Pensions Regulator, where prescribed conditions are, or cease to be, met in relation to a consolidator scheme or arrangement—</intro><level class="para1" eId="section-29-3-a"><num>(a)</num><content>to require the trustees or managers to take prescribed steps;</content></level><level class="para1" eId="section-29-3-b"><num>(b)</num><content>to prohibit a destination proposer, in prescribed cases or in all cases, from specifying the scheme or arrangement in proposals under <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></level><level class="para1" eId="section-29-3-c"><num>(c)</num><content>to withdraw authorisation.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-4"><num>(4)</num><intro>The conditions that may be prescribed under<ref href="#section-29-2">subsection (2)</ref><ref href="#section-29-2-b">(b)</ref> or <ref href="#section-29-3">(3)</ref> include conditions relating to—</intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content>the terms of the scheme,</content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content>the value of sums and assets held by the scheme for the purpose of providing money purchase benefits,</content></level><level class="para1" eId="section-29-4-c"><num>(c)</num><content>the fees charged by the scheme, or</content></level><level class="para1" eId="section-29-4-d"><num>(d)</num><content>a VFM rating assigned to the scheme or any arrangement under the scheme,</content></level><wrapUp>and include conditions that involve the exercise of a discretion by the Pensions Regulator.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-5"><num>(5)</num><content>Small pots regulations may permit or require the Pensions Regulator, where it withdraws authorisation, to require the trustees or managers of the scheme in question to take prescribed steps in relation to relevant pension pots.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-6"><num>(6)</num><content>The steps that may be required to be taken by virtue of <ref href="#section-29-5">subsection (5)</ref> include steps to limit the fees that may be charged.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-7"><num>(7)</num><intro>For the purposes of <ref href="#section-29-5">subsection (5)</ref> a pension pot is “relevant” if—</intro><level class="para1" eId="section-29-7-a"><num>(a)</num><content>any of the sums or assets comprising the pot, or any sums or assets from which any of the sums or assets comprising the pot derive, were at any time comprised in a small dormant pension pot in respect of which a transfer notice was sent under small pots regulations, and</content></level><level class="para1" eId="section-29-7-b"><num>(b)</num><content>no response to that notice was received under <ref href="#section-24">section 24</ref><ref href="#section-24-3">(3)</ref><ref href="#section-24-3-d">(d)</ref><ref href="#section-24-3-d-ii">(ii)</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-8"><num>(8)</num><content>For the purposes of this Chapter a Master Trust scheme is “eligible” if it is authorised under section 5 of the Pension Schemes Act 2017 (authorisation of Master Trust schemes).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-30"><num>30</num><heading>Consolidator schemes and consolidator arrangements</heading><subsection eId="section-30-1"><num>(1)</num><intro>In this Chapter “<term refersTo="#term-consolidator-scheme" eId="term-consolidator-scheme">consolidator scheme</term>” means—</intro><level class="para1" eId="section-30-1-a"><num>(a)</num><intro>an eligible Master Trust scheme—</intro><level class="para2" eId="section-30-1-a-i"><num>(i)</num><content>that is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-a">(a)</ref>, or</content></level><level class="para2" eId="section-30-1-a-ii"><num>(ii)</num><content>any arrangement under which is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-b">(b)</ref>, or</content></level></level><level class="para1" eId="section-30-1-b"><num>(b)</num><content>an FCA-regulated pension scheme that is for the time being included on a list published by the FCA under <ref href="#d25e5535">section 137FBC</ref><ref href="#d25e5548">(2)</ref><ref href="#d25e5566">(b)</ref> of the Financial Services and Markets Act 2000.</content></level></subsection><subsection eId="section-30-2"><num>(2)</num><intro>In this Chapter “<term refersTo="#term-consolidator-arrangement" eId="term-consolidator-arrangement">consolidator arrangement</term>” means—</intro><level class="para1" eId="section-30-2-a"><num>(a)</num><intro>an arrangement under an eligible Master Trust scheme where—</intro><level class="para2" eId="section-30-2-a-i"><num>(i)</num><content>the scheme is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-a">(a)</ref>, or</content></level><level class="para2" eId="section-30-2-a-ii"><num>(ii)</num><content>the arrangement is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-b">(b)</ref>, or</content></level></level><level class="para1" eId="section-30-2-b"><num>(b)</num><content>an arrangement under an FCA-regulated pension scheme that is for the time being included on a list published by the FCA under <ref href="#d25e5535">section 137FBC</ref><ref href="#d25e5548">(2)</ref><ref href="#d25e5566">(b)</ref> of the Financial Services and Markets Act 2000.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-30-1"><num>(1)</num><intro>In this Chapter “<term refersTo="#term-consolidator-scheme" eId="term-consolidator-scheme">consolidator scheme</term>” means—</intro><level class="para1" eId="section-30-1-a"><num>(a)</num><intro>an eligible Master Trust scheme—</intro><level class="para2" eId="section-30-1-a-i"><num>(i)</num><content>that is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-a">(a)</ref>, or</content></level><level class="para2" eId="section-30-1-a-ii"><num>(ii)</num><content>any arrangement under which is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-b">(b)</ref>, or</content></level></level><level class="para1" eId="section-30-1-b"><num>(b)</num><content>an FCA-regulated pension scheme that is for the time being included on a list published by the FCA under <ref href="#d25e5535">section 137FBC</ref><ref href="#d25e5548">(2)</ref><ref href="#d25e5566">(b)</ref> of the Financial Services and Markets Act 2000.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-30-1-a"><num>(a)</num><intro>an eligible Master Trust scheme—</intro><level class="para2" eId="section-30-1-a-i"><num>(i)</num><content>that is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-a">(a)</ref>, or</content></level><level class="para2" eId="section-30-1-a-ii"><num>(ii)</num><content>any arrangement under which is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-b">(b)</ref>, or</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-30-1-b"><num>(b)</num><content>an FCA-regulated pension scheme that is for the time being included on a list published by the FCA under <ref href="#d25e5535">section 137FBC</ref><ref href="#d25e5548">(2)</ref><ref href="#d25e5566">(b)</ref> of the Financial Services and Markets Act 2000.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-30-2"><num>(2)</num><intro>In this Chapter “<term refersTo="#term-consolidator-arrangement" eId="term-consolidator-arrangement">consolidator arrangement</term>” means—</intro><level class="para1" eId="section-30-2-a"><num>(a)</num><intro>an arrangement under an eligible Master Trust scheme where—</intro><level class="para2" eId="section-30-2-a-i"><num>(i)</num><content>the scheme is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-a">(a)</ref>, or</content></level><level class="para2" eId="section-30-2-a-ii"><num>(ii)</num><content>the arrangement is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-b">(b)</ref>, or</content></level></level><level class="para1" eId="section-30-2-b"><num>(b)</num><content>an arrangement under an FCA-regulated pension scheme that is for the time being included on a list published by the FCA under <ref href="#d25e5535">section 137FBC</ref><ref href="#d25e5548">(2)</ref><ref href="#d25e5566">(b)</ref> of the Financial Services and Markets Act 2000.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-30-2-a"><num>(a)</num><intro>an arrangement under an eligible Master Trust scheme where—</intro><level class="para2" eId="section-30-2-a-i"><num>(i)</num><content>the scheme is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-a">(a)</ref>, or</content></level><level class="para2" eId="section-30-2-a-ii"><num>(ii)</num><content>the arrangement is for the time being authorised by virtue of <ref href="#section-29">section 29</ref><ref href="#section-29-1">(1)</ref><ref href="#section-29-1-b">(b)</ref>, or</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-30-2-b"><num>(b)</num><content>an arrangement under an FCA-regulated pension scheme that is for the time being included on a list published by the FCA under <ref href="#d25e5535">section 137FBC</ref><ref href="#d25e5548">(2)</ref><ref href="#d25e5566">(b)</ref> of the Financial Services and Markets Act 2000.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31"><num>31</num><heading>Further provision about contents of small pots regulations</heading><subsection eId="section-31-1"><num>(1)</num><intro>Small pots regulations may, in particular—</intro><level class="para1" eId="section-31-1-a"><num>(a)</num><content>authorise the Pensions Regulator to charge a prescribed fee in respect of an application for authorisation under the regulations;</content></level><level class="para1" eId="section-31-1-b"><num>(b)</num><content>confer a right of appeal to the First-tier Tribunal or the Upper Tribunal;</content></level><level class="para1" eId="section-31-1-c"><num>(c)</num><content>require the trustees or managers of a relevant pension scheme to take prescribed steps to improve the accuracy and completeness of information held by them;</content></level><level class="para1" eId="section-31-1-d"><num>(d)</num><intro>require a relevant person, other than the FCA, to provide prescribed information, in such form and at such time as may be prescribed, to—</intro><level class="para2" eId="section-31-1-d-i"><num>(i)</num><content>a relevant person, or</content></level><level class="para2" eId="section-31-1-d-ii"><num>(ii)</num><content>an individual for whom a relevant pension scheme holds a pension pot;</content></level></level><level class="para1" eId="section-31-1-e"><num>(e)</num><content>require the trustees or managers of a relevant pension scheme to keep, and retain for a prescribed period, prescribed records;</content></level><level class="para1" eId="section-31-1-f"><num>(f)</num><content>provide (otherwise than under paragraphs <ref href="#section-31-1-c">(c)</ref> to <ref href="#section-31-1-e">(e)</ref>) for the processing of information;</content></level><level class="para1" eId="section-31-1-g"><num>(g)</num><content>limit the fees that may be charged by a relevant pension scheme in connection with the transfer of a pension pot under the regulations;</content></level><level class="para1" eId="section-31-1-h"><num>(h)</num><content>require a destination proposer, the trustees or managers of a relevant pension scheme, or the Secretary of State, to pay compensation to an individual who has suffered a loss as a result of a breach of the regulations;</content></level><level class="para1" eId="section-31-1-i"><num>(i)</num><content>confer (otherwise than under any of paragraphs <ref href="#section-31-1-a">(a)</ref> to <ref href="#section-31-1-h">(h)</ref>) a function on a relevant person, including a function involving the exercise of a discretion;</content></level><level class="para1" eId="section-31-1-j"><num>(j)</num><content>provide for the delegation of a function conferred by the regulations.</content></level></subsection><subsection eId="section-31-2"><num>(2)</num><content>In <ref href="#section-31-1">subsection (1)</ref><ref href="#section-31-1-c">(c)</ref> to <ref href="#section-31-1-f">(f)</ref>, a reference to information includes personal data, and a reference to records includes records of personal data.</content></subsection><subsection eId="section-31-3"><num>(3)</num><intro>The processing of personal data in accordance with the regulations does not breach—</intro><level class="para1" eId="section-31-3-a"><num>(a)</num><content>any obligation of confidence owed by the person processing the personal data, or</content></level><level class="para1" eId="section-31-3-b"><num>(b)</num><content>any other restriction on the processing of personal data (however imposed).</content></level></subsection><subsection eId="section-31-4"><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-personal-data" eId="term-personal-data">personal data</term>” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-processing" eId="term-processing">processing</term>” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-pension-scheme" eId="term-relevant-pension-scheme">relevant pension scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>an auto-enrolment scheme, or</content></level><level class="para1"><num>(b)</num><content>a consolidator scheme;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-person" eId="term-relevant-person">relevant person</term>” means—</intro><level class="para1"><num>(a)</num><content>the Pensions Regulator,</content></level><level class="para1"><num>(b)</num><content>the FCA,</content></level><level class="para1"><num>(c)</num><content>a destination proposer, or</content></level><level class="para1"><num>(d)</num><content>the trustees or managers of a relevant pension scheme.</content></level></hcontainer></subsection><subsection eId="section-31-5"><num>(5)</num><content>The power to make small pots regulations is capable of being exercised so as to amend or repeal provision contained in an Act.</content></subsection><subsection eId="section-31-6"><num>(6)</num><intro>In particular, small pots regulations may—</intro><level class="para1" eId="section-31-6-a"><num>(a)</num><content>amend section 146 of the Pension Schemes Act 1993 (functions of the Pensions Ombudsman) so as to confer on the Pensions Ombudsman the function of investigating and determining complaints or disputes relating to a destination proposer;</content></level><level class="para1" eId="section-31-6-b"><num>(b)</num><intro>amend section 175 of that Act (levies towards certain expenditure) so as to include expenditure of—</intro><level class="para2" eId="section-31-6-b-i"><num>(i)</num><content>a destination proposer, or</content></level><level class="para2" eId="section-31-6-b-ii"><num>(ii)</num><content>the Secretary of State by virtue of section 31(1)(h) (compensation).</content></level></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31-1"><num>(1)</num><intro>Small pots regulations may, in particular—</intro><level class="para1" eId="section-31-1-a"><num>(a)</num><content>authorise the Pensions Regulator to charge a prescribed fee in respect of an application for authorisation under the regulations;</content></level><level class="para1" eId="section-31-1-b"><num>(b)</num><content>confer a right of appeal to the First-tier Tribunal or the Upper Tribunal;</content></level><level class="para1" eId="section-31-1-c"><num>(c)</num><content>require the trustees or managers of a relevant pension scheme to take prescribed steps to improve the accuracy and completeness of information held by them;</content></level><level class="para1" eId="section-31-1-d"><num>(d)</num><intro>require a relevant person, other than the FCA, to provide prescribed information, in such form and at such time as may be prescribed, to—</intro><level class="para2" eId="section-31-1-d-i"><num>(i)</num><content>a relevant person, or</content></level><level class="para2" eId="section-31-1-d-ii"><num>(ii)</num><content>an individual for whom a relevant pension scheme holds a pension pot;</content></level></level><level class="para1" eId="section-31-1-e"><num>(e)</num><content>require the trustees or managers of a relevant pension scheme to keep, and retain for a prescribed period, prescribed records;</content></level><level class="para1" eId="section-31-1-f"><num>(f)</num><content>provide (otherwise than under paragraphs <ref href="#section-31-1-c">(c)</ref> to <ref href="#section-31-1-e">(e)</ref>) for the processing of information;</content></level><level class="para1" eId="section-31-1-g"><num>(g)</num><content>limit the fees that may be charged by a relevant pension scheme in connection with the transfer of a pension pot under the regulations;</content></level><level class="para1" eId="section-31-1-h"><num>(h)</num><content>require a destination proposer, the trustees or managers of a relevant pension scheme, or the Secretary of State, to pay compensation to an individual who has suffered a loss as a result of a breach of the regulations;</content></level><level class="para1" eId="section-31-1-i"><num>(i)</num><content>confer (otherwise than under any of paragraphs <ref href="#section-31-1-a">(a)</ref> to <ref href="#section-31-1-h">(h)</ref>) a function on a relevant person, including a function involving the exercise of a discretion;</content></level><level class="para1" eId="section-31-1-j"><num>(j)</num><content>provide for the delegation of a function conferred by the regulations.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-31-1-a"><num>(a)</num><content>authorise the Pensions Regulator to charge a prescribed fee in respect of an application for authorisation under the regulations;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-31-1-b"><num>(b)</num><content>confer a right of appeal to the First-tier Tribunal or the Upper Tribunal;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-31-1-c"><num>(c)</num><content>require the trustees or managers of a relevant pension scheme to take prescribed steps to improve the accuracy and completeness of information held by them;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-31-1-d"><num>(d)</num><intro>require a relevant person, other than the FCA, to provide prescribed information, in such form and at such time as may be prescribed, to—</intro><level class="para2" eId="section-31-1-d-i"><num>(i)</num><content>a relevant person, or</content></level><level class="para2" eId="section-31-1-d-ii"><num>(ii)</num><content>an individual for whom a relevant pension scheme holds a pension pot;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-31-1-e"><num>(e)</num><content>require the trustees or managers of a relevant pension scheme to keep, and retain for a prescribed period, prescribed records;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-31-1-f"><num>(f)</num><content>provide (otherwise than under paragraphs <ref href="#section-31-1-c">(c)</ref> to <ref href="#section-31-1-e">(e)</ref>) for the processing of information;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-31-1-g"><num>(g)</num><content>limit the fees that may be charged by a relevant pension scheme in connection with the transfer of a pension pot under the regulations;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-31-1-h"><num>(h)</num><content>require a destination proposer, the trustees or managers of a relevant pension scheme, or the Secretary of State, to pay compensation to an individual who has suffered a loss as a result of a breach of the regulations;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-31-1-i"><num>(i)</num><content>confer (otherwise than under any of paragraphs <ref href="#section-31-1-a">(a)</ref> to <ref href="#section-31-1-h">(h)</ref>) a function on a relevant person, including a function involving the exercise of a discretion;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-31-1-j"><num>(j)</num><content>provide for the delegation of a function conferred by the regulations.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31-2"><num>(2)</num><content>In <ref href="#section-31-1">subsection (1)</ref><ref href="#section-31-1-c">(c)</ref> to <ref href="#section-31-1-f">(f)</ref>, a reference to information includes personal data, and a reference to records includes records of personal data.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31-3"><num>(3)</num><intro>The processing of personal data in accordance with the regulations does not breach—</intro><level class="para1" eId="section-31-3-a"><num>(a)</num><content>any obligation of confidence owed by the person processing the personal data, or</content></level><level class="para1" eId="section-31-3-b"><num>(b)</num><content>any other restriction on the processing of personal data (however imposed).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31-4"><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-personal-data" eId="term-personal-data">personal data</term>” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-processing" eId="term-processing">processing</term>” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-pension-scheme" eId="term-relevant-pension-scheme">relevant pension scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>an auto-enrolment scheme, or</content></level><level class="para1"><num>(b)</num><content>a consolidator scheme;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-person" eId="term-relevant-person">relevant person</term>” means—</intro><level class="para1"><num>(a)</num><content>the Pensions Regulator,</content></level><level class="para1"><num>(b)</num><content>the FCA,</content></level><level class="para1"><num>(c)</num><content>a destination proposer, or</content></level><level class="para1"><num>(d)</num><content>the trustees or managers of a relevant pension scheme.</content></level></hcontainer></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31-5"><num>(5)</num><content>The power to make small pots regulations is capable of being exercised so as to amend or repeal provision contained in an Act.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31-6"><num>(6)</num><intro>In particular, small pots regulations may—</intro><level class="para1" eId="section-31-6-a"><num>(a)</num><content>amend section 146 of the Pension Schemes Act 1993 (functions of the Pensions Ombudsman) so as to confer on the Pensions Ombudsman the function of investigating and determining complaints or disputes relating to a destination proposer;</content></level><level class="para1" eId="section-31-6-b"><num>(b)</num><intro>amend section 175 of that Act (levies towards certain expenditure) so as to include expenditure of—</intro><level class="para2" eId="section-31-6-b-i"><num>(i)</num><content>a destination proposer, or</content></level><level class="para2" eId="section-31-6-b-ii"><num>(ii)</num><content>the Secretary of State by virtue of section 31(1)(h) (compensation).</content></level></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32"><num>32</num><heading>Enforcement by the Pensions Regulator</heading><subsection eId="section-32-1"><num>(1)</num><content>Small pots regulations may make provision with a view to ensuring the compliance of any person who is not FCA-regulated with any provision of the regulations.</content></subsection><subsection eId="section-32-2"><num>(2)</num><intro>The regulations may in particular—</intro><level class="para1" eId="section-32-2-a"><num>(a)</num><content>provide for the Pensions Regulator to issue a notice (a “<term refersTo="#term-compliance-notice" eId="term-compliance-notice">compliance notice</term>”) to a person with a view to ensuring the person's compliance with a provision of the regulations;</content></level><level class="para1" eId="section-32-2-b"><num>(b)</num><content>provide for the Pensions Regulator to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a provision of the regulations;</content></level><level class="para1" eId="section-32-2-c"><num>(c)</num><intro>provide for the Pensions Regulator to issue a notice (a “penalty notice”) imposing a penalty on a person where the person—</intro><level class="para2" eId="section-32-2-c-i"><num>(i)</num><content>has failed to comply with a compliance notice or third party compliance notice, or</content></level><level class="para2" eId="section-32-2-c-ii"><num>(ii)</num><content>has contravened a provision of the regulations;</content></level></level><level class="para1" eId="section-32-2-d"><num>(d)</num><content>provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level></subsection><subsection eId="section-32-3"><num>(3)</num><content>The regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention.</content></subsection><subsection eId="section-32-4"><num>(4)</num><intro>But the amount of a penalty imposed under the regulations in respect of a failure or contravention must not exceed—</intro><level class="para1" eId="section-32-4-a"><num>(a)</num><content>£10,000, in the case of an individual, and</content></level><level class="para1" eId="section-32-4-b"><num>(b)</num><content>£100,000, in any other case.</content></level></subsection><subsection eId="section-32-5"><num>(5)</num><content>Any penalty payable under the regulations is recoverable by the Regulator.</content></subsection><subsection eId="section-32-6"><num>(6)</num><content>In England and Wales, any such penalty is, if the county court so orders, recoverable under section 85 of the County Courts Act 1984 or otherwise as if it were payable under an order of that court.</content></subsection><subsection eId="section-32-7"><num>(7)</num><content>In Scotland, a penalty notice is enforceable as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom.</content></subsection><subsection eId="section-32-8"><num>(8)</num><content>The Regulator must pay into the Consolidated Fund any penalty recovered under this section.</content></subsection><subsection eId="section-32-9"><num>(9)</num><content>A reference in this section to a provision of small pots regulations includes a reference to a requirement or restriction imposed by the Pensions Regulator under the regulations.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-1"><num>(1)</num><content>Small pots regulations may make provision with a view to ensuring the compliance of any person who is not FCA-regulated with any provision of the regulations.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-2"><num>(2)</num><intro>The regulations may in particular—</intro><level class="para1" eId="section-32-2-a"><num>(a)</num><content>provide for the Pensions Regulator to issue a notice (a “<term refersTo="#term-compliance-notice" eId="term-compliance-notice">compliance notice</term>”) to a person with a view to ensuring the person's compliance with a provision of the regulations;</content></level><level class="para1" eId="section-32-2-b"><num>(b)</num><content>provide for the Pensions Regulator to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a provision of the regulations;</content></level><level class="para1" eId="section-32-2-c"><num>(c)</num><intro>provide for the Pensions Regulator to issue a notice (a “penalty notice”) imposing a penalty on a person where the person—</intro><level class="para2" eId="section-32-2-c-i"><num>(i)</num><content>has failed to comply with a compliance notice or third party compliance notice, or</content></level><level class="para2" eId="section-32-2-c-ii"><num>(ii)</num><content>has contravened a provision of the regulations;</content></level></level><level class="para1" eId="section-32-2-d"><num>(d)</num><content>provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-2-a"><num>(a)</num><content>provide for the Pensions Regulator to issue a notice (a “<term refersTo="#term-compliance-notice" eId="term-compliance-notice">compliance notice</term>”) to a person with a view to ensuring the person's compliance with a provision of the regulations;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-2-b"><num>(b)</num><content>provide for the Pensions Regulator to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a provision of the regulations;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-2-c"><num>(c)</num><intro>provide for the Pensions Regulator to issue a notice (a “penalty notice”) imposing a penalty on a person where the person—</intro><level class="para2" eId="section-32-2-c-i"><num>(i)</num><content>has failed to comply with a compliance notice or third party compliance notice, or</content></level><level class="para2" eId="section-32-2-c-ii"><num>(ii)</num><content>has contravened a provision of the regulations;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-32-2-d"><num>(d)</num><content>provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-3"><num>(3)</num><content>The regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-4"><num>(4)</num><intro>But the amount of a penalty imposed under the regulations in respect of a failure or contravention must not exceed—</intro><level class="para1" eId="section-32-4-a"><num>(a)</num><content>£10,000, in the case of an individual, and</content></level><level class="para1" eId="section-32-4-b"><num>(b)</num><content>£100,000, in any other case.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-5"><num>(5)</num><content>Any penalty payable under the regulations is recoverable by the Regulator.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-6"><num>(6)</num><content>In England and Wales, any such penalty is, if the county court so orders, recoverable under section 85 of the County Courts Act 1984 or otherwise as if it were payable under an order of that court.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-7"><num>(7)</num><content>In Scotland, a penalty notice is enforceable as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-8"><num>(8)</num><content>The Regulator must pay into the Consolidated Fund any penalty recovered under this section.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-9"><num>(9)</num><content>A reference in this section to a provision of small pots regulations includes a reference to a requirement or restriction imposed by the Pensions Regulator under the regulations.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-33"><num>33</num><heading>Enforcement by the FCA</heading><subsection eId="section-33-1"><num>(1)</num><content>The Treasury may make regulations to enable the FCA to take action (in addition to any action it may otherwise take under the Financial Services and Markets Act 2000) for monitoring and enforcing compliance of an FCA-regulated person with any provision of small pots regulations.</content></subsection><subsection eId="section-33-2"><num>(2)</num><intro>The regulations may apply, or make provision corresponding to—</intro><level class="para1" eId="section-33-2-a"><num>(a)</num><content>provision contained in small pots regulations by virtue of <ref href="#section-32">section 32</ref>, or</content></level><level class="para1" eId="section-33-2-b"><num>(b)</num><content>any provision of the Financial Services and Markets Act 2000,</content></level><wrapUp>with or without modification.</wrapUp></subsection><subsection eId="section-33-3"><num>(3)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection><subsection eId="section-33-4"><num>(4)</num><content>For the purposes of this Chapter a person is “FCA-regulated” if they are an authorised person (within the meaning of the Financial Services and Markets Act 2000) in relation to the operation of a pension scheme.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-33-1"><num>(1)</num><content>The Treasury may make regulations to enable the FCA to take action (in addition to any action it may otherwise take under the Financial Services and Markets Act 2000) for monitoring and enforcing compliance of an FCA-regulated person with any provision of small pots regulations.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-33-2"><num>(2)</num><intro>The regulations may apply, or make provision corresponding to—</intro><level class="para1" eId="section-33-2-a"><num>(a)</num><content>provision contained in small pots regulations by virtue of <ref href="#section-32">section 32</ref>, or</content></level><level class="para1" eId="section-33-2-b"><num>(b)</num><content>any provision of the Financial Services and Markets Act 2000,</content></level><wrapUp>with or without modification.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-33-3"><num>(3)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-33-4"><num>(4)</num><content>For the purposes of this Chapter a person is “FCA-regulated” if they are an authorised person (within the meaning of the Financial Services and Markets Act 2000) in relation to the operation of a pension scheme.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-interpretation-etc"><heading>Interpretation etc</heading><section eId="section-34"><num>34</num><heading>Power to alter definition of “small”</heading><subsection eId="section-34-1"><num>(1)</num><content>The Secretary of State may by regulations amend <ref href="#section-22">section 22</ref><ref href="#section-22-2">(2)</ref> (definition of “<term refersTo="#term-small" eId="term-small">small</term>” in relation to a pension pot) so as to substitute a larger or smaller amount for the amount for the time being specified there.</content></subsection><subsection eId="section-34-2"><num>(2)</num><intro>Before making regulations under this section the Secretary of State must—</intro><level class="para1" eId="section-34-2-a"><num>(a)</num><content>consult such persons as the Secretary of State considers appropriate, and</content></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content>publish details of the proposed amendment, and the Secretary of State’s reasons for making the proposal, and consider any representations made.</content></level></subsection><subsection eId="section-34-3"><num>(3)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section><section eId="section-35"><num>35</num><heading>Crown application</heading><subsection eId="section-35-1"><num>(1)</num><content>This Chapter applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes.</content></subsection><subsection eId="section-35-2"><num>(2)</num><content>Accordingly, references in this Chapter to a person in their capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.</content></subsection><subsection eId="section-35-3"><num>(3)</num><content>This Chapter applies to persons employed by or under the Crown as it applies to persons employed by a private person.</content></subsection></section><section eId="section-36"><num>36</num><heading>Interpretation of Chapter</heading><subsection eId="section-36-1"><num>(1)</num><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-alternative-proposals" eId="term-the-alternative-proposals">the alternative proposals</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-auto-enrolment-scheme" eId="term-auto-enrolment-scheme">auto-enrolment scheme</term>” has the meaning given by <ref href="#section-36-5">subsection (5)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidator-arrangement" eId="term-consolidator-arrangement">consolidator arrangement</term>” has the meaning given by <ref href="#section-30">section 30</ref><ref href="#section-30-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidator-scheme" eId="term-consolidator-scheme">consolidator scheme</term>” has the meaning given by <ref href="#section-30">section 30</ref><ref href="#section-30-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-default-proposal" eId="term-the-default-proposal">the default proposal</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-destination-proposer" eId="term-destination-proposer">destination proposer</term>” has the meaning given by section 23<ref href="#section-23-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-dormant" eId="term-dormant">dormant</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-eligible" eId="term-eligible">eligible</term>”, in relation to a Master Trust scheme, has the meaning given by <ref href="#section-29">section 29</ref><ref href="#section-29-8">(8)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-exempt" eId="term-exempt">exempt</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-25">section 25</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-fca" eId="term-the-fca">the FCA</term>” means the Financial Conduct Authority;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given by <ref href="#d25e10834">subsection (2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a person, has the meaning given by <ref href="#section-33">section 33</ref><ref href="#section-33-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-functions" eId="term-functions">functions</term>” includes powers and duties;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-master-trust-scheme" eId="term-master-trust-scheme">Master Trust scheme</term>” has the same meaning as in the <ref eId="c00005" href="https://www.legislation.gov.uk/ukpga/2017/17/contents">Pension Schemes Act 2017</ref> (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the <ref eId="c00006" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (see section 181(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-pot" eId="term-pension-pot">pension pot</term>” has the meaning given by <ref href="#section-37">section 37</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme" eId="term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the <ref eId="c00007" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-prescribed" eId="term-prescribed">prescribed</term>” means specified in, or determined in accordance with, small pots regulations;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-proposal" eId="term-proposal">proposal</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-provider" eId="term-provider">provider</term>”, in relation to an FCA-regulated pension scheme, means the person mentioned in <ref href="#section-36-2">subsection (2)</ref><ref href="#section-36-2-b">(b)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-small" eId="term-small">small</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-small-pots-regulations" eId="term-small-pots-regulations">small pots regulations</term>” has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-terms" eId="term-terms">terms</term>”, in relation to a pension scheme, has the meaning given by <ref href="#section-36-3">subsection (3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer" eId="term-transfer">transfer</term>”, in relation to a pension pot, includes a transfer of an amount representing its value;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer-notice" eId="term-transfer-notice">transfer notice</term>” has the meaning given by <ref href="#section-24">section 24</ref><ref href="#section-24-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-trustees-or-managers" eId="term-trustees-or-managers">trustees or managers</term>”, in relation to a pension scheme, means (subject to <ref href="#section-36-4">subsection (4)</ref>)—</intro><level class="para1"><num>(a)</num><content>in the case of a scheme established under a trust, the trustees of the scheme, and</content></level><level class="para1"><num>(b)</num><content>in any other case, the persons responsible for the management of the scheme;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-rating" eId="term-vfm-rating">VFM rating</term>” has the same meaning as in <ref href="#part-2-chapter-1">Chapter 1</ref>.</content></hcontainer></subsection><subsection eId="section-36-2"><num>(2)</num><intro>A pension scheme is “FCA-regulated” if the operation of the scheme—</intro><level class="para1" eId="section-36-2-a"><num>(a)</num><content>is carried on in such a way as to be a regulated activity for the purposes of the Financial Services and Markets Act 2000, and</content></level><level class="para1" eId="section-36-2-b"><num>(b)</num><content>is carried on in the United Kingdom by a person who is in relation to that activity an authorised person under section 19 of that Act.</content></level></subsection><subsection eId="section-36-3"><num>(3)</num><intro>A reference in this Part to the terms of a pension scheme is to the terms of any instrument or agreement—</intro><level class="para1" eId="section-36-3-a"><num>(a)</num><content>in which the scheme is comprised, or</content></level><level class="para1" eId="section-36-3-b"><num>(b)</num><content>to which the provider of the scheme and any member are parties in connection with the scheme.</content></level></subsection><subsection eId="section-36-4"><num>(4)</num><content>A reference in this Chapter to the trustees or managers of a pension scheme is, where the scheme is FCA-regulated, a reference to the provider of the scheme.</content></subsection><subsection eId="section-36-5"><num>(5)</num><content>A pension scheme is an “auto-enrolment scheme” if any individual is or at any time was an active member of the scheme in consequence of arrangements under <ref eId="c00008" href="https://www.legislation.gov.uk/ukpga/2008/30/section/3">section 3</ref><ref eId="c00009" href="https://www.legislation.gov.uk/ukpga/2008/30/section/3">(2)</ref>, <ref eId="c00010" href="https://www.legislation.gov.uk/ukpga/2008/30/section/5">5</ref><ref eId="c00011" href="https://www.legislation.gov.uk/ukpga/2008/30/section/5">(2)</ref> or <ref eId="c00012" href="https://www.legislation.gov.uk/ukpga/2008/30/section/7">7</ref><ref eId="c00013" href="https://www.legislation.gov.uk/ukpga/2008/30/section/7">(3)</ref> of the <ref eId="c00014" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (arrangements for jobholder to become active member of automatic enrolment scheme).</content></subsection><subsection eId="section-36-6"><num>(6)</num><content>In <ref href="#section-36-5">subsection (5)</ref> “<term refersTo="#term-active-member" eId="term-active-member">active member</term>” has the same meaning as in <ref eId="c00015" href="https://www.legislation.gov.uk/ukpga/2008/30/part/1">Part 1</ref> of the <ref eId="c00016" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (see section 99 of that Act).</content></subsection></section><section eId="section-37"><num>37</num><heading>Meaning of “pension pot”</heading><subsection eId="section-37-1"><num>(1)</num><intro>In this Chapter, “<term refersTo="#term-pension-pot" eId="term-pension-pot">pension pot</term>” means sums or assets held for the purpose of providing money purchase benefits to or in respect of a member of a pension scheme; and—</intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content>a reference to the pension scheme that holds a pension pot is to that pension scheme;</content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content>a reference to the individual for whom a pension pot is held is to that member.</content></level></subsection><subsection eId="section-37-2"><num>(2)</num><intro>Where—</intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content>an individual is a member of an auto-enrolment scheme in relation to more than one employment, and</content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content>the sums or assets held by the scheme for the purpose of providing money purchase benefits to or in respect of the member in relation to those employments are accounted for separately by the scheme,</content></level><wrapUp>the sums or assets held in relation to each employment are regarded for the purposes of this Chapter as separate pension pots.</wrapUp></subsection><subsection eId="section-37-3"><num>(3)</num><content>In <ref href="#section-37-2">subsection (2)</ref> “<term refersTo="#term-employment" eId="term-employment">employment</term>” has the same meaning as in <ref eId="c00017" href="https://www.legislation.gov.uk/ukpga/2008/30/part/1">Part 1</ref> of the <ref eId="c00018" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (see section 99 of that Act).</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34"><num>34</num><heading>Power to alter definition of “small”</heading><subsection eId="section-34-1"><num>(1)</num><content>The Secretary of State may by regulations amend <ref href="#section-22">section 22</ref><ref href="#section-22-2">(2)</ref> (definition of “<term refersTo="#term-small" eId="term-small">small</term>” in relation to a pension pot) so as to substitute a larger or smaller amount for the amount for the time being specified there.</content></subsection><subsection eId="section-34-2"><num>(2)</num><intro>Before making regulations under this section the Secretary of State must—</intro><level class="para1" eId="section-34-2-a"><num>(a)</num><content>consult such persons as the Secretary of State considers appropriate, and</content></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content>publish details of the proposed amendment, and the Secretary of State’s reasons for making the proposal, and consider any representations made.</content></level></subsection><subsection eId="section-34-3"><num>(3)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34-1"><num>(1)</num><content>The Secretary of State may by regulations amend <ref href="#section-22">section 22</ref><ref href="#section-22-2">(2)</ref> (definition of “<term refersTo="#term-small" eId="term-small">small</term>” in relation to a pension pot) so as to substitute a larger or smaller amount for the amount for the time being specified there.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34-2"><num>(2)</num><intro>Before making regulations under this section the Secretary of State must—</intro><level class="para1" eId="section-34-2-a"><num>(a)</num><content>consult such persons as the Secretary of State considers appropriate, and</content></level><level class="para1" eId="section-34-2-b"><num>(b)</num><content>publish details of the proposed amendment, and the Secretary of State’s reasons for making the proposal, and consider any representations made.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34-3"><num>(3)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35"><num>35</num><heading>Crown application</heading><subsection eId="section-35-1"><num>(1)</num><content>This Chapter applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes.</content></subsection><subsection eId="section-35-2"><num>(2)</num><content>Accordingly, references in this Chapter to a person in their capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.</content></subsection><subsection eId="section-35-3"><num>(3)</num><content>This Chapter applies to persons employed by or under the Crown as it applies to persons employed by a private person.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36"><num>36</num><heading>Interpretation of Chapter</heading><subsection eId="section-36-1"><num>(1)</num><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-alternative-proposals" eId="term-the-alternative-proposals">the alternative proposals</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-auto-enrolment-scheme" eId="term-auto-enrolment-scheme">auto-enrolment scheme</term>” has the meaning given by <ref href="#section-36-5">subsection (5)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidator-arrangement" eId="term-consolidator-arrangement">consolidator arrangement</term>” has the meaning given by <ref href="#section-30">section 30</ref><ref href="#section-30-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidator-scheme" eId="term-consolidator-scheme">consolidator scheme</term>” has the meaning given by <ref href="#section-30">section 30</ref><ref href="#section-30-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-default-proposal" eId="term-the-default-proposal">the default proposal</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-destination-proposer" eId="term-destination-proposer">destination proposer</term>” has the meaning given by section 23<ref href="#section-23-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-dormant" eId="term-dormant">dormant</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-eligible" eId="term-eligible">eligible</term>”, in relation to a Master Trust scheme, has the meaning given by <ref href="#section-29">section 29</ref><ref href="#section-29-8">(8)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-exempt" eId="term-exempt">exempt</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-25">section 25</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-fca" eId="term-the-fca">the FCA</term>” means the Financial Conduct Authority;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given by <ref href="#d25e10834">subsection (2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a person, has the meaning given by <ref href="#section-33">section 33</ref><ref href="#section-33-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-functions" eId="term-functions">functions</term>” includes powers and duties;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-master-trust-scheme" eId="term-master-trust-scheme">Master Trust scheme</term>” has the same meaning as in the <ref eId="c00005" href="https://www.legislation.gov.uk/ukpga/2017/17/contents">Pension Schemes Act 2017</ref> (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the <ref eId="c00006" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (see section 181(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-pot" eId="term-pension-pot">pension pot</term>” has the meaning given by <ref href="#section-37">section 37</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme" eId="term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the <ref eId="c00007" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-prescribed" eId="term-prescribed">prescribed</term>” means specified in, or determined in accordance with, small pots regulations;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-proposal" eId="term-proposal">proposal</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-provider" eId="term-provider">provider</term>”, in relation to an FCA-regulated pension scheme, means the person mentioned in <ref href="#section-36-2">subsection (2)</ref><ref href="#section-36-2-b">(b)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-small" eId="term-small">small</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-small-pots-regulations" eId="term-small-pots-regulations">small pots regulations</term>” has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-terms" eId="term-terms">terms</term>”, in relation to a pension scheme, has the meaning given by <ref href="#section-36-3">subsection (3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer" eId="term-transfer">transfer</term>”, in relation to a pension pot, includes a transfer of an amount representing its value;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer-notice" eId="term-transfer-notice">transfer notice</term>” has the meaning given by <ref href="#section-24">section 24</ref><ref href="#section-24-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-trustees-or-managers" eId="term-trustees-or-managers">trustees or managers</term>”, in relation to a pension scheme, means (subject to <ref href="#section-36-4">subsection (4)</ref>)—</intro><level class="para1"><num>(a)</num><content>in the case of a scheme established under a trust, the trustees of the scheme, and</content></level><level class="para1"><num>(b)</num><content>in any other case, the persons responsible for the management of the scheme;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-rating" eId="term-vfm-rating">VFM rating</term>” has the same meaning as in <ref href="#part-2-chapter-1">Chapter 1</ref>.</content></hcontainer></subsection><subsection eId="section-36-2"><num>(2)</num><intro>A pension scheme is “FCA-regulated” if the operation of the scheme—</intro><level class="para1" eId="section-36-2-a"><num>(a)</num><content>is carried on in such a way as to be a regulated activity for the purposes of the Financial Services and Markets Act 2000, and</content></level><level class="para1" eId="section-36-2-b"><num>(b)</num><content>is carried on in the United Kingdom by a person who is in relation to that activity an authorised person under section 19 of that Act.</content></level></subsection><subsection eId="section-36-3"><num>(3)</num><intro>A reference in this Part to the terms of a pension scheme is to the terms of any instrument or agreement—</intro><level class="para1" eId="section-36-3-a"><num>(a)</num><content>in which the scheme is comprised, or</content></level><level class="para1" eId="section-36-3-b"><num>(b)</num><content>to which the provider of the scheme and any member are parties in connection with the scheme.</content></level></subsection><subsection eId="section-36-4"><num>(4)</num><content>A reference in this Chapter to the trustees or managers of a pension scheme is, where the scheme is FCA-regulated, a reference to the provider of the scheme.</content></subsection><subsection eId="section-36-5"><num>(5)</num><content>A pension scheme is an “auto-enrolment scheme” if any individual is or at any time was an active member of the scheme in consequence of arrangements under <ref eId="c00008" href="https://www.legislation.gov.uk/ukpga/2008/30/section/3">section 3</ref><ref eId="c00009" href="https://www.legislation.gov.uk/ukpga/2008/30/section/3">(2)</ref>, <ref eId="c00010" href="https://www.legislation.gov.uk/ukpga/2008/30/section/5">5</ref><ref eId="c00011" href="https://www.legislation.gov.uk/ukpga/2008/30/section/5">(2)</ref> or <ref eId="c00012" href="https://www.legislation.gov.uk/ukpga/2008/30/section/7">7</ref><ref eId="c00013" href="https://www.legislation.gov.uk/ukpga/2008/30/section/7">(3)</ref> of the <ref eId="c00014" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (arrangements for jobholder to become active member of automatic enrolment scheme).</content></subsection><subsection eId="section-36-6"><num>(6)</num><content>In <ref href="#section-36-5">subsection (5)</ref> “<term refersTo="#term-active-member" eId="term-active-member">active member</term>” has the same meaning as in <ref eId="c00015" href="https://www.legislation.gov.uk/ukpga/2008/30/part/1">Part 1</ref> of the <ref eId="c00016" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (see section 99 of that Act).</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-1"><num>(1)</num><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-alternative-proposals" eId="term-the-alternative-proposals">the alternative proposals</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-auto-enrolment-scheme" eId="term-auto-enrolment-scheme">auto-enrolment scheme</term>” has the meaning given by <ref href="#section-36-5">subsection (5)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidator-arrangement" eId="term-consolidator-arrangement">consolidator arrangement</term>” has the meaning given by <ref href="#section-30">section 30</ref><ref href="#section-30-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidator-scheme" eId="term-consolidator-scheme">consolidator scheme</term>” has the meaning given by <ref href="#section-30">section 30</ref><ref href="#section-30-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-default-proposal" eId="term-the-default-proposal">the default proposal</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-destination-proposer" eId="term-destination-proposer">destination proposer</term>” has the meaning given by section 23<ref href="#section-23-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-dormant" eId="term-dormant">dormant</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-eligible" eId="term-eligible">eligible</term>”, in relation to a Master Trust scheme, has the meaning given by <ref href="#section-29">section 29</ref><ref href="#section-29-8">(8)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-exempt" eId="term-exempt">exempt</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-25">section 25</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-fca" eId="term-the-fca">the FCA</term>” means the Financial Conduct Authority;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given by <ref href="#d25e10834">subsection (2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a person, has the meaning given by <ref href="#section-33">section 33</ref><ref href="#section-33-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-functions" eId="term-functions">functions</term>” includes powers and duties;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-master-trust-scheme" eId="term-master-trust-scheme">Master Trust scheme</term>” has the same meaning as in the <ref eId="c00005" href="https://www.legislation.gov.uk/ukpga/2017/17/contents">Pension Schemes Act 2017</ref> (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the <ref eId="c00006" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (see section 181(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-pot" eId="term-pension-pot">pension pot</term>” has the meaning given by <ref href="#section-37">section 37</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme" eId="term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the <ref eId="c00007" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-prescribed" eId="term-prescribed">prescribed</term>” means specified in, or determined in accordance with, small pots regulations;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-proposal" eId="term-proposal">proposal</term>”, in relation to a small dormant pension pot, has the meaning given by <ref href="#section-23">section 23</ref><ref href="#section-23-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-provider" eId="term-provider">provider</term>”, in relation to an FCA-regulated pension scheme, means the person mentioned in <ref href="#section-36-2">subsection (2)</ref><ref href="#section-36-2-b">(b)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-small" eId="term-small">small</term>”, in relation to a pension pot, has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-small-pots-regulations" eId="term-small-pots-regulations">small pots regulations</term>” has the meaning given by <ref href="#section-22">section 22</ref><ref href="#section-22-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-terms" eId="term-terms">terms</term>”, in relation to a pension scheme, has the meaning given by <ref href="#section-36-3">subsection (3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer" eId="term-transfer">transfer</term>”, in relation to a pension pot, includes a transfer of an amount representing its value;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer-notice" eId="term-transfer-notice">transfer notice</term>” has the meaning given by <ref href="#section-24">section 24</ref><ref href="#section-24-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-trustees-or-managers" eId="term-trustees-or-managers">trustees or managers</term>”, in relation to a pension scheme, means (subject to <ref href="#section-36-4">subsection (4)</ref>)—</intro><level class="para1"><num>(a)</num><content>in the case of a scheme established under a trust, the trustees of the scheme, and</content></level><level class="para1"><num>(b)</num><content>in any other case, the persons responsible for the management of the scheme;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vfm-rating" eId="term-vfm-rating">VFM rating</term>” has the same meaning as in <ref href="#part-2-chapter-1">Chapter 1</ref>.</content></hcontainer></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-2"><num>(2)</num><intro>A pension scheme is “FCA-regulated” if the operation of the scheme—</intro><level class="para1" eId="section-36-2-a"><num>(a)</num><content>is carried on in such a way as to be a regulated activity for the purposes of the Financial Services and Markets Act 2000, and</content></level><level class="para1" eId="section-36-2-b"><num>(b)</num><content>is carried on in the United Kingdom by a person who is in relation to that activity an authorised person under section 19 of that Act.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-3"><num>(3)</num><intro>A reference in this Part to the terms of a pension scheme is to the terms of any instrument or agreement—</intro><level class="para1" eId="section-36-3-a"><num>(a)</num><content>in which the scheme is comprised, or</content></level><level class="para1" eId="section-36-3-b"><num>(b)</num><content>to which the provider of the scheme and any member are parties in connection with the scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-4"><num>(4)</num><content>A reference in this Chapter to the trustees or managers of a pension scheme is, where the scheme is FCA-regulated, a reference to the provider of the scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-5"><num>(5)</num><content>A pension scheme is an “auto-enrolment scheme” if any individual is or at any time was an active member of the scheme in consequence of arrangements under <ref eId="c00008" href="https://www.legislation.gov.uk/ukpga/2008/30/section/3">section 3</ref><ref eId="c00009" href="https://www.legislation.gov.uk/ukpga/2008/30/section/3">(2)</ref>, <ref eId="c00010" href="https://www.legislation.gov.uk/ukpga/2008/30/section/5">5</ref><ref eId="c00011" href="https://www.legislation.gov.uk/ukpga/2008/30/section/5">(2)</ref> or <ref eId="c00012" href="https://www.legislation.gov.uk/ukpga/2008/30/section/7">7</ref><ref eId="c00013" href="https://www.legislation.gov.uk/ukpga/2008/30/section/7">(3)</ref> of the <ref eId="c00014" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (arrangements for jobholder to become active member of automatic enrolment scheme).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-6"><num>(6)</num><content>In <ref href="#section-36-5">subsection (5)</ref> “<term refersTo="#term-active-member" eId="term-active-member">active member</term>” has the same meaning as in <ref eId="c00015" href="https://www.legislation.gov.uk/ukpga/2008/30/part/1">Part 1</ref> of the <ref eId="c00016" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (see section 99 of that Act).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37"><num>37</num><heading>Meaning of “pension pot”</heading><subsection eId="section-37-1"><num>(1)</num><intro>In this Chapter, “<term refersTo="#term-pension-pot" eId="term-pension-pot">pension pot</term>” means sums or assets held for the purpose of providing money purchase benefits to or in respect of a member of a pension scheme; and—</intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content>a reference to the pension scheme that holds a pension pot is to that pension scheme;</content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content>a reference to the individual for whom a pension pot is held is to that member.</content></level></subsection><subsection eId="section-37-2"><num>(2)</num><intro>Where—</intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content>an individual is a member of an auto-enrolment scheme in relation to more than one employment, and</content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content>the sums or assets held by the scheme for the purpose of providing money purchase benefits to or in respect of the member in relation to those employments are accounted for separately by the scheme,</content></level><wrapUp>the sums or assets held in relation to each employment are regarded for the purposes of this Chapter as separate pension pots.</wrapUp></subsection><subsection eId="section-37-3"><num>(3)</num><content>In <ref href="#section-37-2">subsection (2)</ref> “<term refersTo="#term-employment" eId="term-employment">employment</term>” has the same meaning as in <ref eId="c00017" href="https://www.legislation.gov.uk/ukpga/2008/30/part/1">Part 1</ref> of the <ref eId="c00018" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (see section 99 of that Act).</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-1"><num>(1)</num><intro>In this Chapter, “<term refersTo="#term-pension-pot" eId="term-pension-pot">pension pot</term>” means sums or assets held for the purpose of providing money purchase benefits to or in respect of a member of a pension scheme; and—</intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content>a reference to the pension scheme that holds a pension pot is to that pension scheme;</content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content>a reference to the individual for whom a pension pot is held is to that member.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-2"><num>(2)</num><intro>Where—</intro><level class="para1" eId="section-37-2-a"><num>(a)</num><content>an individual is a member of an auto-enrolment scheme in relation to more than one employment, and</content></level><level class="para1" eId="section-37-2-b"><num>(b)</num><content>the sums or assets held by the scheme for the purpose of providing money purchase benefits to or in respect of the member in relation to those employments are accounted for separately by the scheme,</content></level><wrapUp>the sums or assets held in relation to each employment are regarded for the purposes of this Chapter as separate pension pots.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-3"><num>(3)</num><content>In <ref href="#section-37-2">subsection (2)</ref> “<term refersTo="#term-employment" eId="term-employment">employment</term>” has the same meaning as in <ref eId="c00017" href="https://www.legislation.gov.uk/ukpga/2008/30/part/1">Part 1</ref> of the <ref eId="c00018" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (see section 99 of that Act).</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-2-crossheading-amendments-of-other-acts"><heading>Amendments of other Acts</heading><section eId="section-38"><num>38</num><heading>Amendments of the Financial Services and Markets Act 2000</heading><subsection eId="section-38-1"><num>(1)</num><content>The Financial Services and Markets Act 2000 is amended as follows.</content></subsection><subsection eId="section-38-2"><num>(2)</num><content><mod>In section 1A (the Financial Conduct Authority), in subsection (6), after paragraph (czc) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(czd)</num><content><ref href="#part-2-chapter-2">Chapter 2</ref> of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026 (consolidation of small dormant pension pots);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-38-3"><num>(3)</num><content><mod>After section 137FBB insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e5535"><num>137FBC</num><heading>FCA general rules: regulation of consolidator pension schemes</heading><subsection eId="d25e5539"><num>(1)</num><content>The FCA may make general rules under which the provider of an FCA-regulated pension scheme is required to notify the FCA where it intends that the scheme should be a consolidator scheme, or an arrangement under the scheme should be a consolidator arrangement, for the purposes of <ref href="#part-2-chapter-2">Chapter 2</ref> of Part 2 of the Pension Schemes Act 2026.</content></subsection><subsection eId="d25e5548"><num>(2)</num><intro>If the FCA makes rules under <ref href="#d25e5539">subsection (1)</ref> it must—</intro><level class="para1" eId="d25e5557"><num>(a)</num><content>make general rules regulating pension schemes that have given (and not withdrawn) a notice of the kind mentioned in <ref href="#d25e5539">subsection (1)</ref>, and</content></level><level class="para1" eId="d25e5566"><num>(b)</num><content>publish and maintain a list of FCA-regulated pension schemes, and arrangements under such schemes, in accordance with subsections (3) and (4).</content></level></subsection><subsection><num>(3)</num><content>The list must, subject to subsection (4), include each FCA-regulated pension scheme, and each arrangement under an FCA-regulated scheme, in relation to which the FCA has received a notice by virtue of <ref href="#d25e5539">subsection (1)</ref>.</content></subsection><subsection><num>(4)</num><intro>The list must not include a scheme or arrangement if—</intro><level class="para1"><num>(a)</num><content>the notice in relation to it has been withdrawn by the provider of the scheme, or</content></level><level class="para1"><num>(b)</num><content>the FCA has determined that it is unlikely that rules made under <ref href="#d25e5539">subsection (1)</ref> or <ref href="#d25e5548">(2)</ref><ref href="#d25e5557">(a)</ref> will be complied with in relation to the scheme or arrangement within such period as the FCA considers reasonable.</content></level></subsection><subsection><num>(5)</num><content>In determining what provision to include in rules under <ref href="#d25e5548">subsection (2)</ref><ref href="#d25e5557">(a)</ref>, the FCA must have regard to any provision contained in small pots regulations by virtue of <ref href="#section-29">section 29</ref> of the Pension Schemes Act 2026 (authorisation of consolidator schemes etc by the Pensions Regulator).</content></subsection><subsection><num>(6)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given by <ref href="#d25e5660">subsection (7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the <ref eId="c00019" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-provider">provider</term>”, in relation to an FCA-regulated pension scheme, means the person referred to in <ref href="#d25e5660">subsection (7)</ref><ref href="#d25e5672">(b)</ref>.</content></hcontainer></subsection><subsection eId="d25e5660"><num>(7)</num><intro>A pension scheme is “FCA-regulated” if the operation of the scheme—</intro><level class="para1"><num>(a)</num><content>is a regulated activity, and</content></level><level class="para1" eId="d25e5672"><num>(b)</num><content>is carried on in the United Kingdom by an authorised person.</content></level></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-38-4"><num>(4)</num><intro>In section 204A (meaning of “<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” and “<term refersTo="#term-appropriate-regulator" eId="term-appropriate-regulator">appropriate regulator</term>”)—</intro><level class="para1" eId="section-38-4-a"><num>(a)</num><content><mod>in subsection (2), after paragraph (ab) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ac)</num><content>by small pots regulations within the meaning of <ref href="#part-2-chapter-2">Chapter 2</ref> of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026,</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-38-4-b"><num>(b)</num><content><mod>in subsection (6), after paragraph (ab) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ac)</num><content>by small pots regulations within the meaning of <ref href="#part-2-chapter-2">Chapter 2</ref> of <ref href="#part-2">Part 2</ref> of the Pension Schemes Act 2026;</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></level></subsection></section><section eId="section-39"><num>39</num><heading>Repeal of existing powers</heading><subsection eId="section-39-1"><num>(1)</num><intro>In the Pensions Act 2014, omit the following provisions (which contain powers that have not been brought into force to make provision for the automatic transfer of pension benefits etc)—</intro><level class="para1" eId="section-39-1-a"><num>(a)</num><content>section 33;</content></level><level class="para1" eId="section-39-1-b"><num>(b)</num><content>Schedule 17, except paragraph 15(1) (which contains interpretative provisions that apply for the purposes of Schedule 18 to that Act).</content></level></subsection><subsection eId="section-39-2"><num>(2)</num><content><mod>In Schedule 18 to that Act (power to restrict charges or impose requirements in relation to schemes), in paragraph 4 (interpretation), for sub-paragraph (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(1)</num><content>The definitions in paragraph 15(1) of Schedule 17 apply for the purposes of this Schedule.</content></subparagraph></quotedStructure></mod></content></subsection><subsection eId="section-39-3"><num>(3)</num><content><mod>In consequence of <ref href="#section-39-1">subsection (1)</ref><ref href="#section-39-1-b">(b)</ref>, in section 256 of the Pensions Act 2004 (no indemnification for fines or civil penalties), in subsection (1)(b), for “that Act” substitute <quotedText>“the Pensions Act 2014”</quotedText>.</mod></content></subsection></section></hcontainer>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38-1"><num>(1)</num><content>The Financial Services and Markets Act 2000 is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-1"><num>(1)</num><intro>In the Pensions Act 2014, omit the following provisions (which contain powers that have not been brought into force to make provision for the automatic transfer of pension benefits etc)—</intro><level class="para1" eId="section-39-1-a"><num>(a)</num><content>section 33;</content></level><level class="para1" eId="section-39-1-b"><num>(b)</num><content>Schedule 17, except paragraph 15(1) (which contains interpretative provisions that apply for the purposes of Schedule 18 to that Act).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-3"><num>(3)</num><content><mod>In consequence of <ref href="#section-39-1">subsection (1)</ref><ref href="#section-39-1-b">(b)</ref>, in section 256 of the Pensions Act 2004 (no indemnification for fines or civil penalties), in subsection (1)(b), for “that Act” substitute <quotedText>“the Pensions Act 2014”</quotedText>.</mod></content></subsection>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-2-chapter-3"><num>Chapter 3</num><heading>Scale and asset allocation</heading><section eId="section-40"><num>40</num><heading>Certain schemes providing money purchase benefits: scale and asset allocation</heading><subsection eId="section-40-1"><num>(1)</num><content>The Pensions Act 2008 is amended as follows.</content></subsection><subsection eId="section-40-2"><num>(2)</num><content>Section 20 (quality requirement: UK money purchase schemes) is amended as follows.</content></subsection><subsection eId="section-40-3"><num>(3)</num><content><mod>In subsection (1), after “purchase scheme” insert <quotedText>“that is not a relevant Master Trust and”</quotedText>.</mod></content></subsection><subsection eId="section-40-4"><num>(4)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e5826"><num>(1A)</num><content>A money purchase scheme that is a relevant Master Trust satisfies the quality requirement in relation to a jobholder if the conditions in subsection (1)(a) to (c) and Condition 1 and Condition 2 of this subsection are met.<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>Condition 1This Condition is that the relevant Master Trust—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>is approved under <ref href="#d25e6214">section 28A</ref> in respect of a main scale default arrangement,</item><item><num>(b)</num>is exempted by regulations from the requirement for approval,</item><item><num>(c)</num>has previously been approved under section <ref href="#d25e7377">28E</ref> (transition pathway relief) and is to be treated in accordance with regulations as if it had approval under <ref href="#d25e6214">section 28A</ref>,</item><item><num>(d)</num>qualifies under <ref href="#d25e7377">section 28E</ref> for transition pathway relief, or</item><item><num>(e)</num>qualifies under <ref href="#d25e7587">section 28F</ref> for new entrant pathway relief.</item></blockList></item><item>Condition 2This Condition is that the relevant Master Trust—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>is approved under <ref href="#d25e6894">section 28C</ref> in respect of the asset allocation requirement, or</item><item><num>(b)</num>is exempted by regulations from the requirement for approval.</item></blockList>See also section <ref href="#d25e7697">28G</ref> (suspension of asset allocation requirement: savers’ interest test) for provision about circumstances in which the asset allocation requirement is suspended.</item></blockList></content></subsection><subsection eId="d25e5903"><num>(1B)</num><intro>Regulations under Condition 1(b) or 2(b) of <ref href="#d25e5826">subsection (1A)</ref> may exempt any description of relevant Master Trust, for example those that are—</intro><level class="para1"><num>(a)</num><content>designed to meet the needs of persons with a protected characteristic within the meaning of the Equality Act 2010, or</content></level><level class="para1"><num>(b)</num><content>hybrid schemes.</content></level></subsection><subsection eId="d25e5924"><num>(1C)</num><intro>Regulations may—</intro><level class="para1" eId="d25e5930"><num>(a)</num><content>permit the Regulatory Authority to determine that a relevant Master Trust is to be treated for a period (“the protected period”) as meeting Condition 1 or Condition 2 of <ref href="#d25e5826">subsection (1A)</ref> for a period specified by the Regulatory Authority;</content></level><level class="para1"><num>(b)</num><content>specify circumstances in which a relevant Master Trust, which is treated as mentioned in paragraph (a) and meets prescribed conditions, is to be subject during a prescribed period (ending with the end of the protected period) to any requirements specified in the regulations; and provision under this paragraph may include provision corresponding to any provision that may be made under <ref href="#d25e6214">section 28A</ref><ref href="#d25e6431">(10)</ref>;</content></level><level class="para1" eId="d25e5950"><num>(c)</num><content>make provision about the Regulatory Authority requiring the trustees or managers of a relevant Master Trust to give the Regulatory Authority a plan showing how they propose to meet or continue to meet the scale requirement under section <ref href="#d25e6214">28A</ref> or the conditions for approval under <ref href="#d25e6894">section 28C</ref>.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-40-5"><num>(5)</num><content><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” is to be interpreted in accordance with <ref href="#d25e6214">section 28A</ref><ref href="#d25e6527">(13)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-master-trust-scheme">Master Trust scheme</term>” has the same meaning as in the <ref eId="c00020" href="https://www.legislation.gov.uk/ukpga/2017/17/contents">Pension Schemes Act 2017</ref> (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-master-trust">relevant Master Trust</term>” means a money purchase scheme that has its main administration in the United Kingdom and is an authorised Master Trust scheme.</content></hcontainer></subsection></quotedStructure></mod></content></subsection><subsection eId="section-40-6"><num>(6)</num><content><mod>In section 25 (quality requirement: non-UK occupational pension schemes) for “18(b) or (c)” substitute <quotedText>“18(c)”</quotedText>.</mod></content></subsection><subsection eId="section-40-7"><num>(7)</num><content>Section 26 (quality requirement: UK personal pension schemes) is amended as follows.</content></subsection><subsection eId="section-40-8"><num>(8)</num><content><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e6027"><num>(7A)</num><content>The fifth condition is that if the scheme is a group personal pension scheme of a prescribed description it must, unless <ref href="#d25e6051">subsection (7C)</ref> applies, hold an approval under section <ref href="#d25e6551">28B</ref> in respect of a main scale default arrangement.</content></subsection><subsection eId="d25e6039"><num>(7B)</num><content>The sixth condition is that if the scheme is a group personal pension scheme of a prescribed description it must hold an approval under <ref href="#d25e6894">section 28C</ref> in respect of the asset allocation requirement. See also section <ref href="#d25e7697">28G</ref> (suspension of asset allocation requirement: savers’ interest test) for provision about circumstances in which the asset allocation requirement is suspended.</content></subsection><subsection eId="d25e6051"><num>(7C)</num><intro>This subsection applies if the group personal pension scheme—</intro><level class="para1"><num>(a)</num><content>has previously been approved under section <ref href="#d25e7377">28E</ref> (transition pathway relief) and is to be treated in accordance with regulations as if it had approval under section <ref href="#d25e6551">28B</ref>,</content></level><level class="para1" eId="d25e6069"><num>(b)</num><content>qualifies under <ref href="#d25e7377">section 28E</ref> for transition pathway relief, or</content></level><level class="para1" eId="d25e6078"><num>(c)</num><content>qualifies under <ref href="#d25e7587">section 28F</ref> for new entrant pathway relief.</content></level></subsection><subsection eId="d25e6087"><num>(7D)</num><content>Regulations under subsection <ref href="#d25e6027">(7A)</ref> or <ref href="#d25e6039">(7B)</ref> may exempt any description of group personal pension schemes, for example those that are designed to meet the needs of persons with a protected characteristic within the meaning of the Equality Act 2010.</content></subsection><subsection eId="d25e6099"><num>(7E)</num><intro>Regulations may—</intro><level class="para1" eId="d25e6105"><num>(a)</num><content>permit the Regulatory Authority to determine that a group personal pension scheme is to be treated as meeting the fifth or sixth condition for a period (the “protected period”) specified by the Regulatory Authority;</content></level><level class="para1"><num>(b)</num><content>specify circumstances in which a group personal pension scheme which is treated as mentioned in <ref href="#d25e6105">paragraph (a)</ref> and meets prescribed conditions is to be subject during a prescribed period (which ends with the end of the protected period) to any requirements specified in the regulations; and provision under this paragraph may include provision corresponding to any provision that may be made under <ref href="#d25e6214">section 28A</ref><ref href="#d25e6431">(10)</ref>;</content></level><level class="para1" eId="d25e6125"><num>(c)</num><content>make provision about the Regulatory Authority requiring the provider of a group personal pension scheme to give the Regulatory Authority a plan showing how they propose to meet or continue to meet the scale requirement under section <ref href="#d25e6551">28B</ref> or the conditions for approval under section <ref href="#d25e6894">28C</ref>.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-40-9"><num>(9)</num><content><mod>After subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(10)</num><content>In this section “<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” is to be interpreted in accordance with section <ref href="#d25e6551">28B</ref><ref href="#d25e6870">(13)</ref>.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-40-10"><num>(10)</num><content>In section 28 (certification that quality requirement or alternative requirement is satisfied) in subsection (3A) omit paragraphs (a) and (c).</content></subsection><subsection eId="section-40-11"><num>(11)</num><intro>In section 28 (certification that quality requirement or alternative requirement is satisfied) in subsection (4) (definition of “relevant quality requirement”)—</intro><level class="para1" eId="section-40-11-a"><num>(a)</num><content><mod>in paragraph (a), at the end insert <quotedText>“, except so far as that quality requirement relates to Condition 1 or 2 in <ref href="#d25e5826">subsection (1A)</ref>”</quotedText>;</mod></content></level><level class="para1" eId="section-40-11-b"><num>(b)</num><content><mod>in paragraph (b), at the end insert <quotedText>“, except so far as that quality requirement relates to the fifth and sixth conditions”</quotedText>;</mod></content></level><level class="para1" eId="section-40-11-c"><num>(c)</num><content><mod>in paragraph (c), at the end insert <quotedText>“, except so far as those requirements relate to Condition 1 or 2 in section 20<ref href="#d25e5826">(1A)</ref>”</quotedText>.</mod></content></level></subsection><subsection eId="section-40-12"><num>(12)</num><content><mod>After section 28 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e6214"><num>28A</num><heading>MSDA approval: relevant Master Trusts</heading><subsection><num>(1)</num><intro>For the purposes of Condition 1 of section 20<ref href="#d25e5826">(1A)</ref>, the Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may approve a relevant Master Trust (“the RMT”) in respect of a main scale default arrangement if the Authority determines that—</intro><level class="para1"><num>(a)</num><content>the RMT meets the scale requirement by reference to the main scale default arrangement, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e6242"><num>(2)</num><content>The RMT meets the scale requirement by reference to a main scale default arrangement if the sum of the values mentioned in paragraphs <ref href="#d25e6275">(a)</ref> to <ref href="#d25e6328">(c)</ref> of <ref href="#d25e6266">subsection (4)</ref> is equal to or greater than the minimum amount.</content></subsection><subsection eId="d25e6257"><num>(3)</num><content>In this section “<term refersTo="#term-the-minimum-amount">the minimum amount</term>” means £25 billion.</content></subsection><subsection eId="d25e6266"><num>(4)</num><intro>Subject to <ref href="#d25e6384">subsection (7)</ref>, those values are—</intro><level class="para1" eId="d25e6275"><num>(a)</num><intro>the total value of assets of the RMT which—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of that scheme,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2" eId="d25e6293"><num>(iii)</num><content>are managed under a common investment strategy;</content></level></level><level class="para1"><num>(b)</num><intro>if one or more relevant Master Trusts are connected with the RMT, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of those schemes,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>;</content></level></level><level class="para1" eId="d25e6328"><num>(c)</num><intro>if one or more group personal pension schemes are connected with the RMT, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of those schemes,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>.</content></level></level></subsection><subsection eId="d25e6357"><num>(5)</num><content>A reference in subsection (4) to a relevant Master Trust or a group personal pension scheme being “connected” with the RMT is to a relevant Master Trust or a group personal pension scheme having a prescribed connection with the RMT.</content></subsection><subsection><num>(6)</num><intro>Regulations under <ref href="#d25e6357">subsection (5)</ref> may, for example, provide—</intro><level class="para1"><num>(a)</num><content>that a relevant Master Trust is connected with the RMT only if it has the same scheme funder or scheme strategist as the RMT, or</content></level><level class="para1"><num>(b)</num><content>that a group personal pension scheme is connected with the RMT only if its provider is also the scheme funder or scheme strategist of the RMT.</content></level></subsection><subsection eId="d25e6384"><num>(7)</num><content>Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under <ref href="#d25e6266">subsection (4)</ref><ref href="#d25e6275">(a)</ref> to <ref href="#d25e6328">(c)</ref>.</content></subsection><subsection><num>(8)</num><intro>Regulations may make provision about—</intro><level class="para1"><num>(a)</num><content>how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced;</content></level><level class="para1"><num>(b)</num><content>what it means for assets of a pension scheme to be managed under a “<term refersTo="#term-common-investment-strategy">common investment strategy</term>” (including in particular provision defining that expression by reference to whether or how far the assets relating to each member of the scheme are allocated in the same proportion to the same investments).</content></level></subsection><subsection><num>(9)</num><content>Regulations may make provision about how the value of assets is to be determined for the purposes of subsections <ref href="#d25e6242">(2)</ref> and <ref href="#d25e6266">(4)</ref>.</content></subsection><subsection eId="d25e6431"><num>(10)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>as to a time limit within which the Authority must decide an application for approval;</content></level><level class="para1"><num>(b)</num><content>as to procedures in connection with approvals or where an approval has been given;</content></level><level class="para1" eId="d25e6449"><num>(c)</num><content>about the withdrawal of approvals including conditions for, and procedures in connection with, withdrawals;</content></level><level class="para1"><num>(d)</num><content>for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal;</content></level><level class="para1"><num>(e)</num><content>for the Authority to maintain and publish a list of relevant Master Trusts that are approved under this section.</content></level></subsection><subsection eId="d25e6467"><num>(11)</num><intro>Regulations under <ref href="#d25e6431">subsection (10)</ref><ref href="#d25e6449">(c)</ref> may in particular make provision—</intro><level class="para1"><num>(a)</num><content>about steps, including communications with a relevant Master Trust, that the Authority must take before deciding to withdraw an approval;</content></level><level class="para1"><num>(b)</num><content>setting a minimum period that must elapse between a notification that approval is to be withdrawn and the withdrawal of the approval;</content></level><level class="para1"><num>(c)</num><intro>where the Authority has given notice to the trustees or managers of a relevant Master Trust that the approval (under this section) of that scheme is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers to—</intro><level class="para2"><num>(i)</num><content>act in relation to the scheme as if its approval has been withdrawn, and</content></level><level class="para2"><num>(ii)</num><content>take steps for ensuring that persons (such as employers) who may be affected in the event of the relevant Master Trust’s losing that approval are promptly informed if such a loss should occur;</content></level></level><level class="para1"><num>(d)</num><content>permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph (c), a penalty determined in accordance with the regulations that does not exceed £100,000;</content></level><level class="para1"><num>(e)</num><content>providing for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level></subsection><subsection><num>(12)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection><subsection eId="d25e6527"><num>(13)</num><intro>In this section “<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” means an arrangement—</intro><level class="para1"><num>(a)</num><content>that is used for the purposes of one or more pension schemes, and</content></level><level class="para1"><num>(b)</num><content>subject to which assets of any one of those schemes must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held.</content></level></subsection></section><section eId="d25e6551"><num>28B</num><heading>MSDA approval: group personal pension scheme</heading><subsection><num>(1)</num><intro>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may, for the purposes of the Condition in section 26<ref href="#d25e6027">(7A)</ref>, approve a group personal pension scheme (“the GPP”) in respect of a main scale default arrangement if the Authority determines that—</intro><level class="para1"><num>(a)</num><content>the GPP meets the scale requirement by reference to the main scale default arrangement, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e6579"><num>(2)</num><content>The GPP meets the scale requirement by reference to a main scale default arrangement if the sum of the values mentioned in paragraphs <ref href="#d25e6275">(a)</ref> to <ref href="#d25e6668">(c)</ref> of <ref href="#d25e6266">subsection (4)</ref> is equal to or greater than the minimum amount.</content></subsection><subsection eId="d25e6594"><num>(3)</num><content>In this section “<term refersTo="#term-the-minimum-amount">the minimum amount</term>” means £25 billion.</content></subsection><subsection eId="d25e6603"><num>(4)</num><intro>Subject to subsections <ref href="#d25e6697">(5)</ref> and <ref href="#d25e6711">(6)</ref>, those values are—</intro><level class="para1" eId="d25e6615"><num>(a)</num><intro>the total value of assets of the GPP which—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of the GPP,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under a common investment strategy;</content></level></level><level class="para1"><num>(b)</num><intro>if one or more group personal pension schemes are connected with the GPP, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of those schemes,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>;</content></level></level><level class="para1" eId="d25e6668"><num>(c)</num><intro>if one or more relevant Master Trusts are connected with the GPP, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of that scheme,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>.</content></level></level></subsection><subsection eId="d25e6697"><num>(5)</num><content>Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under subsection <ref href="#d25e6603">(4)</ref><ref href="#d25e6615">(a)</ref> to <ref href="#d25e6668">(c)</ref>.</content></subsection><subsection eId="d25e6711"><num>(6)</num><intro>Regulations may make provision about—</intro><level class="para1"><num>(a)</num><content>how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced;</content></level><level class="para1"><num>(b)</num><content>what it means for assets of a pension scheme to be managed under a “<term refersTo="#term-common-investment-strategy">common investment strategy</term>” (including in particular provision defining that expression by reference to whether or how far the assets relating to each member of the scheme are allocated in the same proportion to the same investments).</content></level></subsection><subsection><num>(7)</num><content>Regulations may make provision about how the value of assets is to be determined for the purposes of subsections <ref href="#d25e6242">(2)</ref> and <ref href="#d25e6266">(4)</ref>.</content></subsection><subsection eId="d25e6744"><num>(8)</num><content>A reference in subsection (4) to a group personal pension scheme or a relevant Master Trust being “connected” with the GPP is to a group personal pension scheme or a relevant Master Trust having a prescribed connection with the GPP.</content></subsection><subsection><num>(9)</num><intro>Regulations under <ref href="#d25e6744">subsection (8)</ref> may, for example, provide—</intro><level class="para1"><num>(a)</num><content>that a group personal pension scheme is connected with the GPP only if it has the same provider as the GPP, or</content></level><level class="para1"><num>(b)</num><content>that a relevant Master Trust is connected with the GPP only if its scheme funder or scheme strategist is also the provider of the GPP.</content></level></subsection><subsection eId="d25e6771"><num>(10)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>as to a time limit within which the Authority must decide an application for approval;</content></level><level class="para1"><num>(b)</num><content>as to procedures in connection with approvals or where an approval has been given;</content></level><level class="para1" eId="d25e6789"><num>(c)</num><content>about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals;</content></level><level class="para1"><num>(d)</num><content>for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal;</content></level><level class="para1"><num>(e)</num><content>for the Authority to maintain and publish a list of group personal pension schemes that are approved under this section.</content></level></subsection><subsection><num>(11)</num><intro>Regulations under <ref href="#d25e6771">subsection (10)</ref><ref href="#d25e6789">(c)</ref> may in particular make provision—</intro><level class="para1"><num>(a)</num><content>about steps, including communications with a group personal pension scheme, that the Authority must take before deciding to withdraw an approval;</content></level><level class="para1"><num>(b)</num><content>setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval;</content></level><level class="para1" eId="d25e6830"><num>(c)</num><intro>where the Authority has given notice to the provider of the GPP that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the provider to—</intro><level class="para2"><num>(i)</num><content>act in relation to the scheme as if its approval has been withdrawn, and</content></level><level class="para2"><num>(ii)</num><content>take steps for ensuring that persons (such as employers) who may be affected in the event of the GPP losing that approval are promptly informed if such a loss should occur;</content></level></level><level class="para1"><num>(d)</num><content>permitting the Authority to impose, on a person who fails to comply with a requirement under <ref href="#d25e6830">paragraph (c)</ref>, a penalty determined in accordance with the regulations that does not exceed £100,000;</content></level><level class="para1"><num>(e)</num><content>providing for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level></subsection><subsection><num>(12)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection><subsection eId="d25e6870"><num>(13)</num><intro>In this section “<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” means an arrangement—</intro><level class="para1"><num>(a)</num><content>that is used for the purposes of one or more pension schemes, and</content></level><level class="para1"><num>(b)</num><content>subject to which assets of any one of those schemes must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held.</content></level></subsection></section><section eId="d25e6894"><num>28C</num><heading>Approvals in respect of asset allocation</heading><subsection eId="d25e6898"><num>(1)</num><content>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may approve a relevant Master Trust or a group personal pension scheme in respect of the asset allocation requirement only if the Authority determines that at least the prescribed percentage (by value) of the assets held in main default funds of the scheme are qualifying assets.</content></subsection><subsection><num>(2)</num><intro>Regulations under subsection <ref href="#d25e6898">(1)</ref> may prescribe a percentage by reference to—</intro><level class="para1"><num>(a)</num><content>all of the assets of the scheme that are held in main default funds, or</content></level><level class="para1"><num>(b)</num><content>a prescribed description of the assets of the scheme that are so held.</content></level></subsection><subsection eId="d25e6928"><num>(3)</num><content>In this section “<term refersTo="#term-qualifying-asset">qualifying asset</term>” means an asset of a prescribed description that is held in a main default fund of a relevant Master Trust or group personal pension scheme.</content></subsection><subsection eId="d25e6937"><num>(4)</num><intro>A description of asset may be prescribed under subsection <ref href="#d25e6928">(3)</ref> only if it represents a direct or indirect holding in any of the following asset classes—</intro><level class="para1" eId="d25e6946"><num>(a)</num><content>private equity;</content></level><level class="para1"><num>(b)</num><content>venture capital;</content></level><level class="para1"><num>(c)</num><content>private credit;</content></level><level class="para1"><num>(d)</num><content>interests in land;</content></level><level class="para1" eId="d25e6970"><num>(e)</num><content>infrastructure;</content></level><level class="para1" eId="d25e6976"><num>(f)</num><content>unlisted equity securities not falling within paragraphs <ref href="#d25e6946">(a)</ref> to <ref href="#d25e6970">(e)</ref>.</content></level><wrapUp>In this subsection “<term refersTo="#term-unlisted-equity-securities">unlisted equity securities</term>” means equity securities not listed on a recognised stock exchange within the meaning of the Income Tax Acts (see section 1005 of the Income Tax Act 2007) (including equity securities admitted to trading that are not listed on such an exchange).</wrapUp></subsection><subsection><num>(5)</num><content>Regulations under subsection <ref href="#d25e6928">(3)</ref> must secure that a description of asset is prescribed under that subsection in respect of each asset class mentioned in subsection <ref href="#d25e6937">(4)</ref><ref href="#d25e6946">(a)</ref> to <ref href="#d25e6976">(f)</ref>.</content></subsection><subsection><num>(6)</num><intro>A description prescribed under subsection <ref href="#d25e6937">(4)</ref> may for example relate to—</intro><level class="para1"><num>(a)</num><content>whether an asset is located in the United Kingdom or elsewhere;</content></level><level class="para1"><num>(b)</num><content>the presence or absence of other prescribed factors linking an asset to economic activity in the United Kingdom.</content></level></subsection><subsection eId="d25e7032"><num>(7)</num><intro>Regulations under this section may not have the effect of requiring, as a condition of a scheme's approval under subsection (1)—</intro><level class="para1"><num>(a)</num><content>more than 10% (by value) of all of the assets of the scheme that are held in main default funds to be qualifying assets, or</content></level><level class="para1" eId="d25e7044"><num>(b)</num><content>more than 5% (by value) of all of the assets so held to be of a UK-specific description.</content></level></subsection><subsection><num>(8)</num><content>In subsection <ref href="#d25e7032">(7)</ref><ref href="#d25e7044">(b)</ref> “<term refersTo="#term-uk-specific-description">UK-specific description</term>” means a description framed by reference to whether an asset is located in the United Kingdom or meets any other condition linked to economic activity in the United Kingdom.</content></subsection><subsection><num>(9)</num><intro>For the purposes of this section assets of a relevant Master Trust or group personal pension scheme are held in “main default funds” if—</intro><level class="para1"><num>(a)</num><content>the jobholders by or in respect of whom contributions have been made to the scheme have not (or predominantly have not) expressed a choice as to where the contributions are allocated, and</content></level><level class="para1"><num>(b)</num><content>the arrangements under which the assets are held meet any other conditions that may be prescribed.</content></level></subsection><subsection><num>(10)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>about how the meeting of the asset allocation requirement is to be evidenced;</content></level><level class="para1"><num>(b)</num><content>requiring the trustees or managers of relevant Master Trusts or the providers of group personal pension schemes to have regard to any guidance issued by the Secretary of State about the effect of any regulations under this section.</content></level></subsection><subsection eId="d25e7100"><num>(11)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>as to a time limit within which the Authority must decide an application for approval;</content></level><level class="para1"><num>(b)</num><content>as to procedures in connection with approvals or where an approval has been given;</content></level><level class="para1"><num>(c)</num><content>about the period for which an approval has effect;</content></level><level class="para1" eId="d25e7124"><num>(d)</num><content>about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals;</content></level><level class="para1"><num>(e)</num><content>about the provision to the Authority of information required for the purposes of deciding applications (including any additional information the Authority may require in a particular case);</content></level><level class="para1" eId="d25e7136"><num>(f)</num><content>requiring the Authority to report to the Secretary of State any information the Secretary of State may require relating to the allocation of assets by relevant Master Trusts or group personal pension schemes;</content></level><level class="para1"><num>(g)</num><content>for the Authority’s decision on the application to be referred to the Upper Tribunal;</content></level><level class="para1"><num>(h)</num><intro>for the Authority to maintain and publish—</intro><level class="para2"><num>(i)</num><content>a list of relevant Master Trusts that are approved under this section, and</content></level><level class="para2"><num>(ii)</num><content>a list of group personal pension schemes that are approved under this section,</content></level><wrapUp>(or a single list of the pension schemes mentioned in sub-paragraphs (i) and (ii)).</wrapUp></level></subsection><subsection><num>(12)</num><intro>Regulations under subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7124">(d)</ref> may in particular make provision—</intro><level class="para1"><num>(a)</num><content>about steps, including communications with a relevant Master Trust or group personal pension scheme, that the Authority must take before deciding to withdraw an approval;</content></level><level class="para1"><num>(b)</num><content>setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval;</content></level><level class="para1" eId="d25e7192"><num>(c)</num><intro>where the Authority has given notice to the trustees or managers of a relevant Master Trust or the provider of a group personal pension that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers or provider to—</intro><level class="para2"><num>(i)</num><content>act in relation to the scheme as if its approval has been withdrawn, and</content></level><level class="para2"><num>(ii)</num><content>take steps for ensuring that persons (such as employers) who may be affected in the event of the scheme losing that approval are promptly informed if such a loss should occur;</content></level></level><level class="para1"><num>(d)</num><content>permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph <ref href="#d25e7192">(c)</ref>, a penalty determined in accordance with the regulations that does not exceed £100,000.</content></level></subsection><subsection eId="d25e7219"><num>(13)</num><intro>Before making regulations under <ref href="#d25e6898">subsection (1)</ref> the Secretary of State must prepare and publish a report setting out—</intro><level class="para1" eId="d25e7228"><num>(a)</num><content>a joint assessment by the Financial Conduct Authority and the Pensions Regulator of the extent to which there is evidence of competitive conditions restricting relevant Master Trusts and group personal pension schemes from investing in qualifying assets, including in circumstances where such investments may be in the best interests of members of such schemes;</content></level><level class="para1"><num>(b)</num><intro>the Secretary of State’s assessment of the extent to which relevant Master Trusts and group personal pension schemes have made progress towards achieving—</intro><level class="para2"><num>(i)</num><content>10% (by value) of scheme assets held in main default funds to be qualifying assets, and</content></level><level class="para2"><num>(ii)</num><content>5% (by value) of scheme assets so held to be of a UK-specific description (within the meaning of subsection <ref href="#d25e7032">(7)</ref><ref href="#d25e7044">(b)</ref>);</content></level></level><level class="para1"><num>(c)</num><content>the Secretary of State’s assessment of any barriers to relevant Master Trusts or group personal pension schemes investing in qualifying assets, including in particular where such assets are located in the United Kingdom;</content></level><level class="para1"><num>(d)</num><content>the steps taken by the Secretary of State or the Authority to address any such barriers;</content></level><level class="para1"><num>(e)</num><content>how the financial interests of members of relevant Master Trusts and group personal pension schemes are or would be affected by the proposed regulations;</content></level><level class="para1"><num>(f)</num><content>what effects the proposed measures could be expected to have on economic growth in the United Kingdom;</content></level><level class="para1"><num>(g)</num><content>any other matters the Secretary of State considers appropriate.</content></level></subsection><subsection><num>(14)</num><content>The power to make regulations under subsection (1) may only be exercised once.</content></subsection><subsection><num>(15)</num><content>Before making regulations under subsection <ref href="#d25e6898">(1)</ref>, the Secretary of State must have regard to the joint assessment of the Financial Conduct Authority and the Pensions Regulator mentioned in subsection <ref href="#d25e7219">(13)</ref><ref href="#d25e7228">(a)</ref>.</content></subsection><subsection><num>(16)</num><content>Before making regulations under this section, the Secretary of State must consult the Treasury.</content></subsection><subsection><num>(17)</num><content>The Secretary of State must consult such persons as the Secretary of State considers appropriate before publishing a report under <ref href="#d25e7219">subsection (13)</ref>.</content></subsection><subsection><num>(18)</num><content>The Secretary of State may not make regulations under subsection <ref href="#d25e6898">(1)</ref> before 1 January 2028.</content></subsection><subsection><num>(19)</num><content>Provision under this section overrides any provision of the trust deed or rules of the scheme in question, so far as they are in conflict (and for that purpose, a provision of the trust deed or rules of the scheme is “in conflict” with provision under this section so far as the former does not allow for the assets of the scheme to be managed in such a way as to meet the conditions for approval under this section).</content></subsection></section><section><num>28D</num><heading>Information</heading><subsection><num>(1)</num><content>Regulations may make provision about information that the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme must give to the Regulatory Authority about the allocation of assets of the relevant Master Trust or group personal pension scheme.</content></subsection><subsection><num>(2)</num><intro>The regulations may make provision about—</intro><level class="para1"><num>(a)</num><content>the types of information that must be given;</content></level><level class="para1"><num>(b)</num><content>when it must be given;</content></level><level class="para1"><num>(c)</num><content>the form and manner in which it must be given.</content></level></subsection></section><section eId="d25e7377"><num>28E</num><heading>Transition pathway relief</heading><subsection eId="d25e7381"><num>(1)</num><intro>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may approve a relevant Master Trust as qualifying for transition pathway relief if the Authority determines that—</intro><level class="para1" eId="d25e7390"><num>(a)</num><content>the condition in <ref href="#d25e7405">subsection (2)</ref> is met, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e7405"><num>(2)</num><intro>The condition mentioned in <ref href="#d25e7381">subsection (1)</ref><ref href="#d25e7390">(a)</ref> is that the Authority determines that the relevant Master Trust—</intro><level class="para1"><num>(a)</num><content>would qualify for approval under <ref href="#d25e6214">section 28A</ref> (MSDA approval: relevant Master Trusts) if the amount specified in <ref href="#d25e6214">section 28A</ref><ref href="#d25e6257">(3)</ref> were £10 billion, and</content></level><level class="para1"><num>(b)</num><content>has a credible plan in place for meeting the scale requirement within the meaning of section <ref href="#d25e6214">28A</ref><ref href="#d25e6242">(2)</ref>.</content></level></subsection><subsection eId="d25e7441"><num>(3)</num><intro>The Authority may approve a group personal pension scheme as qualifying for transition pathway relief if the Authority determines that—</intro><level class="para1" eId="d25e7447"><num>(a)</num><content>the condition in <ref href="#d25e7462">subsection (4)</ref> is met, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e7462"><num>(4)</num><intro>The condition mentioned in subsection <ref href="#d25e7441">(3)</ref><ref href="#d25e7447">(a)</ref> is that the Authority determines that the group personal pension scheme—</intro><level class="para1"><num>(a)</num><content>would qualify for approval under <ref href="#d25e6551">section 28B</ref> (MSDA approval: group personal pension schemes) if the amount specified in <ref href="#d25e6551">section 28B</ref><ref href="#d25e6594">(3)</ref> were £10 billion, and</content></level><level class="para1"><num>(b)</num><content>has a credible plan in place for meeting the scale requirement within the meaning of <ref href="#d25e6551">section 28B</ref><ref href="#d25e6579">(2)</ref>.</content></level></subsection><subsection><num>(5)</num><intro>Regulations may require trustees or managers of schemes that are authorised under this section to take prescribed steps, for example—</intro><level class="para1"><num>(a)</num><content>to produce plans for increasing the scale of their schemes’ holdings or to take other actions that may facilitate progress towards approval under <ref href="#d25e6214">section 28A</ref> or <ref href="#d25e6551">28B</ref>, or</content></level><level class="para1"><num>(b)</num><content>in connection with governance and investment capability.</content></level></subsection><subsection><num>(6)</num><content>Regulations must make provision about the criteria for making any determinations under <ref href="#d25e7381">subsection (1)</ref> or <ref href="#d25e7441">(3)</ref>.</content></subsection><subsection><num>(7)</num><intro>Regulations may make provision of a kind mentioned in section <ref href="#d25e6214">28A</ref><ref href="#d25e6431">(10)</ref> or <ref href="#d25e6467">(11)</ref>; and for this purpose a reference in those provisions—</intro><level class="para1"><num>(a)</num><content>to an approval under section <ref href="#d25e6214">28A</ref> is to be read as a reference to an approval under this section;</content></level><level class="para1"><num>(b)</num><content>to a relevant Master Trust is to be read as a reference to a relevant Master Trust or a group personal pension scheme;</content></level><level class="para1"><num>(c)</num><content>to the trustees or managers of a relevant Master Trust is to be read as a reference to the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme.</content></level></subsection><subsection><num>(8)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection><subsection><num>(9)</num><content>In this section “<term refersTo="#term-relevant-master-trust">relevant Master Trust</term>” has the same meaning as in section 20.</content></subsection></section><section eId="d25e7587"><num>28F</num><heading>New entrant pathway relief</heading><subsection><num>(1)</num><content>A relevant Master Trust or group personal pension scheme qualifies for new entrant pathway relief for the purposes of Condition 1<ref href="#d25e5870">(e)</ref> of section 20(1A) or section 26<ref href="#d25e6051">(7C)</ref><ref href="#d25e6078">(c)</ref> if the relevant Master Trust or group personal pension scheme is approved by the Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) under this section.</content></subsection><subsection><num>(2)</num><intro>The Authority may approve a relevant Master Trust or a group personal pension scheme under this section only if the Authority determines that—</intro><level class="para1"><num>(a)</num><content>the scheme in question does not yet have any members,</content></level><level class="para1"><num>(b)</num><content>the scheme in question has strong potential to grow so as to meet the scale requirement under section <ref href="#d25e6214">28A</ref> or <ref href="#d25e6551">28B</ref>,</content></level><level class="para1"><num>(c)</num><content>the scheme in question has an innovative product design, and</content></level><level class="para1"><num>(d)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection><num>(3)</num><intro>Regulations may make provision of a kind mentioned in section <ref href="#d25e6214">28A</ref><ref href="#d25e6431">(10)</ref> or <ref href="#d25e6467">(11)</ref>; and for this purpose a reference in those provisions—</intro><level class="para1"><num>(a)</num><content>to an approval under section <ref href="#d25e6214">28A</ref> is to be read as a reference to an approval under this section;</content></level><level class="para1"><num>(b)</num><content>to a relevant Master Trust is to be read as a reference to a relevant Master Trust or a group personal pension scheme;</content></level><level class="para1"><num>(c)</num><content>to the trustees or managers of a relevant Master Trust is to be read as a reference to the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme.</content></level></subsection><subsection><num>(4)</num><content>Regulations may make provision about the meaning of “strong potential to grow” and “<term refersTo="#term-innovative-product-design">innovative product design</term>” (including how it can be demonstrated that a scheme has strong potential to grow or an innovative product design).</content></subsection><subsection><num>(5)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection></section><section eId="d25e7697"><num>28G</num><heading>Suspension of asset allocation requirement: savers’ interest test</heading><subsection eId="d25e7701"><num>(1)</num><content>Regulations must make provision for authorising the Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”), on an application by a relevant Master Trust or group personal pension scheme, to determine that the scheme in question is to be treated, for a period specified by the Authority, as if that scheme were exempted from the requirement for approval under <ref href="#d25e6894">section 28C</ref>.</content></subsection><subsection><num>(2)</num><content>The Secretary of State must make regulations under subsection (1) so that they have effect whenever regulations under section 28C(1) or (2) have effect.</content></subsection><subsection><num>(3)</num><intro>Regulations under <ref href="#d25e7701">subsection (1)</ref>—</intro><level class="para1"><num>(a)</num><content>may make provision about the form and content of an application, including about the evidence to be provided as part of an application;</content></level><level class="para1"><num>(b)</num><intro>must make provision requiring an application to include a statement—</intro><level class="para2"><num>(i)</num><content>that the applicant concludes that meeting the asset allocation requirement is likely not to be in the best interests of members of the scheme, and</content></level><level class="para2"><num>(ii)</num><content>setting out the basis on which the applicant reached the conclusion;</content></level></level><level class="para1"><num>(c)</num><intro>must make provision requiring the Authority to determine that the applicant is to be treated as mentioned in subsection <ref href="#d25e7701">(1)</ref> in cases where—</intro><level class="para2"><num>(i)</num><content>the application complies with the requirements of regulations made under subsection <ref href="#d25e7701">(1)</ref>, and</content></level><level class="para2"><num>(ii)</num><content>the Authority is of the view that it is reasonable for the applicant to have reached the conclusion that meeting the asset allocation requirement is likely not to be in the best interests of members of the scheme;</content></level></level><level class="para1"><num>(d)</num><content>may make provision about the basis on which the Authority may or must form such a view, including about the evidence which the Authority may or must take into account;</content></level><level class="para1"><num>(e)</num><intro>may make provision as to the process for making a determination, including as to—</intro><level class="para2"><num>(i)</num><content>the level of detail of enquiry required in different cases;</content></level><level class="para2"><num>(ii)</num><content>a time limit within which the Authority must decide an application;</content></level><level class="para2"><num>(iii)</num><content>procedures in connection with applications;</content></level></level><level class="para1"><num>(f)</num><content>must require the Authority to provide reasons for any determination not to approve an application;</content></level><level class="para1"><num>(g)</num><content>must provide for the Authority’s determination on an application to be referred to the Upper Tribunal.</content></level></subsection></section><section eId="d25e7821"><num>28H</num><heading>Risk notices</heading><subsection eId="d25e7825"><num>(1)</num><intro>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may give a risk notice to the trustees or managers of a relevant Master Trust if the Authority considers that—</intro><level class="para1"><num>(a)</num><content>there is an issue of concern in relation to the relevant Master Trust, and</content></level><level class="para1"><num>(b)</num><content>the relevant Master Trust will, or is likely to, cease to meet the conditions for approval under <ref href="#d25e6214">section 28A</ref> or <ref href="#d25e6894">28C</ref> if the issue is not resolved.</content></level></subsection><subsection><num>(2)</num><content>A “risk notice” is a notice that requires the trustees or managers of a relevant Master Trust to submit to the Authority a plan (a “resolution plan”) setting out proposals for resolving the issue of concern.</content></subsection><subsection eId="d25e7858"><num>(3)</num><intro>A risk notice must—</intro><level class="para1"><num>(a)</num><content>identify the issue of concern;</content></level><level class="para1" eId="d25e7870"><num>(b)</num><content>specify the date by which the resolution plan is to be submitted.</content></level></subsection><subsection eId="d25e7876"><num>(4)</num><content>If the Authority is not satisfied that the proposals in a resolution plan are likely to be adequate to resolve the issue of concern, the Authority may give a further notice to the trustees or managers requiring them to submit a revised plan by a date specified in the notice.</content></subsection><subsection eId="d25e7882"><num>(5)</num><intro>The trustees or managers must implement the proposals in a resolution plan if the Authority—</intro><level class="para1"><num>(a)</num><content>is satisfied that the proposals are likely to be adequate to resolve the issue of concern, and</content></level><level class="para1"><num>(b)</num><content>notifies the trustees or managers accordingly.</content></level></subsection><subsection eId="d25e7900"><num>(6)</num><content>The Authority may direct the trustees or managers to comply with the requirement imposed by <ref href="#d25e7882">subsection (5)</ref>.</content></subsection><subsection eId="d25e7909"><num>(7)</num><intro>Where the trustees or managers are required by <ref href="#d25e7882">subsection (5)</ref> to implement the proposals in a resolution plan, they must—</intro><level class="para1"><num>(a)</num><content>submit to the Authority, before the end of a period specified in regulations, a report setting out what progress they are making in implementing the proposals (a “progress report”);</content></level><level class="para1"><num>(b)</num><content>submit further progress reports to the Authority at intervals specified by the Authority.</content></level></subsection><subsection eId="d25e7930"><num>(8)</num><content>Resolution plans and progress reports must be provided in the manner and form specified by the Authority.</content></subsection><subsection><num>(9)</num><content>A reference to a resolution plan in <ref href="#d25e7876">subsections (4)</ref> to <ref href="#d25e7930">(8)</ref> includes a reference to a resolution plan as revised under <ref href="#d25e7876">subsection (4)</ref>.</content></subsection><subsection><num>(10)</num><intro>Regulations may—</intro><level class="para1"><num>(a)</num><content>specify information that a risk notice must contain;</content></level><level class="para1"><num>(b)</num><content>provide that the date referred to in <ref href="#d25e7858">subsection (3)</ref><ref href="#d25e7870">(b)</ref> or <ref href="#d25e7876">(4)</ref> must fall before the end of a period specified in the regulations.</content></level></subsection><subsection><num>(11)</num><intro>Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee or manager of a relevant Master Trust who fails to comply with—</intro><level class="para1"><num>(a)</num><content>a notice under <ref href="#d25e7825">subsection (1)</ref> or <ref href="#d25e7876">(4)</ref>,</content></level><level class="para1"><num>(b)</num><content>a direction under <ref href="#d25e7900">subsection (6)</ref>, or</content></level><level class="para1"><num>(c)</num><content>a requirement imposed by <ref href="#d25e7909">subsection (7)</ref>.</content></level></subsection></section><section eId="d25e8016"><num>28I</num><heading>Penalties</heading><subsection eId="d25e8020"><num>(1)</num><intro>Regulations may make provision about the imposition by the Regulatory Authority of a penalty on the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme where the scheme—</intro><level class="para1" eId="d25e8026"><num>(a)</num><content>fails to meet the condition in section 20<ref href="#d25e5826">(1A)</ref> by virtue of not being approved under <ref href="#d25e6214">section 28A</ref> or <ref href="#d25e6894">28C</ref>, and</content></level><level class="para1" eId="d25e8041"><num>(b)</num><content>accepts contributions from an employer in relation to a jobholder on the basis that it is an automatic enrolment scheme in relation to that jobholder.</content></level></subsection><subsection eId="d25e8047"><num>(2)</num><intro>Regulations may make provision about the imposition by the Regulatory Authority of a penalty on the provider of a group personal pension scheme where the scheme—</intro><level class="para1" eId="d25e8053"><num>(a)</num><content>fails to meet the condition in section 26<ref href="#d25e6027">(7A)</ref> or <ref href="#d25e6039">(7B)</ref>, and</content></level><level class="para1" eId="d25e8065"><num>(b)</num><content>accepts contributions from an employer in relation to a jobholder on the basis that it is an automatic enrolment scheme in relation to that jobholder.</content></level></subsection><subsection><num>(3)</num><intro>The regulations must provide—</intro><level class="para1"><num>(a)</num><content>that a penalty must not exceed £100,000 in relation to each employer from which contributions are accepted as mentioned in <ref href="#d25e8020">subsection (1)</ref><ref href="#d25e8041">(b)</ref> or <ref href="#d25e8047">(2)</ref><ref href="#d25e8065">(b)</ref>, and</content></level><level class="para1"><num>(b)</num><content>that there is a right of appeal against the imposition of the penalty.</content></level></subsection></section><section eId="d25e8102"><num>28J</num><heading>Enforcement by the Financial Conduct Authority</heading><subsection><num>(1)</num><content>The Treasury may make regulations to enable the Financial Conduct Authority to take action (in addition to any action it may otherwise take under the Financial Services and Markets Act 2000) for monitoring and enforcing compliance of any FCA-regulated person with any provision of or under this Chapter.</content></subsection><subsection><num>(2)</num><intro>The regulations may apply, or make provision corresponding to—</intro><level class="para1"><num>(a)</num><content>provision made by or under this Part in relation to the Regulatory Authority, or</content></level><level class="para1"><num>(b)</num><content>any provision of the Financial Services and Markets Act 2000,</content></level><wrapUp>with or without modification.</wrapUp></subsection><subsection><num>(3)</num><content>In this section, “<term refersTo="#term-fca-regulated-person">FCA-regulated person</term>” means an authorised person (within the meaning of the Financial Services and Markets Act 2000).</content></subsection></section><section><num>28K</num><heading>Report about effects of pension scheme consolidation</heading><subsection><num>(1)</num><content>The Secretary of State must prepare and publish a report about the effects of consolidation on innovation in the design and operation of relevant Master Trusts and group personal pension schemes.</content></subsection><subsection><num>(2)</num><intro>The report may in particular include information about—</intro><level class="para1"><num>(a)</num><content>the extent to which consolidated schemes adopt or maintain innovative product designs of constituent schemes;</content></level><level class="para1"><num>(b)</num><content>barriers to consolidated schemes adopting or maintaining such innovative product designs.</content></level></subsection><subsection><num>(3)</num><content>The Pensions Regulator and the FCA must provide such information and assistance as the Secretary of State may require for the purposes of the report.</content></subsection><subsection><num>(4)</num><content>The report under this section must be published before the end of the period of 12 months beginning with the day on which this section comes into force.</content></subsection><subsection><num>(5)</num><content>In this section “<term refersTo="#term-consolidation">consolidation</term>” means the consolidation of a relevant Master Trust or group personal pension scheme with one or more other schemes.</content></subsection></section><section><num>28L</num><heading>Regulations about quality requirements</heading><intro>In making regulations under section 20<ref href="#d25e5826">(1A)</ref> or <ref href="#d25e5924">(1C)</ref>, 26<ref href="#d25e6027">(7A)</ref>, <ref href="#d25e6214">28A</ref>, <ref href="#d25e6551">28B</ref>, <ref href="#d25e7377">28E</ref> or <ref href="#d25e7587">28F</ref>, the Secretary of State must have regard to the importance of—</intro><level class="para1"><num>(a)</num><content>innovation in the design and operation of relevant Master Trusts and group personal pension schemes;</content></level><level class="para1"><num>(b)</num><content>competition among relevant Master Trusts and group personal pension schemes;</content></level><level class="para1"><num>(c)</num><content>improving outcomes for members of relevant Master Trusts and group personal pension schemes;</content></level><level class="para1"><num>(d)</num><content>relevant Master Trusts and group personal pension schemes achieving an appropriate scale;</content></level><level class="para1"><num>(e)</num><content>relevant Master Trusts and group personal pension schemes having effective governance.</content></level></section></quotedStructure></mod></content></subsection><subsection eId="section-40-13"><num>(13)</num><content><mod>Before section 31 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e8267"><num>30A</num><heading>Review of exercise of powers under <ref href="#d25e6894">section 28C</ref></heading><subsection eId="d25e8271"><num>(1)</num><intro>The Secretary of State must—</intro><level class="para1"><num>(a)</num><content>review the effects of any regulations under <ref href="#d25e6894">section 28C</ref> (approvals in respect of asset allocation), and</content></level><level class="para1"><num>(b)</num><content>prepare, publish and lay before Parliament, a report of the review.</content></level></subsection><subsection><num>(2)</num><content>A review under <ref href="#d25e8271">subsection (1)</ref> must be conducted before the end of the period of 5 years beginning with the day on which the regulations in question come into force.</content></subsection><subsection><num>(3)</num><intro>In carrying out the review the Secretary of State must take the following into account—</intro><level class="para1"><num>(a)</num><content>whether and how the financial interests of members of Master Trust schemes and savers in group personal pension schemes have been affected by the regulations;</content></level><level class="para1"><num>(b)</num><content>the effects (if any) of the measures on economic growth in the United Kingdom;</content></level><level class="para1"><num>(c)</num><content>any other matters the Secretary of State considers appropriate.</content></level></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-40-14"><num>(14)</num><intro>In section 99 (interpretation of Part)—</intro><level class="para1" eId="section-40-14-a"><num>(a)</num><content>the existing words become subsection (1);</content></level><level class="para1" eId="section-40-14-b"><num>(b)</num><intro>in that subsection, at the appropriate places insert—</intro><hcontainer name="definition"><intro>““<term refersTo="#term-group-personal-pension-scheme" eId="term-group-personal-pension-scheme">group personal pension scheme</term>” means a personal pension scheme which is available, or intended to be available, to employees of the same employer or of employers within a group, but does not include—</intro><level class="para1"><num>(a)</num><content>a stakeholder pension scheme (as defined in section 1 of the Welfare Reform and Pensions Act 1999), or</content></level><level class="para1"><num>(b)</num><content>any pension scheme that requires all its members to make a choice as to how their contributions are invested;”;</content></level></hcontainer><hcontainer name="definition"><content>““<term refersTo="#term-regulatory-authority" eId="term-regulatory-authority">Regulatory Authority</term>” has the meaning given by regulations under subsection (2);”;</content></hcontainer><hcontainer name="definition"><content>““<term refersTo="#term-relevant-master-trust" eId="term-relevant-master-trust">relevant Master Trust</term>” has the meaning given by section 20(4);”;</content></hcontainer></level><level class="para1" eId="section-40-14-c"><num>(c)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content>The Secretary of State may by regulations define “<term refersTo="#term-regulatory-authority">Regulatory Authority</term>” for the purposes of this Part.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-40-15"><num>(15)</num><intro>In section 143 (orders and regulations) in subsection (5)(a)—</intro><level class="para1" eId="section-40-15-a"><num>(a)</num><content><mod>after “17(1)(c),” insert <quotedText>“20, 26<ref href="#d25e6027">(7A)</ref>, <ref href="#d25e6039">(7B)</ref>, <ref href="#d25e6051">(7C)</ref> or <ref href="#d25e6099">(7E)</ref>,”</quotedText>;</mod></content></level><level class="para1" eId="section-40-15-b"><num>(b)</num><content><mod>after “28,” insert <quotedText>“<ref href="#d25e6214">28A</ref>, <ref href="#d25e6551">28B</ref>, <ref href="#d25e6894">28C</ref> (other than subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7136">(f)</ref>), <ref href="#d25e7377">28E</ref>, <ref href="#d25e7587">28F</ref>, <ref href="#d25e7697">28G</ref>, <ref href="#d25e8016">28I</ref>, <ref href="#d25e8102">28J</ref>,”</quotedText>.</mod></content></level></subsection><subsection eId="section-40-16"><num>(16)</num><intro>The following provisions of the Pensions Act 2008 (which relate to transition pathway relief) are repealed at the end of the period of 5 years beginning with the day on which the provisions mentioned in paragraphs (a) and (b) come into force—</intro><level class="para1" eId="section-40-16-a"><num>(a)</num><content>paragraph <ref href="#d25e5863">(d)</ref> of Condition 1 in section 20<ref href="#d25e5826">(1A)</ref>;</content></level><level class="para1" eId="section-40-16-b"><num>(b)</num><content>section 26<ref href="#d25e6051">(7C)</ref><ref href="#d25e6069">(b)</ref>;</content></level><level class="para1" eId="section-40-16-c"><num>(c)</num><content>section <ref href="#d25e7377">28E</ref>;</content></level><level class="para1" eId="section-40-16-d"><num>(d)</num><content>the word “<ref href="#d25e7377">28E</ref>” in section 143(5)(a).</content></level></subsection><subsection eId="section-40-17"><num>(17)</num><intro>The following provisions are repealed at the end of 2035—</intro><level class="para1" eId="section-40-17-a"><num>(a)</num><intro>in <ref eId="c00021" href="https://www.legislation.gov.uk/ukpga/2000/8/section/204A">section 204A</ref> of the <ref eId="c00022" href="https://www.legislation.gov.uk/ukpga/2000/8/contents">Financial Services and Markets Act 2000</ref> (meaning of “<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” and “<term refersTo="#term-appropriate-regulator" eId="term-appropriate-regulator">appropriate regulator</term>”)—</intro><level class="para2" eId="section-40-17-a-i"><num>(i)</num><content>in subsection (2)(aza), the words “or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>”;</content></level><level class="para2" eId="section-40-17-a-ii"><num>(ii)</num><content>in subsection (6)(aza), the words “or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>”;</content></level></level><level class="para1" eId="section-40-17-b"><num>(b)</num><content>in section 90(6)<ref href="#d25e24762">(da)</ref> of the Pensions Act 2004, the words “and the asset allocation requirement”;</content></level><level class="para1" eId="section-40-17-c"><num>(c)</num><content>the relevant asset allocation provisions of the <ref eId="c00023" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref>.</content></level></subsection><subsection eId="section-40-18"><num>(18)</num><intro>For the purposes of subsection <ref href="#section-40-17">(17)</ref>, the “relevant asset allocation provisions” of the Pensions Act 2008 are the following—</intro><level class="para1" eId="section-40-18-a"><num>(a)</num><intro>in section 20<ref href="#d25e5826">(1A)</ref> (asset allocation requirement: Master Trusts)—</intro><level class="para2" eId="section-40-18-a-i"><num>(i)</num><content>in the opening words, the words “and Condition 2”;</content></level><level class="para2" eId="section-40-18-a-ii"><num>(ii)</num><content>Condition 2;</content></level></level><level class="para1" eId="section-40-18-b"><num>(b)</num><content>in section 20<ref href="#d25e5903">(1B)</ref> (exemptions), the words “or 2<ref href="#d25e5893">(b)</ref>”;</content></level><level class="para1" eId="section-40-18-c"><num>(c)</num><intro>in section 20<ref href="#d25e5924">(1C)</ref> (protected period)—</intro><level class="para2" eId="section-40-18-c-i"><num>(i)</num><content>in paragraph <ref href="#d25e5930">(a)</ref>, the words “or Condition 2”;</content></level><level class="para2" eId="section-40-18-c-ii"><num>(ii)</num><content>in paragraph <ref href="#d25e5950">(c)</ref>, the words “or the conditions for approval under section <ref href="#d25e6894">28C</ref>”;</content></level></level><level class="para1" eId="section-40-18-d"><num>(d)</num><intro>in section 26 (quality requirement: UK personal pension schemes)—</intro><level class="para2" eId="section-40-18-d-i"><num>(i)</num><content>subsection <ref href="#d25e6039">(7B)</ref>;</content></level><level class="para2" eId="section-40-18-d-ii"><num>(ii)</num><content>in subsection <ref href="#d25e6087">(7D)</ref>, the words “or <ref href="#d25e6039">(7B)</ref>”;</content></level><level class="para2" eId="section-40-18-d-iii"><num>(iii)</num><content>in subsection <ref href="#d25e6099">(7E)</ref><ref href="#d25e6105">(a)</ref>, the words “or sixth”;</content></level><level class="para2" eId="section-40-18-d-iv"><num>(iv)</num><content>in subsection <ref href="#d25e6099">(7E)</ref><ref href="#d25e6125">(c)</ref>, the words “or the conditions for approval under section <ref href="#d25e6894">28C</ref>”;</content></level></level><level class="para1" eId="section-40-18-e"><num>(e)</num><intro>in section 28 (certification that quality requirement or alternative requirement is satisfied)—</intro><level class="para2" eId="section-40-18-e-i"><num>(i)</num><content>in subsection (4)(a), the words “or 2”;</content></level><level class="para2" eId="section-40-18-e-ii"><num>(ii)</num><content>in subsection (4)(b), the words “and sixth”;</content></level><level class="para2" eId="section-40-18-e-iii"><num>(iii)</num><content>in subsection (4)(c), the words “or 2”;</content></level></level><level class="para1" eId="section-40-18-f"><num>(f)</num><content>section <ref href="#d25e6894">28C</ref> (approvals in respect of asset allocation);</content></level><level class="para1" eId="section-40-18-g"><num>(g)</num><content>section <ref href="#d25e7697">28G</ref> (suspension of asset allocation requirement: savers’ interest test);</content></level><level class="para1" eId="section-40-18-h"><num>(h)</num><content>in section <ref href="#d25e7821">28H</ref> (risk notices), in subsection (1)(b), the words “or <ref href="#d25e6894">28C</ref>”;</content></level><level class="para1" eId="section-40-18-i"><num>(i)</num><intro>in section <ref href="#d25e8016">28I</ref> (penalties)—</intro><level class="para2" eId="section-40-18-i-i"><num>(i)</num><content>in subsection <ref href="#d25e8020">(1)</ref><ref href="#d25e8026">(a)</ref>, the words “or <ref href="#d25e6894">28C</ref>”;</content></level><level class="para2" eId="section-40-18-i-ii"><num>(ii)</num><content>in subsection <ref href="#d25e8047">(2)</ref><ref href="#d25e8053">(a)</ref>, the words “or <ref href="#d25e6039">(7B)</ref>”;</content></level></level><level class="para1" eId="section-40-18-j"><num>(j)</num><content>section <ref href="#d25e8267">30A</ref> (review of exercise of powers under section <ref href="#d25e6894">28C</ref>);</content></level><level class="para1" eId="section-40-18-k"><num>(k)</num><intro>in section 143(5)(a) (orders and regulations)—</intro><level class="para2" eId="section-40-18-k-i"><num>(i)</num><content>the word “<ref href="#d25e6039">(7B)</ref>”;</content></level><level class="para2" eId="section-40-18-k-ii"><num>(ii)</num><content>the words “<ref href="#d25e6894">28C</ref> (other than subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7136">(f)</ref>)”;</content></level><level class="para2" eId="section-40-18-k-iii"><num>(iii)</num><content>the word “<ref href="#d25e7697">28G</ref>”.</content></level></level></subsection><subsection eId="section-40-19"><num>(19)</num><intro>In consequence of the repeals under subsection <ref href="#section-40-17">(17)</ref>, at the end of 2035—</intro><level class="para1" eId="section-40-19-a"><num>(a)</num><content><mod>in section 73(2)<ref href="#d25e24389">(dza)</ref> of the Pensions Act 2004 (inspection of premises), for “<ref href="#d25e7697">28G</ref> of the Pensions Act 2008 (scale and asset allocation)” substitute <quotedText>“<ref href="#d25e7587">28F</ref> of the Pensions Act 2008 (scale)”</quotedText>;</mod></content></level><level class="para1" eId="section-40-19-b"><num>(b)</num><content><mod>in section 28(4)(b) of the Pensions Act 2008 (certification that quality requirement or alternative requirement is satisfied), for “conditions” substitute <quotedText>“condition”</quotedText>.</mod></content></level></subsection><subsection eId="section-40-20"><num>(20)</num><content>The Secretary of State may by regulations make transitional or saving provision in connection with any repeal or amendment under subsection <ref href="#section-40-17">(17)</ref> or <ref href="#section-40-19">(19)</ref>.</content></subsection><subsection eId="section-40-21"><num>(21)</num><content>If this section is repealed under section <ref href="#section-133">133</ref><ref href="#section-133-6">(6)</ref> (repeal where asset allocation requirement uncommenced) in respect of the insertion of the provisions mentioned in that subsection, the Secretary of State may by regulations amend this section, section 41 or the Schedule in consequence of that repeal.</content></subsection><subsection eId="section-40-22"><num>(22)</num><content>Regulations under subsection <ref href="#section-40-20">(20)</ref> or <ref href="#section-40-21">(21)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-41"><num>41</num><heading>Amendments related to section <ref href="#section-40">40</ref></heading><subsection eId="section-41-1"><num>(1)</num><content>The Financial Services and Markets Act 2000 is amended as follows.</content></subsection><subsection eId="section-41-2"><num>(2)</num><content><mod>In section 1A (the Financial Conduct Authority), in subsection (6), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aa)</num><content>the Pensions Act 2008,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-41-3"><num>(3)</num><content>Section 204A (meaning of “<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” and “<term refersTo="#term-appropriate-regulator" eId="term-appropriate-regulator">appropriate regulator</term>”) is amended as follows.</content></subsection><subsection eId="section-41-4"><num>(4)</num><content><mod>In subsection (2), after paragraph (aa) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aza)</num><content>by or under Part 1 of the Pensions Act 2008 in relation to the scale requirement in section <ref href="#d25e6551">28B</ref> or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-41-5"><num>(5)</num><content><mod>In subsection (6), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(aza)</num><content>by or under Part 1 of the Pensions Act 2008 in relation to the scale requirement in section <ref href="#d25e6551">28B</ref> or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-41-6"><num>(6)</num><content>Part 1 (Master Trusts) of the Pension Schemes Act 2017 is amended as follows.</content></subsection><subsection eId="section-41-7"><num>(7)</num><intro>In section 5 (decision on application), in subsection (3)—</intro><level class="para1" eId="section-41-7-a"><num>(a)</num><content>omit the “and” before paragraph (e);</content></level><level class="para1" eId="section-41-7-b"><num>(b)</num><content><mod>after paragraph (e) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(f)</num><content>that it has sufficient investment capability (see section 12A), and</content></level><level class="para1"><num>(g)</num><content>(in the case of an applicant that has its main administration in the United Kingdom) that the scheme meets Condition 1 of section 20(1A) (scale requirement) of the Pensions Act 2008.</content></level></quotedStructure></mod></content></level></subsection><subsection eId="section-41-8"><num>(8)</num><content><mod>After section 12 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section><num>12A</num><heading>Investment capability</heading><subsection eId="d25e9036"><num>(1)</num><content>This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that a Master Trust scheme (that has its main administration in the United Kingdom) has sufficient investment capability (see section 5(3)(f)).</content></subsection><subsection eId="d25e9042"><num>(2)</num><intro>In order to be satisfied that the Master Trust scheme has sufficient investment capability the Pensions Regulator must be satisfied—</intro><level class="para1"><num>(a)</num><content>that appropriate systems are in place for managing the investment strategy and monitoring outcomes,</content></level><level class="para1"><num>(b)</num><content>that the scheme has appropriate systems for delivering effective governance, and</content></level><level class="para1"><num>(c)</num><content>that there are appropriate strategies for recruiting and retaining expert staff.</content></level></subsection><subsection><num>(3)</num><content>In deciding whether it is satisfied about the matters mentioned in <ref href="#d25e9036">subsection (1)</ref>, the Pensions Regulator must take account of any factors specified in <ref href="#d25e9042">subsection (2)</ref>.</content></subsection><subsection><num>(4)</num><intro>The Secretary of State may by regulations—</intro><level class="para1"><num>(a)</num><content>make provision about the meaning of terms used in subsection <ref href="#d25e9042">(2)</ref>;</content></level><level class="para1"><num>(b)</num><content>specify further factors that the Pensions Regulator must take into account in deciding whether it is satisfied about the matters mentioned in subsection <ref href="#d25e9036">(1)</ref>.</content></level></subsection><subsection><num>(5)</num><content>The first regulations that are made under this section are subject to affirmative resolution procedure.</content></subsection><subsection><num>(6)</num><content>Any other regulations under this section are subject to negative resolution procedure.</content></subsection></section><section><num>12B</num><heading>Scale requirement</heading><subsection><num>(1)</num><content>The Secretary of State may by regulations make provision about how the Pensions Regulator is to decide whether it is satisfied that a Master Trust scheme that has its main administration in the United Kingdom meets Condition 1 in section 20<ref href="#d25e5826">(1A)</ref> (scale requirement) of the Pensions Act 2008.</content></subsection><subsection><num>(2)</num><content>The regulations may, among other things, specify matters which the Pensions Regulator must take into account in making its assessment.</content></subsection><subsection><num>(3)</num><content>The first regulations under this section are subject to affirmative resolution procedure.</content></subsection><subsection><num>(4)</num><content>Any subsequent regulations under this section are subject to negative resolution procedure.</content></subsection></section></quotedStructure></mod></content></subsection></section></chapter>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-40"><num>40</num><heading>Certain schemes providing money purchase benefits: scale and asset allocation</heading><subsection eId="section-40-1"><num>(1)</num><content>The Pensions Act 2008 is amended as follows.</content></subsection><subsection eId="section-40-2"><num>(2)</num><content>Section 20 (quality requirement: UK money purchase schemes) is amended as follows.</content></subsection><subsection eId="section-40-3"><num>(3)</num><content><mod>In subsection (1), after “purchase scheme” insert <quotedText>“that is not a relevant Master Trust and”</quotedText>.</mod></content></subsection><subsection eId="section-40-4"><num>(4)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e5826"><num>(1A)</num><content>A money purchase scheme that is a relevant Master Trust satisfies the quality requirement in relation to a jobholder if the conditions in subsection (1)(a) to (c) and Condition 1 and Condition 2 of this subsection are met.<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>Condition 1This Condition is that the relevant Master Trust—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>is approved under <ref href="#d25e6214">section 28A</ref> in respect of a main scale default arrangement,</item><item><num>(b)</num>is exempted by regulations from the requirement for approval,</item><item><num>(c)</num>has previously been approved under section <ref href="#d25e7377">28E</ref> (transition pathway relief) and is to be treated in accordance with regulations as if it had approval under <ref href="#d25e6214">section 28A</ref>,</item><item><num>(d)</num>qualifies under <ref href="#d25e7377">section 28E</ref> for transition pathway relief, or</item><item><num>(e)</num>qualifies under <ref href="#d25e7587">section 28F</ref> for new entrant pathway relief.</item></blockList></item><item>Condition 2This Condition is that the relevant Master Trust—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>is approved under <ref href="#d25e6894">section 28C</ref> in respect of the asset allocation requirement, or</item><item><num>(b)</num>is exempted by regulations from the requirement for approval.</item></blockList>See also section <ref href="#d25e7697">28G</ref> (suspension of asset allocation requirement: savers’ interest test) for provision about circumstances in which the asset allocation requirement is suspended.</item></blockList></content></subsection><subsection eId="d25e5903"><num>(1B)</num><intro>Regulations under Condition 1(b) or 2(b) of <ref href="#d25e5826">subsection (1A)</ref> may exempt any description of relevant Master Trust, for example those that are—</intro><level class="para1"><num>(a)</num><content>designed to meet the needs of persons with a protected characteristic within the meaning of the Equality Act 2010, or</content></level><level class="para1"><num>(b)</num><content>hybrid schemes.</content></level></subsection><subsection eId="d25e5924"><num>(1C)</num><intro>Regulations may—</intro><level class="para1" eId="d25e5930"><num>(a)</num><content>permit the Regulatory Authority to determine that a relevant Master Trust is to be treated for a period (“the protected period”) as meeting Condition 1 or Condition 2 of <ref href="#d25e5826">subsection (1A)</ref> for a period specified by the Regulatory Authority;</content></level><level class="para1"><num>(b)</num><content>specify circumstances in which a relevant Master Trust, which is treated as mentioned in paragraph (a) and meets prescribed conditions, is to be subject during a prescribed period (ending with the end of the protected period) to any requirements specified in the regulations; and provision under this paragraph may include provision corresponding to any provision that may be made under <ref href="#d25e6214">section 28A</ref><ref href="#d25e6431">(10)</ref>;</content></level><level class="para1" eId="d25e5950"><num>(c)</num><content>make provision about the Regulatory Authority requiring the trustees or managers of a relevant Master Trust to give the Regulatory Authority a plan showing how they propose to meet or continue to meet the scale requirement under section <ref href="#d25e6214">28A</ref> or the conditions for approval under <ref href="#d25e6894">section 28C</ref>.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-40-5"><num>(5)</num><content><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” is to be interpreted in accordance with <ref href="#d25e6214">section 28A</ref><ref href="#d25e6527">(13)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-master-trust-scheme">Master Trust scheme</term>” has the same meaning as in the <ref eId="c00020" href="https://www.legislation.gov.uk/ukpga/2017/17/contents">Pension Schemes Act 2017</ref> (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-master-trust">relevant Master Trust</term>” means a money purchase scheme that has its main administration in the United Kingdom and is an authorised Master Trust scheme.</content></hcontainer></subsection></quotedStructure></mod></content></subsection><subsection eId="section-40-6"><num>(6)</num><content><mod>In section 25 (quality requirement: non-UK occupational pension schemes) for “18(b) or (c)” substitute <quotedText>“18(c)”</quotedText>.</mod></content></subsection><subsection eId="section-40-7"><num>(7)</num><content>Section 26 (quality requirement: UK personal pension schemes) is amended as follows.</content></subsection><subsection eId="section-40-8"><num>(8)</num><content><mod>After subsection (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e6027"><num>(7A)</num><content>The fifth condition is that if the scheme is a group personal pension scheme of a prescribed description it must, unless <ref href="#d25e6051">subsection (7C)</ref> applies, hold an approval under section <ref href="#d25e6551">28B</ref> in respect of a main scale default arrangement.</content></subsection><subsection eId="d25e6039"><num>(7B)</num><content>The sixth condition is that if the scheme is a group personal pension scheme of a prescribed description it must hold an approval under <ref href="#d25e6894">section 28C</ref> in respect of the asset allocation requirement. See also section <ref href="#d25e7697">28G</ref> (suspension of asset allocation requirement: savers’ interest test) for provision about circumstances in which the asset allocation requirement is suspended.</content></subsection><subsection eId="d25e6051"><num>(7C)</num><intro>This subsection applies if the group personal pension scheme—</intro><level class="para1"><num>(a)</num><content>has previously been approved under section <ref href="#d25e7377">28E</ref> (transition pathway relief) and is to be treated in accordance with regulations as if it had approval under section <ref href="#d25e6551">28B</ref>,</content></level><level class="para1" eId="d25e6069"><num>(b)</num><content>qualifies under <ref href="#d25e7377">section 28E</ref> for transition pathway relief, or</content></level><level class="para1" eId="d25e6078"><num>(c)</num><content>qualifies under <ref href="#d25e7587">section 28F</ref> for new entrant pathway relief.</content></level></subsection><subsection eId="d25e6087"><num>(7D)</num><content>Regulations under subsection <ref href="#d25e6027">(7A)</ref> or <ref href="#d25e6039">(7B)</ref> may exempt any description of group personal pension schemes, for example those that are designed to meet the needs of persons with a protected characteristic within the meaning of the Equality Act 2010.</content></subsection><subsection eId="d25e6099"><num>(7E)</num><intro>Regulations may—</intro><level class="para1" eId="d25e6105"><num>(a)</num><content>permit the Regulatory Authority to determine that a group personal pension scheme is to be treated as meeting the fifth or sixth condition for a period (the “protected period”) specified by the Regulatory Authority;</content></level><level class="para1"><num>(b)</num><content>specify circumstances in which a group personal pension scheme which is treated as mentioned in <ref href="#d25e6105">paragraph (a)</ref> and meets prescribed conditions is to be subject during a prescribed period (which ends with the end of the protected period) to any requirements specified in the regulations; and provision under this paragraph may include provision corresponding to any provision that may be made under <ref href="#d25e6214">section 28A</ref><ref href="#d25e6431">(10)</ref>;</content></level><level class="para1" eId="d25e6125"><num>(c)</num><content>make provision about the Regulatory Authority requiring the provider of a group personal pension scheme to give the Regulatory Authority a plan showing how they propose to meet or continue to meet the scale requirement under section <ref href="#d25e6551">28B</ref> or the conditions for approval under section <ref href="#d25e6894">28C</ref>.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-40-9"><num>(9)</num><content><mod>After subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(10)</num><content>In this section “<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” is to be interpreted in accordance with section <ref href="#d25e6551">28B</ref><ref href="#d25e6870">(13)</ref>.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-40-10"><num>(10)</num><content>In section 28 (certification that quality requirement or alternative requirement is satisfied) in subsection (3A) omit paragraphs (a) and (c).</content></subsection><subsection eId="section-40-11"><num>(11)</num><intro>In section 28 (certification that quality requirement or alternative requirement is satisfied) in subsection (4) (definition of “relevant quality requirement”)—</intro><level class="para1" eId="section-40-11-a"><num>(a)</num><content><mod>in paragraph (a), at the end insert <quotedText>“, except so far as that quality requirement relates to Condition 1 or 2 in <ref href="#d25e5826">subsection (1A)</ref>”</quotedText>;</mod></content></level><level class="para1" eId="section-40-11-b"><num>(b)</num><content><mod>in paragraph (b), at the end insert <quotedText>“, except so far as that quality requirement relates to the fifth and sixth conditions”</quotedText>;</mod></content></level><level class="para1" eId="section-40-11-c"><num>(c)</num><content><mod>in paragraph (c), at the end insert <quotedText>“, except so far as those requirements relate to Condition 1 or 2 in section 20<ref href="#d25e5826">(1A)</ref>”</quotedText>.</mod></content></level></subsection><subsection eId="section-40-12"><num>(12)</num><content><mod>After section 28 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e6214"><num>28A</num><heading>MSDA approval: relevant Master Trusts</heading><subsection><num>(1)</num><intro>For the purposes of Condition 1 of section 20<ref href="#d25e5826">(1A)</ref>, the Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may approve a relevant Master Trust (“the RMT”) in respect of a main scale default arrangement if the Authority determines that—</intro><level class="para1"><num>(a)</num><content>the RMT meets the scale requirement by reference to the main scale default arrangement, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e6242"><num>(2)</num><content>The RMT meets the scale requirement by reference to a main scale default arrangement if the sum of the values mentioned in paragraphs <ref href="#d25e6275">(a)</ref> to <ref href="#d25e6328">(c)</ref> of <ref href="#d25e6266">subsection (4)</ref> is equal to or greater than the minimum amount.</content></subsection><subsection eId="d25e6257"><num>(3)</num><content>In this section “<term refersTo="#term-the-minimum-amount">the minimum amount</term>” means £25 billion.</content></subsection><subsection eId="d25e6266"><num>(4)</num><intro>Subject to <ref href="#d25e6384">subsection (7)</ref>, those values are—</intro><level class="para1" eId="d25e6275"><num>(a)</num><intro>the total value of assets of the RMT which—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of that scheme,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2" eId="d25e6293"><num>(iii)</num><content>are managed under a common investment strategy;</content></level></level><level class="para1"><num>(b)</num><intro>if one or more relevant Master Trusts are connected with the RMT, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of those schemes,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>;</content></level></level><level class="para1" eId="d25e6328"><num>(c)</num><intro>if one or more group personal pension schemes are connected with the RMT, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of those schemes,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>.</content></level></level></subsection><subsection eId="d25e6357"><num>(5)</num><content>A reference in subsection (4) to a relevant Master Trust or a group personal pension scheme being “connected” with the RMT is to a relevant Master Trust or a group personal pension scheme having a prescribed connection with the RMT.</content></subsection><subsection><num>(6)</num><intro>Regulations under <ref href="#d25e6357">subsection (5)</ref> may, for example, provide—</intro><level class="para1"><num>(a)</num><content>that a relevant Master Trust is connected with the RMT only if it has the same scheme funder or scheme strategist as the RMT, or</content></level><level class="para1"><num>(b)</num><content>that a group personal pension scheme is connected with the RMT only if its provider is also the scheme funder or scheme strategist of the RMT.</content></level></subsection><subsection eId="d25e6384"><num>(7)</num><content>Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under <ref href="#d25e6266">subsection (4)</ref><ref href="#d25e6275">(a)</ref> to <ref href="#d25e6328">(c)</ref>.</content></subsection><subsection><num>(8)</num><intro>Regulations may make provision about—</intro><level class="para1"><num>(a)</num><content>how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced;</content></level><level class="para1"><num>(b)</num><content>what it means for assets of a pension scheme to be managed under a “<term refersTo="#term-common-investment-strategy">common investment strategy</term>” (including in particular provision defining that expression by reference to whether or how far the assets relating to each member of the scheme are allocated in the same proportion to the same investments).</content></level></subsection><subsection><num>(9)</num><content>Regulations may make provision about how the value of assets is to be determined for the purposes of subsections <ref href="#d25e6242">(2)</ref> and <ref href="#d25e6266">(4)</ref>.</content></subsection><subsection eId="d25e6431"><num>(10)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>as to a time limit within which the Authority must decide an application for approval;</content></level><level class="para1"><num>(b)</num><content>as to procedures in connection with approvals or where an approval has been given;</content></level><level class="para1" eId="d25e6449"><num>(c)</num><content>about the withdrawal of approvals including conditions for, and procedures in connection with, withdrawals;</content></level><level class="para1"><num>(d)</num><content>for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal;</content></level><level class="para1"><num>(e)</num><content>for the Authority to maintain and publish a list of relevant Master Trusts that are approved under this section.</content></level></subsection><subsection eId="d25e6467"><num>(11)</num><intro>Regulations under <ref href="#d25e6431">subsection (10)</ref><ref href="#d25e6449">(c)</ref> may in particular make provision—</intro><level class="para1"><num>(a)</num><content>about steps, including communications with a relevant Master Trust, that the Authority must take before deciding to withdraw an approval;</content></level><level class="para1"><num>(b)</num><content>setting a minimum period that must elapse between a notification that approval is to be withdrawn and the withdrawal of the approval;</content></level><level class="para1"><num>(c)</num><intro>where the Authority has given notice to the trustees or managers of a relevant Master Trust that the approval (under this section) of that scheme is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers to—</intro><level class="para2"><num>(i)</num><content>act in relation to the scheme as if its approval has been withdrawn, and</content></level><level class="para2"><num>(ii)</num><content>take steps for ensuring that persons (such as employers) who may be affected in the event of the relevant Master Trust’s losing that approval are promptly informed if such a loss should occur;</content></level></level><level class="para1"><num>(d)</num><content>permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph (c), a penalty determined in accordance with the regulations that does not exceed £100,000;</content></level><level class="para1"><num>(e)</num><content>providing for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level></subsection><subsection><num>(12)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection><subsection eId="d25e6527"><num>(13)</num><intro>In this section “<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” means an arrangement—</intro><level class="para1"><num>(a)</num><content>that is used for the purposes of one or more pension schemes, and</content></level><level class="para1"><num>(b)</num><content>subject to which assets of any one of those schemes must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held.</content></level></subsection></section><section eId="d25e6551"><num>28B</num><heading>MSDA approval: group personal pension scheme</heading><subsection><num>(1)</num><intro>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may, for the purposes of the Condition in section 26<ref href="#d25e6027">(7A)</ref>, approve a group personal pension scheme (“the GPP”) in respect of a main scale default arrangement if the Authority determines that—</intro><level class="para1"><num>(a)</num><content>the GPP meets the scale requirement by reference to the main scale default arrangement, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e6579"><num>(2)</num><content>The GPP meets the scale requirement by reference to a main scale default arrangement if the sum of the values mentioned in paragraphs <ref href="#d25e6275">(a)</ref> to <ref href="#d25e6668">(c)</ref> of <ref href="#d25e6266">subsection (4)</ref> is equal to or greater than the minimum amount.</content></subsection><subsection eId="d25e6594"><num>(3)</num><content>In this section “<term refersTo="#term-the-minimum-amount">the minimum amount</term>” means £25 billion.</content></subsection><subsection eId="d25e6603"><num>(4)</num><intro>Subject to subsections <ref href="#d25e6697">(5)</ref> and <ref href="#d25e6711">(6)</ref>, those values are—</intro><level class="para1" eId="d25e6615"><num>(a)</num><intro>the total value of assets of the GPP which—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of the GPP,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under a common investment strategy;</content></level></level><level class="para1"><num>(b)</num><intro>if one or more group personal pension schemes are connected with the GPP, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of those schemes,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>;</content></level></level><level class="para1" eId="d25e6668"><num>(c)</num><intro>if one or more relevant Master Trusts are connected with the GPP, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of that scheme,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>.</content></level></level></subsection><subsection eId="d25e6697"><num>(5)</num><content>Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under subsection <ref href="#d25e6603">(4)</ref><ref href="#d25e6615">(a)</ref> to <ref href="#d25e6668">(c)</ref>.</content></subsection><subsection eId="d25e6711"><num>(6)</num><intro>Regulations may make provision about—</intro><level class="para1"><num>(a)</num><content>how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced;</content></level><level class="para1"><num>(b)</num><content>what it means for assets of a pension scheme to be managed under a “<term refersTo="#term-common-investment-strategy">common investment strategy</term>” (including in particular provision defining that expression by reference to whether or how far the assets relating to each member of the scheme are allocated in the same proportion to the same investments).</content></level></subsection><subsection><num>(7)</num><content>Regulations may make provision about how the value of assets is to be determined for the purposes of subsections <ref href="#d25e6242">(2)</ref> and <ref href="#d25e6266">(4)</ref>.</content></subsection><subsection eId="d25e6744"><num>(8)</num><content>A reference in subsection (4) to a group personal pension scheme or a relevant Master Trust being “connected” with the GPP is to a group personal pension scheme or a relevant Master Trust having a prescribed connection with the GPP.</content></subsection><subsection><num>(9)</num><intro>Regulations under <ref href="#d25e6744">subsection (8)</ref> may, for example, provide—</intro><level class="para1"><num>(a)</num><content>that a group personal pension scheme is connected with the GPP only if it has the same provider as the GPP, or</content></level><level class="para1"><num>(b)</num><content>that a relevant Master Trust is connected with the GPP only if its scheme funder or scheme strategist is also the provider of the GPP.</content></level></subsection><subsection eId="d25e6771"><num>(10)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>as to a time limit within which the Authority must decide an application for approval;</content></level><level class="para1"><num>(b)</num><content>as to procedures in connection with approvals or where an approval has been given;</content></level><level class="para1" eId="d25e6789"><num>(c)</num><content>about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals;</content></level><level class="para1"><num>(d)</num><content>for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal;</content></level><level class="para1"><num>(e)</num><content>for the Authority to maintain and publish a list of group personal pension schemes that are approved under this section.</content></level></subsection><subsection><num>(11)</num><intro>Regulations under <ref href="#d25e6771">subsection (10)</ref><ref href="#d25e6789">(c)</ref> may in particular make provision—</intro><level class="para1"><num>(a)</num><content>about steps, including communications with a group personal pension scheme, that the Authority must take before deciding to withdraw an approval;</content></level><level class="para1"><num>(b)</num><content>setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval;</content></level><level class="para1" eId="d25e6830"><num>(c)</num><intro>where the Authority has given notice to the provider of the GPP that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the provider to—</intro><level class="para2"><num>(i)</num><content>act in relation to the scheme as if its approval has been withdrawn, and</content></level><level class="para2"><num>(ii)</num><content>take steps for ensuring that persons (such as employers) who may be affected in the event of the GPP losing that approval are promptly informed if such a loss should occur;</content></level></level><level class="para1"><num>(d)</num><content>permitting the Authority to impose, on a person who fails to comply with a requirement under <ref href="#d25e6830">paragraph (c)</ref>, a penalty determined in accordance with the regulations that does not exceed £100,000;</content></level><level class="para1"><num>(e)</num><content>providing for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level></subsection><subsection><num>(12)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection><subsection eId="d25e6870"><num>(13)</num><intro>In this section “<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” means an arrangement—</intro><level class="para1"><num>(a)</num><content>that is used for the purposes of one or more pension schemes, and</content></level><level class="para1"><num>(b)</num><content>subject to which assets of any one of those schemes must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held.</content></level></subsection></section><section eId="d25e6894"><num>28C</num><heading>Approvals in respect of asset allocation</heading><subsection eId="d25e6898"><num>(1)</num><content>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may approve a relevant Master Trust or a group personal pension scheme in respect of the asset allocation requirement only if the Authority determines that at least the prescribed percentage (by value) of the assets held in main default funds of the scheme are qualifying assets.</content></subsection><subsection><num>(2)</num><intro>Regulations under subsection <ref href="#d25e6898">(1)</ref> may prescribe a percentage by reference to—</intro><level class="para1"><num>(a)</num><content>all of the assets of the scheme that are held in main default funds, or</content></level><level class="para1"><num>(b)</num><content>a prescribed description of the assets of the scheme that are so held.</content></level></subsection><subsection eId="d25e6928"><num>(3)</num><content>In this section “<term refersTo="#term-qualifying-asset">qualifying asset</term>” means an asset of a prescribed description that is held in a main default fund of a relevant Master Trust or group personal pension scheme.</content></subsection><subsection eId="d25e6937"><num>(4)</num><intro>A description of asset may be prescribed under subsection <ref href="#d25e6928">(3)</ref> only if it represents a direct or indirect holding in any of the following asset classes—</intro><level class="para1" eId="d25e6946"><num>(a)</num><content>private equity;</content></level><level class="para1"><num>(b)</num><content>venture capital;</content></level><level class="para1"><num>(c)</num><content>private credit;</content></level><level class="para1"><num>(d)</num><content>interests in land;</content></level><level class="para1" eId="d25e6970"><num>(e)</num><content>infrastructure;</content></level><level class="para1" eId="d25e6976"><num>(f)</num><content>unlisted equity securities not falling within paragraphs <ref href="#d25e6946">(a)</ref> to <ref href="#d25e6970">(e)</ref>.</content></level><wrapUp>In this subsection “<term refersTo="#term-unlisted-equity-securities">unlisted equity securities</term>” means equity securities not listed on a recognised stock exchange within the meaning of the Income Tax Acts (see section 1005 of the Income Tax Act 2007) (including equity securities admitted to trading that are not listed on such an exchange).</wrapUp></subsection><subsection><num>(5)</num><content>Regulations under subsection <ref href="#d25e6928">(3)</ref> must secure that a description of asset is prescribed under that subsection in respect of each asset class mentioned in subsection <ref href="#d25e6937">(4)</ref><ref href="#d25e6946">(a)</ref> to <ref href="#d25e6976">(f)</ref>.</content></subsection><subsection><num>(6)</num><intro>A description prescribed under subsection <ref href="#d25e6937">(4)</ref> may for example relate to—</intro><level class="para1"><num>(a)</num><content>whether an asset is located in the United Kingdom or elsewhere;</content></level><level class="para1"><num>(b)</num><content>the presence or absence of other prescribed factors linking an asset to economic activity in the United Kingdom.</content></level></subsection><subsection eId="d25e7032"><num>(7)</num><intro>Regulations under this section may not have the effect of requiring, as a condition of a scheme's approval under subsection (1)—</intro><level class="para1"><num>(a)</num><content>more than 10% (by value) of all of the assets of the scheme that are held in main default funds to be qualifying assets, or</content></level><level class="para1" eId="d25e7044"><num>(b)</num><content>more than 5% (by value) of all of the assets so held to be of a UK-specific description.</content></level></subsection><subsection><num>(8)</num><content>In subsection <ref href="#d25e7032">(7)</ref><ref href="#d25e7044">(b)</ref> “<term refersTo="#term-uk-specific-description">UK-specific description</term>” means a description framed by reference to whether an asset is located in the United Kingdom or meets any other condition linked to economic activity in the United Kingdom.</content></subsection><subsection><num>(9)</num><intro>For the purposes of this section assets of a relevant Master Trust or group personal pension scheme are held in “main default funds” if—</intro><level class="para1"><num>(a)</num><content>the jobholders by or in respect of whom contributions have been made to the scheme have not (or predominantly have not) expressed a choice as to where the contributions are allocated, and</content></level><level class="para1"><num>(b)</num><content>the arrangements under which the assets are held meet any other conditions that may be prescribed.</content></level></subsection><subsection><num>(10)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>about how the meeting of the asset allocation requirement is to be evidenced;</content></level><level class="para1"><num>(b)</num><content>requiring the trustees or managers of relevant Master Trusts or the providers of group personal pension schemes to have regard to any guidance issued by the Secretary of State about the effect of any regulations under this section.</content></level></subsection><subsection eId="d25e7100"><num>(11)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>as to a time limit within which the Authority must decide an application for approval;</content></level><level class="para1"><num>(b)</num><content>as to procedures in connection with approvals or where an approval has been given;</content></level><level class="para1"><num>(c)</num><content>about the period for which an approval has effect;</content></level><level class="para1" eId="d25e7124"><num>(d)</num><content>about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals;</content></level><level class="para1"><num>(e)</num><content>about the provision to the Authority of information required for the purposes of deciding applications (including any additional information the Authority may require in a particular case);</content></level><level class="para1" eId="d25e7136"><num>(f)</num><content>requiring the Authority to report to the Secretary of State any information the Secretary of State may require relating to the allocation of assets by relevant Master Trusts or group personal pension schemes;</content></level><level class="para1"><num>(g)</num><content>for the Authority’s decision on the application to be referred to the Upper Tribunal;</content></level><level class="para1"><num>(h)</num><intro>for the Authority to maintain and publish—</intro><level class="para2"><num>(i)</num><content>a list of relevant Master Trusts that are approved under this section, and</content></level><level class="para2"><num>(ii)</num><content>a list of group personal pension schemes that are approved under this section,</content></level><wrapUp>(or a single list of the pension schemes mentioned in sub-paragraphs (i) and (ii)).</wrapUp></level></subsection><subsection><num>(12)</num><intro>Regulations under subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7124">(d)</ref> may in particular make provision—</intro><level class="para1"><num>(a)</num><content>about steps, including communications with a relevant Master Trust or group personal pension scheme, that the Authority must take before deciding to withdraw an approval;</content></level><level class="para1"><num>(b)</num><content>setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval;</content></level><level class="para1" eId="d25e7192"><num>(c)</num><intro>where the Authority has given notice to the trustees or managers of a relevant Master Trust or the provider of a group personal pension that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers or provider to—</intro><level class="para2"><num>(i)</num><content>act in relation to the scheme as if its approval has been withdrawn, and</content></level><level class="para2"><num>(ii)</num><content>take steps for ensuring that persons (such as employers) who may be affected in the event of the scheme losing that approval are promptly informed if such a loss should occur;</content></level></level><level class="para1"><num>(d)</num><content>permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph <ref href="#d25e7192">(c)</ref>, a penalty determined in accordance with the regulations that does not exceed £100,000.</content></level></subsection><subsection eId="d25e7219"><num>(13)</num><intro>Before making regulations under <ref href="#d25e6898">subsection (1)</ref> the Secretary of State must prepare and publish a report setting out—</intro><level class="para1" eId="d25e7228"><num>(a)</num><content>a joint assessment by the Financial Conduct Authority and the Pensions Regulator of the extent to which there is evidence of competitive conditions restricting relevant Master Trusts and group personal pension schemes from investing in qualifying assets, including in circumstances where such investments may be in the best interests of members of such schemes;</content></level><level class="para1"><num>(b)</num><intro>the Secretary of State’s assessment of the extent to which relevant Master Trusts and group personal pension schemes have made progress towards achieving—</intro><level class="para2"><num>(i)</num><content>10% (by value) of scheme assets held in main default funds to be qualifying assets, and</content></level><level class="para2"><num>(ii)</num><content>5% (by value) of scheme assets so held to be of a UK-specific description (within the meaning of subsection <ref href="#d25e7032">(7)</ref><ref href="#d25e7044">(b)</ref>);</content></level></level><level class="para1"><num>(c)</num><content>the Secretary of State’s assessment of any barriers to relevant Master Trusts or group personal pension schemes investing in qualifying assets, including in particular where such assets are located in the United Kingdom;</content></level><level class="para1"><num>(d)</num><content>the steps taken by the Secretary of State or the Authority to address any such barriers;</content></level><level class="para1"><num>(e)</num><content>how the financial interests of members of relevant Master Trusts and group personal pension schemes are or would be affected by the proposed regulations;</content></level><level class="para1"><num>(f)</num><content>what effects the proposed measures could be expected to have on economic growth in the United Kingdom;</content></level><level class="para1"><num>(g)</num><content>any other matters the Secretary of State considers appropriate.</content></level></subsection><subsection><num>(14)</num><content>The power to make regulations under subsection (1) may only be exercised once.</content></subsection><subsection><num>(15)</num><content>Before making regulations under subsection <ref href="#d25e6898">(1)</ref>, the Secretary of State must have regard to the joint assessment of the Financial Conduct Authority and the Pensions Regulator mentioned in subsection <ref href="#d25e7219">(13)</ref><ref href="#d25e7228">(a)</ref>.</content></subsection><subsection><num>(16)</num><content>Before making regulations under this section, the Secretary of State must consult the Treasury.</content></subsection><subsection><num>(17)</num><content>The Secretary of State must consult such persons as the Secretary of State considers appropriate before publishing a report under <ref href="#d25e7219">subsection (13)</ref>.</content></subsection><subsection><num>(18)</num><content>The Secretary of State may not make regulations under subsection <ref href="#d25e6898">(1)</ref> before 1 January 2028.</content></subsection><subsection><num>(19)</num><content>Provision under this section overrides any provision of the trust deed or rules of the scheme in question, so far as they are in conflict (and for that purpose, a provision of the trust deed or rules of the scheme is “in conflict” with provision under this section so far as the former does not allow for the assets of the scheme to be managed in such a way as to meet the conditions for approval under this section).</content></subsection></section><section><num>28D</num><heading>Information</heading><subsection><num>(1)</num><content>Regulations may make provision about information that the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme must give to the Regulatory Authority about the allocation of assets of the relevant Master Trust or group personal pension scheme.</content></subsection><subsection><num>(2)</num><intro>The regulations may make provision about—</intro><level class="para1"><num>(a)</num><content>the types of information that must be given;</content></level><level class="para1"><num>(b)</num><content>when it must be given;</content></level><level class="para1"><num>(c)</num><content>the form and manner in which it must be given.</content></level></subsection></section><section eId="d25e7377"><num>28E</num><heading>Transition pathway relief</heading><subsection eId="d25e7381"><num>(1)</num><intro>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may approve a relevant Master Trust as qualifying for transition pathway relief if the Authority determines that—</intro><level class="para1" eId="d25e7390"><num>(a)</num><content>the condition in <ref href="#d25e7405">subsection (2)</ref> is met, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e7405"><num>(2)</num><intro>The condition mentioned in <ref href="#d25e7381">subsection (1)</ref><ref href="#d25e7390">(a)</ref> is that the Authority determines that the relevant Master Trust—</intro><level class="para1"><num>(a)</num><content>would qualify for approval under <ref href="#d25e6214">section 28A</ref> (MSDA approval: relevant Master Trusts) if the amount specified in <ref href="#d25e6214">section 28A</ref><ref href="#d25e6257">(3)</ref> were £10 billion, and</content></level><level class="para1"><num>(b)</num><content>has a credible plan in place for meeting the scale requirement within the meaning of section <ref href="#d25e6214">28A</ref><ref href="#d25e6242">(2)</ref>.</content></level></subsection><subsection eId="d25e7441"><num>(3)</num><intro>The Authority may approve a group personal pension scheme as qualifying for transition pathway relief if the Authority determines that—</intro><level class="para1" eId="d25e7447"><num>(a)</num><content>the condition in <ref href="#d25e7462">subsection (4)</ref> is met, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e7462"><num>(4)</num><intro>The condition mentioned in subsection <ref href="#d25e7441">(3)</ref><ref href="#d25e7447">(a)</ref> is that the Authority determines that the group personal pension scheme—</intro><level class="para1"><num>(a)</num><content>would qualify for approval under <ref href="#d25e6551">section 28B</ref> (MSDA approval: group personal pension schemes) if the amount specified in <ref href="#d25e6551">section 28B</ref><ref href="#d25e6594">(3)</ref> were £10 billion, and</content></level><level class="para1"><num>(b)</num><content>has a credible plan in place for meeting the scale requirement within the meaning of <ref href="#d25e6551">section 28B</ref><ref href="#d25e6579">(2)</ref>.</content></level></subsection><subsection><num>(5)</num><intro>Regulations may require trustees or managers of schemes that are authorised under this section to take prescribed steps, for example—</intro><level class="para1"><num>(a)</num><content>to produce plans for increasing the scale of their schemes’ holdings or to take other actions that may facilitate progress towards approval under <ref href="#d25e6214">section 28A</ref> or <ref href="#d25e6551">28B</ref>, or</content></level><level class="para1"><num>(b)</num><content>in connection with governance and investment capability.</content></level></subsection><subsection><num>(6)</num><content>Regulations must make provision about the criteria for making any determinations under <ref href="#d25e7381">subsection (1)</ref> or <ref href="#d25e7441">(3)</ref>.</content></subsection><subsection><num>(7)</num><intro>Regulations may make provision of a kind mentioned in section <ref href="#d25e6214">28A</ref><ref href="#d25e6431">(10)</ref> or <ref href="#d25e6467">(11)</ref>; and for this purpose a reference in those provisions—</intro><level class="para1"><num>(a)</num><content>to an approval under section <ref href="#d25e6214">28A</ref> is to be read as a reference to an approval under this section;</content></level><level class="para1"><num>(b)</num><content>to a relevant Master Trust is to be read as a reference to a relevant Master Trust or a group personal pension scheme;</content></level><level class="para1"><num>(c)</num><content>to the trustees or managers of a relevant Master Trust is to be read as a reference to the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme.</content></level></subsection><subsection><num>(8)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection><subsection><num>(9)</num><content>In this section “<term refersTo="#term-relevant-master-trust">relevant Master Trust</term>” has the same meaning as in section 20.</content></subsection></section><section eId="d25e7587"><num>28F</num><heading>New entrant pathway relief</heading><subsection><num>(1)</num><content>A relevant Master Trust or group personal pension scheme qualifies for new entrant pathway relief for the purposes of Condition 1<ref href="#d25e5870">(e)</ref> of section 20(1A) or section 26<ref href="#d25e6051">(7C)</ref><ref href="#d25e6078">(c)</ref> if the relevant Master Trust or group personal pension scheme is approved by the Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) under this section.</content></subsection><subsection><num>(2)</num><intro>The Authority may approve a relevant Master Trust or a group personal pension scheme under this section only if the Authority determines that—</intro><level class="para1"><num>(a)</num><content>the scheme in question does not yet have any members,</content></level><level class="para1"><num>(b)</num><content>the scheme in question has strong potential to grow so as to meet the scale requirement under section <ref href="#d25e6214">28A</ref> or <ref href="#d25e6551">28B</ref>,</content></level><level class="para1"><num>(c)</num><content>the scheme in question has an innovative product design, and</content></level><level class="para1"><num>(d)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection><num>(3)</num><intro>Regulations may make provision of a kind mentioned in section <ref href="#d25e6214">28A</ref><ref href="#d25e6431">(10)</ref> or <ref href="#d25e6467">(11)</ref>; and for this purpose a reference in those provisions—</intro><level class="para1"><num>(a)</num><content>to an approval under section <ref href="#d25e6214">28A</ref> is to be read as a reference to an approval under this section;</content></level><level class="para1"><num>(b)</num><content>to a relevant Master Trust is to be read as a reference to a relevant Master Trust or a group personal pension scheme;</content></level><level class="para1"><num>(c)</num><content>to the trustees or managers of a relevant Master Trust is to be read as a reference to the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme.</content></level></subsection><subsection><num>(4)</num><content>Regulations may make provision about the meaning of “strong potential to grow” and “<term refersTo="#term-innovative-product-design">innovative product design</term>” (including how it can be demonstrated that a scheme has strong potential to grow or an innovative product design).</content></subsection><subsection><num>(5)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection></section><section eId="d25e7697"><num>28G</num><heading>Suspension of asset allocation requirement: savers’ interest test</heading><subsection eId="d25e7701"><num>(1)</num><content>Regulations must make provision for authorising the Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”), on an application by a relevant Master Trust or group personal pension scheme, to determine that the scheme in question is to be treated, for a period specified by the Authority, as if that scheme were exempted from the requirement for approval under <ref href="#d25e6894">section 28C</ref>.</content></subsection><subsection><num>(2)</num><content>The Secretary of State must make regulations under subsection (1) so that they have effect whenever regulations under section 28C(1) or (2) have effect.</content></subsection><subsection><num>(3)</num><intro>Regulations under <ref href="#d25e7701">subsection (1)</ref>—</intro><level class="para1"><num>(a)</num><content>may make provision about the form and content of an application, including about the evidence to be provided as part of an application;</content></level><level class="para1"><num>(b)</num><intro>must make provision requiring an application to include a statement—</intro><level class="para2"><num>(i)</num><content>that the applicant concludes that meeting the asset allocation requirement is likely not to be in the best interests of members of the scheme, and</content></level><level class="para2"><num>(ii)</num><content>setting out the basis on which the applicant reached the conclusion;</content></level></level><level class="para1"><num>(c)</num><intro>must make provision requiring the Authority to determine that the applicant is to be treated as mentioned in subsection <ref href="#d25e7701">(1)</ref> in cases where—</intro><level class="para2"><num>(i)</num><content>the application complies with the requirements of regulations made under subsection <ref href="#d25e7701">(1)</ref>, and</content></level><level class="para2"><num>(ii)</num><content>the Authority is of the view that it is reasonable for the applicant to have reached the conclusion that meeting the asset allocation requirement is likely not to be in the best interests of members of the scheme;</content></level></level><level class="para1"><num>(d)</num><content>may make provision about the basis on which the Authority may or must form such a view, including about the evidence which the Authority may or must take into account;</content></level><level class="para1"><num>(e)</num><intro>may make provision as to the process for making a determination, including as to—</intro><level class="para2"><num>(i)</num><content>the level of detail of enquiry required in different cases;</content></level><level class="para2"><num>(ii)</num><content>a time limit within which the Authority must decide an application;</content></level><level class="para2"><num>(iii)</num><content>procedures in connection with applications;</content></level></level><level class="para1"><num>(f)</num><content>must require the Authority to provide reasons for any determination not to approve an application;</content></level><level class="para1"><num>(g)</num><content>must provide for the Authority’s determination on an application to be referred to the Upper Tribunal.</content></level></subsection></section><section eId="d25e7821"><num>28H</num><heading>Risk notices</heading><subsection eId="d25e7825"><num>(1)</num><intro>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may give a risk notice to the trustees or managers of a relevant Master Trust if the Authority considers that—</intro><level class="para1"><num>(a)</num><content>there is an issue of concern in relation to the relevant Master Trust, and</content></level><level class="para1"><num>(b)</num><content>the relevant Master Trust will, or is likely to, cease to meet the conditions for approval under <ref href="#d25e6214">section 28A</ref> or <ref href="#d25e6894">28C</ref> if the issue is not resolved.</content></level></subsection><subsection><num>(2)</num><content>A “risk notice” is a notice that requires the trustees or managers of a relevant Master Trust to submit to the Authority a plan (a “resolution plan”) setting out proposals for resolving the issue of concern.</content></subsection><subsection eId="d25e7858"><num>(3)</num><intro>A risk notice must—</intro><level class="para1"><num>(a)</num><content>identify the issue of concern;</content></level><level class="para1" eId="d25e7870"><num>(b)</num><content>specify the date by which the resolution plan is to be submitted.</content></level></subsection><subsection eId="d25e7876"><num>(4)</num><content>If the Authority is not satisfied that the proposals in a resolution plan are likely to be adequate to resolve the issue of concern, the Authority may give a further notice to the trustees or managers requiring them to submit a revised plan by a date specified in the notice.</content></subsection><subsection eId="d25e7882"><num>(5)</num><intro>The trustees or managers must implement the proposals in a resolution plan if the Authority—</intro><level class="para1"><num>(a)</num><content>is satisfied that the proposals are likely to be adequate to resolve the issue of concern, and</content></level><level class="para1"><num>(b)</num><content>notifies the trustees or managers accordingly.</content></level></subsection><subsection eId="d25e7900"><num>(6)</num><content>The Authority may direct the trustees or managers to comply with the requirement imposed by <ref href="#d25e7882">subsection (5)</ref>.</content></subsection><subsection eId="d25e7909"><num>(7)</num><intro>Where the trustees or managers are required by <ref href="#d25e7882">subsection (5)</ref> to implement the proposals in a resolution plan, they must—</intro><level class="para1"><num>(a)</num><content>submit to the Authority, before the end of a period specified in regulations, a report setting out what progress they are making in implementing the proposals (a “progress report”);</content></level><level class="para1"><num>(b)</num><content>submit further progress reports to the Authority at intervals specified by the Authority.</content></level></subsection><subsection eId="d25e7930"><num>(8)</num><content>Resolution plans and progress reports must be provided in the manner and form specified by the Authority.</content></subsection><subsection><num>(9)</num><content>A reference to a resolution plan in <ref href="#d25e7876">subsections (4)</ref> to <ref href="#d25e7930">(8)</ref> includes a reference to a resolution plan as revised under <ref href="#d25e7876">subsection (4)</ref>.</content></subsection><subsection><num>(10)</num><intro>Regulations may—</intro><level class="para1"><num>(a)</num><content>specify information that a risk notice must contain;</content></level><level class="para1"><num>(b)</num><content>provide that the date referred to in <ref href="#d25e7858">subsection (3)</ref><ref href="#d25e7870">(b)</ref> or <ref href="#d25e7876">(4)</ref> must fall before the end of a period specified in the regulations.</content></level></subsection><subsection><num>(11)</num><intro>Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee or manager of a relevant Master Trust who fails to comply with—</intro><level class="para1"><num>(a)</num><content>a notice under <ref href="#d25e7825">subsection (1)</ref> or <ref href="#d25e7876">(4)</ref>,</content></level><level class="para1"><num>(b)</num><content>a direction under <ref href="#d25e7900">subsection (6)</ref>, or</content></level><level class="para1"><num>(c)</num><content>a requirement imposed by <ref href="#d25e7909">subsection (7)</ref>.</content></level></subsection></section><section eId="d25e8016"><num>28I</num><heading>Penalties</heading><subsection eId="d25e8020"><num>(1)</num><intro>Regulations may make provision about the imposition by the Regulatory Authority of a penalty on the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme where the scheme—</intro><level class="para1" eId="d25e8026"><num>(a)</num><content>fails to meet the condition in section 20<ref href="#d25e5826">(1A)</ref> by virtue of not being approved under <ref href="#d25e6214">section 28A</ref> or <ref href="#d25e6894">28C</ref>, and</content></level><level class="para1" eId="d25e8041"><num>(b)</num><content>accepts contributions from an employer in relation to a jobholder on the basis that it is an automatic enrolment scheme in relation to that jobholder.</content></level></subsection><subsection eId="d25e8047"><num>(2)</num><intro>Regulations may make provision about the imposition by the Regulatory Authority of a penalty on the provider of a group personal pension scheme where the scheme—</intro><level class="para1" eId="d25e8053"><num>(a)</num><content>fails to meet the condition in section 26<ref href="#d25e6027">(7A)</ref> or <ref href="#d25e6039">(7B)</ref>, and</content></level><level class="para1" eId="d25e8065"><num>(b)</num><content>accepts contributions from an employer in relation to a jobholder on the basis that it is an automatic enrolment scheme in relation to that jobholder.</content></level></subsection><subsection><num>(3)</num><intro>The regulations must provide—</intro><level class="para1"><num>(a)</num><content>that a penalty must not exceed £100,000 in relation to each employer from which contributions are accepted as mentioned in <ref href="#d25e8020">subsection (1)</ref><ref href="#d25e8041">(b)</ref> or <ref href="#d25e8047">(2)</ref><ref href="#d25e8065">(b)</ref>, and</content></level><level class="para1"><num>(b)</num><content>that there is a right of appeal against the imposition of the penalty.</content></level></subsection></section><section eId="d25e8102"><num>28J</num><heading>Enforcement by the Financial Conduct Authority</heading><subsection><num>(1)</num><content>The Treasury may make regulations to enable the Financial Conduct Authority to take action (in addition to any action it may otherwise take under the Financial Services and Markets Act 2000) for monitoring and enforcing compliance of any FCA-regulated person with any provision of or under this Chapter.</content></subsection><subsection><num>(2)</num><intro>The regulations may apply, or make provision corresponding to—</intro><level class="para1"><num>(a)</num><content>provision made by or under this Part in relation to the Regulatory Authority, or</content></level><level class="para1"><num>(b)</num><content>any provision of the Financial Services and Markets Act 2000,</content></level><wrapUp>with or without modification.</wrapUp></subsection><subsection><num>(3)</num><content>In this section, “<term refersTo="#term-fca-regulated-person">FCA-regulated person</term>” means an authorised person (within the meaning of the Financial Services and Markets Act 2000).</content></subsection></section><section><num>28K</num><heading>Report about effects of pension scheme consolidation</heading><subsection><num>(1)</num><content>The Secretary of State must prepare and publish a report about the effects of consolidation on innovation in the design and operation of relevant Master Trusts and group personal pension schemes.</content></subsection><subsection><num>(2)</num><intro>The report may in particular include information about—</intro><level class="para1"><num>(a)</num><content>the extent to which consolidated schemes adopt or maintain innovative product designs of constituent schemes;</content></level><level class="para1"><num>(b)</num><content>barriers to consolidated schemes adopting or maintaining such innovative product designs.</content></level></subsection><subsection><num>(3)</num><content>The Pensions Regulator and the FCA must provide such information and assistance as the Secretary of State may require for the purposes of the report.</content></subsection><subsection><num>(4)</num><content>The report under this section must be published before the end of the period of 12 months beginning with the day on which this section comes into force.</content></subsection><subsection><num>(5)</num><content>In this section “<term refersTo="#term-consolidation">consolidation</term>” means the consolidation of a relevant Master Trust or group personal pension scheme with one or more other schemes.</content></subsection></section><section><num>28L</num><heading>Regulations about quality requirements</heading><intro>In making regulations under section 20<ref href="#d25e5826">(1A)</ref> or <ref href="#d25e5924">(1C)</ref>, 26<ref href="#d25e6027">(7A)</ref>, <ref href="#d25e6214">28A</ref>, <ref href="#d25e6551">28B</ref>, <ref href="#d25e7377">28E</ref> or <ref href="#d25e7587">28F</ref>, the Secretary of State must have regard to the importance of—</intro><level class="para1"><num>(a)</num><content>innovation in the design and operation of relevant Master Trusts and group personal pension schemes;</content></level><level class="para1"><num>(b)</num><content>competition among relevant Master Trusts and group personal pension schemes;</content></level><level class="para1"><num>(c)</num><content>improving outcomes for members of relevant Master Trusts and group personal pension schemes;</content></level><level class="para1"><num>(d)</num><content>relevant Master Trusts and group personal pension schemes achieving an appropriate scale;</content></level><level class="para1"><num>(e)</num><content>relevant Master Trusts and group personal pension schemes having effective governance.</content></level></section></quotedStructure></mod></content></subsection><subsection eId="section-40-13"><num>(13)</num><content><mod>Before section 31 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e8267"><num>30A</num><heading>Review of exercise of powers under <ref href="#d25e6894">section 28C</ref></heading><subsection eId="d25e8271"><num>(1)</num><intro>The Secretary of State must—</intro><level class="para1"><num>(a)</num><content>review the effects of any regulations under <ref href="#d25e6894">section 28C</ref> (approvals in respect of asset allocation), and</content></level><level class="para1"><num>(b)</num><content>prepare, publish and lay before Parliament, a report of the review.</content></level></subsection><subsection><num>(2)</num><content>A review under <ref href="#d25e8271">subsection (1)</ref> must be conducted before the end of the period of 5 years beginning with the day on which the regulations in question come into force.</content></subsection><subsection><num>(3)</num><intro>In carrying out the review the Secretary of State must take the following into account—</intro><level class="para1"><num>(a)</num><content>whether and how the financial interests of members of Master Trust schemes and savers in group personal pension schemes have been affected by the regulations;</content></level><level class="para1"><num>(b)</num><content>the effects (if any) of the measures on economic growth in the United Kingdom;</content></level><level class="para1"><num>(c)</num><content>any other matters the Secretary of State considers appropriate.</content></level></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-40-14"><num>(14)</num><intro>In section 99 (interpretation of Part)—</intro><level class="para1" eId="section-40-14-a"><num>(a)</num><content>the existing words become subsection (1);</content></level><level class="para1" eId="section-40-14-b"><num>(b)</num><intro>in that subsection, at the appropriate places insert—</intro><hcontainer name="definition"><intro>““<term refersTo="#term-group-personal-pension-scheme" eId="term-group-personal-pension-scheme">group personal pension scheme</term>” means a personal pension scheme which is available, or intended to be available, to employees of the same employer or of employers within a group, but does not include—</intro><level class="para1"><num>(a)</num><content>a stakeholder pension scheme (as defined in section 1 of the Welfare Reform and Pensions Act 1999), or</content></level><level class="para1"><num>(b)</num><content>any pension scheme that requires all its members to make a choice as to how their contributions are invested;”;</content></level></hcontainer><hcontainer name="definition"><content>““<term refersTo="#term-regulatory-authority" eId="term-regulatory-authority">Regulatory Authority</term>” has the meaning given by regulations under subsection (2);”;</content></hcontainer><hcontainer name="definition"><content>““<term refersTo="#term-relevant-master-trust" eId="term-relevant-master-trust">relevant Master Trust</term>” has the meaning given by section 20(4);”;</content></hcontainer></level><level class="para1" eId="section-40-14-c"><num>(c)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><content>The Secretary of State may by regulations define “<term refersTo="#term-regulatory-authority">Regulatory Authority</term>” for the purposes of this Part.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-40-15"><num>(15)</num><intro>In section 143 (orders and regulations) in subsection (5)(a)—</intro><level class="para1" eId="section-40-15-a"><num>(a)</num><content><mod>after “17(1)(c),” insert <quotedText>“20, 26<ref href="#d25e6027">(7A)</ref>, <ref href="#d25e6039">(7B)</ref>, <ref href="#d25e6051">(7C)</ref> or <ref href="#d25e6099">(7E)</ref>,”</quotedText>;</mod></content></level><level class="para1" eId="section-40-15-b"><num>(b)</num><content><mod>after “28,” insert <quotedText>“<ref href="#d25e6214">28A</ref>, <ref href="#d25e6551">28B</ref>, <ref href="#d25e6894">28C</ref> (other than subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7136">(f)</ref>), <ref href="#d25e7377">28E</ref>, <ref href="#d25e7587">28F</ref>, <ref href="#d25e7697">28G</ref>, <ref href="#d25e8016">28I</ref>, <ref href="#d25e8102">28J</ref>,”</quotedText>.</mod></content></level></subsection><subsection eId="section-40-16"><num>(16)</num><intro>The following provisions of the Pensions Act 2008 (which relate to transition pathway relief) are repealed at the end of the period of 5 years beginning with the day on which the provisions mentioned in paragraphs (a) and (b) come into force—</intro><level class="para1" eId="section-40-16-a"><num>(a)</num><content>paragraph <ref href="#d25e5863">(d)</ref> of Condition 1 in section 20<ref href="#d25e5826">(1A)</ref>;</content></level><level class="para1" eId="section-40-16-b"><num>(b)</num><content>section 26<ref href="#d25e6051">(7C)</ref><ref href="#d25e6069">(b)</ref>;</content></level><level class="para1" eId="section-40-16-c"><num>(c)</num><content>section <ref href="#d25e7377">28E</ref>;</content></level><level class="para1" eId="section-40-16-d"><num>(d)</num><content>the word “<ref href="#d25e7377">28E</ref>” in section 143(5)(a).</content></level></subsection><subsection eId="section-40-17"><num>(17)</num><intro>The following provisions are repealed at the end of 2035—</intro><level class="para1" eId="section-40-17-a"><num>(a)</num><intro>in <ref eId="c00021" href="https://www.legislation.gov.uk/ukpga/2000/8/section/204A">section 204A</ref> of the <ref eId="c00022" href="https://www.legislation.gov.uk/ukpga/2000/8/contents">Financial Services and Markets Act 2000</ref> (meaning of “<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” and “<term refersTo="#term-appropriate-regulator" eId="term-appropriate-regulator">appropriate regulator</term>”)—</intro><level class="para2" eId="section-40-17-a-i"><num>(i)</num><content>in subsection (2)(aza), the words “or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>”;</content></level><level class="para2" eId="section-40-17-a-ii"><num>(ii)</num><content>in subsection (6)(aza), the words “or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>”;</content></level></level><level class="para1" eId="section-40-17-b"><num>(b)</num><content>in section 90(6)<ref href="#d25e24762">(da)</ref> of the Pensions Act 2004, the words “and the asset allocation requirement”;</content></level><level class="para1" eId="section-40-17-c"><num>(c)</num><content>the relevant asset allocation provisions of the <ref eId="c00023" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref>.</content></level></subsection><subsection eId="section-40-18"><num>(18)</num><intro>For the purposes of subsection <ref href="#section-40-17">(17)</ref>, the “relevant asset allocation provisions” of the Pensions Act 2008 are the following—</intro><level class="para1" eId="section-40-18-a"><num>(a)</num><intro>in section 20<ref href="#d25e5826">(1A)</ref> (asset allocation requirement: Master Trusts)—</intro><level class="para2" eId="section-40-18-a-i"><num>(i)</num><content>in the opening words, the words “and Condition 2”;</content></level><level class="para2" eId="section-40-18-a-ii"><num>(ii)</num><content>Condition 2;</content></level></level><level class="para1" eId="section-40-18-b"><num>(b)</num><content>in section 20<ref href="#d25e5903">(1B)</ref> (exemptions), the words “or 2<ref href="#d25e5893">(b)</ref>”;</content></level><level class="para1" eId="section-40-18-c"><num>(c)</num><intro>in section 20<ref href="#d25e5924">(1C)</ref> (protected period)—</intro><level class="para2" eId="section-40-18-c-i"><num>(i)</num><content>in paragraph <ref href="#d25e5930">(a)</ref>, the words “or Condition 2”;</content></level><level class="para2" eId="section-40-18-c-ii"><num>(ii)</num><content>in paragraph <ref href="#d25e5950">(c)</ref>, the words “or the conditions for approval under section <ref href="#d25e6894">28C</ref>”;</content></level></level><level class="para1" eId="section-40-18-d"><num>(d)</num><intro>in section 26 (quality requirement: UK personal pension schemes)—</intro><level class="para2" eId="section-40-18-d-i"><num>(i)</num><content>subsection <ref href="#d25e6039">(7B)</ref>;</content></level><level class="para2" eId="section-40-18-d-ii"><num>(ii)</num><content>in subsection <ref href="#d25e6087">(7D)</ref>, the words “or <ref href="#d25e6039">(7B)</ref>”;</content></level><level class="para2" eId="section-40-18-d-iii"><num>(iii)</num><content>in subsection <ref href="#d25e6099">(7E)</ref><ref href="#d25e6105">(a)</ref>, the words “or sixth”;</content></level><level class="para2" eId="section-40-18-d-iv"><num>(iv)</num><content>in subsection <ref href="#d25e6099">(7E)</ref><ref href="#d25e6125">(c)</ref>, the words “or the conditions for approval under section <ref href="#d25e6894">28C</ref>”;</content></level></level><level class="para1" eId="section-40-18-e"><num>(e)</num><intro>in section 28 (certification that quality requirement or alternative requirement is satisfied)—</intro><level class="para2" eId="section-40-18-e-i"><num>(i)</num><content>in subsection (4)(a), the words “or 2”;</content></level><level class="para2" eId="section-40-18-e-ii"><num>(ii)</num><content>in subsection (4)(b), the words “and sixth”;</content></level><level class="para2" eId="section-40-18-e-iii"><num>(iii)</num><content>in subsection (4)(c), the words “or 2”;</content></level></level><level class="para1" eId="section-40-18-f"><num>(f)</num><content>section <ref href="#d25e6894">28C</ref> (approvals in respect of asset allocation);</content></level><level class="para1" eId="section-40-18-g"><num>(g)</num><content>section <ref href="#d25e7697">28G</ref> (suspension of asset allocation requirement: savers’ interest test);</content></level><level class="para1" eId="section-40-18-h"><num>(h)</num><content>in section <ref href="#d25e7821">28H</ref> (risk notices), in subsection (1)(b), the words “or <ref href="#d25e6894">28C</ref>”;</content></level><level class="para1" eId="section-40-18-i"><num>(i)</num><intro>in section <ref href="#d25e8016">28I</ref> (penalties)—</intro><level class="para2" eId="section-40-18-i-i"><num>(i)</num><content>in subsection <ref href="#d25e8020">(1)</ref><ref href="#d25e8026">(a)</ref>, the words “or <ref href="#d25e6894">28C</ref>”;</content></level><level class="para2" eId="section-40-18-i-ii"><num>(ii)</num><content>in subsection <ref href="#d25e8047">(2)</ref><ref href="#d25e8053">(a)</ref>, the words “or <ref href="#d25e6039">(7B)</ref>”;</content></level></level><level class="para1" eId="section-40-18-j"><num>(j)</num><content>section <ref href="#d25e8267">30A</ref> (review of exercise of powers under section <ref href="#d25e6894">28C</ref>);</content></level><level class="para1" eId="section-40-18-k"><num>(k)</num><intro>in section 143(5)(a) (orders and regulations)—</intro><level class="para2" eId="section-40-18-k-i"><num>(i)</num><content>the word “<ref href="#d25e6039">(7B)</ref>”;</content></level><level class="para2" eId="section-40-18-k-ii"><num>(ii)</num><content>the words “<ref href="#d25e6894">28C</ref> (other than subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7136">(f)</ref>)”;</content></level><level class="para2" eId="section-40-18-k-iii"><num>(iii)</num><content>the word “<ref href="#d25e7697">28G</ref>”.</content></level></level></subsection><subsection eId="section-40-19"><num>(19)</num><intro>In consequence of the repeals under subsection <ref href="#section-40-17">(17)</ref>, at the end of 2035—</intro><level class="para1" eId="section-40-19-a"><num>(a)</num><content><mod>in section 73(2)<ref href="#d25e24389">(dza)</ref> of the Pensions Act 2004 (inspection of premises), for “<ref href="#d25e7697">28G</ref> of the Pensions Act 2008 (scale and asset allocation)” substitute <quotedText>“<ref href="#d25e7587">28F</ref> of the Pensions Act 2008 (scale)”</quotedText>;</mod></content></level><level class="para1" eId="section-40-19-b"><num>(b)</num><content><mod>in section 28(4)(b) of the Pensions Act 2008 (certification that quality requirement or alternative requirement is satisfied), for “conditions” substitute <quotedText>“condition”</quotedText>.</mod></content></level></subsection><subsection eId="section-40-20"><num>(20)</num><content>The Secretary of State may by regulations make transitional or saving provision in connection with any repeal or amendment under subsection <ref href="#section-40-17">(17)</ref> or <ref href="#section-40-19">(19)</ref>.</content></subsection><subsection eId="section-40-21"><num>(21)</num><content>If this section is repealed under section <ref href="#section-133">133</ref><ref href="#section-133-6">(6)</ref> (repeal where asset allocation requirement uncommenced) in respect of the insertion of the provisions mentioned in that subsection, the Secretary of State may by regulations amend this section, section 41 or the Schedule in consequence of that repeal.</content></subsection><subsection eId="section-40-22"><num>(22)</num><content>Regulations under subsection <ref href="#section-40-20">(20)</ref> or <ref href="#section-40-21">(21)</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-1"><num>(1)</num><content>The Pensions Act 2008 is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-2"><num>(2)</num><content>Section 20 (quality requirement: UK money purchase schemes) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-3"><num>(3)</num><content><mod>In subsection (1), after “purchase scheme” insert <quotedText>“that is not a relevant Master Trust and”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-6"><num>(6)</num><content><mod>In section 25 (quality requirement: non-UK occupational pension schemes) for “18(b) or (c)” substitute <quotedText>“18(c)”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-7"><num>(7)</num><content>Section 26 (quality requirement: UK personal pension schemes) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-10"><num>(10)</num><content>In section 28 (certification that quality requirement or alternative requirement is satisfied) in subsection (3A) omit paragraphs (a) and (c).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-11"><num>(11)</num><intro>In section 28 (certification that quality requirement or alternative requirement is satisfied) in subsection (4) (definition of “relevant quality requirement”)—</intro><level class="para1" eId="section-40-11-a"><num>(a)</num><content><mod>in paragraph (a), at the end insert <quotedText>“, except so far as that quality requirement relates to Condition 1 or 2 in <ref href="#d25e5826">subsection (1A)</ref>”</quotedText>;</mod></content></level><level class="para1" eId="section-40-11-b"><num>(b)</num><content><mod>in paragraph (b), at the end insert <quotedText>“, except so far as that quality requirement relates to the fifth and sixth conditions”</quotedText>;</mod></content></level><level class="para1" eId="section-40-11-c"><num>(c)</num><content><mod>in paragraph (c), at the end insert <quotedText>“, except so far as those requirements relate to Condition 1 or 2 in section 20<ref href="#d25e5826">(1A)</ref>”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-40-12"><num>(12)</num><content><mod>After section 28 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e6214"><num>28A</num><heading>MSDA approval: relevant Master Trusts</heading><subsection><num>(1)</num><intro>For the purposes of Condition 1 of section 20<ref href="#d25e5826">(1A)</ref>, the Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may approve a relevant Master Trust (“the RMT”) in respect of a main scale default arrangement if the Authority determines that—</intro><level class="para1"><num>(a)</num><content>the RMT meets the scale requirement by reference to the main scale default arrangement, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e6242"><num>(2)</num><content>The RMT meets the scale requirement by reference to a main scale default arrangement if the sum of the values mentioned in paragraphs <ref href="#d25e6275">(a)</ref> to <ref href="#d25e6328">(c)</ref> of <ref href="#d25e6266">subsection (4)</ref> is equal to or greater than the minimum amount.</content></subsection><subsection eId="d25e6257"><num>(3)</num><content>In this section “<term refersTo="#term-the-minimum-amount">the minimum amount</term>” means £25 billion.</content></subsection><subsection eId="d25e6266"><num>(4)</num><intro>Subject to <ref href="#d25e6384">subsection (7)</ref>, those values are—</intro><level class="para1" eId="d25e6275"><num>(a)</num><intro>the total value of assets of the RMT which—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of that scheme,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2" eId="d25e6293"><num>(iii)</num><content>are managed under a common investment strategy;</content></level></level><level class="para1"><num>(b)</num><intro>if one or more relevant Master Trusts are connected with the RMT, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of those schemes,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>;</content></level></level><level class="para1" eId="d25e6328"><num>(c)</num><intro>if one or more group personal pension schemes are connected with the RMT, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of those schemes,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>.</content></level></level></subsection><subsection eId="d25e6357"><num>(5)</num><content>A reference in subsection (4) to a relevant Master Trust or a group personal pension scheme being “connected” with the RMT is to a relevant Master Trust or a group personal pension scheme having a prescribed connection with the RMT.</content></subsection><subsection><num>(6)</num><intro>Regulations under <ref href="#d25e6357">subsection (5)</ref> may, for example, provide—</intro><level class="para1"><num>(a)</num><content>that a relevant Master Trust is connected with the RMT only if it has the same scheme funder or scheme strategist as the RMT, or</content></level><level class="para1"><num>(b)</num><content>that a group personal pension scheme is connected with the RMT only if its provider is also the scheme funder or scheme strategist of the RMT.</content></level></subsection><subsection eId="d25e6384"><num>(7)</num><content>Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under <ref href="#d25e6266">subsection (4)</ref><ref href="#d25e6275">(a)</ref> to <ref href="#d25e6328">(c)</ref>.</content></subsection><subsection><num>(8)</num><intro>Regulations may make provision about—</intro><level class="para1"><num>(a)</num><content>how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced;</content></level><level class="para1"><num>(b)</num><content>what it means for assets of a pension scheme to be managed under a “<term refersTo="#term-common-investment-strategy">common investment strategy</term>” (including in particular provision defining that expression by reference to whether or how far the assets relating to each member of the scheme are allocated in the same proportion to the same investments).</content></level></subsection><subsection><num>(9)</num><content>Regulations may make provision about how the value of assets is to be determined for the purposes of subsections <ref href="#d25e6242">(2)</ref> and <ref href="#d25e6266">(4)</ref>.</content></subsection><subsection eId="d25e6431"><num>(10)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>as to a time limit within which the Authority must decide an application for approval;</content></level><level class="para1"><num>(b)</num><content>as to procedures in connection with approvals or where an approval has been given;</content></level><level class="para1" eId="d25e6449"><num>(c)</num><content>about the withdrawal of approvals including conditions for, and procedures in connection with, withdrawals;</content></level><level class="para1"><num>(d)</num><content>for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal;</content></level><level class="para1"><num>(e)</num><content>for the Authority to maintain and publish a list of relevant Master Trusts that are approved under this section.</content></level></subsection><subsection eId="d25e6467"><num>(11)</num><intro>Regulations under <ref href="#d25e6431">subsection (10)</ref><ref href="#d25e6449">(c)</ref> may in particular make provision—</intro><level class="para1"><num>(a)</num><content>about steps, including communications with a relevant Master Trust, that the Authority must take before deciding to withdraw an approval;</content></level><level class="para1"><num>(b)</num><content>setting a minimum period that must elapse between a notification that approval is to be withdrawn and the withdrawal of the approval;</content></level><level class="para1"><num>(c)</num><intro>where the Authority has given notice to the trustees or managers of a relevant Master Trust that the approval (under this section) of that scheme is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers to—</intro><level class="para2"><num>(i)</num><content>act in relation to the scheme as if its approval has been withdrawn, and</content></level><level class="para2"><num>(ii)</num><content>take steps for ensuring that persons (such as employers) who may be affected in the event of the relevant Master Trust’s losing that approval are promptly informed if such a loss should occur;</content></level></level><level class="para1"><num>(d)</num><content>permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph (c), a penalty determined in accordance with the regulations that does not exceed £100,000;</content></level><level class="para1"><num>(e)</num><content>providing for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level></subsection><subsection><num>(12)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection><subsection eId="d25e6527"><num>(13)</num><intro>In this section “<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” means an arrangement—</intro><level class="para1"><num>(a)</num><content>that is used for the purposes of one or more pension schemes, and</content></level><level class="para1"><num>(b)</num><content>subject to which assets of any one of those schemes must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held.</content></level></subsection></section><section eId="d25e6551"><num>28B</num><heading>MSDA approval: group personal pension scheme</heading><subsection><num>(1)</num><intro>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may, for the purposes of the Condition in section 26<ref href="#d25e6027">(7A)</ref>, approve a group personal pension scheme (“the GPP”) in respect of a main scale default arrangement if the Authority determines that—</intro><level class="para1"><num>(a)</num><content>the GPP meets the scale requirement by reference to the main scale default arrangement, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e6579"><num>(2)</num><content>The GPP meets the scale requirement by reference to a main scale default arrangement if the sum of the values mentioned in paragraphs <ref href="#d25e6275">(a)</ref> to <ref href="#d25e6668">(c)</ref> of <ref href="#d25e6266">subsection (4)</ref> is equal to or greater than the minimum amount.</content></subsection><subsection eId="d25e6594"><num>(3)</num><content>In this section “<term refersTo="#term-the-minimum-amount">the minimum amount</term>” means £25 billion.</content></subsection><subsection eId="d25e6603"><num>(4)</num><intro>Subject to subsections <ref href="#d25e6697">(5)</ref> and <ref href="#d25e6711">(6)</ref>, those values are—</intro><level class="para1" eId="d25e6615"><num>(a)</num><intro>the total value of assets of the GPP which—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of the GPP,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under a common investment strategy;</content></level></level><level class="para1"><num>(b)</num><intro>if one or more group personal pension schemes are connected with the GPP, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of those schemes,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>;</content></level></level><level class="para1" eId="d25e6668"><num>(c)</num><intro>if one or more relevant Master Trusts are connected with the GPP, the total value of assets of those schemes that—</intro><level class="para2"><num>(i)</num><content>represent accrued rights of members of that scheme,</content></level><level class="para2"><num>(ii)</num><content>are held subject to the main scale default arrangement, and</content></level><level class="para2"><num>(iii)</num><content>are managed under the investment strategy mentioned in <ref href="#d25e6275">paragraph (a)</ref><ref href="#d25e6293">(iii)</ref>.</content></level></level></subsection><subsection eId="d25e6697"><num>(5)</num><content>Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under subsection <ref href="#d25e6603">(4)</ref><ref href="#d25e6615">(a)</ref> to <ref href="#d25e6668">(c)</ref>.</content></subsection><subsection eId="d25e6711"><num>(6)</num><intro>Regulations may make provision about—</intro><level class="para1"><num>(a)</num><content>how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced;</content></level><level class="para1"><num>(b)</num><content>what it means for assets of a pension scheme to be managed under a “<term refersTo="#term-common-investment-strategy">common investment strategy</term>” (including in particular provision defining that expression by reference to whether or how far the assets relating to each member of the scheme are allocated in the same proportion to the same investments).</content></level></subsection><subsection><num>(7)</num><content>Regulations may make provision about how the value of assets is to be determined for the purposes of subsections <ref href="#d25e6242">(2)</ref> and <ref href="#d25e6266">(4)</ref>.</content></subsection><subsection eId="d25e6744"><num>(8)</num><content>A reference in subsection (4) to a group personal pension scheme or a relevant Master Trust being “connected” with the GPP is to a group personal pension scheme or a relevant Master Trust having a prescribed connection with the GPP.</content></subsection><subsection><num>(9)</num><intro>Regulations under <ref href="#d25e6744">subsection (8)</ref> may, for example, provide—</intro><level class="para1"><num>(a)</num><content>that a group personal pension scheme is connected with the GPP only if it has the same provider as the GPP, or</content></level><level class="para1"><num>(b)</num><content>that a relevant Master Trust is connected with the GPP only if its scheme funder or scheme strategist is also the provider of the GPP.</content></level></subsection><subsection eId="d25e6771"><num>(10)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>as to a time limit within which the Authority must decide an application for approval;</content></level><level class="para1"><num>(b)</num><content>as to procedures in connection with approvals or where an approval has been given;</content></level><level class="para1" eId="d25e6789"><num>(c)</num><content>about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals;</content></level><level class="para1"><num>(d)</num><content>for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal;</content></level><level class="para1"><num>(e)</num><content>for the Authority to maintain and publish a list of group personal pension schemes that are approved under this section.</content></level></subsection><subsection><num>(11)</num><intro>Regulations under <ref href="#d25e6771">subsection (10)</ref><ref href="#d25e6789">(c)</ref> may in particular make provision—</intro><level class="para1"><num>(a)</num><content>about steps, including communications with a group personal pension scheme, that the Authority must take before deciding to withdraw an approval;</content></level><level class="para1"><num>(b)</num><content>setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval;</content></level><level class="para1" eId="d25e6830"><num>(c)</num><intro>where the Authority has given notice to the provider of the GPP that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the provider to—</intro><level class="para2"><num>(i)</num><content>act in relation to the scheme as if its approval has been withdrawn, and</content></level><level class="para2"><num>(ii)</num><content>take steps for ensuring that persons (such as employers) who may be affected in the event of the GPP losing that approval are promptly informed if such a loss should occur;</content></level></level><level class="para1"><num>(d)</num><content>permitting the Authority to impose, on a person who fails to comply with a requirement under <ref href="#d25e6830">paragraph (c)</ref>, a penalty determined in accordance with the regulations that does not exceed £100,000;</content></level><level class="para1"><num>(e)</num><content>providing for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty.</content></level></subsection><subsection><num>(12)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection><subsection eId="d25e6870"><num>(13)</num><intro>In this section “<term refersTo="#term-main-scale-default-arrangement">main scale default arrangement</term>” means an arrangement—</intro><level class="para1"><num>(a)</num><content>that is used for the purposes of one or more pension schemes, and</content></level><level class="para1"><num>(b)</num><content>subject to which assets of any one of those schemes must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held.</content></level></subsection></section><section eId="d25e6894"><num>28C</num><heading>Approvals in respect of asset allocation</heading><subsection eId="d25e6898"><num>(1)</num><content>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may approve a relevant Master Trust or a group personal pension scheme in respect of the asset allocation requirement only if the Authority determines that at least the prescribed percentage (by value) of the assets held in main default funds of the scheme are qualifying assets.</content></subsection><subsection><num>(2)</num><intro>Regulations under subsection <ref href="#d25e6898">(1)</ref> may prescribe a percentage by reference to—</intro><level class="para1"><num>(a)</num><content>all of the assets of the scheme that are held in main default funds, or</content></level><level class="para1"><num>(b)</num><content>a prescribed description of the assets of the scheme that are so held.</content></level></subsection><subsection eId="d25e6928"><num>(3)</num><content>In this section “<term refersTo="#term-qualifying-asset">qualifying asset</term>” means an asset of a prescribed description that is held in a main default fund of a relevant Master Trust or group personal pension scheme.</content></subsection><subsection eId="d25e6937"><num>(4)</num><intro>A description of asset may be prescribed under subsection <ref href="#d25e6928">(3)</ref> only if it represents a direct or indirect holding in any of the following asset classes—</intro><level class="para1" eId="d25e6946"><num>(a)</num><content>private equity;</content></level><level class="para1"><num>(b)</num><content>venture capital;</content></level><level class="para1"><num>(c)</num><content>private credit;</content></level><level class="para1"><num>(d)</num><content>interests in land;</content></level><level class="para1" eId="d25e6970"><num>(e)</num><content>infrastructure;</content></level><level class="para1" eId="d25e6976"><num>(f)</num><content>unlisted equity securities not falling within paragraphs <ref href="#d25e6946">(a)</ref> to <ref href="#d25e6970">(e)</ref>.</content></level><wrapUp>In this subsection “<term refersTo="#term-unlisted-equity-securities">unlisted equity securities</term>” means equity securities not listed on a recognised stock exchange within the meaning of the Income Tax Acts (see section 1005 of the Income Tax Act 2007) (including equity securities admitted to trading that are not listed on such an exchange).</wrapUp></subsection><subsection><num>(5)</num><content>Regulations under subsection <ref href="#d25e6928">(3)</ref> must secure that a description of asset is prescribed under that subsection in respect of each asset class mentioned in subsection <ref href="#d25e6937">(4)</ref><ref href="#d25e6946">(a)</ref> to <ref href="#d25e6976">(f)</ref>.</content></subsection><subsection><num>(6)</num><intro>A description prescribed under subsection <ref href="#d25e6937">(4)</ref> may for example relate to—</intro><level class="para1"><num>(a)</num><content>whether an asset is located in the United Kingdom or elsewhere;</content></level><level class="para1"><num>(b)</num><content>the presence or absence of other prescribed factors linking an asset to economic activity in the United Kingdom.</content></level></subsection><subsection eId="d25e7032"><num>(7)</num><intro>Regulations under this section may not have the effect of requiring, as a condition of a scheme's approval under subsection (1)—</intro><level class="para1"><num>(a)</num><content>more than 10% (by value) of all of the assets of the scheme that are held in main default funds to be qualifying assets, or</content></level><level class="para1" eId="d25e7044"><num>(b)</num><content>more than 5% (by value) of all of the assets so held to be of a UK-specific description.</content></level></subsection><subsection><num>(8)</num><content>In subsection <ref href="#d25e7032">(7)</ref><ref href="#d25e7044">(b)</ref> “<term refersTo="#term-uk-specific-description">UK-specific description</term>” means a description framed by reference to whether an asset is located in the United Kingdom or meets any other condition linked to economic activity in the United Kingdom.</content></subsection><subsection><num>(9)</num><intro>For the purposes of this section assets of a relevant Master Trust or group personal pension scheme are held in “main default funds” if—</intro><level class="para1"><num>(a)</num><content>the jobholders by or in respect of whom contributions have been made to the scheme have not (or predominantly have not) expressed a choice as to where the contributions are allocated, and</content></level><level class="para1"><num>(b)</num><content>the arrangements under which the assets are held meet any other conditions that may be prescribed.</content></level></subsection><subsection><num>(10)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>about how the meeting of the asset allocation requirement is to be evidenced;</content></level><level class="para1"><num>(b)</num><content>requiring the trustees or managers of relevant Master Trusts or the providers of group personal pension schemes to have regard to any guidance issued by the Secretary of State about the effect of any regulations under this section.</content></level></subsection><subsection eId="d25e7100"><num>(11)</num><intro>Regulations may make provision—</intro><level class="para1"><num>(a)</num><content>as to a time limit within which the Authority must decide an application for approval;</content></level><level class="para1"><num>(b)</num><content>as to procedures in connection with approvals or where an approval has been given;</content></level><level class="para1"><num>(c)</num><content>about the period for which an approval has effect;</content></level><level class="para1" eId="d25e7124"><num>(d)</num><content>about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals;</content></level><level class="para1"><num>(e)</num><content>about the provision to the Authority of information required for the purposes of deciding applications (including any additional information the Authority may require in a particular case);</content></level><level class="para1" eId="d25e7136"><num>(f)</num><content>requiring the Authority to report to the Secretary of State any information the Secretary of State may require relating to the allocation of assets by relevant Master Trusts or group personal pension schemes;</content></level><level class="para1"><num>(g)</num><content>for the Authority’s decision on the application to be referred to the Upper Tribunal;</content></level><level class="para1"><num>(h)</num><intro>for the Authority to maintain and publish—</intro><level class="para2"><num>(i)</num><content>a list of relevant Master Trusts that are approved under this section, and</content></level><level class="para2"><num>(ii)</num><content>a list of group personal pension schemes that are approved under this section,</content></level><wrapUp>(or a single list of the pension schemes mentioned in sub-paragraphs (i) and (ii)).</wrapUp></level></subsection><subsection><num>(12)</num><intro>Regulations under subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7124">(d)</ref> may in particular make provision—</intro><level class="para1"><num>(a)</num><content>about steps, including communications with a relevant Master Trust or group personal pension scheme, that the Authority must take before deciding to withdraw an approval;</content></level><level class="para1"><num>(b)</num><content>setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval;</content></level><level class="para1" eId="d25e7192"><num>(c)</num><intro>where the Authority has given notice to the trustees or managers of a relevant Master Trust or the provider of a group personal pension that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers or provider to—</intro><level class="para2"><num>(i)</num><content>act in relation to the scheme as if its approval has been withdrawn, and</content></level><level class="para2"><num>(ii)</num><content>take steps for ensuring that persons (such as employers) who may be affected in the event of the scheme losing that approval are promptly informed if such a loss should occur;</content></level></level><level class="para1"><num>(d)</num><content>permitting the Authority to impose, on a person who fails to comply with a requirement under paragraph <ref href="#d25e7192">(c)</ref>, a penalty determined in accordance with the regulations that does not exceed £100,000.</content></level></subsection><subsection eId="d25e7219"><num>(13)</num><intro>Before making regulations under <ref href="#d25e6898">subsection (1)</ref> the Secretary of State must prepare and publish a report setting out—</intro><level class="para1" eId="d25e7228"><num>(a)</num><content>a joint assessment by the Financial Conduct Authority and the Pensions Regulator of the extent to which there is evidence of competitive conditions restricting relevant Master Trusts and group personal pension schemes from investing in qualifying assets, including in circumstances where such investments may be in the best interests of members of such schemes;</content></level><level class="para1"><num>(b)</num><intro>the Secretary of State’s assessment of the extent to which relevant Master Trusts and group personal pension schemes have made progress towards achieving—</intro><level class="para2"><num>(i)</num><content>10% (by value) of scheme assets held in main default funds to be qualifying assets, and</content></level><level class="para2"><num>(ii)</num><content>5% (by value) of scheme assets so held to be of a UK-specific description (within the meaning of subsection <ref href="#d25e7032">(7)</ref><ref href="#d25e7044">(b)</ref>);</content></level></level><level class="para1"><num>(c)</num><content>the Secretary of State’s assessment of any barriers to relevant Master Trusts or group personal pension schemes investing in qualifying assets, including in particular where such assets are located in the United Kingdom;</content></level><level class="para1"><num>(d)</num><content>the steps taken by the Secretary of State or the Authority to address any such barriers;</content></level><level class="para1"><num>(e)</num><content>how the financial interests of members of relevant Master Trusts and group personal pension schemes are or would be affected by the proposed regulations;</content></level><level class="para1"><num>(f)</num><content>what effects the proposed measures could be expected to have on economic growth in the United Kingdom;</content></level><level class="para1"><num>(g)</num><content>any other matters the Secretary of State considers appropriate.</content></level></subsection><subsection><num>(14)</num><content>The power to make regulations under subsection (1) may only be exercised once.</content></subsection><subsection><num>(15)</num><content>Before making regulations under subsection <ref href="#d25e6898">(1)</ref>, the Secretary of State must have regard to the joint assessment of the Financial Conduct Authority and the Pensions Regulator mentioned in subsection <ref href="#d25e7219">(13)</ref><ref href="#d25e7228">(a)</ref>.</content></subsection><subsection><num>(16)</num><content>Before making regulations under this section, the Secretary of State must consult the Treasury.</content></subsection><subsection><num>(17)</num><content>The Secretary of State must consult such persons as the Secretary of State considers appropriate before publishing a report under <ref href="#d25e7219">subsection (13)</ref>.</content></subsection><subsection><num>(18)</num><content>The Secretary of State may not make regulations under subsection <ref href="#d25e6898">(1)</ref> before 1 January 2028.</content></subsection><subsection><num>(19)</num><content>Provision under this section overrides any provision of the trust deed or rules of the scheme in question, so far as they are in conflict (and for that purpose, a provision of the trust deed or rules of the scheme is “in conflict” with provision under this section so far as the former does not allow for the assets of the scheme to be managed in such a way as to meet the conditions for approval under this section).</content></subsection></section><section><num>28D</num><heading>Information</heading><subsection><num>(1)</num><content>Regulations may make provision about information that the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme must give to the Regulatory Authority about the allocation of assets of the relevant Master Trust or group personal pension scheme.</content></subsection><subsection><num>(2)</num><intro>The regulations may make provision about—</intro><level class="para1"><num>(a)</num><content>the types of information that must be given;</content></level><level class="para1"><num>(b)</num><content>when it must be given;</content></level><level class="para1"><num>(c)</num><content>the form and manner in which it must be given.</content></level></subsection></section><section eId="d25e7377"><num>28E</num><heading>Transition pathway relief</heading><subsection eId="d25e7381"><num>(1)</num><intro>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may approve a relevant Master Trust as qualifying for transition pathway relief if the Authority determines that—</intro><level class="para1" eId="d25e7390"><num>(a)</num><content>the condition in <ref href="#d25e7405">subsection (2)</ref> is met, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e7405"><num>(2)</num><intro>The condition mentioned in <ref href="#d25e7381">subsection (1)</ref><ref href="#d25e7390">(a)</ref> is that the Authority determines that the relevant Master Trust—</intro><level class="para1"><num>(a)</num><content>would qualify for approval under <ref href="#d25e6214">section 28A</ref> (MSDA approval: relevant Master Trusts) if the amount specified in <ref href="#d25e6214">section 28A</ref><ref href="#d25e6257">(3)</ref> were £10 billion, and</content></level><level class="para1"><num>(b)</num><content>has a credible plan in place for meeting the scale requirement within the meaning of section <ref href="#d25e6214">28A</ref><ref href="#d25e6242">(2)</ref>.</content></level></subsection><subsection eId="d25e7441"><num>(3)</num><intro>The Authority may approve a group personal pension scheme as qualifying for transition pathway relief if the Authority determines that—</intro><level class="para1" eId="d25e7447"><num>(a)</num><content>the condition in <ref href="#d25e7462">subsection (4)</ref> is met, and</content></level><level class="para1"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="d25e7462"><num>(4)</num><intro>The condition mentioned in subsection <ref href="#d25e7441">(3)</ref><ref href="#d25e7447">(a)</ref> is that the Authority determines that the group personal pension scheme—</intro><level class="para1"><num>(a)</num><content>would qualify for approval under <ref href="#d25e6551">section 28B</ref> (MSDA approval: group personal pension schemes) if the amount specified in <ref href="#d25e6551">section 28B</ref><ref href="#d25e6594">(3)</ref> were £10 billion, and</content></level><level class="para1"><num>(b)</num><content>has a credible plan in place for meeting the scale requirement within the meaning of <ref href="#d25e6551">section 28B</ref><ref href="#d25e6579">(2)</ref>.</content></level></subsection><subsection><num>(5)</num><intro>Regulations may require trustees or managers of schemes that are authorised under this section to take prescribed steps, for example—</intro><level class="para1"><num>(a)</num><content>to produce plans for increasing the scale of their schemes’ holdings or to take other actions that may facilitate progress towards approval under <ref href="#d25e6214">section 28A</ref> or <ref href="#d25e6551">28B</ref>, or</content></level><level class="para1"><num>(b)</num><content>in connection with governance and investment capability.</content></level></subsection><subsection><num>(6)</num><content>Regulations must make provision about the criteria for making any determinations under <ref href="#d25e7381">subsection (1)</ref> or <ref href="#d25e7441">(3)</ref>.</content></subsection><subsection><num>(7)</num><intro>Regulations may make provision of a kind mentioned in section <ref href="#d25e6214">28A</ref><ref href="#d25e6431">(10)</ref> or <ref href="#d25e6467">(11)</ref>; and for this purpose a reference in those provisions—</intro><level class="para1"><num>(a)</num><content>to an approval under section <ref href="#d25e6214">28A</ref> is to be read as a reference to an approval under this section;</content></level><level class="para1"><num>(b)</num><content>to a relevant Master Trust is to be read as a reference to a relevant Master Trust or a group personal pension scheme;</content></level><level class="para1"><num>(c)</num><content>to the trustees or managers of a relevant Master Trust is to be read as a reference to the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme.</content></level></subsection><subsection><num>(8)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection><subsection><num>(9)</num><content>In this section “<term refersTo="#term-relevant-master-trust">relevant Master Trust</term>” has the same meaning as in section 20.</content></subsection></section><section eId="d25e7587"><num>28F</num><heading>New entrant pathway relief</heading><subsection><num>(1)</num><content>A relevant Master Trust or group personal pension scheme qualifies for new entrant pathway relief for the purposes of Condition 1<ref href="#d25e5870">(e)</ref> of section 20(1A) or section 26<ref href="#d25e6051">(7C)</ref><ref href="#d25e6078">(c)</ref> if the relevant Master Trust or group personal pension scheme is approved by the Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) under this section.</content></subsection><subsection><num>(2)</num><intro>The Authority may approve a relevant Master Trust or a group personal pension scheme under this section only if the Authority determines that—</intro><level class="para1"><num>(a)</num><content>the scheme in question does not yet have any members,</content></level><level class="para1"><num>(b)</num><content>the scheme in question has strong potential to grow so as to meet the scale requirement under section <ref href="#d25e6214">28A</ref> or <ref href="#d25e6551">28B</ref>,</content></level><level class="para1"><num>(c)</num><content>the scheme in question has an innovative product design, and</content></level><level class="para1"><num>(d)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection><num>(3)</num><intro>Regulations may make provision of a kind mentioned in section <ref href="#d25e6214">28A</ref><ref href="#d25e6431">(10)</ref> or <ref href="#d25e6467">(11)</ref>; and for this purpose a reference in those provisions—</intro><level class="para1"><num>(a)</num><content>to an approval under section <ref href="#d25e6214">28A</ref> is to be read as a reference to an approval under this section;</content></level><level class="para1"><num>(b)</num><content>to a relevant Master Trust is to be read as a reference to a relevant Master Trust or a group personal pension scheme;</content></level><level class="para1"><num>(c)</num><content>to the trustees or managers of a relevant Master Trust is to be read as a reference to the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme.</content></level></subsection><subsection><num>(4)</num><content>Regulations may make provision about the meaning of “strong potential to grow” and “<term refersTo="#term-innovative-product-design">innovative product design</term>” (including how it can be demonstrated that a scheme has strong potential to grow or an innovative product design).</content></subsection><subsection><num>(5)</num><content>Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate.</content></subsection></section><section eId="d25e7697"><num>28G</num><heading>Suspension of asset allocation requirement: savers’ interest test</heading><subsection eId="d25e7701"><num>(1)</num><content>Regulations must make provision for authorising the Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”), on an application by a relevant Master Trust or group personal pension scheme, to determine that the scheme in question is to be treated, for a period specified by the Authority, as if that scheme were exempted from the requirement for approval under <ref href="#d25e6894">section 28C</ref>.</content></subsection><subsection><num>(2)</num><content>The Secretary of State must make regulations under subsection (1) so that they have effect whenever regulations under section 28C(1) or (2) have effect.</content></subsection><subsection><num>(3)</num><intro>Regulations under <ref href="#d25e7701">subsection (1)</ref>—</intro><level class="para1"><num>(a)</num><content>may make provision about the form and content of an application, including about the evidence to be provided as part of an application;</content></level><level class="para1"><num>(b)</num><intro>must make provision requiring an application to include a statement—</intro><level class="para2"><num>(i)</num><content>that the applicant concludes that meeting the asset allocation requirement is likely not to be in the best interests of members of the scheme, and</content></level><level class="para2"><num>(ii)</num><content>setting out the basis on which the applicant reached the conclusion;</content></level></level><level class="para1"><num>(c)</num><intro>must make provision requiring the Authority to determine that the applicant is to be treated as mentioned in subsection <ref href="#d25e7701">(1)</ref> in cases where—</intro><level class="para2"><num>(i)</num><content>the application complies with the requirements of regulations made under subsection <ref href="#d25e7701">(1)</ref>, and</content></level><level class="para2"><num>(ii)</num><content>the Authority is of the view that it is reasonable for the applicant to have reached the conclusion that meeting the asset allocation requirement is likely not to be in the best interests of members of the scheme;</content></level></level><level class="para1"><num>(d)</num><content>may make provision about the basis on which the Authority may or must form such a view, including about the evidence which the Authority may or must take into account;</content></level><level class="para1"><num>(e)</num><intro>may make provision as to the process for making a determination, including as to—</intro><level class="para2"><num>(i)</num><content>the level of detail of enquiry required in different cases;</content></level><level class="para2"><num>(ii)</num><content>a time limit within which the Authority must decide an application;</content></level><level class="para2"><num>(iii)</num><content>procedures in connection with applications;</content></level></level><level class="para1"><num>(f)</num><content>must require the Authority to provide reasons for any determination not to approve an application;</content></level><level class="para1"><num>(g)</num><content>must provide for the Authority’s determination on an application to be referred to the Upper Tribunal.</content></level></subsection></section><section eId="d25e7821"><num>28H</num><heading>Risk notices</heading><subsection eId="d25e7825"><num>(1)</num><intro>The Regulatory Authority (“<term refersTo="#term-the-authority">the Authority</term>”) may give a risk notice to the trustees or managers of a relevant Master Trust if the Authority considers that—</intro><level class="para1"><num>(a)</num><content>there is an issue of concern in relation to the relevant Master Trust, and</content></level><level class="para1"><num>(b)</num><content>the relevant Master Trust will, or is likely to, cease to meet the conditions for approval under <ref href="#d25e6214">section 28A</ref> or <ref href="#d25e6894">28C</ref> if the issue is not resolved.</content></level></subsection><subsection><num>(2)</num><content>A “risk notice” is a notice that requires the trustees or managers of a relevant Master Trust to submit to the Authority a plan (a “resolution plan”) setting out proposals for resolving the issue of concern.</content></subsection><subsection eId="d25e7858"><num>(3)</num><intro>A risk notice must—</intro><level class="para1"><num>(a)</num><content>identify the issue of concern;</content></level><level class="para1" eId="d25e7870"><num>(b)</num><content>specify the date by which the resolution plan is to be submitted.</content></level></subsection><subsection eId="d25e7876"><num>(4)</num><content>If the Authority is not satisfied that the proposals in a resolution plan are likely to be adequate to resolve the issue of concern, the Authority may give a further notice to the trustees or managers requiring them to submit a revised plan by a date specified in the notice.</content></subsection><subsection eId="d25e7882"><num>(5)</num><intro>The trustees or managers must implement the proposals in a resolution plan if the Authority—</intro><level class="para1"><num>(a)</num><content>is satisfied that the proposals are likely to be adequate to resolve the issue of concern, and</content></level><level class="para1"><num>(b)</num><content>notifies the trustees or managers accordingly.</content></level></subsection><subsection eId="d25e7900"><num>(6)</num><content>The Authority may direct the trustees or managers to comply with the requirement imposed by <ref href="#d25e7882">subsection (5)</ref>.</content></subsection><subsection eId="d25e7909"><num>(7)</num><intro>Where the trustees or managers are required by <ref href="#d25e7882">subsection (5)</ref> to implement the proposals in a resolution plan, they must—</intro><level class="para1"><num>(a)</num><content>submit to the Authority, before the end of a period specified in regulations, a report setting out what progress they are making in implementing the proposals (a “progress report”);</content></level><level class="para1"><num>(b)</num><content>submit further progress reports to the Authority at intervals specified by the Authority.</content></level></subsection><subsection eId="d25e7930"><num>(8)</num><content>Resolution plans and progress reports must be provided in the manner and form specified by the Authority.</content></subsection><subsection><num>(9)</num><content>A reference to a resolution plan in <ref href="#d25e7876">subsections (4)</ref> to <ref href="#d25e7930">(8)</ref> includes a reference to a resolution plan as revised under <ref href="#d25e7876">subsection (4)</ref>.</content></subsection><subsection><num>(10)</num><intro>Regulations may—</intro><level class="para1"><num>(a)</num><content>specify information that a risk notice must contain;</content></level><level class="para1"><num>(b)</num><content>provide that the date referred to in <ref href="#d25e7858">subsection (3)</ref><ref href="#d25e7870">(b)</ref> or <ref href="#d25e7876">(4)</ref> must fall before the end of a period specified in the regulations.</content></level></subsection><subsection><num>(11)</num><intro>Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee or manager of a relevant Master Trust who fails to comply with—</intro><level class="para1"><num>(a)</num><content>a notice under <ref href="#d25e7825">subsection (1)</ref> or <ref href="#d25e7876">(4)</ref>,</content></level><level class="para1"><num>(b)</num><content>a direction under <ref href="#d25e7900">subsection (6)</ref>, or</content></level><level class="para1"><num>(c)</num><content>a requirement imposed by <ref href="#d25e7909">subsection (7)</ref>.</content></level></subsection></section><section eId="d25e8016"><num>28I</num><heading>Penalties</heading><subsection eId="d25e8020"><num>(1)</num><intro>Regulations may make provision about the imposition by the Regulatory Authority of a penalty on the trustees or managers of a relevant Master Trust or the provider of a group personal pension scheme where the scheme—</intro><level class="para1" eId="d25e8026"><num>(a)</num><content>fails to meet the condition in section 20<ref href="#d25e5826">(1A)</ref> by virtue of not being approved under <ref href="#d25e6214">section 28A</ref> or <ref href="#d25e6894">28C</ref>, and</content></level><level class="para1" eId="d25e8041"><num>(b)</num><content>accepts contributions from an employer in relation to a jobholder on the basis that it is an automatic enrolment scheme in relation to that jobholder.</content></level></subsection><subsection eId="d25e8047"><num>(2)</num><intro>Regulations may make provision about the imposition by the Regulatory Authority of a penalty on the provider of a group personal pension scheme where the scheme—</intro><level class="para1" eId="d25e8053"><num>(a)</num><content>fails to meet the condition in section 26<ref href="#d25e6027">(7A)</ref> or <ref href="#d25e6039">(7B)</ref>, and</content></level><level class="para1" eId="d25e8065"><num>(b)</num><content>accepts contributions from an employer in relation to a jobholder on the basis that it is an automatic enrolment scheme in relation to that jobholder.</content></level></subsection><subsection><num>(3)</num><intro>The regulations must provide—</intro><level class="para1"><num>(a)</num><content>that a penalty must not exceed £100,000 in relation to each employer from which contributions are accepted as mentioned in <ref href="#d25e8020">subsection (1)</ref><ref href="#d25e8041">(b)</ref> or <ref href="#d25e8047">(2)</ref><ref href="#d25e8065">(b)</ref>, and</content></level><level class="para1"><num>(b)</num><content>that there is a right of appeal against the imposition of the penalty.</content></level></subsection></section><section eId="d25e8102"><num>28J</num><heading>Enforcement by the Financial Conduct Authority</heading><subsection><num>(1)</num><content>The Treasury may make regulations to enable the Financial Conduct Authority to take action (in addition to any action it may otherwise take under the Financial Services and Markets Act 2000) for monitoring and enforcing compliance of any FCA-regulated person with any provision of or under this Chapter.</content></subsection><subsection><num>(2)</num><intro>The regulations may apply, or make provision corresponding to—</intro><level class="para1"><num>(a)</num><content>provision made by or under this Part in relation to the Regulatory Authority, or</content></level><level class="para1"><num>(b)</num><content>any provision of the Financial Services and Markets Act 2000,</content></level><wrapUp>with or without modification.</wrapUp></subsection><subsection><num>(3)</num><content>In this section, “<term refersTo="#term-fca-regulated-person">FCA-regulated person</term>” means an authorised person (within the meaning of the Financial Services and Markets Act 2000).</content></subsection></section><section><num>28K</num><heading>Report about effects of pension scheme consolidation</heading><subsection><num>(1)</num><content>The Secretary of State must prepare and publish a report about the effects of consolidation on innovation in the design and operation of relevant Master Trusts and group personal pension schemes.</content></subsection><subsection><num>(2)</num><intro>The report may in particular include information about—</intro><level class="para1"><num>(a)</num><content>the extent to which consolidated schemes adopt or maintain innovative product designs of constituent schemes;</content></level><level class="para1"><num>(b)</num><content>barriers to consolidated schemes adopting or maintaining such innovative product designs.</content></level></subsection><subsection><num>(3)</num><content>The Pensions Regulator and the FCA must provide such information and assistance as the Secretary of State may require for the purposes of the report.</content></subsection><subsection><num>(4)</num><content>The report under this section must be published before the end of the period of 12 months beginning with the day on which this section comes into force.</content></subsection><subsection><num>(5)</num><content>In this section “<term refersTo="#term-consolidation">consolidation</term>” means the consolidation of a relevant Master Trust or group personal pension scheme with one or more other schemes.</content></subsection></section><section><num>28L</num><heading>Regulations about quality requirements</heading><intro>In making regulations under section 20<ref href="#d25e5826">(1A)</ref> or <ref href="#d25e5924">(1C)</ref>, 26<ref href="#d25e6027">(7A)</ref>, <ref href="#d25e6214">28A</ref>, <ref href="#d25e6551">28B</ref>, <ref href="#d25e7377">28E</ref> or <ref href="#d25e7587">28F</ref>, the Secretary of State must have regard to the importance of—</intro><level class="para1"><num>(a)</num><content>innovation in the design and operation of relevant Master Trusts and group personal pension schemes;</content></level><level class="para1"><num>(b)</num><content>competition among relevant Master Trusts and group personal pension schemes;</content></level><level class="para1"><num>(c)</num><content>improving outcomes for members of relevant Master Trusts and group personal pension schemes;</content></level><level class="para1"><num>(d)</num><content>relevant Master Trusts and group personal pension schemes achieving an appropriate scale;</content></level><level class="para1"><num>(e)</num><content>relevant Master Trusts and group personal pension schemes having effective governance.</content></level></section></quotedStructure></mod></content></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-14-a"><num>(a)</num><content>the existing words become subsection (1);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-14-b"><num>(b)</num><intro>in that subsection, at the appropriate places insert—</intro><hcontainer name="definition"><intro>““<term refersTo="#term-group-personal-pension-scheme" eId="term-group-personal-pension-scheme">group personal pension scheme</term>” means a personal pension scheme which is available, or intended to be available, to employees of the same employer or of employers within a group, but does not include—</intro><level class="para1"><num>(a)</num><content>a stakeholder pension scheme (as defined in section 1 of the Welfare Reform and Pensions Act 1999), or</content></level><level class="para1"><num>(b)</num><content>any pension scheme that requires all its members to make a choice as to how their contributions are invested;”;</content></level></hcontainer><hcontainer name="definition"><content>““<term refersTo="#term-regulatory-authority" eId="term-regulatory-authority">Regulatory Authority</term>” has the meaning given by regulations under subsection (2);”;</content></hcontainer><hcontainer name="definition"><content>““<term refersTo="#term-relevant-master-trust" eId="term-relevant-master-trust">relevant Master Trust</term>” has the meaning given by section 20(4);”;</content></hcontainer></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-15"><num>(15)</num><intro>In section 143 (orders and regulations) in subsection (5)(a)—</intro><level class="para1" eId="section-40-15-a"><num>(a)</num><content><mod>after “17(1)(c),” insert <quotedText>“20, 26<ref href="#d25e6027">(7A)</ref>, <ref href="#d25e6039">(7B)</ref>, <ref href="#d25e6051">(7C)</ref> or <ref href="#d25e6099">(7E)</ref>,”</quotedText>;</mod></content></level><level class="para1" eId="section-40-15-b"><num>(b)</num><content><mod>after “28,” insert <quotedText>“<ref href="#d25e6214">28A</ref>, <ref href="#d25e6551">28B</ref>, <ref href="#d25e6894">28C</ref> (other than subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7136">(f)</ref>), <ref href="#d25e7377">28E</ref>, <ref href="#d25e7587">28F</ref>, <ref href="#d25e7697">28G</ref>, <ref href="#d25e8016">28I</ref>, <ref href="#d25e8102">28J</ref>,”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-16"><num>(16)</num><intro>The following provisions of the Pensions Act 2008 (which relate to transition pathway relief) are repealed at the end of the period of 5 years beginning with the day on which the provisions mentioned in paragraphs (a) and (b) come into force—</intro><level class="para1" eId="section-40-16-a"><num>(a)</num><content>paragraph <ref href="#d25e5863">(d)</ref> of Condition 1 in section 20<ref href="#d25e5826">(1A)</ref>;</content></level><level class="para1" eId="section-40-16-b"><num>(b)</num><content>section 26<ref href="#d25e6051">(7C)</ref><ref href="#d25e6069">(b)</ref>;</content></level><level class="para1" eId="section-40-16-c"><num>(c)</num><content>section <ref href="#d25e7377">28E</ref>;</content></level><level class="para1" eId="section-40-16-d"><num>(d)</num><content>the word “<ref href="#d25e7377">28E</ref>” in section 143(5)(a).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-17"><num>(17)</num><intro>The following provisions are repealed at the end of 2035—</intro><level class="para1" eId="section-40-17-a"><num>(a)</num><intro>in <ref eId="c00021" href="https://www.legislation.gov.uk/ukpga/2000/8/section/204A">section 204A</ref> of the <ref eId="c00022" href="https://www.legislation.gov.uk/ukpga/2000/8/contents">Financial Services and Markets Act 2000</ref> (meaning of “<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” and “<term refersTo="#term-appropriate-regulator" eId="term-appropriate-regulator">appropriate regulator</term>”)—</intro><level class="para2" eId="section-40-17-a-i"><num>(i)</num><content>in subsection (2)(aza), the words “or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>”;</content></level><level class="para2" eId="section-40-17-a-ii"><num>(ii)</num><content>in subsection (6)(aza), the words “or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>”;</content></level></level><level class="para1" eId="section-40-17-b"><num>(b)</num><content>in section 90(6)<ref href="#d25e24762">(da)</ref> of the Pensions Act 2004, the words “and the asset allocation requirement”;</content></level><level class="para1" eId="section-40-17-c"><num>(c)</num><content>the relevant asset allocation provisions of the <ref eId="c00023" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref>.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-17-a"><num>(a)</num><intro>in <ref eId="c00021" href="https://www.legislation.gov.uk/ukpga/2000/8/section/204A">section 204A</ref> of the <ref eId="c00022" href="https://www.legislation.gov.uk/ukpga/2000/8/contents">Financial Services and Markets Act 2000</ref> (meaning of “<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” and “<term refersTo="#term-appropriate-regulator" eId="term-appropriate-regulator">appropriate regulator</term>”)—</intro><level class="para2" eId="section-40-17-a-i"><num>(i)</num><content>in subsection (2)(aza), the words “or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>”;</content></level><level class="para2" eId="section-40-17-a-ii"><num>(ii)</num><content>in subsection (6)(aza), the words “or the asset allocation requirement in section <ref href="#d25e6894">28C</ref>”;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-17-b"><num>(b)</num><content>in section 90(6)<ref href="#d25e24762">(da)</ref> of the Pensions Act 2004, the words “and the asset allocation requirement”;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-17-c"><num>(c)</num><content>the relevant asset allocation provisions of the <ref eId="c00023" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref>.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-18"><num>(18)</num><intro>For the purposes of subsection <ref href="#section-40-17">(17)</ref>, the “relevant asset allocation provisions” of the Pensions Act 2008 are the following—</intro><level class="para1" eId="section-40-18-a"><num>(a)</num><intro>in section 20<ref href="#d25e5826">(1A)</ref> (asset allocation requirement: Master Trusts)—</intro><level class="para2" eId="section-40-18-a-i"><num>(i)</num><content>in the opening words, the words “and Condition 2”;</content></level><level class="para2" eId="section-40-18-a-ii"><num>(ii)</num><content>Condition 2;</content></level></level><level class="para1" eId="section-40-18-b"><num>(b)</num><content>in section 20<ref href="#d25e5903">(1B)</ref> (exemptions), the words “or 2<ref href="#d25e5893">(b)</ref>”;</content></level><level class="para1" eId="section-40-18-c"><num>(c)</num><intro>in section 20<ref href="#d25e5924">(1C)</ref> (protected period)—</intro><level class="para2" eId="section-40-18-c-i"><num>(i)</num><content>in paragraph <ref href="#d25e5930">(a)</ref>, the words “or Condition 2”;</content></level><level class="para2" eId="section-40-18-c-ii"><num>(ii)</num><content>in paragraph <ref href="#d25e5950">(c)</ref>, the words “or the conditions for approval under section <ref href="#d25e6894">28C</ref>”;</content></level></level><level class="para1" eId="section-40-18-d"><num>(d)</num><intro>in section 26 (quality requirement: UK personal pension schemes)—</intro><level class="para2" eId="section-40-18-d-i"><num>(i)</num><content>subsection <ref href="#d25e6039">(7B)</ref>;</content></level><level class="para2" eId="section-40-18-d-ii"><num>(ii)</num><content>in subsection <ref href="#d25e6087">(7D)</ref>, the words “or <ref href="#d25e6039">(7B)</ref>”;</content></level><level class="para2" eId="section-40-18-d-iii"><num>(iii)</num><content>in subsection <ref href="#d25e6099">(7E)</ref><ref href="#d25e6105">(a)</ref>, the words “or sixth”;</content></level><level class="para2" eId="section-40-18-d-iv"><num>(iv)</num><content>in subsection <ref href="#d25e6099">(7E)</ref><ref href="#d25e6125">(c)</ref>, the words “or the conditions for approval under section <ref href="#d25e6894">28C</ref>”;</content></level></level><level class="para1" eId="section-40-18-e"><num>(e)</num><intro>in section 28 (certification that quality requirement or alternative requirement is satisfied)—</intro><level class="para2" eId="section-40-18-e-i"><num>(i)</num><content>in subsection (4)(a), the words “or 2”;</content></level><level class="para2" eId="section-40-18-e-ii"><num>(ii)</num><content>in subsection (4)(b), the words “and sixth”;</content></level><level class="para2" eId="section-40-18-e-iii"><num>(iii)</num><content>in subsection (4)(c), the words “or 2”;</content></level></level><level class="para1" eId="section-40-18-f"><num>(f)</num><content>section <ref href="#d25e6894">28C</ref> (approvals in respect of asset allocation);</content></level><level class="para1" eId="section-40-18-g"><num>(g)</num><content>section <ref href="#d25e7697">28G</ref> (suspension of asset allocation requirement: savers’ interest test);</content></level><level class="para1" eId="section-40-18-h"><num>(h)</num><content>in section <ref href="#d25e7821">28H</ref> (risk notices), in subsection (1)(b), the words “or <ref href="#d25e6894">28C</ref>”;</content></level><level class="para1" eId="section-40-18-i"><num>(i)</num><intro>in section <ref href="#d25e8016">28I</ref> (penalties)—</intro><level class="para2" eId="section-40-18-i-i"><num>(i)</num><content>in subsection <ref href="#d25e8020">(1)</ref><ref href="#d25e8026">(a)</ref>, the words “or <ref href="#d25e6894">28C</ref>”;</content></level><level class="para2" eId="section-40-18-i-ii"><num>(ii)</num><content>in subsection <ref href="#d25e8047">(2)</ref><ref href="#d25e8053">(a)</ref>, the words “or <ref href="#d25e6039">(7B)</ref>”;</content></level></level><level class="para1" eId="section-40-18-j"><num>(j)</num><content>section <ref href="#d25e8267">30A</ref> (review of exercise of powers under section <ref href="#d25e6894">28C</ref>);</content></level><level class="para1" eId="section-40-18-k"><num>(k)</num><intro>in section 143(5)(a) (orders and regulations)—</intro><level class="para2" eId="section-40-18-k-i"><num>(i)</num><content>the word “<ref href="#d25e6039">(7B)</ref>”;</content></level><level class="para2" eId="section-40-18-k-ii"><num>(ii)</num><content>the words “<ref href="#d25e6894">28C</ref> (other than subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7136">(f)</ref>)”;</content></level><level class="para2" eId="section-40-18-k-iii"><num>(iii)</num><content>the word “<ref href="#d25e7697">28G</ref>”.</content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-18-a"><num>(a)</num><intro>in section 20<ref href="#d25e5826">(1A)</ref> (asset allocation requirement: Master Trusts)—</intro><level class="para2" eId="section-40-18-a-i"><num>(i)</num><content>in the opening words, the words “and Condition 2”;</content></level><level class="para2" eId="section-40-18-a-ii"><num>(ii)</num><content>Condition 2;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-18-b"><num>(b)</num><content>in section 20<ref href="#d25e5903">(1B)</ref> (exemptions), the words “or 2<ref href="#d25e5893">(b)</ref>”;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-18-c"><num>(c)</num><intro>in section 20<ref href="#d25e5924">(1C)</ref> (protected period)—</intro><level class="para2" eId="section-40-18-c-i"><num>(i)</num><content>in paragraph <ref href="#d25e5930">(a)</ref>, the words “or Condition 2”;</content></level><level class="para2" eId="section-40-18-c-ii"><num>(ii)</num><content>in paragraph <ref href="#d25e5950">(c)</ref>, the words “or the conditions for approval under section <ref href="#d25e6894">28C</ref>”;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-18-d"><num>(d)</num><intro>in section 26 (quality requirement: UK personal pension schemes)—</intro><level class="para2" eId="section-40-18-d-i"><num>(i)</num><content>subsection <ref href="#d25e6039">(7B)</ref>;</content></level><level class="para2" eId="section-40-18-d-ii"><num>(ii)</num><content>in subsection <ref href="#d25e6087">(7D)</ref>, the words “or <ref href="#d25e6039">(7B)</ref>”;</content></level><level class="para2" eId="section-40-18-d-iii"><num>(iii)</num><content>in subsection <ref href="#d25e6099">(7E)</ref><ref href="#d25e6105">(a)</ref>, the words “or sixth”;</content></level><level class="para2" eId="section-40-18-d-iv"><num>(iv)</num><content>in subsection <ref href="#d25e6099">(7E)</ref><ref href="#d25e6125">(c)</ref>, the words “or the conditions for approval under section <ref href="#d25e6894">28C</ref>”;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-18-e"><num>(e)</num><intro>in section 28 (certification that quality requirement or alternative requirement is satisfied)—</intro><level class="para2" eId="section-40-18-e-i"><num>(i)</num><content>in subsection (4)(a), the words “or 2”;</content></level><level class="para2" eId="section-40-18-e-ii"><num>(ii)</num><content>in subsection (4)(b), the words “and sixth”;</content></level><level class="para2" eId="section-40-18-e-iii"><num>(iii)</num><content>in subsection (4)(c), the words “or 2”;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-18-f"><num>(f)</num><content>section <ref href="#d25e6894">28C</ref> (approvals in respect of asset allocation);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-18-g"><num>(g)</num><content>section <ref href="#d25e7697">28G</ref> (suspension of asset allocation requirement: savers’ interest test);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-18-h"><num>(h)</num><content>in section <ref href="#d25e7821">28H</ref> (risk notices), in subsection (1)(b), the words “or <ref href="#d25e6894">28C</ref>”;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-18-i"><num>(i)</num><intro>in section <ref href="#d25e8016">28I</ref> (penalties)—</intro><level class="para2" eId="section-40-18-i-i"><num>(i)</num><content>in subsection <ref href="#d25e8020">(1)</ref><ref href="#d25e8026">(a)</ref>, the words “or <ref href="#d25e6894">28C</ref>”;</content></level><level class="para2" eId="section-40-18-i-ii"><num>(ii)</num><content>in subsection <ref href="#d25e8047">(2)</ref><ref href="#d25e8053">(a)</ref>, the words “or <ref href="#d25e6039">(7B)</ref>”;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-18-j"><num>(j)</num><content>section <ref href="#d25e8267">30A</ref> (review of exercise of powers under section <ref href="#d25e6894">28C</ref>);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-18-k"><num>(k)</num><intro>in section 143(5)(a) (orders and regulations)—</intro><level class="para2" eId="section-40-18-k-i"><num>(i)</num><content>the word “<ref href="#d25e6039">(7B)</ref>”;</content></level><level class="para2" eId="section-40-18-k-ii"><num>(ii)</num><content>the words “<ref href="#d25e6894">28C</ref> (other than subsection <ref href="#d25e7100">(11)</ref><ref href="#d25e7136">(f)</ref>)”;</content></level><level class="para2" eId="section-40-18-k-iii"><num>(iii)</num><content>the word “<ref href="#d25e7697">28G</ref>”.</content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-19"><num>(19)</num><intro>In consequence of the repeals under subsection <ref href="#section-40-17">(17)</ref>, at the end of 2035—</intro><level class="para1" eId="section-40-19-a"><num>(a)</num><content><mod>in section 73(2)<ref href="#d25e24389">(dza)</ref> of the Pensions Act 2004 (inspection of premises), for “<ref href="#d25e7697">28G</ref> of the Pensions Act 2008 (scale and asset allocation)” substitute <quotedText>“<ref href="#d25e7587">28F</ref> of the Pensions Act 2008 (scale)”</quotedText>;</mod></content></level><level class="para1" eId="section-40-19-b"><num>(b)</num><content><mod>in section 28(4)(b) of the Pensions Act 2008 (certification that quality requirement or alternative requirement is satisfied), for “conditions” substitute <quotedText>“condition”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-20"><num>(20)</num><content>The Secretary of State may by regulations make transitional or saving provision in connection with any repeal or amendment under subsection <ref href="#section-40-17">(17)</ref> or <ref href="#section-40-19">(19)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-21"><num>(21)</num><content>If this section is repealed under section <ref href="#section-133">133</ref><ref href="#section-133-6">(6)</ref> (repeal where asset allocation requirement uncommenced) in respect of the insertion of the provisions mentioned in that subsection, the Secretary of State may by regulations amend this section, section 41 or the Schedule in consequence of that repeal.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-22"><num>(22)</num><content>Regulations under subsection <ref href="#section-40-20">(20)</ref> or <ref href="#section-40-21">(21)</ref> are subject to the negative procedure.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41-1"><num>(1)</num><content>The Financial Services and Markets Act 2000 is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41-3"><num>(3)</num><content>Section 204A (meaning of “<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” and “<term refersTo="#term-appropriate-regulator" eId="term-appropriate-regulator">appropriate regulator</term>”) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41-6"><num>(6)</num><content>Part 1 (Master Trusts) of the Pension Schemes Act 2017 is amended as follows.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42"><num>42</num><heading>Regulations restricting creation of new non-scale default arrangements</heading><subsection eId="section-42-1"><num>(1)</num><content>The appropriate authority may make regulations for the purpose of restricting the ability of the provider of a pension scheme to begin operating a non-scale default arrangement.</content></subsection><subsection eId="section-42-2"><num>(2)</num><intro>The regulations may, in particular, make provision—</intro><level class="para1" eId="section-42-2-a"><num>(a)</num><content>prohibiting the provider of a pension scheme from beginning to operate a non-scale default arrangement unless the arrangement is approved by the appropriate regulator;</content></level><level class="para1" eId="section-42-2-b"><num>(b)</num><content>about the criteria which the appropriate regulator must apply in deciding whether to approve a non-scale default arrangement;</content></level><level class="para1" eId="section-42-2-c"><num>(c)</num><content>about the conditions which the appropriate regulator may or must attach to approval;</content></level><level class="para1" eId="section-42-2-d"><num>(d)</num><content>about the ongoing requirements to which the provider of a pension scheme is to be subject in relation to a non-scale default arrangement approved under the regulations;</content></level><level class="para1" eId="section-42-2-e"><num>(e)</num><content>where assets of a pension scheme are held subject to a non-scale default arrangement that is being operated in breach of the regulations, requiring the provider of the pension scheme in question to ensure that the assets are held subject to a different arrangement of a description specified in the regulations;</content></level><level class="para1" eId="section-42-2-f"><num>(f)</num><content>conferring functions on the appropriate regulator, including functions involving the exercise of a discretion;</content></level><level class="para1" eId="section-42-2-g"><num>(g)</num><content>for ensuring compliance with the regulations, including provision for the imposition of civil penalties not exceeding £100,000;</content></level><level class="para1" eId="section-42-2-h"><num>(h)</num><content>for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of anything done under the regulations.</content></level></subsection><subsection eId="section-42-3"><num>(3)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-1"><num>(1)</num><content>The appropriate authority may make regulations for the purpose of restricting the ability of the provider of a pension scheme to begin operating a non-scale default arrangement.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-2"><num>(2)</num><intro>The regulations may, in particular, make provision—</intro><level class="para1" eId="section-42-2-a"><num>(a)</num><content>prohibiting the provider of a pension scheme from beginning to operate a non-scale default arrangement unless the arrangement is approved by the appropriate regulator;</content></level><level class="para1" eId="section-42-2-b"><num>(b)</num><content>about the criteria which the appropriate regulator must apply in deciding whether to approve a non-scale default arrangement;</content></level><level class="para1" eId="section-42-2-c"><num>(c)</num><content>about the conditions which the appropriate regulator may or must attach to approval;</content></level><level class="para1" eId="section-42-2-d"><num>(d)</num><content>about the ongoing requirements to which the provider of a pension scheme is to be subject in relation to a non-scale default arrangement approved under the regulations;</content></level><level class="para1" eId="section-42-2-e"><num>(e)</num><content>where assets of a pension scheme are held subject to a non-scale default arrangement that is being operated in breach of the regulations, requiring the provider of the pension scheme in question to ensure that the assets are held subject to a different arrangement of a description specified in the regulations;</content></level><level class="para1" eId="section-42-2-f"><num>(f)</num><content>conferring functions on the appropriate regulator, including functions involving the exercise of a discretion;</content></level><level class="para1" eId="section-42-2-g"><num>(g)</num><content>for ensuring compliance with the regulations, including provision for the imposition of civil penalties not exceeding £100,000;</content></level><level class="para1" eId="section-42-2-h"><num>(h)</num><content>for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of anything done under the regulations.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-2-a"><num>(a)</num><content>prohibiting the provider of a pension scheme from beginning to operate a non-scale default arrangement unless the arrangement is approved by the appropriate regulator;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-2-b"><num>(b)</num><content>about the criteria which the appropriate regulator must apply in deciding whether to approve a non-scale default arrangement;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-2-c"><num>(c)</num><content>about the conditions which the appropriate regulator may or must attach to approval;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-2-d"><num>(d)</num><content>about the ongoing requirements to which the provider of a pension scheme is to be subject in relation to a non-scale default arrangement approved under the regulations;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-2-e"><num>(e)</num><content>where assets of a pension scheme are held subject to a non-scale default arrangement that is being operated in breach of the regulations, requiring the provider of the pension scheme in question to ensure that the assets are held subject to a different arrangement of a description specified in the regulations;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-2-f"><num>(f)</num><content>conferring functions on the appropriate regulator, including functions involving the exercise of a discretion;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-2-g"><num>(g)</num><content>for ensuring compliance with the regulations, including provision for the imposition of civil penalties not exceeding £100,000;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-2-h"><num>(h)</num><content>for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of anything done under the regulations.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-3"><num>(3)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43"><num>43</num><heading>Review in relation to non-scale default arrangements</heading><subsection eId="section-43-1"><num>(1)</num><content>The Secretary of State and the Treasury (“the reviewers”), acting jointly, must carry out a review of the non-scale default arrangements operated by providers of pension schemes.</content></subsection><subsection eId="section-43-2"><num>(2)</num><intro>The review must consider the following (as well as any other matters that the reviewers consider relevant)—</intro><level class="para1" eId="section-43-2-a"><num>(a)</num><content>the number of non-scale default arrangements being operated by providers;</content></level><level class="para1" eId="section-43-2-b"><num>(b)</num><content>the extent to which non-scale default arrangements operated by providers have been consolidated, or are likely to be consolidated, into approved main scale default arrangements;</content></level><level class="para1" eId="section-43-2-c"><num>(c)</num><content>where non-scale default arrangements have not been so consolidated, the reasons why;</content></level><level class="para1" eId="section-43-2-d"><num>(d)</num><content>the circumstances in which it may be appropriate for non-scale default arrangements not to be so consolidated.</content></level></subsection><subsection eId="section-43-3"><num>(3)</num><content>The reviewers must publish a report on the review as soon as reasonably practicable after the review is completed.</content></subsection><subsection eId="section-43-4"><num>(4)</num><content>The Pensions Regulator and the FCA must provide such information and assistance as the reviewers may require for the purposes of the review.</content></subsection><subsection eId="section-43-5"><num>(5)</num><content>Neither section 348 of the Financial Services and Markets Act 2000 nor section 82 of the Pensions Act 2004 prohibits the disclosure by the reviewers, the Pensions Regulator or the FCA of any information where the disclosure is made for the purpose of enabling or facilitating any person’s compliance with this section.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-1"><num>(1)</num><content>The Secretary of State and the Treasury (“the reviewers”), acting jointly, must carry out a review of the non-scale default arrangements operated by providers of pension schemes.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-2"><num>(2)</num><intro>The review must consider the following (as well as any other matters that the reviewers consider relevant)—</intro><level class="para1" eId="section-43-2-a"><num>(a)</num><content>the number of non-scale default arrangements being operated by providers;</content></level><level class="para1" eId="section-43-2-b"><num>(b)</num><content>the extent to which non-scale default arrangements operated by providers have been consolidated, or are likely to be consolidated, into approved main scale default arrangements;</content></level><level class="para1" eId="section-43-2-c"><num>(c)</num><content>where non-scale default arrangements have not been so consolidated, the reasons why;</content></level><level class="para1" eId="section-43-2-d"><num>(d)</num><content>the circumstances in which it may be appropriate for non-scale default arrangements not to be so consolidated.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-3"><num>(3)</num><content>The reviewers must publish a report on the review as soon as reasonably practicable after the review is completed.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-4"><num>(4)</num><content>The Pensions Regulator and the FCA must provide such information and assistance as the reviewers may require for the purposes of the review.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-5"><num>(5)</num><content>Neither section 348 of the Financial Services and Markets Act 2000 nor section 82 of the Pensions Act 2004 prohibits the disclosure by the reviewers, the Pensions Regulator or the FCA of any information where the disclosure is made for the purpose of enabling or facilitating any person’s compliance with this section.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44"><num>44</num><heading>Regulations about consolidation of non-scale default arrangements</heading><subsection eId="section-44-1"><num>(1)</num><content>The appropriate authority may make regulations about the consolidation of non-scale default arrangements into approved main scale default arrangements.</content></subsection><subsection eId="section-44-2"><num>(2)</num><intro>The regulations may, in particular, make provision—</intro><level class="para1" eId="section-44-2-a"><num>(a)</num><content>requiring the provider of a pension scheme, subject to any exemptions specified in the regulations, to consolidate a non-scale default arrangement operated by it into an approved main scale default arrangement operated by it;</content></level><level class="para1" eId="section-44-2-b"><num>(b)</num><content>requiring the provider of a pension scheme to prepare, and provide the appropriate regulator with, an action plan about how and when a non-scale default arrangement operated by it is to be so consolidated;</content></level><level class="para1" eId="section-44-2-c"><num>(c)</num><content>conferring functions on the appropriate regulator, including functions involving the exercise of a discretion;</content></level><level class="para1" eId="section-44-2-d"><num>(d)</num><content>for ensuring compliance with the regulations, including provision for the imposition of civil penalties not exceeding £100,000;</content></level><level class="para1" eId="section-44-2-e"><num>(e)</num><content>for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of a decision made under the regulations.</content></level></subsection><subsection eId="section-44-3"><num>(3)</num><intro>Regulations under this section—</intro><level class="para1" eId="section-44-3-a"><num>(a)</num><content>may not be made until the review under section <ref href="#section-43">43</ref> has been completed and the report on it published, and</content></level><level class="para1" eId="section-44-3-b"><num>(b)</num><content>must take account of the review’s conclusions.</content></level></subsection><subsection eId="section-44-4"><num>(4)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-1"><num>(1)</num><content>The appropriate authority may make regulations about the consolidation of non-scale default arrangements into approved main scale default arrangements.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-2"><num>(2)</num><intro>The regulations may, in particular, make provision—</intro><level class="para1" eId="section-44-2-a"><num>(a)</num><content>requiring the provider of a pension scheme, subject to any exemptions specified in the regulations, to consolidate a non-scale default arrangement operated by it into an approved main scale default arrangement operated by it;</content></level><level class="para1" eId="section-44-2-b"><num>(b)</num><content>requiring the provider of a pension scheme to prepare, and provide the appropriate regulator with, an action plan about how and when a non-scale default arrangement operated by it is to be so consolidated;</content></level><level class="para1" eId="section-44-2-c"><num>(c)</num><content>conferring functions on the appropriate regulator, including functions involving the exercise of a discretion;</content></level><level class="para1" eId="section-44-2-d"><num>(d)</num><content>for ensuring compliance with the regulations, including provision for the imposition of civil penalties not exceeding £100,000;</content></level><level class="para1" eId="section-44-2-e"><num>(e)</num><content>for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of a decision made under the regulations.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-2-a"><num>(a)</num><content>requiring the provider of a pension scheme, subject to any exemptions specified in the regulations, to consolidate a non-scale default arrangement operated by it into an approved main scale default arrangement operated by it;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-2-b"><num>(b)</num><content>requiring the provider of a pension scheme to prepare, and provide the appropriate regulator with, an action plan about how and when a non-scale default arrangement operated by it is to be so consolidated;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-2-c"><num>(c)</num><content>conferring functions on the appropriate regulator, including functions involving the exercise of a discretion;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-2-d"><num>(d)</num><content>for ensuring compliance with the regulations, including provision for the imposition of civil penalties not exceeding £100,000;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-2-e"><num>(e)</num><content>for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of a decision made under the regulations.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-3"><num>(3)</num><intro>Regulations under this section—</intro><level class="para1" eId="section-44-3-a"><num>(a)</num><content>may not be made until the review under section <ref href="#section-43">43</ref> has been completed and the report on it published, and</content></level><level class="para1" eId="section-44-3-b"><num>(b)</num><content>must take account of the review’s conclusions.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-4"><num>(4)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45"><num>45</num><heading>Regulations about default arrangements</heading><intro>In making regulations under section <ref href="#section-42">42</ref> or <ref href="#section-44">44</ref>, the appropriate authority must have regard to the importance of—</intro><level class="para1" eId="section-45-a"><num>(a)</num><content>innovation in the design and operation of pension schemes;</content></level><level class="para1" eId="section-45-b"><num>(b)</num><content>competition among providers of pension schemes;</content></level><level class="para1" eId="section-45-c"><num>(c)</num><content>improving outcomes for members of pension schemes;</content></level><level class="para1" eId="section-45-d"><num>(d)</num><content>pension schemes having effective governance.</content></level></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-46-1"><num>(1)</num><content>The Financial Services and Markets Act 2000 is amended as follows.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47"><num>47</num><heading>Crown application</heading><subsection eId="section-47-1"><num>(1)</num><content>This Chapter applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes.</content></subsection><subsection eId="section-47-2"><num>(2)</num><content>Accordingly, references in this Chapter to a person in their capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.</content></subsection><subsection eId="section-47-3"><num>(3)</num><content>This Chapter applies to persons employed by or under the Crown as it applies to persons employed by a private person.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48"><num>48</num><heading>Interpretation of Chapter</heading><subsection eId="section-48-1"><num>(1)</num><intro>In this Chapter—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-the-appropriate-authority" eId="term-the-appropriate-authority">the appropriate authority</term>”, in relation to the making of regulations, means—</intro><level class="para1"><num>(a)</num><content>where the only pension schemes to which the regulations apply are FCA-regulated pension schemes, the Treasury;</content></level><level class="para1"><num>(b)</num><content>where the only pension schemes to which the regulations apply are not FCA-regulated pension schemes, the Secretary of State;</content></level><level class="para1"><num>(c)</num><content>in any other case, the Treasury and the Secretary of State acting jointly;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-appropriate-regulator" eId="term-the-appropriate-regulator">the appropriate regulator</term>”, in relation to a pension scheme, means—</intro><level class="para1"><num>(a)</num><content>in relation to an FCA-regulated pension scheme, the FCA;</content></level><level class="para1"><num>(b)</num><content>in relation to any other pension scheme, the Pensions Regulator;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-approved-main-scale-default-arrangement" eId="term-approved-main-scale-default-arrangement">approved main scale default arrangement</term>”, in relation to a pension scheme, means a main scale default arrangement in respect of which the pension scheme is approved under section <ref href="#d25e6214">28A</ref> or <ref href="#d25e6551">28B</ref> of the Pensions Act 2008;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidating" eId="term-consolidating">consolidating</term>” a non-scale default arrangement into an approved main scale default arrangement means ensuring that any assets held subject to the non-scale default arrangement are instead held subject to the approved main scale default arrangement;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-fca" eId="term-the-fca">the FCA</term>” means the Financial Conduct Authority;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given in <ref href="#section-48-2">subsection (2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-main-scale-default-arrangement" eId="term-main-scale-default-arrangement">main scale default arrangement</term>”, in relation to a pension scheme, has the same meaning as in section <ref href="#d25e6214">28A</ref> and <ref href="#d25e6551">28B</ref> of the Pensions Act 2008;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 181 of that Act);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-non-scale-default-arrangement" eId="term-non-scale-default-arrangement">non-scale default arrangement</term>”, in relation to a pension scheme, means an arrangement—</intro><level class="para1"><num>(a)</num><content>which is not an approved main scale default arrangement, and</content></level><level class="para1"><num>(b)</num><content>subject to which assets of the scheme must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-operate" eId="term-operate">operate</term>”, in relation to a default arrangement, has the meaning given in <ref href="#section-48-3">subsection (3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme" eId="term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the Pension Schemes Act 1993;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-provider" eId="term-the-provider">the provider</term>” of a pension scheme means—</intro><level class="para1"><num>(a)</num><content>in relation to an FCA-regulated pension scheme, the person mentioned in <ref href="#section-48-2">subsection (2)</ref><ref href="#section-48-2-b">(b)</ref>;</content></level><level class="para1"><num>(b)</num><content>in any other case, the trustees or managers;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-trustees-or-managers" eId="term-the-trustees-or-managers">the trustees or managers</term>”, in relation to a pension scheme, means—</intro><level class="para1"><num>(a)</num><content>in the case of a scheme established under a trust, the trustees of the scheme, and</content></level><level class="para1"><num>(b)</num><content>in any other case, the persons responsible for the management of the scheme.</content></level></hcontainer></subsection><subsection eId="section-48-2"><num>(2)</num><intro>A pension scheme is “FCA-regulated” if the operation of the scheme—</intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content>is carried on in such a way as to be a regulated activity for the purposes of the Financial Services and Markets Act 2000, and</content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content>is carried on in the United Kingdom by a person who is in relation to that activity an authorised person under section 19 of that Act.</content></level></subsection><subsection eId="section-48-3"><num>(3)</num><content>The provider of a pension scheme “operates” a non-scale default arrangement or main scale default arrangement if any assets held for the purposes of the scheme are held subject to the non-scale default arrangement or main scale default arrangement.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-1"><num>(1)</num><intro>In this Chapter—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-the-appropriate-authority" eId="term-the-appropriate-authority">the appropriate authority</term>”, in relation to the making of regulations, means—</intro><level class="para1"><num>(a)</num><content>where the only pension schemes to which the regulations apply are FCA-regulated pension schemes, the Treasury;</content></level><level class="para1"><num>(b)</num><content>where the only pension schemes to which the regulations apply are not FCA-regulated pension schemes, the Secretary of State;</content></level><level class="para1"><num>(c)</num><content>in any other case, the Treasury and the Secretary of State acting jointly;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-appropriate-regulator" eId="term-the-appropriate-regulator">the appropriate regulator</term>”, in relation to a pension scheme, means—</intro><level class="para1"><num>(a)</num><content>in relation to an FCA-regulated pension scheme, the FCA;</content></level><level class="para1"><num>(b)</num><content>in relation to any other pension scheme, the Pensions Regulator;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-approved-main-scale-default-arrangement" eId="term-approved-main-scale-default-arrangement">approved main scale default arrangement</term>”, in relation to a pension scheme, means a main scale default arrangement in respect of which the pension scheme is approved under section <ref href="#d25e6214">28A</ref> or <ref href="#d25e6551">28B</ref> of the Pensions Act 2008;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-consolidating" eId="term-consolidating">consolidating</term>” a non-scale default arrangement into an approved main scale default arrangement means ensuring that any assets held subject to the non-scale default arrangement are instead held subject to the approved main scale default arrangement;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-fca" eId="term-the-fca">the FCA</term>” means the Financial Conduct Authority;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fca-regulated" eId="term-fca-regulated">FCA-regulated</term>”, in relation to a pension scheme, has the meaning given in <ref href="#section-48-2">subsection (2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-main-scale-default-arrangement" eId="term-main-scale-default-arrangement">main scale default arrangement</term>”, in relation to a pension scheme, has the same meaning as in section <ref href="#d25e6214">28A</ref> and <ref href="#d25e6551">28B</ref> of the Pensions Act 2008;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 181 of that Act);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-non-scale-default-arrangement" eId="term-non-scale-default-arrangement">non-scale default arrangement</term>”, in relation to a pension scheme, means an arrangement—</intro><level class="para1"><num>(a)</num><content>which is not an approved main scale default arrangement, and</content></level><level class="para1"><num>(b)</num><content>subject to which assets of the scheme must under the rules of the scheme be held, or may under those rules be held, if the member of the scheme to whom the assets relate does not make a choice as to the arrangement subject to which the assets are to be held;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-operate" eId="term-operate">operate</term>”, in relation to a default arrangement, has the meaning given in <ref href="#section-48-3">subsection (3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme" eId="term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the Pension Schemes Act 1993;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-provider" eId="term-the-provider">the provider</term>” of a pension scheme means—</intro><level class="para1"><num>(a)</num><content>in relation to an FCA-regulated pension scheme, the person mentioned in <ref href="#section-48-2">subsection (2)</ref><ref href="#section-48-2-b">(b)</ref>;</content></level><level class="para1"><num>(b)</num><content>in any other case, the trustees or managers;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-trustees-or-managers" eId="term-the-trustees-or-managers">the trustees or managers</term>”, in relation to a pension scheme, means—</intro><level class="para1"><num>(a)</num><content>in the case of a scheme established under a trust, the trustees of the scheme, and</content></level><level class="para1"><num>(b)</num><content>in any other case, the persons responsible for the management of the scheme.</content></level></hcontainer></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-2"><num>(2)</num><intro>A pension scheme is “FCA-regulated” if the operation of the scheme—</intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content>is carried on in such a way as to be a regulated activity for the purposes of the Financial Services and Markets Act 2000, and</content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content>is carried on in the United Kingdom by a person who is in relation to that activity an authorised person under section 19 of that Act.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-3"><num>(3)</num><content>The provider of a pension scheme “operates” a non-scale default arrangement or main scale default arrangement if any assets held for the purposes of the scheme are held subject to the non-scale default arrangement or main scale default arrangement.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-49-1"><num>(1)</num><content>The Financial Services and Markets Act 2000 is amended as follows.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50"><num>50</num><heading>Default pension benefit solutions</heading><subsection eId="section-50-1"><num>(1)</num><intro>Subject to <ref href="#section-51">section 51</ref><ref href="#section-51-1">(1)</ref>, the trustees or managers of a relevant scheme must—</intro><level class="para1" eId="section-50-1-a"><num>(a)</num><content>design, and make available to each eligible member of the scheme, one or more default pension benefit solutions;</content></level><level class="para1" eId="section-50-1-b"><num>(b)</num><content>at least in such circumstances or at such times or intervals as may be prescribed, review the design (and if appropriate the number) of the default pension benefit solutions.</content></level></subsection><subsection eId="section-50-2"><num>(2)</num><content>In this Chapter “<term refersTo="#term-pension-benefit-solution" eId="term-pension-benefit-solution">pension benefit solution</term>”, in relation to a pension scheme, means a contractual or other arrangement for making pension payments in respect of members’ accrued rights.</content></subsection><subsection eId="section-50-3"><num>(3)</num><intro>In this Chapter “<term refersTo="#term-default-pension-benefit-solution" eId="term-default-pension-benefit-solution">default pension benefit solution</term>”, in relation to a relevant scheme, means a pension benefit solution which—</intro><level class="para1" eId="section-50-3-a"><num>(a)</num><intro>is designed for delivering money purchase benefits under the scheme to—</intro><level class="para2" eId="section-50-3-a-i"><num>(i)</num><content>the eligible members of the scheme generally, or</content></level><level class="para2" eId="section-50-3-a-ii"><num>(ii)</num><content>a subset of those eligible members,</content></level></level><level class="para1" eId="section-50-3-b"><num>(b)</num><content>is designed to provide a regular income for the eligible members concerned in their retirement (whether or not together with other benefits),</content></level><level class="para1" eId="section-50-3-c"><num>(c)</num><intro>is for the time being designated by the trustees or managers of the scheme as the pension benefit solution under which—</intro><level class="para2" eId="section-50-3-c-i"><num>(i)</num><content>the eligible members of the scheme generally, or</content></level><level class="para2" eId="section-50-3-c-ii"><num>(ii)</num><content>a subset of those eligible members,</content></level><wrapUp>will receive pension payments unless they choose to receive pension payments under a different pension benefit solution, and</wrapUp></level><level class="para1" eId="section-50-3-d"><num>(d)</num><content>meets any other conditions that may be prescribed.</content></level></subsection><subsection eId="section-50-4"><num>(4)</num><intro>The trustees or managers of a relevant scheme must, in determining what default pension benefit solutions the scheme should make available (generally or to subsets of eligible members), take account of—</intro><level class="para1" eId="section-50-4-a"><num>(a)</num><intro>the needs and interests of—</intro><level class="para2" eId="section-50-4-a-i"><num>(i)</num><content>the scheme’s membership as a whole, and</content></level><level class="para2" eId="section-50-4-a-ii"><num>(ii)</num><content>any subset of the scheme’s membership that the trustees or managers consider appropriate;</content></level></level><level class="para1" eId="section-50-4-b"><num>(b)</num><content>the circumstances of different eligible members of the scheme (for example the normal pension ages of such members or the value or expected value of their money purchase benefits under the scheme);</content></level><level class="para1" eId="section-50-4-c"><num>(c)</num><content>the possibility that a member may already have received some of their benefits (for example as a lump sum) before deciding to make use of a default pension benefit solution;</content></level><level class="para1" eId="section-50-4-d"><num>(d)</num><content>such other factors as may be prescribed.</content></level></subsection><subsection eId="section-50-5"><num>(5)</num><content>Regulations may make provision about how trustees or managers of a scheme are to assess the needs and interests of the scheme’s membership for the purposes of <ref href="#section-50-4">subsection (4)</ref><ref href="#section-50-4-a">(a)</ref>.</content></subsection><subsection eId="section-50-6"><num>(6)</num><intro>Regulations may—</intro><level class="para1" eId="section-50-6-a"><num>(a)</num><content>specify descriptions of eligible members in relation to which subsection (3) is to have effect with the omission of paragraph (b) of that subsection;</content></level><level class="para1" eId="section-50-6-b"><num>(b)</num><intro>make provision about the meaning for the purposes of subsection <ref href="#section-50-3">(3)</ref><ref href="#section-50-3-b">(b)</ref> of—</intro><level class="para2" eId="section-50-6-b-i"><num>(i)</num><content>“designed to provide a regular income”;</content></level><level class="para2" eId="section-50-6-b-ii"><num>(ii)</num><content>“retirement”.</content></level></level></subsection><subsection eId="section-50-7"><num>(7)</num><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-eligible-member" eId="term-eligible-member">eligible member</term>”, in relation to a relevant scheme, means any member who is accruing, or has an actual or prospective right to, benefits falling within paragraph (a) of the definition of “money purchase benefits” in section 181(1) of the Pension Schemes Act 1993 and is not of a description excepted by regulations;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-scheme" eId="term-relevant-scheme">relevant scheme</term>” means an occupational pension scheme which—</intro><level class="para1"><num>(a)</num><content>provides benefits falling within paragraph (a) of the definition of “money purchase benefits” in section 181(1) of the Pension Schemes Act 1993,</content></level><level class="para1"><num>(b)</num><content>is a registered pension scheme, and</content></level><level class="para1"><num>(c)</num><content>is not of a description excepted by regulations.</content></level></hcontainer></subsection><subsection eId="section-50-8"><num>(8)</num><intro>Regulations under this section—</intro><level class="para1" eId="section-50-8-a"><num>(a)</num><content>are subject to the negative procedure if they are made under <ref href="#section-50-1">subsection (1)</ref><ref href="#section-50-1-b">(b)</ref> or <ref href="#section-50-6">(6)</ref><ref href="#section-50-6-a">(a)</ref> </content></level><level class="para1" eId="section-50-8-b"><num>(b)</num><content>otherwise, are subject to the affirmative procedure.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-1"><num>(1)</num><intro>Subject to <ref href="#section-51">section 51</ref><ref href="#section-51-1">(1)</ref>, the trustees or managers of a relevant scheme must—</intro><level class="para1" eId="section-50-1-a"><num>(a)</num><content>design, and make available to each eligible member of the scheme, one or more default pension benefit solutions;</content></level><level class="para1" eId="section-50-1-b"><num>(b)</num><content>at least in such circumstances or at such times or intervals as may be prescribed, review the design (and if appropriate the number) of the default pension benefit solutions.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-2"><num>(2)</num><content>In this Chapter “<term refersTo="#term-pension-benefit-solution" eId="term-pension-benefit-solution">pension benefit solution</term>”, in relation to a pension scheme, means a contractual or other arrangement for making pension payments in respect of members’ accrued rights.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-3"><num>(3)</num><intro>In this Chapter “<term refersTo="#term-default-pension-benefit-solution" eId="term-default-pension-benefit-solution">default pension benefit solution</term>”, in relation to a relevant scheme, means a pension benefit solution which—</intro><level class="para1" eId="section-50-3-a"><num>(a)</num><intro>is designed for delivering money purchase benefits under the scheme to—</intro><level class="para2" eId="section-50-3-a-i"><num>(i)</num><content>the eligible members of the scheme generally, or</content></level><level class="para2" eId="section-50-3-a-ii"><num>(ii)</num><content>a subset of those eligible members,</content></level></level><level class="para1" eId="section-50-3-b"><num>(b)</num><content>is designed to provide a regular income for the eligible members concerned in their retirement (whether or not together with other benefits),</content></level><level class="para1" eId="section-50-3-c"><num>(c)</num><intro>is for the time being designated by the trustees or managers of the scheme as the pension benefit solution under which—</intro><level class="para2" eId="section-50-3-c-i"><num>(i)</num><content>the eligible members of the scheme generally, or</content></level><level class="para2" eId="section-50-3-c-ii"><num>(ii)</num><content>a subset of those eligible members,</content></level><wrapUp>will receive pension payments unless they choose to receive pension payments under a different pension benefit solution, and</wrapUp></level><level class="para1" eId="section-50-3-d"><num>(d)</num><content>meets any other conditions that may be prescribed.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-a"><num>(a)</num><intro>is designed for delivering money purchase benefits under the scheme to—</intro><level class="para2" eId="section-50-3-a-i"><num>(i)</num><content>the eligible members of the scheme generally, or</content></level><level class="para2" eId="section-50-3-a-ii"><num>(ii)</num><content>a subset of those eligible members,</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-b"><num>(b)</num><content>is designed to provide a regular income for the eligible members concerned in their retirement (whether or not together with other benefits),</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-c"><num>(c)</num><intro>is for the time being designated by the trustees or managers of the scheme as the pension benefit solution under which—</intro><level class="para2" eId="section-50-3-c-i"><num>(i)</num><content>the eligible members of the scheme generally, or</content></level><level class="para2" eId="section-50-3-c-ii"><num>(ii)</num><content>a subset of those eligible members,</content></level><wrapUp>will receive pension payments unless they choose to receive pension payments under a different pension benefit solution, and</wrapUp></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-3-d"><num>(d)</num><content>meets any other conditions that may be prescribed.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-4"><num>(4)</num><intro>The trustees or managers of a relevant scheme must, in determining what default pension benefit solutions the scheme should make available (generally or to subsets of eligible members), take account of—</intro><level class="para1" eId="section-50-4-a"><num>(a)</num><intro>the needs and interests of—</intro><level class="para2" eId="section-50-4-a-i"><num>(i)</num><content>the scheme’s membership as a whole, and</content></level><level class="para2" eId="section-50-4-a-ii"><num>(ii)</num><content>any subset of the scheme’s membership that the trustees or managers consider appropriate;</content></level></level><level class="para1" eId="section-50-4-b"><num>(b)</num><content>the circumstances of different eligible members of the scheme (for example the normal pension ages of such members or the value or expected value of their money purchase benefits under the scheme);</content></level><level class="para1" eId="section-50-4-c"><num>(c)</num><content>the possibility that a member may already have received some of their benefits (for example as a lump sum) before deciding to make use of a default pension benefit solution;</content></level><level class="para1" eId="section-50-4-d"><num>(d)</num><content>such other factors as may be prescribed.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-4-a"><num>(a)</num><intro>the needs and interests of—</intro><level class="para2" eId="section-50-4-a-i"><num>(i)</num><content>the scheme’s membership as a whole, and</content></level><level class="para2" eId="section-50-4-a-ii"><num>(ii)</num><content>any subset of the scheme’s membership that the trustees or managers consider appropriate;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-4-b"><num>(b)</num><content>the circumstances of different eligible members of the scheme (for example the normal pension ages of such members or the value or expected value of their money purchase benefits under the scheme);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-4-c"><num>(c)</num><content>the possibility that a member may already have received some of their benefits (for example as a lump sum) before deciding to make use of a default pension benefit solution;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-50-4-d"><num>(d)</num><content>such other factors as may be prescribed.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-5"><num>(5)</num><content>Regulations may make provision about how trustees or managers of a scheme are to assess the needs and interests of the scheme’s membership for the purposes of <ref href="#section-50-4">subsection (4)</ref><ref href="#section-50-4-a">(a)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-6"><num>(6)</num><intro>Regulations may—</intro><level class="para1" eId="section-50-6-a"><num>(a)</num><content>specify descriptions of eligible members in relation to which subsection (3) is to have effect with the omission of paragraph (b) of that subsection;</content></level><level class="para1" eId="section-50-6-b"><num>(b)</num><intro>make provision about the meaning for the purposes of subsection <ref href="#section-50-3">(3)</ref><ref href="#section-50-3-b">(b)</ref> of—</intro><level class="para2" eId="section-50-6-b-i"><num>(i)</num><content>“designed to provide a regular income”;</content></level><level class="para2" eId="section-50-6-b-ii"><num>(ii)</num><content>“retirement”.</content></level></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-7"><num>(7)</num><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-eligible-member" eId="term-eligible-member">eligible member</term>”, in relation to a relevant scheme, means any member who is accruing, or has an actual or prospective right to, benefits falling within paragraph (a) of the definition of “money purchase benefits” in section 181(1) of the Pension Schemes Act 1993 and is not of a description excepted by regulations;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-scheme" eId="term-relevant-scheme">relevant scheme</term>” means an occupational pension scheme which—</intro><level class="para1"><num>(a)</num><content>provides benefits falling within paragraph (a) of the definition of “money purchase benefits” in section 181(1) of the Pension Schemes Act 1993,</content></level><level class="para1"><num>(b)</num><content>is a registered pension scheme, and</content></level><level class="para1"><num>(c)</num><content>is not of a description excepted by regulations.</content></level></hcontainer></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-8"><num>(8)</num><intro>Regulations under this section—</intro><level class="para1" eId="section-50-8-a"><num>(a)</num><content>are subject to the negative procedure if they are made under <ref href="#section-50-1">subsection (1)</ref><ref href="#section-50-1-b">(b)</ref> or <ref href="#section-50-6">(6)</ref><ref href="#section-50-6-a">(a)</ref> </content></level><level class="para1" eId="section-50-8-b"><num>(b)</num><content>otherwise, are subject to the affirmative procedure.</content></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51"><num>51</num><heading>Transferable members</heading><subsection eId="section-51-1"><num>(1)</num><content>The trustees or managers of a relevant scheme (“<term refersTo="#term-the-principal-scheme" eId="term-the-principal-scheme">the principal scheme</term>”) are not required to comply with <ref href="#section-50">section 50</ref><ref href="#section-50-1">(1)</ref> in relation to eligible members of the scheme (whether comprising the members of the scheme generally or a subset of those members) in relation to whom the first or second condition is met; and such members are referred to in this Chapter as “<term refersTo="#term-transferable-members" eId="term-transferable-members">transferable members</term>”.</content></subsection><subsection eId="section-51-2"><num>(2)</num><content>The first condition is that the trustees or managers of the principal scheme have determined that it is not reasonably practicable for them to design and make available to the members concerned default pension benefit solutions.</content></subsection><subsection eId="section-51-3"><num>(3)</num><content>The second condition is that the trustees or managers of the principal scheme have determined that a qualifying pension benefit solution of a qualifying scheme (other than the principal scheme) will provide a better outcome for the members concerned than any default pension benefit solution that the trustees or managers of the principal scheme could design and make available to them.</content></subsection><subsection eId="section-51-4"><num>(4)</num><content>Where the principal scheme has transferable members, the trustees or managers must take the steps set out in <ref href="#section-51-5">subsection (5)</ref> in respect of them.</content></subsection><subsection eId="section-51-5"><num>(5)</num><intro>The steps mentioned in <ref href="#section-51-4">subsection (4)</ref> are to—</intro><level class="para1" eId="section-51-5-a"><num>(a)</num><intro>identify a qualifying scheme (the “receiving scheme”) that is able to and agrees to—</intro><level class="para2" eId="section-51-5-a-i"><num>(i)</num><content>receive a transfer in respect of the accrued rights of the transferable member (a “relevant transfer”), and</content></level><level class="para2" eId="section-51-5-a-ii"><num>(ii)</num><content>make a qualifying pension benefit solution available to the transferable member;</content></level></level><level class="para1" eId="section-51-5-b"><num>(b)</num><content>at such times or in such circumstances as may be prescribed, enter into arrangements (“transfer arrangements”) with the receiving scheme with a view to effecting a relevant transfer to that scheme;</content></level><level class="para1" eId="section-51-5-c"><num>(c)</num><content>take any other prescribed steps.</content></level></subsection><subsection eId="section-51-6"><num>(6)</num><content>In carrying out the step in subsection <ref href="#section-51-5">(5)</ref><ref href="#section-51-5-a">(a)</ref>, the trustees or managers of the principal scheme must have regard to the matters mentioned in <ref href="#section-50">section 50</ref><ref href="#section-50-4">(4)</ref> (and for that purpose references in those paragraphs to “the scheme” are to the principal scheme).</content></subsection><subsection eId="section-51-7"><num>(7)</num><content><ref href="#section-50">Section 50</ref><ref href="#section-50-5">(5)</ref> applies for the purposes of <ref href="#section-51-6">subsection (6)</ref> as it applies for the purposes of <ref href="#section-50">section 50</ref><ref href="#section-50-4">(4)</ref>.</content></subsection><subsection eId="section-51-8"><num>(8)</num><content>The trustees or managers of the principal scheme must, at least in such circumstances or at such times or intervals as may be prescribed, review the suitability of any qualifying pension benefit solution in respect of which they have identified a qualifying scheme as mentioned in subsection <ref href="#section-51-5">(5)</ref><ref href="#section-51-5-a">(a)</ref>.</content></subsection><subsection eId="section-51-9"><num>(9)</num><intro>In this Chapter, “<term refersTo="#term-qualifying-pension-benefit-solution" eId="term-qualifying-pension-benefit-solution">qualifying pension benefit solution</term>”, in relation to a qualifying scheme, means a pension benefit solution designed and maintained by the trustees or managers of the scheme that—</intro><level class="para1" eId="section-51-9-a"><num>(a)</num><intro>is designed for delivering money purchase benefits under that scheme to—</intro><level class="para2" eId="section-51-9-a-i"><num>(i)</num><content>the members of the scheme generally, or</content></level><level class="para2" eId="section-51-9-a-ii"><num>(ii)</num><content>a subset of those members,</content></level></level><level class="para1" eId="section-51-9-b"><num>(b)</num><content>is designed to provide a regular income for the members concerned in their retirement (whether or not together with other benefits), and</content></level><level class="para1" eId="section-51-9-c"><num>(c)</num><content>meets any other conditions that may be prescribed.</content></level></subsection><subsection eId="section-51-10"><num>(10)</num><content>Nothing in this Chapter authorises any transfer in respect of a person’s accrued rights under a relevant scheme without that person’s consent.</content></subsection><subsection eId="section-51-11"><num>(11)</num><intro>In this section “<term refersTo="#term-qualifying-scheme" eId="term-qualifying-scheme">qualifying scheme</term>” means—</intro><level class="para1" eId="section-51-11-a"><num>(a)</num><content>an occupational pension scheme, or</content></level><level class="para1" eId="section-51-11-b"><num>(b)</num><content>a personal pension scheme,</content></level><wrapUp>that is a registered scheme and meets any prescribed conditions.</wrapUp></subsection><subsection eId="section-51-12"><num>(12)</num><intro>If a transferable member accepts in writing a proposal of the principal scheme for the transferable member’s accrued rights to be transferred to the receiving scheme—</intro><level class="para1" eId="section-51-12-a"><num>(a)</num><content>the trustees or managers of the principal scheme must communicate that proposal to the receiving scheme, and</content></level><level class="para1" eId="section-51-12-b"><num>(b)</num><content>the proposal is to be treated as requiring the receiving scheme to enrol the transferable member as a member of the receiving scheme and use the cash equivalent to provide rights for the member under that scheme.</content></level></subsection><subsection eId="section-51-13"><num>(13)</num><content>Regulations may make provision about the conditions in subsections <ref href="#section-51-2">(2)</ref> and <ref href="#section-51-3">(3)</ref>, including about the basis on which the determinations mentioned in those subsections are to be made.</content></subsection><subsection eId="section-51-14"><num>(14)</num><intro>Regulations may require a pension scheme of a prescribed description to agree to receive a transfer in respect of the accrued rights of a transferable member where—</intro><level class="para1" eId="section-51-14-a"><num>(a)</num><content>the principal scheme has been unable, having used reasonable endeavours, to identify a qualifying scheme that is able and willing to do so, and</content></level><level class="para1" eId="section-51-14-b"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection><subsection eId="section-51-15"><num>(15)</num><intro>A requirement under subsection <ref href="#section-51-14">(14)</ref> may only be imposed on a pension scheme that is one or both of the following—</intro><level class="para1" eId="section-51-15-a"><num>(a)</num><content>a Master Trust scheme within the meaning of the Pension Schemes Act 2017;</content></level><level class="para1" eId="section-51-15-b"><num>(b)</num><content>a consolidator scheme within the meaning of Chapter 2 of Part 2 (consolidation of small dormant pension pots).</content></level></subsection><subsection eId="section-51-16"><num>(16)</num><content>Regulations may prohibit or limit the charging of fees in respect of transfers made under transfer arrangements.</content></subsection><subsection eId="section-51-17"><num>(17)</num><content>Regulations may provide for the manner in which cash equivalents are to be calculated and verified.</content></subsection><subsection eId="section-51-18"><num>(18)</num><content>Regulations under subsection <ref href="#section-51-8">(8)</ref>, <ref href="#section-51-16">(16)</ref> or <ref href="#section-51-17">(17)</ref> are subject to the negative procedure; and other regulations under this section are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-1"><num>(1)</num><content>The trustees or managers of a relevant scheme (“<term refersTo="#term-the-principal-scheme" eId="term-the-principal-scheme">the principal scheme</term>”) are not required to comply with <ref href="#section-50">section 50</ref><ref href="#section-50-1">(1)</ref> in relation to eligible members of the scheme (whether comprising the members of the scheme generally or a subset of those members) in relation to whom the first or second condition is met; and such members are referred to in this Chapter as “<term refersTo="#term-transferable-members" eId="term-transferable-members">transferable members</term>”.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-2"><num>(2)</num><content>The first condition is that the trustees or managers of the principal scheme have determined that it is not reasonably practicable for them to design and make available to the members concerned default pension benefit solutions.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-3"><num>(3)</num><content>The second condition is that the trustees or managers of the principal scheme have determined that a qualifying pension benefit solution of a qualifying scheme (other than the principal scheme) will provide a better outcome for the members concerned than any default pension benefit solution that the trustees or managers of the principal scheme could design and make available to them.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-4"><num>(4)</num><content>Where the principal scheme has transferable members, the trustees or managers must take the steps set out in <ref href="#section-51-5">subsection (5)</ref> in respect of them.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-5"><num>(5)</num><intro>The steps mentioned in <ref href="#section-51-4">subsection (4)</ref> are to—</intro><level class="para1" eId="section-51-5-a"><num>(a)</num><intro>identify a qualifying scheme (the “receiving scheme”) that is able to and agrees to—</intro><level class="para2" eId="section-51-5-a-i"><num>(i)</num><content>receive a transfer in respect of the accrued rights of the transferable member (a “relevant transfer”), and</content></level><level class="para2" eId="section-51-5-a-ii"><num>(ii)</num><content>make a qualifying pension benefit solution available to the transferable member;</content></level></level><level class="para1" eId="section-51-5-b"><num>(b)</num><content>at such times or in such circumstances as may be prescribed, enter into arrangements (“transfer arrangements”) with the receiving scheme with a view to effecting a relevant transfer to that scheme;</content></level><level class="para1" eId="section-51-5-c"><num>(c)</num><content>take any other prescribed steps.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-5-a"><num>(a)</num><intro>identify a qualifying scheme (the “receiving scheme”) that is able to and agrees to—</intro><level class="para2" eId="section-51-5-a-i"><num>(i)</num><content>receive a transfer in respect of the accrued rights of the transferable member (a “relevant transfer”), and</content></level><level class="para2" eId="section-51-5-a-ii"><num>(ii)</num><content>make a qualifying pension benefit solution available to the transferable member;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-5-b"><num>(b)</num><content>at such times or in such circumstances as may be prescribed, enter into arrangements (“transfer arrangements”) with the receiving scheme with a view to effecting a relevant transfer to that scheme;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-5-c"><num>(c)</num><content>take any other prescribed steps.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-6"><num>(6)</num><content>In carrying out the step in subsection <ref href="#section-51-5">(5)</ref><ref href="#section-51-5-a">(a)</ref>, the trustees or managers of the principal scheme must have regard to the matters mentioned in <ref href="#section-50">section 50</ref><ref href="#section-50-4">(4)</ref> (and for that purpose references in those paragraphs to “the scheme” are to the principal scheme).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-7"><num>(7)</num><content><ref href="#section-50">Section 50</ref><ref href="#section-50-5">(5)</ref> applies for the purposes of <ref href="#section-51-6">subsection (6)</ref> as it applies for the purposes of <ref href="#section-50">section 50</ref><ref href="#section-50-4">(4)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-8"><num>(8)</num><content>The trustees or managers of the principal scheme must, at least in such circumstances or at such times or intervals as may be prescribed, review the suitability of any qualifying pension benefit solution in respect of which they have identified a qualifying scheme as mentioned in subsection <ref href="#section-51-5">(5)</ref><ref href="#section-51-5-a">(a)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-9"><num>(9)</num><intro>In this Chapter, “<term refersTo="#term-qualifying-pension-benefit-solution" eId="term-qualifying-pension-benefit-solution">qualifying pension benefit solution</term>”, in relation to a qualifying scheme, means a pension benefit solution designed and maintained by the trustees or managers of the scheme that—</intro><level class="para1" eId="section-51-9-a"><num>(a)</num><intro>is designed for delivering money purchase benefits under that scheme to—</intro><level class="para2" eId="section-51-9-a-i"><num>(i)</num><content>the members of the scheme generally, or</content></level><level class="para2" eId="section-51-9-a-ii"><num>(ii)</num><content>a subset of those members,</content></level></level><level class="para1" eId="section-51-9-b"><num>(b)</num><content>is designed to provide a regular income for the members concerned in their retirement (whether or not together with other benefits), and</content></level><level class="para1" eId="section-51-9-c"><num>(c)</num><content>meets any other conditions that may be prescribed.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-9-a"><num>(a)</num><intro>is designed for delivering money purchase benefits under that scheme to—</intro><level class="para2" eId="section-51-9-a-i"><num>(i)</num><content>the members of the scheme generally, or</content></level><level class="para2" eId="section-51-9-a-ii"><num>(ii)</num><content>a subset of those members,</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-9-b"><num>(b)</num><content>is designed to provide a regular income for the members concerned in their retirement (whether or not together with other benefits), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-9-c"><num>(c)</num><content>meets any other conditions that may be prescribed.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-10"><num>(10)</num><content>Nothing in this Chapter authorises any transfer in respect of a person’s accrued rights under a relevant scheme without that person’s consent.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-11"><num>(11)</num><intro>In this section “<term refersTo="#term-qualifying-scheme" eId="term-qualifying-scheme">qualifying scheme</term>” means—</intro><level class="para1" eId="section-51-11-a"><num>(a)</num><content>an occupational pension scheme, or</content></level><level class="para1" eId="section-51-11-b"><num>(b)</num><content>a personal pension scheme,</content></level><wrapUp>that is a registered scheme and meets any prescribed conditions.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-12"><num>(12)</num><intro>If a transferable member accepts in writing a proposal of the principal scheme for the transferable member’s accrued rights to be transferred to the receiving scheme—</intro><level class="para1" eId="section-51-12-a"><num>(a)</num><content>the trustees or managers of the principal scheme must communicate that proposal to the receiving scheme, and</content></level><level class="para1" eId="section-51-12-b"><num>(b)</num><content>the proposal is to be treated as requiring the receiving scheme to enrol the transferable member as a member of the receiving scheme and use the cash equivalent to provide rights for the member under that scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-13"><num>(13)</num><content>Regulations may make provision about the conditions in subsections <ref href="#section-51-2">(2)</ref> and <ref href="#section-51-3">(3)</ref>, including about the basis on which the determinations mentioned in those subsections are to be made.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-14"><num>(14)</num><intro>Regulations may require a pension scheme of a prescribed description to agree to receive a transfer in respect of the accrued rights of a transferable member where—</intro><level class="para1" eId="section-51-14-a"><num>(a)</num><content>the principal scheme has been unable, having used reasonable endeavours, to identify a qualifying scheme that is able and willing to do so, and</content></level><level class="para1" eId="section-51-14-b"><num>(b)</num><content>any other prescribed conditions are met.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-15"><num>(15)</num><intro>A requirement under subsection <ref href="#section-51-14">(14)</ref> may only be imposed on a pension scheme that is one or both of the following—</intro><level class="para1" eId="section-51-15-a"><num>(a)</num><content>a Master Trust scheme within the meaning of the Pension Schemes Act 2017;</content></level><level class="para1" eId="section-51-15-b"><num>(b)</num><content>a consolidator scheme within the meaning of Chapter 2 of Part 2 (consolidation of small dormant pension pots).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-16"><num>(16)</num><content>Regulations may prohibit or limit the charging of fees in respect of transfers made under transfer arrangements.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-17"><num>(17)</num><content>Regulations may provide for the manner in which cash equivalents are to be calculated and verified.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-18"><num>(18)</num><content>Regulations under subsection <ref href="#section-51-8">(8)</ref>, <ref href="#section-51-16">(16)</ref> or <ref href="#section-51-17">(17)</ref> are subject to the negative procedure; and other regulations under this section are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52"><num>52</num><heading>Provision and gathering of information</heading><subsection eId="section-52-1"><num>(1)</num><intro>Where only one pension benefit solution is available to the members of a relevant scheme, the trustees or managers must ensure that each eligible member of the scheme is given at a prescribed time a communication which—</intro><level class="para1" eId="section-52-1-a"><num>(a)</num><content>describes the pension benefit solution, and</content></level><level class="para1" eId="section-52-1-b"><num>(b)</num><content>sets out the trustees’ or managers’ opinion as to what might be the circumstances (in terms of age, pension savings etc) of a person for whom the pension benefit solution is suitable.</content></level></subsection><subsection eId="section-52-2"><num>(2)</num><intro>Where more than one pension benefit solution is available to the eligible members of a relevant scheme, the trustees or managers must ensure that, at a prescribed time, each eligible member of the scheme is given a communication which—</intro><level class="para1" eId="section-52-2-a"><num>(a)</num><content>describes the default pension benefit solution or qualifying pension benefit solution that the trustees or managers consider to be the most appropriate to the member (“the specified solution”), and</content></level><level class="para1" eId="section-52-2-b"><num>(b)</num><content>sets out the trustees’ or managers’ opinion as to what might be the circumstances (in terms of age, pension savings etc) of a person for whom the specified solution is suitable.</content></level></subsection><subsection eId="section-52-3"><num>(3)</num><content>Regulations may make provision about how a pension benefit solution is to be presented to a member when the member applies to receive benefits.</content></subsection><subsection eId="section-52-4"><num>(4)</num><intro>The trustees or managers of a relevant scheme must ensure that each eligible member of the scheme is given at prescribed times or intervals—</intro><level class="para1" eId="section-52-4-a"><num>(a)</num><intro>information about basic features of the member’s pension, including that it has—</intro><level class="para2" eId="section-52-4-a-i"><num>(i)</num><content>an accumulation phase, and</content></level><level class="para2" eId="section-52-4-a-ii"><num>(ii)</num><content>a decumulation phase;</content></level></level><level class="para1" eId="section-52-4-b"><num>(b)</num><content>general information about the availability to the member of a default pension benefit solution or qualifying pension benefit solution and an explanation that such a solution is designed to provide a regular income during retirement.</content></level></subsection><subsection eId="section-52-5"><num>(5)</num><intro>Regulations may require the trustees or managers of a relevant scheme to communicate to each eligible member at prescribed times or intervals—</intro><level class="para1" eId="section-52-5-a"><num>(a)</num><content>information about the pension benefit solutions available to the eligible members;</content></level><level class="para1" eId="section-52-5-b"><num>(b)</num><content>general information about other options that may be available to the member for receiving benefits in respect of their contributions;</content></level><level class="para1" eId="section-52-5-c"><num>(c)</num><content>information describing a particular pension benefit solution that the trustees or managers consider to be suitable for the eligible member in question;</content></level><level class="para1" eId="section-52-5-d"><num>(d)</num><content>where information within <ref href="#section-52-5-c">paragraph (c)</ref> is included in a communication, the trustees’ or managers’ opinion as to what might be the circumstances (in terms of age, pension savings etc) of a person for whom the pension benefit solution is suitable;</content></level><level class="para1" eId="section-52-5-e"><num>(e)</num><content>any general information prescribed for the purpose of assisting eligible members in deciding how to receive their pension benefits.</content></level></subsection><subsection eId="section-52-6"><num>(6)</num><content>Communications made under or by virtue of any of subsections <ref href="#section-52-1">(1)</ref> to <ref href="#section-52-5">(5)</ref> must be in clear and plain language.</content></subsection><subsection eId="section-52-7"><num>(7)</num><intro>The trustees or managers of a relevant scheme may request from eligible members of the scheme any information the trustees or managers consider reasonably necessary for the purpose of—</intro><level class="para1" eId="section-52-7-a"><num>(a)</num><content>designing or reviewing, or in the case of transferable members identifying, pension benefit solutions;</content></level><level class="para1" eId="section-52-7-b"><num>(b)</num><content>determining what pension benefit solution may be appropriate for the member, including what rate of decumulation may be appropriate,</content></level><wrapUp>which may for example include information about the member’s financial circumstances or plans for retirement.</wrapUp></subsection><subsection eId="section-52-8"><num>(8)</num><content>Regulations may require the trustees or managers of relevant schemes to request from eligible members any information the trustees or managers consider appropriate for the purposes specified in <ref href="#section-52-7">subsection (7)</ref>.</content></subsection><subsection eId="section-52-9"><num>(9)</num><content>In exercising their functions under subsection <ref href="#section-52-7">(7)</ref> trustees and managers must comply with any requirements that may be prescribed.</content></subsection><subsection eId="section-52-10"><num>(10)</num><content>Regulations may make provision about the format of any communications authorised or required to be made under <ref href="#section-52">this section</ref>.</content></subsection><subsection eId="section-52-11"><num>(11)</num><content>Before making regulations under <ref href="#section-52">this section</ref> the Secretary of State must consult any persons the Secretary of State thinks appropriate.</content></subsection><subsection eId="section-52-12"><num>(12)</num><content>Regulations under <ref href="#section-52">this section</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-1"><num>(1)</num><intro>Where only one pension benefit solution is available to the members of a relevant scheme, the trustees or managers must ensure that each eligible member of the scheme is given at a prescribed time a communication which—</intro><level class="para1" eId="section-52-1-a"><num>(a)</num><content>describes the pension benefit solution, and</content></level><level class="para1" eId="section-52-1-b"><num>(b)</num><content>sets out the trustees’ or managers’ opinion as to what might be the circumstances (in terms of age, pension savings etc) of a person for whom the pension benefit solution is suitable.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-2"><num>(2)</num><intro>Where more than one pension benefit solution is available to the eligible members of a relevant scheme, the trustees or managers must ensure that, at a prescribed time, each eligible member of the scheme is given a communication which—</intro><level class="para1" eId="section-52-2-a"><num>(a)</num><content>describes the default pension benefit solution or qualifying pension benefit solution that the trustees or managers consider to be the most appropriate to the member (“the specified solution”), and</content></level><level class="para1" eId="section-52-2-b"><num>(b)</num><content>sets out the trustees’ or managers’ opinion as to what might be the circumstances (in terms of age, pension savings etc) of a person for whom the specified solution is suitable.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-3"><num>(3)</num><content>Regulations may make provision about how a pension benefit solution is to be presented to a member when the member applies to receive benefits.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-4"><num>(4)</num><intro>The trustees or managers of a relevant scheme must ensure that each eligible member of the scheme is given at prescribed times or intervals—</intro><level class="para1" eId="section-52-4-a"><num>(a)</num><intro>information about basic features of the member’s pension, including that it has—</intro><level class="para2" eId="section-52-4-a-i"><num>(i)</num><content>an accumulation phase, and</content></level><level class="para2" eId="section-52-4-a-ii"><num>(ii)</num><content>a decumulation phase;</content></level></level><level class="para1" eId="section-52-4-b"><num>(b)</num><content>general information about the availability to the member of a default pension benefit solution or qualifying pension benefit solution and an explanation that such a solution is designed to provide a regular income during retirement.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-5"><num>(5)</num><intro>Regulations may require the trustees or managers of a relevant scheme to communicate to each eligible member at prescribed times or intervals—</intro><level class="para1" eId="section-52-5-a"><num>(a)</num><content>information about the pension benefit solutions available to the eligible members;</content></level><level class="para1" eId="section-52-5-b"><num>(b)</num><content>general information about other options that may be available to the member for receiving benefits in respect of their contributions;</content></level><level class="para1" eId="section-52-5-c"><num>(c)</num><content>information describing a particular pension benefit solution that the trustees or managers consider to be suitable for the eligible member in question;</content></level><level class="para1" eId="section-52-5-d"><num>(d)</num><content>where information within <ref href="#section-52-5-c">paragraph (c)</ref> is included in a communication, the trustees’ or managers’ opinion as to what might be the circumstances (in terms of age, pension savings etc) of a person for whom the pension benefit solution is suitable;</content></level><level class="para1" eId="section-52-5-e"><num>(e)</num><content>any general information prescribed for the purpose of assisting eligible members in deciding how to receive their pension benefits.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-5-a"><num>(a)</num><content>information about the pension benefit solutions available to the eligible members;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-5-b"><num>(b)</num><content>general information about other options that may be available to the member for receiving benefits in respect of their contributions;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-5-c"><num>(c)</num><content>information describing a particular pension benefit solution that the trustees or managers consider to be suitable for the eligible member in question;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-5-d"><num>(d)</num><content>where information within <ref href="#section-52-5-c">paragraph (c)</ref> is included in a communication, the trustees’ or managers’ opinion as to what might be the circumstances (in terms of age, pension savings etc) of a person for whom the pension benefit solution is suitable;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-5-e"><num>(e)</num><content>any general information prescribed for the purpose of assisting eligible members in deciding how to receive their pension benefits.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-6"><num>(6)</num><content>Communications made under or by virtue of any of subsections <ref href="#section-52-1">(1)</ref> to <ref href="#section-52-5">(5)</ref> must be in clear and plain language.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-7"><num>(7)</num><intro>The trustees or managers of a relevant scheme may request from eligible members of the scheme any information the trustees or managers consider reasonably necessary for the purpose of—</intro><level class="para1" eId="section-52-7-a"><num>(a)</num><content>designing or reviewing, or in the case of transferable members identifying, pension benefit solutions;</content></level><level class="para1" eId="section-52-7-b"><num>(b)</num><content>determining what pension benefit solution may be appropriate for the member, including what rate of decumulation may be appropriate,</content></level><wrapUp>which may for example include information about the member’s financial circumstances or plans for retirement.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-8"><num>(8)</num><content>Regulations may require the trustees or managers of relevant schemes to request from eligible members any information the trustees or managers consider appropriate for the purposes specified in <ref href="#section-52-7">subsection (7)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-9"><num>(9)</num><content>In exercising their functions under subsection <ref href="#section-52-7">(7)</ref> trustees and managers must comply with any requirements that may be prescribed.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-10"><num>(10)</num><content>Regulations may make provision about the format of any communications authorised or required to be made under <ref href="#section-52">this section</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-11"><num>(11)</num><content>Before making regulations under <ref href="#section-52">this section</ref> the Secretary of State must consult any persons the Secretary of State thinks appropriate.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-12"><num>(12)</num><content>Regulations under <ref href="#section-52">this section</ref> are subject to the negative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53"><num>53</num><heading>Information etc in connection with selection of benefit solution</heading><subsection eId="section-53-1"><num>(1)</num><intro>Regulations may require trustees or managers of a relevant scheme to provide or make available to eligible members, at prescribed times or intervals, information expressed in clear and plain language which would or may assist in—</intro><level class="para1" eId="section-53-1-a"><num>(a)</num><content>the selection of a pension benefit solution, or</content></level><level class="para1" eId="section-53-1-b"><num>(b)</num><content>decisions that may need to be made with respect to a pension benefit solution.</content></level></subsection><subsection eId="section-53-2"><num>(2)</num><content>Regulations may require that information provided or made available to a member by virtue of <ref href="#section-53-1">subsection (1)</ref> must, as far as possible, be based on information about the member’s circumstances.</content></subsection><subsection eId="section-53-3"><num>(3)</num><intro>Regulations may require trustees or managers of a relevant scheme to—</intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content>monitor the rate of decumulation under pension benefit solutions used by members, and</content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content>inform the member concerned if the trustees or managers consider that the rate of decumulation should be reviewed.</content></level></subsection><subsection eId="section-53-4"><num>(4)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-1"><num>(1)</num><intro>Regulations may require trustees or managers of a relevant scheme to provide or make available to eligible members, at prescribed times or intervals, information expressed in clear and plain language which would or may assist in—</intro><level class="para1" eId="section-53-1-a"><num>(a)</num><content>the selection of a pension benefit solution, or</content></level><level class="para1" eId="section-53-1-b"><num>(b)</num><content>decisions that may need to be made with respect to a pension benefit solution.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-2"><num>(2)</num><content>Regulations may require that information provided or made available to a member by virtue of <ref href="#section-53-1">subsection (1)</ref> must, as far as possible, be based on information about the member’s circumstances.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-3"><num>(3)</num><intro>Regulations may require trustees or managers of a relevant scheme to—</intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content>monitor the rate of decumulation under pension benefit solutions used by members, and</content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content>inform the member concerned if the trustees or managers consider that the rate of decumulation should be reviewed.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-4"><num>(4)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54"><num>54</num><heading>Pension benefits strategy</heading><subsection eId="section-54-1"><num>(1)</num><intro>The trustees or managers of a relevant scheme must determine, and from time to time review and if necessary revise, a strategy (a “pension benefits strategy”) for ensuring that the trustees or managers—</intro><level class="para1" eId="section-54-1-a"><num>(a)</num><content>identify and carry out the steps they need to take for the purpose of understanding the requirements of eligible members of the scheme with regard to pension benefit solutions;</content></level><level class="para1" eId="section-54-1-b"><num>(b)</num><content>design, or in the case of transferable members identify, pension benefit solutions that take account of those needs;</content></level><level class="para1" eId="section-54-1-c"><num>(c)</num><content>communicate effectively with eligible members of the scheme with regard to pension benefit solutions and comply with any regulations under section <ref href="#section-53">53</ref>.</content></level></subsection><subsection eId="section-54-2"><num>(2)</num><intro>The trustees or managers must publish the strategy and ensure that a copy of it is provided on request to—</intro><level class="para1" eId="section-54-2-a"><num>(a)</num><content>the Pensions Regulator;</content></level><level class="para1" eId="section-54-2-b"><num>(b)</num><content>any member of the scheme.</content></level></subsection><subsection eId="section-54-3"><num>(3)</num><intro>Regulations may—</intro><level class="para1" eId="section-54-3-a"><num>(a)</num><content>specify any objectives, principles or matters the trustees or managers must take into account in determining or revising a strategy;</content></level><level class="para1" eId="section-54-3-b"><num>(b)</num><content>make provision about the level of detail required in a pensions benefit strategy;</content></level><level class="para1" eId="section-54-3-c"><num>(c)</num><intro>authorise the Secretary of State to—</intro><level class="para2" eId="section-54-3-c-i"><num>(i)</num><content>determine the format in which a benefits strategy is to be set out, or</content></level><level class="para2" eId="section-54-3-c-ii"><num>(ii)</num><content>delegate that function to the Pensions Regulator;</content></level></level><level class="para1" eId="section-54-3-d"><num>(d)</num><content>make provision as to the period within which a pension benefits strategy must be determined;</content></level><level class="para1" eId="section-54-3-e"><num>(e)</num><content>specify the intervals at which the strategy must be reviewed;</content></level><level class="para1" eId="section-54-3-f"><num>(f)</num><intro>require the trustees or managers of relevant schemes to—</intro><level class="para2" eId="section-54-3-f-i"><num>(i)</num><content>to take account, in determining or revising a strategy, any guidance issued by the Pensions Regulator;</content></level><level class="para2" eId="section-54-3-f-ii"><num>(ii)</num><content>provide in the strategy evidence of how they have taken account of any matters prescribed by virtue of <ref href="#section-54-3">subsection (3)</ref><ref href="#section-54-3-a">(a)</ref>.</content></level></level></subsection><subsection eId="section-54-4"><num>(4)</num><content>Regulations may require the trustees or managers of a relevant scheme to publish, alongside a pension benefits strategy (or revised pension benefits strategy), prescribed information or evidence as to whether and how they have complied with the requirements imposed by virtue of this Chapter.</content></subsection><subsection eId="section-54-5"><num>(5)</num><intro>Regulations under this section—</intro><level class="para1" eId="section-54-5-a"><num>(a)</num><content>are subject to the affirmative procedure if they are under <ref href="#section-54-3">subsection (3)</ref><ref href="#section-54-3-a">(a)</ref>;</content></level><level class="para1" eId="section-54-5-b"><num>(b)</num><content>otherwise are subject to the negative procedure.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-1"><num>(1)</num><intro>The trustees or managers of a relevant scheme must determine, and from time to time review and if necessary revise, a strategy (a “pension benefits strategy”) for ensuring that the trustees or managers—</intro><level class="para1" eId="section-54-1-a"><num>(a)</num><content>identify and carry out the steps they need to take for the purpose of understanding the requirements of eligible members of the scheme with regard to pension benefit solutions;</content></level><level class="para1" eId="section-54-1-b"><num>(b)</num><content>design, or in the case of transferable members identify, pension benefit solutions that take account of those needs;</content></level><level class="para1" eId="section-54-1-c"><num>(c)</num><content>communicate effectively with eligible members of the scheme with regard to pension benefit solutions and comply with any regulations under section <ref href="#section-53">53</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-2"><num>(2)</num><intro>The trustees or managers must publish the strategy and ensure that a copy of it is provided on request to—</intro><level class="para1" eId="section-54-2-a"><num>(a)</num><content>the Pensions Regulator;</content></level><level class="para1" eId="section-54-2-b"><num>(b)</num><content>any member of the scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-3"><num>(3)</num><intro>Regulations may—</intro><level class="para1" eId="section-54-3-a"><num>(a)</num><content>specify any objectives, principles or matters the trustees or managers must take into account in determining or revising a strategy;</content></level><level class="para1" eId="section-54-3-b"><num>(b)</num><content>make provision about the level of detail required in a pensions benefit strategy;</content></level><level class="para1" eId="section-54-3-c"><num>(c)</num><intro>authorise the Secretary of State to—</intro><level class="para2" eId="section-54-3-c-i"><num>(i)</num><content>determine the format in which a benefits strategy is to be set out, or</content></level><level class="para2" eId="section-54-3-c-ii"><num>(ii)</num><content>delegate that function to the Pensions Regulator;</content></level></level><level class="para1" eId="section-54-3-d"><num>(d)</num><content>make provision as to the period within which a pension benefits strategy must be determined;</content></level><level class="para1" eId="section-54-3-e"><num>(e)</num><content>specify the intervals at which the strategy must be reviewed;</content></level><level class="para1" eId="section-54-3-f"><num>(f)</num><intro>require the trustees or managers of relevant schemes to—</intro><level class="para2" eId="section-54-3-f-i"><num>(i)</num><content>to take account, in determining or revising a strategy, any guidance issued by the Pensions Regulator;</content></level><level class="para2" eId="section-54-3-f-ii"><num>(ii)</num><content>provide in the strategy evidence of how they have taken account of any matters prescribed by virtue of <ref href="#section-54-3">subsection (3)</ref><ref href="#section-54-3-a">(a)</ref>.</content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-3-a"><num>(a)</num><content>specify any objectives, principles or matters the trustees or managers must take into account in determining or revising a strategy;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-3-b"><num>(b)</num><content>make provision about the level of detail required in a pensions benefit strategy;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-3-c"><num>(c)</num><intro>authorise the Secretary of State to—</intro><level class="para2" eId="section-54-3-c-i"><num>(i)</num><content>determine the format in which a benefits strategy is to be set out, or</content></level><level class="para2" eId="section-54-3-c-ii"><num>(ii)</num><content>delegate that function to the Pensions Regulator;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-3-d"><num>(d)</num><content>make provision as to the period within which a pension benefits strategy must be determined;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-3-e"><num>(e)</num><content>specify the intervals at which the strategy must be reviewed;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-3-f"><num>(f)</num><intro>require the trustees or managers of relevant schemes to—</intro><level class="para2" eId="section-54-3-f-i"><num>(i)</num><content>to take account, in determining or revising a strategy, any guidance issued by the Pensions Regulator;</content></level><level class="para2" eId="section-54-3-f-ii"><num>(ii)</num><content>provide in the strategy evidence of how they have taken account of any matters prescribed by virtue of <ref href="#section-54-3">subsection (3)</ref><ref href="#section-54-3-a">(a)</ref>.</content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-4"><num>(4)</num><content>Regulations may require the trustees or managers of a relevant scheme to publish, alongside a pension benefits strategy (or revised pension benefits strategy), prescribed information or evidence as to whether and how they have complied with the requirements imposed by virtue of this Chapter.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-5"><num>(5)</num><intro>Regulations under this section—</intro><level class="para1" eId="section-54-5-a"><num>(a)</num><content>are subject to the affirmative procedure if they are under <ref href="#section-54-3">subsection (3)</ref><ref href="#section-54-3-a">(a)</ref>;</content></level><level class="para1" eId="section-54-5-b"><num>(b)</num><content>otherwise are subject to the negative procedure.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-1"><num>(1)</num><content>Regulations may make provision with a view to ensuring the compliance of any person with any provision of or under this Chapter.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-2"><num>(2)</num><intro>The regulations may in particular—</intro><level class="para1" eId="section-55-2-a"><num>(a)</num><content>provide for the Pensions Regulator to issue a notice (a “<term refersTo="#term-compliance-notice" eId="term-compliance-notice">compliance notice</term>”) to a person with a view to ensuring the person's compliance with a provision of or under this Chapter;</content></level><level class="para1" eId="section-55-2-b"><num>(b)</num><content>provide for the Pensions Regulator to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a provision of or under this Chapter;</content></level><level class="para1" eId="section-55-2-c"><num>(c)</num><intro>provide for the Pensions Regulator to issue a notice (a “penalty notice”) imposing a penalty on a person where the person—</intro><level class="para2" eId="section-55-2-c-i"><num>(i)</num><content>has failed to comply with a compliance notice or third party compliance notice, or</content></level><level class="para2" eId="section-55-2-c-ii"><num>(ii)</num><content>has contravened a provision of or under this Chapter;</content></level></level><level class="para1" eId="section-55-2-d"><num>(d)</num><content>provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty;</content></level><level class="para1" eId="section-55-2-e"><num>(e)</num><content>confer other functions on the Regulator.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-2-a"><num>(a)</num><content>provide for the Pensions Regulator to issue a notice (a “<term refersTo="#term-compliance-notice" eId="term-compliance-notice">compliance notice</term>”) to a person with a view to ensuring the person's compliance with a provision of or under this Chapter;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-2-b"><num>(b)</num><content>provide for the Pensions Regulator to issue a notice (a “third party compliance notice”) to a person with a view to ensuring another person's compliance with a provision of or under this Chapter;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-2-c"><num>(c)</num><intro>provide for the Pensions Regulator to issue a notice (a “penalty notice”) imposing a penalty on a person where the person—</intro><level class="para2" eId="section-55-2-c-i"><num>(i)</num><content>has failed to comply with a compliance notice or third party compliance notice, or</content></level><level class="para2" eId="section-55-2-c-ii"><num>(ii)</num><content>has contravened a provision of or under this Chapter;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-2-d"><num>(d)</num><content>provide for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of the issue of a penalty notice or the amount of a penalty;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-2-e"><num>(e)</num><content>confer other functions on the Regulator.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-3"><num>(3)</num><content>The regulations may make provision for determining the amount, or the maximum amount, of a penalty in respect of a failure or contravention.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-4"><num>(4)</num><intro>But the amount of a penalty imposed under the regulations in respect of a failure or contravention must not exceed—</intro><level class="para1" eId="section-55-4-a"><num>(a)</num><content>£10,000, in the case of an individual, and</content></level><level class="para1" eId="section-55-4-b"><num>(b)</num><content>£100,000, in any other case.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-5"><num>(5)</num><content>Any penalty payable under the regulations is recoverable by the Regulator.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-6"><num>(6)</num><content>In England and Wales, any such penalty is, if the county court so orders, recoverable under section 85 of the County Courts Act 1984 or otherwise as if it were payable under an order of that court.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-7"><num>(7)</num><content>In Scotland, a penalty notice is enforceable as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-8"><num>(8)</num><content>The Regulator must pay into the Consolidated Fund any penalty recovered under this section.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-9"><num>(9)</num><content>Section 7 of the Pensions Act 1995 (appointment of trustees) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-11"><num>(11)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56"><num>56</num><heading>Crown application</heading><subsection eId="section-56-1"><num>(1)</num><content>This Chapter applies to a pension scheme managed by or on behalf of the Crown as it applies to other pension schemes.</content></subsection><subsection eId="section-56-2"><num>(2)</num><content>Accordingly, references in this Chapter to a person in their capacity as a trustee or manager of a pension scheme include the Crown, or a person acting on behalf of the Crown, in that capacity.</content></subsection><subsection eId="section-56-3"><num>(3)</num><content>This Chapter applies to persons employed by or under the Crown as it applies to persons employed by a private person.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57"><num>57</num><heading>Interpretation of Chapter</heading><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-default-pension-benefit-solution" eId="term-default-pension-benefit-solution">default pension benefit solution</term>” has the meaning given by <ref href="#section-50">section 50</ref><ref href="#section-50-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-eligible-member" eId="term-eligible-member">eligible member</term>” has the meaning given by <ref href="#section-50">section 50</ref><ref href="#section-50-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 181 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-occupational-pension-scheme" eId="term-occupational-pension-scheme">occupational pension scheme</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-benefit-solution" eId="term-pension-benefit-solution">pension benefit solution</term>” has the meaning given by <ref href="#section-50">section 50</ref><ref href="#section-50-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme" eId="term-pension-scheme">pension scheme</term>” has the meaning given by section 1(5) of the Pension Schemes Act 1993;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-personal-pension-scheme" eId="term-personal-pension-scheme">personal pension scheme</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 1(1) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-prescribed" eId="term-prescribed">prescribed</term>” means prescribed by regulations;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-principal-scheme" eId="term-principal-scheme">principal scheme</term>” is to be interpreted in accordance with <ref href="#section-51">section 51</ref><ref href="#section-51-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-qualifying-pension-benefit-solution" eId="term-qualifying-pension-benefit-solution">qualifying pension benefit solution</term>” has the meaning given by <ref href="#section-51">section 51</ref><ref href="#section-51-9">(9)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-registered-pension-scheme" eId="term-registered-pension-scheme">registered pension scheme</term>” has the meaning given in Part 4 of the Finance Act 2004;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-regulations" eId="term-regulations">regulations</term>” means regulations made by the Secretary of State under this Chapter;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-scheme" eId="term-relevant-scheme">relevant scheme</term>” has the meaning given by <ref href="#section-50">section 50</ref><ref href="#section-50-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transferable-member" eId="term-transferable-member">transferable member</term>” is to be interpreted in accordance with <ref href="#section-51">section 51</ref><ref href="#section-51-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-trustees-or-managers" eId="term-trustees-or-managers">trustees or managers</term>”, in relation to a pension scheme, means—</intro><level class="para1"><num>(a)</num><content>where the scheme is established under a trust, the trustees of the scheme;</content></level><level class="para1"><num>(b)</num><content>in any other case, the managers of the scheme.</content></level></hcontainer></section>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="part-3-chapter-1"><num>Chapter 1</num><heading>Introductory</heading><section eId="section-59"><num>59</num><heading>Overview</heading><subsection eId="section-59-1"><num>(1)</num><intro>This Part—</intro><level class="para1" eId="section-59-1-a"><num>(a)</num><content>contains a regulatory framework for superfunds, and</content></level><level class="para1" eId="section-59-1-b"><num>(b)</num><content>prohibits superfund transfers except where made in accordance with that framework.</content></level></subsection><subsection eId="section-59-2"><num>(2)</num><content><ref href="#part-3-chapter-1">This Chapter</ref> defines key concepts such as “superfund scheme”, “superfund”, “superfund transfer” and “capital buffer”.</content></subsection><subsection eId="section-59-3"><num>(3)</num><content><ref href="#part-3-chapter-2">Chapter 2</ref> allows for authorisation of superfunds by the Regulator, which is an initial step that must be taken before a scheme is eligible to receive superfund transfers.</content></subsection><subsection eId="section-59-4"><num>(4)</num><content><ref href="#part-3-chapter-3">Chapter 3</ref> requires the Regulator’s approval for individual superfund transfers and sets out the criteria for granting approval.</content></subsection><subsection eId="section-59-5"><num>(5)</num><content><ref href="#part-3-chapter-4">Chapter 4</ref> sets out requirements that superfunds must meet on an ongoing basis once they have received a superfund transfer.</content></subsection><subsection eId="section-59-6"><num>(6)</num><content><ref href="#part-3-chapter-5">Chapter 5</ref> contains special procedures which apply if an “<term refersTo="#term-event-of-concern" eId="term-event-of-concern">event of concern</term>” (such as a superfund falling into financial difficulties or breaching regulatory requirements) takes place.</content></subsection><subsection eId="section-59-7"><num>(7)</num><content><ref href="#part-3-chapter-6">Chapter 6</ref> makes provision about interpretation of this Part and confers power to extend this Part to other similar structures.</content></subsection></section><section eId="section-60"><num>60</num><heading>Key concepts</heading><subsection eId="section-60-1"><num>(1)</num><intro>“<term refersTo="#term-superfund-scheme" eId="term-superfund-scheme">Superfund scheme</term>” means a trust-based occupational pension scheme—</intro><level class="para1" eId="section-60-1-a"><num>(a)</num><content>that has received a transfer of defined-benefit liabilities from another trust-based occupational pension scheme,</content></level><level class="para1" eId="section-60-1-b"><num>(b)</num><content>that is supported by a capital buffer, and</content></level><level class="para1" eId="section-60-1-c"><num>(c)</num><content>that is not supported by a substantive employer covenant,</content></level><wrapUp>or a trust-based occupational pension scheme that is managed or administered with a view to its becoming such a scheme.</wrapUp></subsection><subsection eId="section-60-2"><num>(2)</num><intro>A trust-based occupational pension scheme is “supported by a capital buffer” if a contract or other legally binding arrangement has been entered into under which assets that are not assets of the scheme—</intro><level class="para1" eId="section-60-2-a"><num>(a)</num><content>must be held by a person in connection with the scheme, and</content></level><level class="para1" eId="section-60-2-b"><num>(b)</num><content>must, in specified circumstances, be made available to the trustees for the purpose of satisfying liabilities of the scheme.</content></level></subsection><subsection eId="section-60-3"><num>(3)</num><content>“<term refersTo="#term-capital-buffer" eId="term-capital-buffer">Capital buffer</term>”, in relation to a trust-based occupational pension scheme, means assets that are the subject of a contract or other arrangement of the kind described in subsection <ref href="#section-60-2">(2)</ref> in relation to the scheme.</content></subsection><subsection eId="section-60-4"><num>(4)</num><intro>A trust-based occupational pension scheme is “not supported by a substantive employer covenant” if, based on the employer’s financial position, there is no realistic prospect of the employer being able to provide the trustees with material financial support for the purpose of satisfying liabilities of the scheme.For that purpose the employer’s “<term refersTo="#term-financial-position" eId="term-financial-position">financial position</term>” means its financial position ignoring—</intro><level class="para1" eId="section-60-4-a"><num>(a)</num><content>any capital buffer, and</content></level><level class="para1" eId="section-60-4-b"><num>(b)</num><content>any financial support which it may obtain from another person but to which it is not entitled.</content></level></subsection><subsection eId="section-60-5"><num>(5)</num><intro>“<term refersTo="#term-superfund" eId="term-superfund">Superfund</term>”, in relation to a superfund scheme, means the scheme together with—</intro><level class="para1" eId="section-60-5-a"><num>(a)</num><content>any capital buffer, and</content></level><level class="para1" eId="section-60-5-b"><num>(b)</num><content>any arrangements in place for the management and administration of the scheme or any capital buffer.</content></level></subsection><subsection eId="section-60-6"><num>(6)</num><content>“<term refersTo="#term-superfund-transfer" eId="term-superfund-transfer">Superfund transfer</term>” means a transfer of defined-benefit liabilities from a trust-based occupational pension scheme (whether or not itself a superfund scheme) to a superfund scheme.</content></subsection></section><section eId="section-61"><num>61</num><heading>Schemes divided into sections</heading><subsection eId="section-61-1"><num>(1)</num><content>This section applies for the purposes of this Part (unless the context otherwise requires).</content></subsection><subsection eId="section-61-2"><num>(2)</num><intro>Where a trust-based occupational pension scheme includes two or more sections—</intro><level class="para1" eId="section-61-2-a"><num>(a)</num><content>each section is treated as a separate scheme,</content></level><level class="para1" eId="section-61-2-b"><num>(b)</num><content>the members of the scheme that are allocated to each section are treated as the members of that separate scheme,</content></level><level class="para1" eId="section-61-2-c"><num>(c)</num><content>the assets and liabilities of the scheme that are allocated to each section are treated as the assets and liabilities of that separate scheme, and</content></level><level class="para1" eId="section-61-2-d"><num>(d)</num><content>in the case of a superfund scheme, the assets of the capital buffer that are allocated to each section are treated as the capital buffer in relation to that separate scheme.</content></level></subsection><subsection eId="section-61-3"><num>(3)</num><intro>Accordingly, in the case of a superfund scheme, any of the following is treated as a superfund transfer—</intro><level class="para1" eId="section-61-3-a"><num>(a)</num><content>the reallocation of members between sections;</content></level><level class="para1" eId="section-61-3-b"><num>(b)</num><content>the combination of two or more sections;</content></level><level class="para1" eId="section-61-3-c"><num>(c)</num><content>the division of one section into two or more.</content></level></subsection><subsection eId="section-61-4"><num>(4)</num><intro>A “section” of a trust-based occupational pension scheme means arrangements—</intro><level class="para1" eId="section-61-4-a"><num>(a)</num><content>which have effect under the rules of the scheme (including, in the case of a superfund scheme, the capital buffer arrangement), and</content></level><level class="para1" eId="section-61-4-b"><num>(b)</num><content>under which particular assets of the scheme (and, in the case of a superfund scheme, the capital buffer) may only be used to satisfy the scheme’s liabilities to or in respect of members of the scheme of a particular description,</content></level><wrapUp>and those particular assets, liabilities and members are “allocated” to the section in question.</wrapUp></subsection></section></chapter>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59"><num>59</num><heading>Overview</heading><subsection eId="section-59-1"><num>(1)</num><intro>This Part—</intro><level class="para1" eId="section-59-1-a"><num>(a)</num><content>contains a regulatory framework for superfunds, and</content></level><level class="para1" eId="section-59-1-b"><num>(b)</num><content>prohibits superfund transfers except where made in accordance with that framework.</content></level></subsection><subsection eId="section-59-2"><num>(2)</num><content><ref href="#part-3-chapter-1">This Chapter</ref> defines key concepts such as “superfund scheme”, “superfund”, “superfund transfer” and “capital buffer”.</content></subsection><subsection eId="section-59-3"><num>(3)</num><content><ref href="#part-3-chapter-2">Chapter 2</ref> allows for authorisation of superfunds by the Regulator, which is an initial step that must be taken before a scheme is eligible to receive superfund transfers.</content></subsection><subsection eId="section-59-4"><num>(4)</num><content><ref href="#part-3-chapter-3">Chapter 3</ref> requires the Regulator’s approval for individual superfund transfers and sets out the criteria for granting approval.</content></subsection><subsection eId="section-59-5"><num>(5)</num><content><ref href="#part-3-chapter-4">Chapter 4</ref> sets out requirements that superfunds must meet on an ongoing basis once they have received a superfund transfer.</content></subsection><subsection eId="section-59-6"><num>(6)</num><content><ref href="#part-3-chapter-5">Chapter 5</ref> contains special procedures which apply if an “<term refersTo="#term-event-of-concern" eId="term-event-of-concern">event of concern</term>” (such as a superfund falling into financial difficulties or breaching regulatory requirements) takes place.</content></subsection><subsection eId="section-59-7"><num>(7)</num><content><ref href="#part-3-chapter-6">Chapter 6</ref> makes provision about interpretation of this Part and confers power to extend this Part to other similar structures.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-1"><num>(1)</num><intro>This Part—</intro><level class="para1" eId="section-59-1-a"><num>(a)</num><content>contains a regulatory framework for superfunds, and</content></level><level class="para1" eId="section-59-1-b"><num>(b)</num><content>prohibits superfund transfers except where made in accordance with that framework.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-2"><num>(2)</num><content><ref href="#part-3-chapter-1">This Chapter</ref> defines key concepts such as “superfund scheme”, “superfund”, “superfund transfer” and “capital buffer”.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-3"><num>(3)</num><content><ref href="#part-3-chapter-2">Chapter 2</ref> allows for authorisation of superfunds by the Regulator, which is an initial step that must be taken before a scheme is eligible to receive superfund transfers.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-4"><num>(4)</num><content><ref href="#part-3-chapter-3">Chapter 3</ref> requires the Regulator’s approval for individual superfund transfers and sets out the criteria for granting approval.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-5"><num>(5)</num><content><ref href="#part-3-chapter-4">Chapter 4</ref> sets out requirements that superfunds must meet on an ongoing basis once they have received a superfund transfer.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-6"><num>(6)</num><content><ref href="#part-3-chapter-5">Chapter 5</ref> contains special procedures which apply if an “<term refersTo="#term-event-of-concern" eId="term-event-of-concern">event of concern</term>” (such as a superfund falling into financial difficulties or breaching regulatory requirements) takes place.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-7"><num>(7)</num><content><ref href="#part-3-chapter-6">Chapter 6</ref> makes provision about interpretation of this Part and confers power to extend this Part to other similar structures.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60"><num>60</num><heading>Key concepts</heading><subsection eId="section-60-1"><num>(1)</num><intro>“<term refersTo="#term-superfund-scheme" eId="term-superfund-scheme">Superfund scheme</term>” means a trust-based occupational pension scheme—</intro><level class="para1" eId="section-60-1-a"><num>(a)</num><content>that has received a transfer of defined-benefit liabilities from another trust-based occupational pension scheme,</content></level><level class="para1" eId="section-60-1-b"><num>(b)</num><content>that is supported by a capital buffer, and</content></level><level class="para1" eId="section-60-1-c"><num>(c)</num><content>that is not supported by a substantive employer covenant,</content></level><wrapUp>or a trust-based occupational pension scheme that is managed or administered with a view to its becoming such a scheme.</wrapUp></subsection><subsection eId="section-60-2"><num>(2)</num><intro>A trust-based occupational pension scheme is “supported by a capital buffer” if a contract or other legally binding arrangement has been entered into under which assets that are not assets of the scheme—</intro><level class="para1" eId="section-60-2-a"><num>(a)</num><content>must be held by a person in connection with the scheme, and</content></level><level class="para1" eId="section-60-2-b"><num>(b)</num><content>must, in specified circumstances, be made available to the trustees for the purpose of satisfying liabilities of the scheme.</content></level></subsection><subsection eId="section-60-3"><num>(3)</num><content>“<term refersTo="#term-capital-buffer" eId="term-capital-buffer">Capital buffer</term>”, in relation to a trust-based occupational pension scheme, means assets that are the subject of a contract or other arrangement of the kind described in subsection <ref href="#section-60-2">(2)</ref> in relation to the scheme.</content></subsection><subsection eId="section-60-4"><num>(4)</num><intro>A trust-based occupational pension scheme is “not supported by a substantive employer covenant” if, based on the employer’s financial position, there is no realistic prospect of the employer being able to provide the trustees with material financial support for the purpose of satisfying liabilities of the scheme.For that purpose the employer’s “<term refersTo="#term-financial-position" eId="term-financial-position">financial position</term>” means its financial position ignoring—</intro><level class="para1" eId="section-60-4-a"><num>(a)</num><content>any capital buffer, and</content></level><level class="para1" eId="section-60-4-b"><num>(b)</num><content>any financial support which it may obtain from another person but to which it is not entitled.</content></level></subsection><subsection eId="section-60-5"><num>(5)</num><intro>“<term refersTo="#term-superfund" eId="term-superfund">Superfund</term>”, in relation to a superfund scheme, means the scheme together with—</intro><level class="para1" eId="section-60-5-a"><num>(a)</num><content>any capital buffer, and</content></level><level class="para1" eId="section-60-5-b"><num>(b)</num><content>any arrangements in place for the management and administration of the scheme or any capital buffer.</content></level></subsection><subsection eId="section-60-6"><num>(6)</num><content>“<term refersTo="#term-superfund-transfer" eId="term-superfund-transfer">Superfund transfer</term>” means a transfer of defined-benefit liabilities from a trust-based occupational pension scheme (whether or not itself a superfund scheme) to a superfund scheme.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-1"><num>(1)</num><intro>“<term refersTo="#term-superfund-scheme" eId="term-superfund-scheme">Superfund scheme</term>” means a trust-based occupational pension scheme—</intro><level class="para1" eId="section-60-1-a"><num>(a)</num><content>that has received a transfer of defined-benefit liabilities from another trust-based occupational pension scheme,</content></level><level class="para1" eId="section-60-1-b"><num>(b)</num><content>that is supported by a capital buffer, and</content></level><level class="para1" eId="section-60-1-c"><num>(c)</num><content>that is not supported by a substantive employer covenant,</content></level><wrapUp>or a trust-based occupational pension scheme that is managed or administered with a view to its becoming such a scheme.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-2"><num>(2)</num><intro>A trust-based occupational pension scheme is “supported by a capital buffer” if a contract or other legally binding arrangement has been entered into under which assets that are not assets of the scheme—</intro><level class="para1" eId="section-60-2-a"><num>(a)</num><content>must be held by a person in connection with the scheme, and</content></level><level class="para1" eId="section-60-2-b"><num>(b)</num><content>must, in specified circumstances, be made available to the trustees for the purpose of satisfying liabilities of the scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-3"><num>(3)</num><content>“<term refersTo="#term-capital-buffer" eId="term-capital-buffer">Capital buffer</term>”, in relation to a trust-based occupational pension scheme, means assets that are the subject of a contract or other arrangement of the kind described in subsection <ref href="#section-60-2">(2)</ref> in relation to the scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-4"><num>(4)</num><intro>A trust-based occupational pension scheme is “not supported by a substantive employer covenant” if, based on the employer’s financial position, there is no realistic prospect of the employer being able to provide the trustees with material financial support for the purpose of satisfying liabilities of the scheme.For that purpose the employer’s “<term refersTo="#term-financial-position" eId="term-financial-position">financial position</term>” means its financial position ignoring—</intro><level class="para1" eId="section-60-4-a"><num>(a)</num><content>any capital buffer, and</content></level><level class="para1" eId="section-60-4-b"><num>(b)</num><content>any financial support which it may obtain from another person but to which it is not entitled.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-5"><num>(5)</num><intro>“<term refersTo="#term-superfund" eId="term-superfund">Superfund</term>”, in relation to a superfund scheme, means the scheme together with—</intro><level class="para1" eId="section-60-5-a"><num>(a)</num><content>any capital buffer, and</content></level><level class="para1" eId="section-60-5-b"><num>(b)</num><content>any arrangements in place for the management and administration of the scheme or any capital buffer.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-6"><num>(6)</num><content>“<term refersTo="#term-superfund-transfer" eId="term-superfund-transfer">Superfund transfer</term>” means a transfer of defined-benefit liabilities from a trust-based occupational pension scheme (whether or not itself a superfund scheme) to a superfund scheme.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61"><num>61</num><heading>Schemes divided into sections</heading><subsection eId="section-61-1"><num>(1)</num><content>This section applies for the purposes of this Part (unless the context otherwise requires).</content></subsection><subsection eId="section-61-2"><num>(2)</num><intro>Where a trust-based occupational pension scheme includes two or more sections—</intro><level class="para1" eId="section-61-2-a"><num>(a)</num><content>each section is treated as a separate scheme,</content></level><level class="para1" eId="section-61-2-b"><num>(b)</num><content>the members of the scheme that are allocated to each section are treated as the members of that separate scheme,</content></level><level class="para1" eId="section-61-2-c"><num>(c)</num><content>the assets and liabilities of the scheme that are allocated to each section are treated as the assets and liabilities of that separate scheme, and</content></level><level class="para1" eId="section-61-2-d"><num>(d)</num><content>in the case of a superfund scheme, the assets of the capital buffer that are allocated to each section are treated as the capital buffer in relation to that separate scheme.</content></level></subsection><subsection eId="section-61-3"><num>(3)</num><intro>Accordingly, in the case of a superfund scheme, any of the following is treated as a superfund transfer—</intro><level class="para1" eId="section-61-3-a"><num>(a)</num><content>the reallocation of members between sections;</content></level><level class="para1" eId="section-61-3-b"><num>(b)</num><content>the combination of two or more sections;</content></level><level class="para1" eId="section-61-3-c"><num>(c)</num><content>the division of one section into two or more.</content></level></subsection><subsection eId="section-61-4"><num>(4)</num><intro>A “section” of a trust-based occupational pension scheme means arrangements—</intro><level class="para1" eId="section-61-4-a"><num>(a)</num><content>which have effect under the rules of the scheme (including, in the case of a superfund scheme, the capital buffer arrangement), and</content></level><level class="para1" eId="section-61-4-b"><num>(b)</num><content>under which particular assets of the scheme (and, in the case of a superfund scheme, the capital buffer) may only be used to satisfy the scheme’s liabilities to or in respect of members of the scheme of a particular description,</content></level><wrapUp>and those particular assets, liabilities and members are “allocated” to the section in question.</wrapUp></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-1"><num>(1)</num><content>This section applies for the purposes of this Part (unless the context otherwise requires).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-2"><num>(2)</num><intro>Where a trust-based occupational pension scheme includes two or more sections—</intro><level class="para1" eId="section-61-2-a"><num>(a)</num><content>each section is treated as a separate scheme,</content></level><level class="para1" eId="section-61-2-b"><num>(b)</num><content>the members of the scheme that are allocated to each section are treated as the members of that separate scheme,</content></level><level class="para1" eId="section-61-2-c"><num>(c)</num><content>the assets and liabilities of the scheme that are allocated to each section are treated as the assets and liabilities of that separate scheme, and</content></level><level class="para1" eId="section-61-2-d"><num>(d)</num><content>in the case of a superfund scheme, the assets of the capital buffer that are allocated to each section are treated as the capital buffer in relation to that separate scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-3"><num>(3)</num><intro>Accordingly, in the case of a superfund scheme, any of the following is treated as a superfund transfer—</intro><level class="para1" eId="section-61-3-a"><num>(a)</num><content>the reallocation of members between sections;</content></level><level class="para1" eId="section-61-3-b"><num>(b)</num><content>the combination of two or more sections;</content></level><level class="para1" eId="section-61-3-c"><num>(c)</num><content>the division of one section into two or more.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-4"><num>(4)</num><intro>A “section” of a trust-based occupational pension scheme means arrangements—</intro><level class="para1" eId="section-61-4-a"><num>(a)</num><content>which have effect under the rules of the scheme (including, in the case of a superfund scheme, the capital buffer arrangement), and</content></level><level class="para1" eId="section-61-4-b"><num>(b)</num><content>under which particular assets of the scheme (and, in the case of a superfund scheme, the capital buffer) may only be used to satisfy the scheme’s liabilities to or in respect of members of the scheme of a particular description,</content></level><wrapUp>and those particular assets, liabilities and members are “allocated” to the section in question.</wrapUp></subsection>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="part-3-chapter-2"><num>Chapter 2</num><heading>Authorisation of superfunds</heading><section eId="section-62"><num>62</num><heading>Prohibition of unauthorised superfund activity</heading><subsection eId="section-62-1"><num>(1)</num><intro>Where a pension scheme is not part of an authorised superfund, a person may not—</intro><level class="para1" eId="section-62-1-a"><num>(a)</num><content>promote the scheme (generally or to a particular person) with a view to its receiving a superfund transfer,</content></level><level class="para1" eId="section-62-1-b"><num>(b)</num><content>enter into any arrangements on behalf of the scheme with a view to its receiving a superfund transfer, or</content></level><level class="para1" eId="section-62-1-c"><num>(c)</num><content>cause or permit such promotion to take place or such arrangements to be entered into.</content></level></subsection><subsection eId="section-62-2"><num>(2)</num><intro><ref href="#section-62-1">Subsection (1)</ref> does not apply where the person takes all reasonable steps to ensure—</intro><level class="para1" eId="section-62-2-a"><num>(a)</num><content>in relation to promotion of a scheme, that it is clear from the promotion that the scheme is not part of an authorised superfund;</content></level><level class="para1" eId="section-62-2-b"><num>(b)</num><content>in relation to arrangements entered into, that it is clear to every party to the arrangements, as at the time when the arrangements are entered into, that the scheme is not part of an authorised superfund.</content></level></subsection><subsection eId="section-62-3"><num>(3)</num><content>A person who breaches <ref href="#section-62-1">subsection (1)</ref> commits an offence.</content></subsection><subsection eId="section-62-4"><num>(4)</num><intro>A person who commits an offence under <ref href="#section-62-3">subsection (3)</ref> is liable—</intro><level class="para1" eId="section-62-4-a"><num>(a)</num><content>on summary conviction in England and Wales, to a fine;</content></level><level class="para1" eId="section-62-4-b"><num>(b)</num><content>on summary conviction in Scotland, to a fine not exceeding the statutory maximum;</content></level><level class="para1" eId="section-62-4-c"><num>(c)</num><content>on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both.</content></level></subsection><subsection eId="section-62-5"><num>(5)</num><content><ref eId="c00034" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00035" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (financial penalties) applies to a person who breaches <ref href="#section-62-1">subsection (1)</ref> (but see subsection (10) of that section, which prevents a penalty from being imposed in respect of an act where the person has been convicted of an offence in respect of the same act, or where proceedings for such an offence are ongoing).</content></subsection></section><section eId="section-63"><num>63</num><heading>Authorisation of superfunds</heading><subsection eId="section-63-1"><num>(1)</num><content>The Regulator may authorise a superfund if satisfied, based on the superfund’s organisation, staff, plans, policies and procedures, that it is likely to comply with the requirements of <ref href="#part-3-chapter-4">Chapters 4</ref> and <ref href="#part-3-chapter-5">5</ref> (ongoing requirements for superfunds).</content></subsection><subsection eId="section-63-2"><num>(2)</num><intro>An application for authorisation must be made jointly by—</intro><level class="para1" eId="section-63-2-a"><num>(a)</num><content>the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-63-2-b"><num>(b)</num><content>a body corporate that is incorporated in the United Kingdom and that is involved in the scheme’s management or administration.</content></level></subsection><subsection eId="section-63-3"><num>(3)</num><content>An application for authorisation must be made in the manner and form specified by the Regulator.</content></subsection><subsection eId="section-63-4"><num>(4)</num><intro>The Secretary of State may by regulations make provision about applications for authorisation, including provision—</intro><level class="para1" eId="section-63-4-a"><num>(a)</num><content>about the documents and information that an application must include;</content></level><level class="para1" eId="section-63-4-b"><num>(b)</num><content>requiring a fee to be paid to the Regulator in respect of an application.</content></level></subsection><subsection eId="section-63-5"><num>(5)</num><content>The Regulator must maintain and publish a list of authorised superfunds.</content></subsection><subsection eId="section-63-6"><num>(6)</num><content>Where a superfund has not yet received a superfund transfer, the Regulator may withdraw the superfund’s authorisation if no longer satisfied as described in <ref href="#section-63-1">subsection (1)</ref>.</content></subsection><subsection eId="section-63-7"><num>(7)</num><content>Regulations under <ref href="#section-63-4">subsection (4)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-64"><num>64</num><heading>Timing of decisions about authorisation</heading><subsection eId="section-64-1"><num>(1)</num><content>The Regulator must decide an application under <ref href="#part-3">this Part</ref> before the end of the period of 6 months beginning with the day on which it received the application (“the decision period”).</content></subsection><subsection eId="section-64-2"><num>(2)</num><content>If in a particular case the Regulator considers that the decision period is insufficient to enable it to decide the application, it may on one or more occasions extend that period by notice to the applicants; but it may not extend it beyond the end of the period of 9 months beginning with the day on which it received the application.</content></subsection><subsection eId="section-64-3"><num>(3)</num><content>Where an application received by the Regulator fails to comply with <ref href="#section-63">section 63</ref> or regulations made under it (including where the applicants fail to pay a fee required in respect of the application) the references in <ref href="#section-64-1">subsections (1)</ref> and <ref href="#section-64-2">(2)</ref> to the day on which the Regulator receives the application are to the day on which the failure is remedied.</content></subsection></section></chapter>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62"><num>62</num><heading>Prohibition of unauthorised superfund activity</heading><subsection eId="section-62-1"><num>(1)</num><intro>Where a pension scheme is not part of an authorised superfund, a person may not—</intro><level class="para1" eId="section-62-1-a"><num>(a)</num><content>promote the scheme (generally or to a particular person) with a view to its receiving a superfund transfer,</content></level><level class="para1" eId="section-62-1-b"><num>(b)</num><content>enter into any arrangements on behalf of the scheme with a view to its receiving a superfund transfer, or</content></level><level class="para1" eId="section-62-1-c"><num>(c)</num><content>cause or permit such promotion to take place or such arrangements to be entered into.</content></level></subsection><subsection eId="section-62-2"><num>(2)</num><intro><ref href="#section-62-1">Subsection (1)</ref> does not apply where the person takes all reasonable steps to ensure—</intro><level class="para1" eId="section-62-2-a"><num>(a)</num><content>in relation to promotion of a scheme, that it is clear from the promotion that the scheme is not part of an authorised superfund;</content></level><level class="para1" eId="section-62-2-b"><num>(b)</num><content>in relation to arrangements entered into, that it is clear to every party to the arrangements, as at the time when the arrangements are entered into, that the scheme is not part of an authorised superfund.</content></level></subsection><subsection eId="section-62-3"><num>(3)</num><content>A person who breaches <ref href="#section-62-1">subsection (1)</ref> commits an offence.</content></subsection><subsection eId="section-62-4"><num>(4)</num><intro>A person who commits an offence under <ref href="#section-62-3">subsection (3)</ref> is liable—</intro><level class="para1" eId="section-62-4-a"><num>(a)</num><content>on summary conviction in England and Wales, to a fine;</content></level><level class="para1" eId="section-62-4-b"><num>(b)</num><content>on summary conviction in Scotland, to a fine not exceeding the statutory maximum;</content></level><level class="para1" eId="section-62-4-c"><num>(c)</num><content>on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both.</content></level></subsection><subsection eId="section-62-5"><num>(5)</num><content><ref eId="c00034" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00035" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (financial penalties) applies to a person who breaches <ref href="#section-62-1">subsection (1)</ref> (but see subsection (10) of that section, which prevents a penalty from being imposed in respect of an act where the person has been convicted of an offence in respect of the same act, or where proceedings for such an offence are ongoing).</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-1"><num>(1)</num><intro>Where a pension scheme is not part of an authorised superfund, a person may not—</intro><level class="para1" eId="section-62-1-a"><num>(a)</num><content>promote the scheme (generally or to a particular person) with a view to its receiving a superfund transfer,</content></level><level class="para1" eId="section-62-1-b"><num>(b)</num><content>enter into any arrangements on behalf of the scheme with a view to its receiving a superfund transfer, or</content></level><level class="para1" eId="section-62-1-c"><num>(c)</num><content>cause or permit such promotion to take place or such arrangements to be entered into.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-2"><num>(2)</num><intro><ref href="#section-62-1">Subsection (1)</ref> does not apply where the person takes all reasonable steps to ensure—</intro><level class="para1" eId="section-62-2-a"><num>(a)</num><content>in relation to promotion of a scheme, that it is clear from the promotion that the scheme is not part of an authorised superfund;</content></level><level class="para1" eId="section-62-2-b"><num>(b)</num><content>in relation to arrangements entered into, that it is clear to every party to the arrangements, as at the time when the arrangements are entered into, that the scheme is not part of an authorised superfund.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-3"><num>(3)</num><content>A person who breaches <ref href="#section-62-1">subsection (1)</ref> commits an offence.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-4"><num>(4)</num><intro>A person who commits an offence under <ref href="#section-62-3">subsection (3)</ref> is liable—</intro><level class="para1" eId="section-62-4-a"><num>(a)</num><content>on summary conviction in England and Wales, to a fine;</content></level><level class="para1" eId="section-62-4-b"><num>(b)</num><content>on summary conviction in Scotland, to a fine not exceeding the statutory maximum;</content></level><level class="para1" eId="section-62-4-c"><num>(c)</num><content>on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-5"><num>(5)</num><content><ref eId="c00034" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00035" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (financial penalties) applies to a person who breaches <ref href="#section-62-1">subsection (1)</ref> (but see subsection (10) of that section, which prevents a penalty from being imposed in respect of an act where the person has been convicted of an offence in respect of the same act, or where proceedings for such an offence are ongoing).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63"><num>63</num><heading>Authorisation of superfunds</heading><subsection eId="section-63-1"><num>(1)</num><content>The Regulator may authorise a superfund if satisfied, based on the superfund’s organisation, staff, plans, policies and procedures, that it is likely to comply with the requirements of <ref href="#part-3-chapter-4">Chapters 4</ref> and <ref href="#part-3-chapter-5">5</ref> (ongoing requirements for superfunds).</content></subsection><subsection eId="section-63-2"><num>(2)</num><intro>An application for authorisation must be made jointly by—</intro><level class="para1" eId="section-63-2-a"><num>(a)</num><content>the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-63-2-b"><num>(b)</num><content>a body corporate that is incorporated in the United Kingdom and that is involved in the scheme’s management or administration.</content></level></subsection><subsection eId="section-63-3"><num>(3)</num><content>An application for authorisation must be made in the manner and form specified by the Regulator.</content></subsection><subsection eId="section-63-4"><num>(4)</num><intro>The Secretary of State may by regulations make provision about applications for authorisation, including provision—</intro><level class="para1" eId="section-63-4-a"><num>(a)</num><content>about the documents and information that an application must include;</content></level><level class="para1" eId="section-63-4-b"><num>(b)</num><content>requiring a fee to be paid to the Regulator in respect of an application.</content></level></subsection><subsection eId="section-63-5"><num>(5)</num><content>The Regulator must maintain and publish a list of authorised superfunds.</content></subsection><subsection eId="section-63-6"><num>(6)</num><content>Where a superfund has not yet received a superfund transfer, the Regulator may withdraw the superfund’s authorisation if no longer satisfied as described in <ref href="#section-63-1">subsection (1)</ref>.</content></subsection><subsection eId="section-63-7"><num>(7)</num><content>Regulations under <ref href="#section-63-4">subsection (4)</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-1"><num>(1)</num><content>The Regulator may authorise a superfund if satisfied, based on the superfund’s organisation, staff, plans, policies and procedures, that it is likely to comply with the requirements of <ref href="#part-3-chapter-4">Chapters 4</ref> and <ref href="#part-3-chapter-5">5</ref> (ongoing requirements for superfunds).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-2"><num>(2)</num><intro>An application for authorisation must be made jointly by—</intro><level class="para1" eId="section-63-2-a"><num>(a)</num><content>the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-63-2-b"><num>(b)</num><content>a body corporate that is incorporated in the United Kingdom and that is involved in the scheme’s management or administration.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-3"><num>(3)</num><content>An application for authorisation must be made in the manner and form specified by the Regulator.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-4"><num>(4)</num><intro>The Secretary of State may by regulations make provision about applications for authorisation, including provision—</intro><level class="para1" eId="section-63-4-a"><num>(a)</num><content>about the documents and information that an application must include;</content></level><level class="para1" eId="section-63-4-b"><num>(b)</num><content>requiring a fee to be paid to the Regulator in respect of an application.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-5"><num>(5)</num><content>The Regulator must maintain and publish a list of authorised superfunds.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-6"><num>(6)</num><content>Where a superfund has not yet received a superfund transfer, the Regulator may withdraw the superfund’s authorisation if no longer satisfied as described in <ref href="#section-63-1">subsection (1)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-7"><num>(7)</num><content>Regulations under <ref href="#section-63-4">subsection (4)</ref> are subject to the negative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64"><num>64</num><heading>Timing of decisions about authorisation</heading><subsection eId="section-64-1"><num>(1)</num><content>The Regulator must decide an application under <ref href="#part-3">this Part</ref> before the end of the period of 6 months beginning with the day on which it received the application (“the decision period”).</content></subsection><subsection eId="section-64-2"><num>(2)</num><content>If in a particular case the Regulator considers that the decision period is insufficient to enable it to decide the application, it may on one or more occasions extend that period by notice to the applicants; but it may not extend it beyond the end of the period of 9 months beginning with the day on which it received the application.</content></subsection><subsection eId="section-64-3"><num>(3)</num><content>Where an application received by the Regulator fails to comply with <ref href="#section-63">section 63</ref> or regulations made under it (including where the applicants fail to pay a fee required in respect of the application) the references in <ref href="#section-64-1">subsections (1)</ref> and <ref href="#section-64-2">(2)</ref> to the day on which the Regulator receives the application are to the day on which the failure is remedied.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65"><num>65</num><heading>Prohibition of unapproved superfund transfers</heading><subsection eId="section-65-1"><num>(1)</num><content>A person may not make or receive a superfund transfer, or cause or permit a superfund transfer to be made or received, unless the superfund transfer is approved under <ref href="#part-3-chapter-3">this Chapter</ref>.</content></subsection><subsection eId="section-65-2"><num>(2)</num><content>A person who breaches <ref href="#section-65-1">subsection (1)</ref> commits an offence.</content></subsection><subsection eId="section-65-3"><num>(3)</num><intro>A person who commits an offence under <ref href="#section-65-2">subsection (2)</ref> is liable—</intro><level class="para1" eId="section-65-3-a"><num>(a)</num><content>on summary conviction in England and Wales, to a fine;</content></level><level class="para1" eId="section-65-3-b"><num>(b)</num><content>on summary conviction in Scotland, to a fine not exceeding the statutory maximum;</content></level><level class="para1" eId="section-65-3-c"><num>(c)</num><content>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine or both.</content></level></subsection><subsection eId="section-65-4"><num>(4)</num><content><ref eId="c00036" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00037" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (financial penalties) applies to a person who breaches <ref href="#section-65-1">subsection (1)</ref> (but see subsection (10) of that section, which prevents a penalty from being imposed in respect of an act where the person has been convicted of an offence in respect of the same act, or where proceedings for such an offence are ongoing).</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-1"><num>(1)</num><content>A person may not make or receive a superfund transfer, or cause or permit a superfund transfer to be made or received, unless the superfund transfer is approved under <ref href="#part-3-chapter-3">this Chapter</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-2"><num>(2)</num><content>A person who breaches <ref href="#section-65-1">subsection (1)</ref> commits an offence.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-3"><num>(3)</num><intro>A person who commits an offence under <ref href="#section-65-2">subsection (2)</ref> is liable—</intro><level class="para1" eId="section-65-3-a"><num>(a)</num><content>on summary conviction in England and Wales, to a fine;</content></level><level class="para1" eId="section-65-3-b"><num>(b)</num><content>on summary conviction in Scotland, to a fine not exceeding the statutory maximum;</content></level><level class="para1" eId="section-65-3-c"><num>(c)</num><content>on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine or both.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-4"><num>(4)</num><content><ref eId="c00036" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00037" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (financial penalties) applies to a person who breaches <ref href="#section-65-1">subsection (1)</ref> (but see subsection (10) of that section, which prevents a penalty from being imposed in respect of an act where the person has been convicted of an offence in respect of the same act, or where proceedings for such an offence are ongoing).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66"><num>66</num><heading>Approval of superfund transfers</heading><subsection eId="section-66-1"><num>(1)</num><intro>The Regulator may approve a superfund transfer if—</intro><level class="para1" eId="section-66-1-a"><num>(a)</num><content>the receiving superfund is authorised,</content></level><level class="para1" eId="section-66-1-b"><num>(b)</num><content>the ceding scheme does not have any active members, and</content></level><level class="para1" eId="section-66-1-c"><num>(c)</num><content>the Regulator is satisfied, based on evidence provided by the trustees of the ceding scheme and by the responsible body of the receiving superfund, that each of the onboarding conditions is met in relation to the transfer.</content></level></subsection><subsection eId="section-66-2"><num>(2)</num><intro>For the purposes of <ref href="#part-3">this Part</ref>, “<term refersTo="#term-the-onboarding-conditions" eId="term-the-onboarding-conditions">the onboarding conditions</term>” in relation to a superfund transfer are—</intro><level class="para1" eId="section-66-2-a"><num>(a)</num><content>that, as at the date of the application, the financial position of the ceding scheme is not strong enough to enable the trustees to arrange an insurer buyout;</content></level><level class="para1" eId="section-66-2-b"><num>(b)</num><content>that the superfund transfer will make it more likely that the transferred liabilities will be satisfied in full;</content></level><level class="para1" eId="section-66-2-c"><num>(c)</num><content>that it is reasonable to expect that the capital adequacy threshold will be met in relation to the receiving superfund immediately following the superfund transfer;</content></level><level class="para1" eId="section-66-2-d"><num>(d)</num><content>that it is reasonable to expect that the technical provisions threshold will be met in relation to the receiving superfund at the end of the period specified in regulations made by the Secretary of State;</content></level><level class="para1" eId="section-66-2-e"><num>(e)</num><content>that the receiving superfund is likely to comply with the requirements of <ref href="#part-3-chapter-4">Chapters 4</ref> and <ref href="#part-3-chapter-5">5</ref> (ongoing requirements of superfunds) after the superfund transfer takes place.</content></level></subsection><subsection eId="section-66-3"><num>(3)</num><intro>Approval under <ref href="#section-66">this section</ref> may be given subject to conditions, including as to—</intro><level class="para1" eId="section-66-3-a"><num>(a)</num><content>the superfund transfer being made on terms of a specified description;</content></level><level class="para1" eId="section-66-3-b"><num>(b)</num><content>the superfund transfer being made within a period of a specified description;</content></level><level class="para1" eId="section-66-3-c"><num>(c)</num><content>any of the onboarding conditions continuing to be met for a period of a specified description after approval is given but before the superfund transfer is made.</content></level></subsection><subsection eId="section-66-4"><num>(4)</num><content>The Secretary of State may by regulations amend <ref href="#section-66">this section</ref> for the purpose of substituting another condition relating to the financial position of the ceding scheme for the onboarding condition for the time being in <ref href="#section-66-2">subsection (2)</ref><ref href="#section-66-2-a">(a)</ref>.</content></subsection><subsection eId="section-66-5"><num>(5)</num><intro>The Secretary of State may by regulations make provision about the onboarding conditions, including provision about—</intro><level class="para1" eId="section-66-5-a"><num>(a)</num><content>the information and evidence that the trustees of the ceding scheme and the responsible body of the receiving superfund must provide for the purpose of satisfying the Regulator that an onboarding condition is met;</content></level><level class="para1" eId="section-66-5-b"><num>(b)</num><content>how the Regulator is to assess whether an onboarding condition is met;</content></level><level class="para1" eId="section-66-5-c"><num>(c)</num><content>the conditions that may or must be imposed under <ref href="#section-66-3">subsection (3)</ref>.</content></level></subsection><subsection eId="section-66-6"><num>(6)</num><content>The Secretary of State may by regulations modify <ref href="#section-66-2">subsection (2)</ref> in its application to a superfund transfer of a kind described in <ref href="#section-61">section 61</ref><ref href="#section-61-3">(3)</ref> (merger of sections etc).</content></subsection><subsection eId="section-66-7"><num>(7)</num><intro>In relation to a superfund transfer—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-ceding-scheme" eId="term-the-ceding-scheme">the ceding scheme</term>” means the scheme from which the transferred liabilities are transferred (or intended to be transferred);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-receiving-superfund" eId="term-the-receiving-superfund">the receiving superfund</term>” means the superfund that includes the superfund scheme to which the transferred liabilities are transferred (or intended to be transferred);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-transferred-liabilities" eId="term-the-transferred-liabilities">the transferred liabilities</term>” means the liabilities that are transferred (or intended to be transferred).</content></hcontainer></subsection><subsection eId="section-66-8"><num>(8)</num><content>In <ref href="#section-66-1">subsection (1)</ref>, “<term refersTo="#term-active-members" eId="term-active-members">active members</term>” has the same meaning as in <ref eId="c00038" href="https://www.legislation.gov.uk/ukpga/1995/26/part/1">Part 1</ref> of the <ref eId="c00039" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (see section 124 of that Act).</content></subsection><subsection eId="section-66-9"><num>(9)</num><content>Regulations under <ref href="#section-66-2">subsection (2)</ref><ref href="#section-66-2-d">(d)</ref> are subject to the negative procedure.</content></subsection><subsection eId="section-66-10"><num>(10)</num><content>Regulations under <ref href="#section-66-4">subsection (4)</ref> or <ref href="#section-66-5">(5)</ref> are subject to the affirmative procedure.</content></subsection><subsection eId="section-66-11"><num>(11)</num><content>Regulations under <ref href="#section-66-6">subsection (6)</ref> are subject to the negative procedure.</content></subsection><subsection eId="section-66-12"><num>(12)</num><content>See also section <ref href="#section-67">67</ref> (which makes special provision in relation to schemes that are being wound up in particular circumstances).</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-1"><num>(1)</num><intro>The Regulator may approve a superfund transfer if—</intro><level class="para1" eId="section-66-1-a"><num>(a)</num><content>the receiving superfund is authorised,</content></level><level class="para1" eId="section-66-1-b"><num>(b)</num><content>the ceding scheme does not have any active members, and</content></level><level class="para1" eId="section-66-1-c"><num>(c)</num><content>the Regulator is satisfied, based on evidence provided by the trustees of the ceding scheme and by the responsible body of the receiving superfund, that each of the onboarding conditions is met in relation to the transfer.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-2"><num>(2)</num><intro>For the purposes of <ref href="#part-3">this Part</ref>, “<term refersTo="#term-the-onboarding-conditions" eId="term-the-onboarding-conditions">the onboarding conditions</term>” in relation to a superfund transfer are—</intro><level class="para1" eId="section-66-2-a"><num>(a)</num><content>that, as at the date of the application, the financial position of the ceding scheme is not strong enough to enable the trustees to arrange an insurer buyout;</content></level><level class="para1" eId="section-66-2-b"><num>(b)</num><content>that the superfund transfer will make it more likely that the transferred liabilities will be satisfied in full;</content></level><level class="para1" eId="section-66-2-c"><num>(c)</num><content>that it is reasonable to expect that the capital adequacy threshold will be met in relation to the receiving superfund immediately following the superfund transfer;</content></level><level class="para1" eId="section-66-2-d"><num>(d)</num><content>that it is reasonable to expect that the technical provisions threshold will be met in relation to the receiving superfund at the end of the period specified in regulations made by the Secretary of State;</content></level><level class="para1" eId="section-66-2-e"><num>(e)</num><content>that the receiving superfund is likely to comply with the requirements of <ref href="#part-3-chapter-4">Chapters 4</ref> and <ref href="#part-3-chapter-5">5</ref> (ongoing requirements of superfunds) after the superfund transfer takes place.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-2-a"><num>(a)</num><content>that, as at the date of the application, the financial position of the ceding scheme is not strong enough to enable the trustees to arrange an insurer buyout;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-2-b"><num>(b)</num><content>that the superfund transfer will make it more likely that the transferred liabilities will be satisfied in full;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-2-c"><num>(c)</num><content>that it is reasonable to expect that the capital adequacy threshold will be met in relation to the receiving superfund immediately following the superfund transfer;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-2-d"><num>(d)</num><content>that it is reasonable to expect that the technical provisions threshold will be met in relation to the receiving superfund at the end of the period specified in regulations made by the Secretary of State;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-2-e"><num>(e)</num><content>that the receiving superfund is likely to comply with the requirements of <ref href="#part-3-chapter-4">Chapters 4</ref> and <ref href="#part-3-chapter-5">5</ref> (ongoing requirements of superfunds) after the superfund transfer takes place.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-3"><num>(3)</num><intro>Approval under <ref href="#section-66">this section</ref> may be given subject to conditions, including as to—</intro><level class="para1" eId="section-66-3-a"><num>(a)</num><content>the superfund transfer being made on terms of a specified description;</content></level><level class="para1" eId="section-66-3-b"><num>(b)</num><content>the superfund transfer being made within a period of a specified description;</content></level><level class="para1" eId="section-66-3-c"><num>(c)</num><content>any of the onboarding conditions continuing to be met for a period of a specified description after approval is given but before the superfund transfer is made.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-4"><num>(4)</num><content>The Secretary of State may by regulations amend <ref href="#section-66">this section</ref> for the purpose of substituting another condition relating to the financial position of the ceding scheme for the onboarding condition for the time being in <ref href="#section-66-2">subsection (2)</ref><ref href="#section-66-2-a">(a)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-5"><num>(5)</num><intro>The Secretary of State may by regulations make provision about the onboarding conditions, including provision about—</intro><level class="para1" eId="section-66-5-a"><num>(a)</num><content>the information and evidence that the trustees of the ceding scheme and the responsible body of the receiving superfund must provide for the purpose of satisfying the Regulator that an onboarding condition is met;</content></level><level class="para1" eId="section-66-5-b"><num>(b)</num><content>how the Regulator is to assess whether an onboarding condition is met;</content></level><level class="para1" eId="section-66-5-c"><num>(c)</num><content>the conditions that may or must be imposed under <ref href="#section-66-3">subsection (3)</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-6"><num>(6)</num><content>The Secretary of State may by regulations modify <ref href="#section-66-2">subsection (2)</ref> in its application to a superfund transfer of a kind described in <ref href="#section-61">section 61</ref><ref href="#section-61-3">(3)</ref> (merger of sections etc).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-7"><num>(7)</num><intro>In relation to a superfund transfer—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-ceding-scheme" eId="term-the-ceding-scheme">the ceding scheme</term>” means the scheme from which the transferred liabilities are transferred (or intended to be transferred);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-receiving-superfund" eId="term-the-receiving-superfund">the receiving superfund</term>” means the superfund that includes the superfund scheme to which the transferred liabilities are transferred (or intended to be transferred);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-transferred-liabilities" eId="term-the-transferred-liabilities">the transferred liabilities</term>” means the liabilities that are transferred (or intended to be transferred).</content></hcontainer></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-8"><num>(8)</num><content>In <ref href="#section-66-1">subsection (1)</ref>, “<term refersTo="#term-active-members" eId="term-active-members">active members</term>” has the same meaning as in <ref eId="c00038" href="https://www.legislation.gov.uk/ukpga/1995/26/part/1">Part 1</ref> of the <ref eId="c00039" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (see section 124 of that Act).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-9"><num>(9)</num><content>Regulations under <ref href="#section-66-2">subsection (2)</ref><ref href="#section-66-2-d">(d)</ref> are subject to the negative procedure.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-10"><num>(10)</num><content>Regulations under <ref href="#section-66-4">subsection (4)</ref> or <ref href="#section-66-5">(5)</ref> are subject to the affirmative procedure.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-11"><num>(11)</num><content>Regulations under <ref href="#section-66-6">subsection (6)</ref> are subject to the negative procedure.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-12"><num>(12)</num><content>See also section <ref href="#section-67">67</ref> (which makes special provision in relation to schemes that are being wound up in particular circumstances).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68"><num>68</num><heading>Applications for approval</heading><subsection eId="section-68-1"><num>(1)</num><intro>An application for approval under <ref href="#section-66">section 66</ref> must be made jointly by—</intro><level class="para1" eId="section-68-1-a"><num>(a)</num><content>the trustees of the ceding scheme, and</content></level><level class="para1" eId="section-68-1-b"><num>(b)</num><content>the responsible body of the receiving superfund.</content></level></subsection><subsection eId="section-68-2"><num>(2)</num><content>The application must be made in the manner and form specified by the Regulator.</content></subsection><subsection eId="section-68-3"><num>(3)</num><content>The Regulator must decide whether or not to approve a superfund transfer, and must notify the applicants of its decision, as soon as reasonably practicable after receiving the application.</content></subsection><subsection eId="section-68-4"><num>(4)</num><content>The Secretary of State may by regulations make provision about applications for approval, including about the documents and information that must be included in an application.</content></subsection><subsection eId="section-68-5"><num>(5)</num><content>Regulations under <ref href="#section-68-4">subsection (4)</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-1"><num>(1)</num><intro>An application for approval under <ref href="#section-66">section 66</ref> must be made jointly by—</intro><level class="para1" eId="section-68-1-a"><num>(a)</num><content>the trustees of the ceding scheme, and</content></level><level class="para1" eId="section-68-1-b"><num>(b)</num><content>the responsible body of the receiving superfund.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-2"><num>(2)</num><content>The application must be made in the manner and form specified by the Regulator.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-3"><num>(3)</num><content>The Regulator must decide whether or not to approve a superfund transfer, and must notify the applicants of its decision, as soon as reasonably practicable after receiving the application.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-4"><num>(4)</num><content>The Secretary of State may by regulations make provision about applications for approval, including about the documents and information that must be included in an application.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-5"><num>(5)</num><content>Regulations under <ref href="#section-68-4">subsection (4)</ref> are subject to the negative procedure.</content></subsection>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-3-chapter-4"><num>Chapter 4</num><heading>Ongoing requirements of operating superfunds</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-chapter-4-crossheading-governance-and-organisation"><heading>Governance and organisation</heading><section eId="section-69"><num>69</num><heading>Governance and structure</heading><subsection eId="section-69-1"><num>(1)</num><intro>The responsible body of an operating superfund must ensure, so far as reasonably practicable, that the superfund has policies and procedures in place—</intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content>that allow for the superfund to be managed and administered effectively in the interests of members of the superfund scheme,</content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content>that ensure the superfund’s compliance with the requirements of <ref href="#part-3">this Part</ref> and any other legislation relating to pensions, and</content></level><level class="para1" eId="section-69-1-c"><num>(c)</num><content>that are proportionate to the scale and nature of the superfund’s activities.</content></level></subsection><subsection eId="section-69-2"><num>(2)</num><intro>Those policies and procedures must, in particular, address the following matters—</intro><level class="para1" eId="section-69-2-a"><num>(a)</num><content>how the responsible body, the other members of the superfund group, and the trustees of the superfund scheme are to interact with each other, and how any conflicts are to be resolved;</content></level><level class="para1" eId="section-69-2-b"><num>(b)</num><content>how investment decisions are to be taken in relation to the capital buffer and the superfund scheme;</content></level><level class="para1" eId="section-69-2-c"><num>(c)</num><content>the implications of receiving new superfund transfers;</content></level><level class="para1" eId="section-69-2-d"><num>(d)</num><content>the management of risks.</content></level></subsection><subsection eId="section-69-3"><num>(3)</num><intro>The responsible body of an operating superfund must ensure that the superfund meets any conditions specified in regulations made by the Secretary of State as to—</intro><level class="para1" eId="section-69-3-a"><num>(a)</num><content>the corporate form, jurisdiction of incorporation or jurisdiction of tax residence of a member of the superfund group;</content></level><level class="para1" eId="section-69-3-b"><num>(b)</num><content>the structure of the superfund group;</content></level><level class="para1" eId="section-69-3-c"><num>(c)</num><content>the terms of the capital buffer arrangement (including as to how, by whom, in what jurisdiction and on what terms the capital buffer may be held);</content></level><level class="para1" eId="section-69-3-d"><num>(d)</num><content>compliance with tax legislation.</content></level></subsection><subsection eId="section-69-4"><num>(4)</num><content><ref eId="c00040" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00041" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-69-1">subsection (1)</ref> or <ref href="#section-69-3">(3)</ref>.</content></subsection><subsection eId="section-69-5"><num>(5)</num><content>The Secretary of State may by regulations amend <ref href="#section-69">this section</ref> for the purpose of adding, removing or varying a matter which the policies and procedures mentioned in <ref href="#section-69-1">subsection (1)</ref> must address.</content></subsection><subsection eId="section-69-6"><num>(6)</num><content>Regulations under <ref href="#section-69-3">subsection (3)</ref> or <ref href="#section-69-5">(5)</ref> are subject to the affirmative procedure.</content></subsection></section><section eId="section-70"><num>70</num><heading>Management documents</heading><subsection eId="section-70-1"><num>(1)</num><intro>The responsible body of an operating superfund must ensure that each of the management documents—</intro><level class="para1" eId="section-70-1-a"><num>(a)</num><content>is prepared in relation to the superfund,</content></level><level class="para1" eId="section-70-1-b"><num>(b)</num><content>complies with any requirements as to form or content specified in regulations made by the Secretary of State, and</content></level><level class="para1" eId="section-70-1-c"><num>(c)</num><content>is kept under review and revised if appropriate.</content></level></subsection><subsection eId="section-70-2"><num>(2)</num><content>The responsible body of an operating superfund must ensure, so far as reasonably practicable, that the superfund is managed and administered in accordance with the management documents.</content></subsection><subsection eId="section-70-3"><num>(3)</num><intro>“<term refersTo="#term-the-management-documents" eId="term-the-management-documents">The management documents</term>” means—</intro><level class="para1" eId="section-70-3-a"><num>(a)</num><content>a business plan;</content></level><level class="para1" eId="section-70-3-b"><num>(b)</num><content>a governance manual;</content></level><level class="para1" eId="section-70-3-c"><num>(c)</num><content>a continuity strategy;</content></level><level class="para1" eId="section-70-3-d"><num>(d)</num><content>a fees and expenses policy.</content></level></subsection><subsection eId="section-70-4"><num>(4)</num><intro>In <ref href="#section-70-3">subsection (3)</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-continuity-strategy" eId="term-continuity-strategy">continuity strategy</term>” means a strategy for protecting the interests of members of the superfund scheme if an event of concern occurs;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fees-and-expenses-policy" eId="term-fees-and-expenses-policy">fees and expenses policy</term>” means a document setting out how fees and expenses incurred by the superfund will be funded;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-governance-manual" eId="term-governance-manual">governance manual</term>” means a document setting out how and by whom the superfund is managed and administered.</content></hcontainer></subsection><subsection eId="section-70-5"><num>(5)</num><content><ref eId="c00042" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00043" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-70-1">subsection (1)</ref> or <ref href="#section-70-2">(2)</ref>.</content></subsection><subsection eId="section-70-6"><num>(6)</num><content>The Secretary of State may by regulations amend <ref href="#section-70">this section</ref> for the purpose of adding, removing or varying a management document in <ref href="#section-70-3">subsection (3)</ref>.</content></subsection><subsection eId="section-70-7"><num>(7)</num><content>Regulations under <ref href="#section-70-1">subsection (1)</ref><ref href="#section-70-1-b">(b)</ref> are subject to the negative procedure.</content></subsection><subsection eId="section-70-8"><num>(8)</num><content>Regulations under <ref href="#section-70-6">subsection (6)</ref> are subject to the affirmative procedure.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-chapter-4-crossheading-funding-and-investment"><heading>Funding and investment</heading><section eId="section-71"><num>71</num><heading>Duty to monitor financial thresholds</heading><subsection eId="section-71-1"><num>(1)</num><content>The responsible body of an operating superfund must ensure that the superfund has adequate policies and procedures in place for monitoring whether each financial threshold is met.</content></subsection><subsection eId="section-71-2"><num>(2)</num><content><ref eId="c00044" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00045" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-71-1">subsection (1)</ref>.</content></subsection><subsection eId="section-71-3"><num>(3)</num><content>See also <ref href="#part-3-chapter-5">Chapter 5</ref> (events of concern) for the consequences of a financial threshold ceasing to be met.</content></subsection></section><section eId="section-72"><num>72</num><heading>“Financial thresholds”</heading><subsection eId="section-72-1"><num>(1)</num><intro>“<term refersTo="#term-the-financial-thresholds" eId="term-the-financial-thresholds">The financial thresholds</term>” means—</intro><level class="para1" eId="section-72-1-a"><num>(a)</num><content>the capital adequacy threshold,</content></level><level class="para1" eId="section-72-1-b"><num>(b)</num><content>the technical provisions threshold,</content></level><level class="para1" eId="section-72-1-c"><num>(c)</num><content>the protected liabilities threshold, and</content></level><level class="para1" eId="section-72-1-d"><num>(d)</num><content>the scheme solvency threshold.</content></level></subsection><subsection eId="section-72-2"><num>(2)</num><content>“The capital adequacy threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer is such that there is a very high likelihood that the liabilities of the scheme to and in respect of its members will be satisfied in full.</content></subsection><subsection eId="section-72-3"><num>(3)</num><content>“The technical provisions threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer is greater than or equal to the scheme’s technical provisions.</content></subsection><subsection eId="section-72-4"><num>(4)</num><content>“The protected liabilities threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer exceeds a specified percentage of the amount of the scheme’s protected liabilities.</content></subsection><subsection eId="section-72-5"><num>(5)</num><content>“The scheme solvency threshold” is met in relation to a superfund on a given day if there is no material likelihood that the scheme will fail to satisfy all the liabilities to and in respect of members that it is required to satisfy during the 6 months beginning with that day.</content></subsection><subsection eId="section-72-6"><num>(6)</num><intro>In <ref href="#section-72">this section</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-protected-liabilities" eId="term-protected-liabilities">protected liabilities</term>” has the same meaning as in <ref eId="c00046" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2/chapter/3">Chapter 3</ref> of <ref eId="c00047" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2">Part 2</ref> of the <ref eId="c00048" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (see section 131 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in regulations made by the Secretary of State;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-technical-provisions" eId="term-technical-provisions">technical provisions</term>” has the same meaning as in <ref eId="c00049" href="https://www.legislation.gov.uk/ukpga/2004/35/section/222">section 222</ref> of the <ref eId="c00050" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (and a superfund scheme’s technical provisions are to be calculated for the purposes of this section in the same way as its technical provisions would be calculated for the purposes of that section).</content></hcontainer></subsection><subsection eId="section-72-7"><num>(7)</num><intro>The Secretary of State may by regulations make provision about how to determine whether any of the financial thresholds is met, including about—</intro><level class="para1" eId="section-72-7-a"><num>(a)</num><content>how and by whom the value of the assets, liabilities or protected liabilities of the scheme, or the value of the capital buffer, is to be determined;</content></level><level class="para1" eId="section-72-7-b"><num>(b)</num><content>how and by whom the likelihood of something happening is to be assessed;</content></level><level class="para1" eId="section-72-7-c"><num>(c)</num><content>what constitutes a “very high” or “material” likelihood (including provision defining those expressions by reference to particular percentages or particular criteria).</content></level></subsection><subsection eId="section-72-8"><num>(8)</num><content>Regulations under <ref href="#section-72-7">subsection (7)</ref> may confer a discretion.</content></subsection><subsection eId="section-72-9"><num>(9)</num><content>Regulations under <ref href="#section-72-4">subsection (4)</ref> or <ref href="#section-72-7">(7)</ref> are subject to the affirmative procedure.</content></subsection></section><section eId="section-73"><num>73</num><heading>Capital buffer: compulsory release to trustees</heading><subsection eId="section-73-1"><num>(1)</num><intro>A person that is a party to the capital buffer arrangement in relation to an operating superfund must ensure, so far as it is in their power to do so, that the capital buffer arrangement requires the release of the capital buffer to the trustees of the superfund scheme if and to the extent that the release is required by—</intro><level class="para1" eId="section-73-1-a"><num>(a)</num><content>an approved response plan (see <ref href="#section-88">sections 88</ref> and <ref href="#section-89">89</ref>), or</content></level><level class="para1" eId="section-73-1-b"><num>(b)</num><content>a direction of the Regulator under <ref href="#section-90">section 90</ref> (direction-making powers following event of concern).</content></level></subsection><subsection eId="section-73-2"><num>(2)</num><intro>The capital buffer is “released” to the extent that it is transferred or made available to any person otherwise than—</intro><level class="para1" eId="section-73-2-a"><num>(a)</num><content>in the ordinary course of the investment of the capital buffer, or</content></level><level class="para1" eId="section-73-2-b"><num>(b)</num><content>in payment of fees, expenses, taxes or other charges incurred (in each case) in connection with the management or administration of the capital buffer.</content></level></subsection><subsection eId="section-73-3"><num>(3)</num><content><ref eId="c00051" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00052" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (civil penalties) applies to the person if they breach <ref href="#section-73-1">subsection (1)</ref>.</content></subsection></section><section eId="section-74"><num>74</num><heading>Capital buffer: permitted release to other persons</heading><subsection eId="section-74-1"><num>(1)</num><content>A person that is a party to the capital buffer arrangement in relation to an operating superfund must ensure, so far as it is in their power to do so, that the capital buffer arrangement does not permit the release of the capital buffer to a person other than the trustees of the superfund scheme except in accordance with <ref href="#section-74-2">subsection (2)</ref> or <ref href="#section-74-3">(3)</ref>.</content></subsection><subsection eId="section-74-2"><num>(2)</num><intro>The capital buffer arrangement may permit the release of the whole capital buffer if—</intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content>the superfund scheme has satisfied all of its liabilities to and in respect of its members, or</content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content>an insurer buyout has taken effect in relation to the superfund scheme.</content></level></subsection><subsection eId="section-74-3"><num>(3)</num><content>The capital buffer arrangement may permit the release of an amount of the capital buffer to the extent that the release is a permitted profit extraction.</content></subsection><subsection eId="section-74-4"><num>(4)</num><intro>“<term refersTo="#term-permitted-profit-extraction" eId="term-permitted-profit-extraction">Permitted profit extraction</term>”, in relation to a superfund, means a release of the capital buffer—</intro><level class="para1" eId="section-74-4-a"><num>(a)</num><content>that takes place at a time when the capital adequacy threshold is exceeded to an extent, and has been exceeded for a period of time, specified in regulations made by the Secretary of State,</content></level><level class="para1" eId="section-74-4-b"><num>(b)</num><content>that is made to a person of a description specified in the regulations, and</content></level><level class="para1" eId="section-74-4-c"><num>(c)</num><content>in relation to which any other requirements specified in the regulations are met (which may include a requirement for the Regulator’s consent),</content></level><wrapUp>and for the purposes of <ref href="#section-74-4-a">paragraph (a)</ref> the capital adequacy threshold is “exceeded” if and to the extent that the total value of the assets of the scheme and the capital buffer is greater than the amount required in order for that threshold to be met.</wrapUp></subsection><subsection eId="section-74-5"><num>(5)</num><intro>A person commits an offence if they cause or permit the capital buffer to be released (to any extent)—</intro><level class="para1" eId="section-74-5-a"><num>(a)</num><content>to a person other than the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-74-5-b"><num>(b)</num><content>otherwise than in accordance with the capital buffer arrangement.</content></level></subsection><subsection eId="section-74-6"><num>(6)</num><intro>A person guilty of an offence under <ref href="#section-74-5">subsection (5)</ref> is liable—</intro><level class="para1" eId="section-74-6-a"><num>(a)</num><content>on summary conviction in England and Wales, to a fine;</content></level><level class="para1" eId="section-74-6-b"><num>(b)</num><content>on summary conviction in Scotland, to a fine not exceeding the statutory maximum;</content></level><level class="para1" eId="section-74-6-c"><num>(c)</num><content>on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine or both.</content></level></subsection><subsection eId="section-74-7"><num>(7)</num><intro><ref eId="c00053" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00054" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (civil penalties) applies to a person who causes or permits the capital buffer to be released (to any extent)—</intro><level class="para1" eId="section-74-7-a"><num>(a)</num><content>to a person other than the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-74-7-b"><num>(b)</num><content>otherwise than in accordance with the capital buffer arrangement</content></level><wrapUp>(but see subsection (10) of that section, which prevents a penalty from being imposed in respect of an act where the person has been convicted of an offence in respect of the same act, or where proceedings for such an offence are ongoing).</wrapUp></subsection><subsection eId="section-74-8"><num>(8)</num><content><ref eId="c00055" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00056" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to a person who breaches <ref href="#section-74-1">subsection (1)</ref>.</content></subsection><subsection eId="section-74-9"><num>(9)</num><content>Regulations under <ref href="#section-74-4">subsection (4)</ref> are subject to the affirmative procedure.</content></subsection></section><section eId="section-75"><num>75</num><heading>Capital buffer: investment</heading><subsection eId="section-75-1"><num>(1)</num><content>The responsible body of an operating superfund must ensure that this section is complied with.</content></subsection><subsection eId="section-75-2"><num>(2)</num><content>The capital buffer must be invested in accordance with a strategy prepared by or under the supervision of the responsible body (“the capital buffer investment strategy”).</content></subsection><subsection eId="section-75-3"><num>(3)</num><content>The capital buffer investment strategy must comply with any requirements specified in regulations made by the Secretary of State.</content></subsection><subsection eId="section-75-4"><num>(4)</num><intro>The requirements that may be specified by virtue of subsection <ref href="#section-75-3">(3)</ref> include requirements as to—</intro><level class="para1" eId="section-75-4-a"><num>(a)</num><content>the principles to be followed, and the matters to be taken into account, in investing the capital buffer;</content></level><level class="para1" eId="section-75-4-b"><num>(b)</num><content>the form and content of the capital buffer investment strategy.</content></level></subsection><subsection eId="section-75-5"><num>(5)</num><content>The capital buffer investment strategy may not be materially altered except with the agreement of the trustees of the superfund scheme.</content></subsection><subsection eId="section-75-6"><num>(6)</num><content>The Secretary of State may by regulations make provision about what counts as a “material” alteration for the purposes of subsection (5).</content></subsection><subsection eId="section-75-7"><num>(7)</num><content><ref eId="c00057" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00058" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-75-1">subsection (1)</ref>.</content></subsection><subsection eId="section-75-8"><num>(8)</num><content>Regulations under <ref href="#section-75-3">subsection (3)</ref> are subject to the affirmative procedure.</content></subsection><subsection eId="section-75-9"><num>(9)</num><content>Regulations under <ref href="#section-75-6">subsection (6)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-76"><num>76</num><heading>Capital buffer: verification of valuations</heading><subsection eId="section-76-1"><num>(1)</num><content>The responsible body of an operating superfund must appoint a person to be responsible for verifying valuations of the capital buffer that are carried out by or on behalf of the responsible body.</content></subsection><subsection eId="section-76-2"><num>(2)</num><content>The responsible body must ensure that the person appointed verifies such a valuation at least once in every period of 12 months.</content></subsection><subsection eId="section-76-3"><num>(3)</num><intro>The responsible body must also ensure that the person appointed verifies such a valuation—</intro><level class="para1" eId="section-76-3-a"><num>(a)</num><content>if asked to do so by the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-76-3-b"><num>(b)</num><content>where otherwise required by virtue of this Part.</content></level></subsection><subsection eId="section-76-4"><num>(4)</num><intro>The person appointed—</intro><level class="para1" eId="section-76-4-a"><num>(a)</num><content>must not be employed by, or involved in the management or administration of, a member of the superfund group, and</content></level><level class="para1" eId="section-76-4-b"><num>(b)</num><content>must be a person who, in the reasonable opinion of the responsible body, has the appropriate qualifications and experience.</content></level></subsection><subsection eId="section-76-5"><num>(5)</num><content>A person may not be appointed without the consent of the trustees of the superfund scheme.</content></subsection><subsection eId="section-76-6"><num>(6)</num><content><ref eId="c00059" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00060" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches this section.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-chapter-4-crossheading-approval-and-certification-of-key-personnel"><heading>Approval and certification of key personnel</heading><section eId="section-77"><num>77</num><heading>Key functions</heading><subsection eId="section-77-1"><num>(1)</num><content>The responsible body of an operating superfund must ensure that there is at all times at least one individual responsible for each key function.</content></subsection><subsection eId="section-77-2"><num>(2)</num><intro>Each of the following activities is a “<term refersTo="#term-key-function" eId="term-key-function">key function</term>” in relation to a superfund—</intro><level class="para1" eId="section-77-2-a"><num>(a)</num><content>taking management decisions;</content></level><level class="para1" eId="section-77-2-b"><num>(b)</num><content>taking financial decisions;</content></level><level class="para1" eId="section-77-2-c"><num>(c)</num><content>taking investment decisions;</content></level><level class="para1" eId="section-77-2-d"><num>(d)</num><content>risk management;</content></level><level class="para1" eId="section-77-2-e"><num>(e)</num><content>internal audit;</content></level><level class="para1" eId="section-77-2-f"><num>(f)</num><content>marketing and promotion.</content></level></subsection><subsection eId="section-77-3"><num>(3)</num><content>An activity is not a key function so far as it relates only to the superfund scheme and not to any other part of the superfund.</content></subsection><subsection eId="section-77-4"><num>(4)</num><content><ref eId="c00061" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00062" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches this section.</content></subsection><subsection eId="section-77-5"><num>(5)</num><content>The Secretary of State may by regulations amend <ref href="#section-77">this section</ref> for the purpose of adding, removing or varying a key function in <ref href="#section-77-2">subsection (2)</ref>.</content></subsection><subsection eId="section-77-6"><num>(6)</num><content>Regulations under <ref href="#section-77-5">subsection (5)</ref> are subject to the affirmative procedure.</content></subsection></section><section eId="section-78"><num>78</num><heading>Approval of individuals responsible for key functions</heading><subsection eId="section-78-1"><num>(1)</num><content>An individual may not be responsible for a key function in relation to an operating superfund unless they are approved by the Regulator to be responsible for that key function in relation to the superfund.</content></subsection><subsection eId="section-78-2"><num>(2)</num><content>The Regulator may approve an individual only if satisfied that they are a fit and proper person to be responsible for that key function in relation to the superfund.</content></subsection><subsection eId="section-78-3"><num>(3)</num><content>In deciding whether it is so satisfied the Regulator must take into account, in particular, any matters specified in regulations made by the Secretary of State.</content></subsection><subsection eId="section-78-4"><num>(4)</num><content>The Regulator may not approve an individual to be responsible for risk management if the individual is already responsible for taking investment decisions, and vice versa.</content></subsection><subsection eId="section-78-5"><num>(5)</num><content>An application for approval must be made in the manner and form specified by the Regulator.</content></subsection><subsection eId="section-78-6"><num>(6)</num><content>Approval may be given for a specified period or subject to specified conditions (in which case the person is only approved to be responsible for the key function in question for that period or while those conditions are met).</content></subsection><subsection eId="section-78-7"><num>(7)</num><content>Approval may be given in advance of the superfund being authorised or becoming an operating superfund.</content></subsection><subsection eId="section-78-8"><num>(8)</num><intro>If no longer satisfied as described in <ref href="#section-78-2">subsection (2)</ref> in relation to an individual, the Regulator may by notice to the responsible body—</intro><level class="para1" eId="section-78-8-a"><num>(a)</num><content>suspend its approval in relation to the individual for a period specified in the notice, or</content></level><level class="para1" eId="section-78-8-b"><num>(b)</num><content>revoke its approval in relation to the individual with effect from a date specified in the notice.</content></level></subsection><subsection eId="section-78-9"><num>(9)</num><intro><ref href="#section-78-1">Subsection (1)</ref> does not apply to an individual while—</intro><level class="para1" eId="section-78-9-a"><num>(a)</num><content>they are responsible for a key function on a temporary basis, and</content></level><level class="para1" eId="section-78-9-b"><num>(b)</num><content>the Regulator agrees, in light of the particular circumstances of the case, to the person’s being responsible for the key function on that basis without approval.</content></level></subsection><subsection eId="section-78-10"><num>(10)</num><intro>If an individual is responsible for a key function in relation to an operating superfund in breach of <ref href="#section-78-1">subsection (1)</ref>, <ref eId="c00063" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">section 10</ref> of the <ref eId="c00064" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to—</intro><level class="para1" eId="section-78-10-a"><num>(a)</num><content>the individual, and</content></level><level class="para1" eId="section-78-10-b"><num>(b)</num><content>the responsible body.</content></level></subsection><subsection eId="section-78-11"><num>(11)</num><content>Regulations under <ref href="#section-78-3">subsection (3)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-79"><num>79</num><heading>Certification of staff supporting individuals responsible for key functions</heading><subsection eId="section-79-1"><num>(1)</num><intro>The responsible body of an operating superfund must ensure, so far as reasonably practicable, that no individual carries out a key function in relation to the superfund unless the responsible body—</intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content>is satisfied, having conducted due diligence in relation to the individual, that the individual is a fit and proper person to carry out the key function, and</content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content>has issued a certificate to the individual confirming that it is so satisfied.</content></level></subsection><subsection eId="section-79-2"><num>(2)</num><content>The responsible body must keep a register of certificates issued under <ref href="#section-79-1">subsection (1)</ref>.</content></subsection><subsection eId="section-79-3"><num>(3)</num><content>In deciding whether it is satisfied as described in subsection (1)(a), the responsible body must take into account, in particular, any matters specified in regulations made by the Secretary of State.</content></subsection><subsection eId="section-79-4"><num>(4)</num><content>The Secretary of State may by regulations make provision about certificates issued under <ref href="#section-79-1">subsection (1)</ref>, including about the period of time for which a certificate is valid.</content></subsection><subsection eId="section-79-5"><num>(5)</num><content><ref eId="c00065" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00066" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-79-1">subsection (1)</ref>.</content></subsection><subsection eId="section-79-6"><num>(6)</num><content>Regulations under subsection <ref href="#section-79-3">(3)</ref> or <ref href="#section-79-4">(4)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-80"><num>80</num><heading>Approval of superfund scheme trustees</heading><subsection eId="section-80-1"><num>(1)</num><content>A person may not be a trustee of an operating superfund scheme unless they are approved by the Regulator to be a trustee of the scheme.</content></subsection><subsection eId="section-80-2"><num>(2)</num><content>The Regulator may approve a person to be a trustee of a superfund scheme only if satisfied they are a fit and proper person to be a trustee of the scheme.</content></subsection><subsection eId="section-80-3"><num>(3)</num><content>In assessing whether a person is a fit and proper person, the Regulator must take into account, in particular, any matters specified in regulations made by the Secretary of State.</content></subsection><subsection eId="section-80-4"><num>(4)</num><content>The Regulator may not approve a person to be a trustee of a superfund scheme if the person is employed by, or involved in the management or administration of, a member of the superfund group.</content></subsection><subsection eId="section-80-5"><num>(5)</num><content>An application for approval must be made in the manner and form specified by the Regulator.</content></subsection><subsection eId="section-80-6"><num>(6)</num><content>Approval may be given for a specified period or subject to specified conditions (in which case the person is approved to be a trustee only for that period or only while those conditions are met).</content></subsection><subsection eId="section-80-7"><num>(7)</num><content>Approval may be given in advance of the superfund being authorised or becoming an operating superfund.</content></subsection><subsection eId="section-80-8"><num>(8)</num><intro>If no longer satisfied as described in <ref href="#section-80-2">subsection (2)</ref> in relation to a person, the Regulator may by notice to the person—</intro><level class="para1" eId="section-80-8-a"><num>(a)</num><content>suspend its approval in relation to the person for a period specified in the notice, or</content></level><level class="para1" eId="section-80-8-b"><num>(b)</num><content>revoke its approval in relation to the person with effect from a date specified in the notice.</content></level></subsection><subsection eId="section-80-9"><num>(9)</num><intro><ref href="#section-78-1">Subsection (1)</ref> does not apply to a person while—</intro><level class="para1" eId="section-80-9-a"><num>(a)</num><content>they serve as a trustee of a superfund scheme on a temporary basis, and</content></level><level class="para1" eId="section-80-9-b"><num>(b)</num><content>the Regulator agrees, in light of the particular circumstances of the case, to their being a trustee on that basis without approval.</content></level></subsection><subsection eId="section-80-10"><num>(10)</num><intro>If a person becomes a trustee of an operating superfund scheme in breach of <ref href="#section-80-1">subsection (1)</ref>, <ref eId="c00067" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">section 10</ref> of the <ref eId="c00068" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> applies to—</intro><level class="para1" eId="section-80-10-a"><num>(a)</num><content>the person, and</content></level><level class="para1" eId="section-80-10-b"><num>(b)</num><content>the person who appointed them.</content></level></subsection><subsection eId="section-80-11"><num>(11)</num><content>Regulations under <ref href="#section-80-3">subsection (3)</ref> are subject to the negative procedure.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-chapter-4-crossheading-information-and-reporting"><heading>Information and reporting</heading><section eId="section-81"><num>81</num><heading>Events to be notified to the Regulator</heading><subsection eId="section-81-1"><num>(1)</num><intro>The responsible body of an operating superfund must notify the Regulator of any of the following—</intro><level class="para1" eId="section-81-1-a"><num>(a)</num><content>a material deterioration in the investment performance of the capital buffer;</content></level><level class="para1" eId="section-81-1-b"><num>(b)</num><content>a material change to any of the management documents;</content></level><level class="para1" eId="section-81-1-c"><num>(c)</num><content>a material change to the capital buffer arrangement;</content></level><level class="para1" eId="section-81-1-d"><num>(d)</num><content>a release of any of the capital buffer by way of permitted profit extraction;</content></level><level class="para1" eId="section-81-1-e"><num>(e)</num><content>the bringing of proceedings against, or the launching of an investigation by a public body into, a member of the superfund group;</content></level><level class="para1" eId="section-81-1-f"><num>(f)</num><content>a breach of any requirement of this Chapter.</content></level></subsection><subsection eId="section-81-2"><num>(2)</num><intro>The trustees of an operating superfund scheme must notify the Regulator of any of the following—</intro><level class="para1" eId="section-81-2-a"><num>(a)</num><content>a material deterioration in the investment performance of the scheme;</content></level><level class="para1" eId="section-81-2-b"><num>(b)</num><content>a material change to the rules of the scheme;</content></level><level class="para1" eId="section-81-2-c"><num>(c)</num><content>the bringing of proceedings against, or the launching of an investigation by a public body into, the trustees.</content></level></subsection><subsection eId="section-81-3"><num>(3)</num><intro>A notification under this section must be made—</intro><level class="para1" eId="section-81-3-a"><num>(a)</num><content>where the person responsible for the notification is aware in advance that the event in question is to take place, as soon as reasonably practicable after it becomes so aware;</content></level><level class="para1" eId="section-81-3-b"><num>(b)</num><content>otherwise, as soon as reasonably practicable after the event takes place.</content></level></subsection><subsection eId="section-81-4"><num>(4)</num><content>A notification under this section must be made in the manner and form specified by the Regulator.</content></subsection><subsection eId="section-81-5"><num>(5)</num><content>Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who breaches this section.</content></subsection><subsection eId="section-81-6"><num>(6)</num><intro>The Secretary of State may by regulations make provision (including provision amending this section)—</intro><level class="para1" eId="section-81-6-a"><num>(a)</num><content>for the purpose of adding, removing or varying a matter to be notified under <ref href="#section-81-1">subsection (1)</ref> or <ref href="#section-81-2">(2)</ref>;</content></level><level class="para1" eId="section-81-6-b"><num>(b)</num><content>about what counts as “<term refersTo="#term-material" eId="term-material">material</term>” for the purposes of any paragraph of <ref href="#section-81-1">subsection (1)</ref> or <ref href="#section-81-2">(2)</ref>.</content></level></subsection><subsection eId="section-81-7"><num>(7)</num><content>Regulations under <ref href="#section-81-6">subsection (6)</ref> are subject to the affirmative procedure.</content></subsection></section><section eId="section-82"><num>82</num><heading>Regular reporting</heading><subsection eId="section-82-1"><num>(1)</num><content>The trustees of an operating superfund scheme must provide the Regulator with regular reports about the financial position of the superfund.</content></subsection><subsection eId="section-82-2"><num>(2)</num><intro>The reports must comply with any requirements specified in regulations made by the Secretary of State, which may in particular include requirements as to—</intro><level class="para1" eId="section-82-2-a"><num>(a)</num><content>the form and content of reports;</content></level><level class="para1" eId="section-82-2-b"><num>(b)</num><content>the times at which, and intervals at which, reports are to be provided.</content></level></subsection><subsection eId="section-82-3"><num>(3)</num><content>Section 10 of the Pensions Act 1995 (civil penalties) applies to the trustees if they breach this section.</content></subsection><subsection eId="section-82-4"><num>(4)</num><content>Regulations under <ref href="#section-82-2">subsection (2)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-83"><num>83</num><heading>Returns</heading><subsection eId="section-83-1"><num>(1)</num><intro>The Regulator may, by notice to the responsible body of an operating superfund, require the responsible body to submit a return to the Regulator for the purpose of enabling the Regulator to monitor—</intro><level class="para1" eId="section-83-1-a"><num>(a)</num><content>the financial position of the superfund, or</content></level><level class="para1" eId="section-83-1-b"><num>(b)</num><content>the superfund’s compliance with the requirements of this Chapter.</content></level></subsection><subsection eId="section-83-2"><num>(2)</num><intro>The notice must specify—</intro><level class="para1" eId="section-83-2-a"><num>(a)</num><content>the period within which the return must be submitted, and</content></level><level class="para1" eId="section-83-2-b"><num>(b)</num><content>the information (or description of information) which the return must contain.</content></level></subsection><subsection eId="section-83-3"><num>(3)</num><content>The Regulator may not require the responsible body to submit a return more than once in any period of 12 months.</content></subsection><subsection eId="section-83-4"><num>(4)</num><content><ref eId="c00069" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00070" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it fails to submit a return in accordance with a notice under this section.</content></subsection></section><section eId="section-84"><num>84</num><heading>Reports in relation to alleged compliance breaches</heading><subsection eId="section-84-1"><num>(1)</num><content>If the Regulator considers or suspects that a requirement of this Chapter has been breached in relation to an operating superfund, it may give the responsible body notice of its intention to appoint a person to prepare a report about the issue to which the alleged breach relates.</content></subsection><subsection eId="section-84-2"><num>(2)</num><intro>Where such notice is given, the responsible body—</intro><level class="para1" eId="section-84-2-a"><num>(a)</num><content>must provide the person appointed with whatever assistance the person reasonably requires, and</content></level><level class="para1" eId="section-84-2-b"><num>(b)</num><content>must meet the Regulator’s reasonable costs in respect of the report.</content></level></subsection><subsection eId="section-84-3"><num>(3)</num><content><ref eId="c00071" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00072" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it fails to comply with <ref href="#section-84-2">subsection (2)</ref>.</content></subsection></section><section eId="section-85"><num>85</num><heading>Provision of information by responsible body to trustees</heading><subsection eId="section-85-1"><num>(1)</num><content>The responsible body of an operating superfund must provide the trustees of the superfund scheme with whatever information relating to the superfund the trustees may reasonably request to enable the trustees to comply with any legislation relating to pensions that applies to them in respect of the superfund scheme.</content></subsection><subsection eId="section-85-2"><num>(2)</num><content><ref eId="c00073" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00074" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it fails to comply with <ref href="#section-85-1">subsection (1)</ref>.</content></subsection></section></hcontainer></chapter>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69"><num>69</num><heading>Governance and structure</heading><subsection eId="section-69-1"><num>(1)</num><intro>The responsible body of an operating superfund must ensure, so far as reasonably practicable, that the superfund has policies and procedures in place—</intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content>that allow for the superfund to be managed and administered effectively in the interests of members of the superfund scheme,</content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content>that ensure the superfund’s compliance with the requirements of <ref href="#part-3">this Part</ref> and any other legislation relating to pensions, and</content></level><level class="para1" eId="section-69-1-c"><num>(c)</num><content>that are proportionate to the scale and nature of the superfund’s activities.</content></level></subsection><subsection eId="section-69-2"><num>(2)</num><intro>Those policies and procedures must, in particular, address the following matters—</intro><level class="para1" eId="section-69-2-a"><num>(a)</num><content>how the responsible body, the other members of the superfund group, and the trustees of the superfund scheme are to interact with each other, and how any conflicts are to be resolved;</content></level><level class="para1" eId="section-69-2-b"><num>(b)</num><content>how investment decisions are to be taken in relation to the capital buffer and the superfund scheme;</content></level><level class="para1" eId="section-69-2-c"><num>(c)</num><content>the implications of receiving new superfund transfers;</content></level><level class="para1" eId="section-69-2-d"><num>(d)</num><content>the management of risks.</content></level></subsection><subsection eId="section-69-3"><num>(3)</num><intro>The responsible body of an operating superfund must ensure that the superfund meets any conditions specified in regulations made by the Secretary of State as to—</intro><level class="para1" eId="section-69-3-a"><num>(a)</num><content>the corporate form, jurisdiction of incorporation or jurisdiction of tax residence of a member of the superfund group;</content></level><level class="para1" eId="section-69-3-b"><num>(b)</num><content>the structure of the superfund group;</content></level><level class="para1" eId="section-69-3-c"><num>(c)</num><content>the terms of the capital buffer arrangement (including as to how, by whom, in what jurisdiction and on what terms the capital buffer may be held);</content></level><level class="para1" eId="section-69-3-d"><num>(d)</num><content>compliance with tax legislation.</content></level></subsection><subsection eId="section-69-4"><num>(4)</num><content><ref eId="c00040" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00041" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-69-1">subsection (1)</ref> or <ref href="#section-69-3">(3)</ref>.</content></subsection><subsection eId="section-69-5"><num>(5)</num><content>The Secretary of State may by regulations amend <ref href="#section-69">this section</ref> for the purpose of adding, removing or varying a matter which the policies and procedures mentioned in <ref href="#section-69-1">subsection (1)</ref> must address.</content></subsection><subsection eId="section-69-6"><num>(6)</num><content>Regulations under <ref href="#section-69-3">subsection (3)</ref> or <ref href="#section-69-5">(5)</ref> are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-1"><num>(1)</num><intro>The responsible body of an operating superfund must ensure, so far as reasonably practicable, that the superfund has policies and procedures in place—</intro><level class="para1" eId="section-69-1-a"><num>(a)</num><content>that allow for the superfund to be managed and administered effectively in the interests of members of the superfund scheme,</content></level><level class="para1" eId="section-69-1-b"><num>(b)</num><content>that ensure the superfund’s compliance with the requirements of <ref href="#part-3">this Part</ref> and any other legislation relating to pensions, and</content></level><level class="para1" eId="section-69-1-c"><num>(c)</num><content>that are proportionate to the scale and nature of the superfund’s activities.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-2"><num>(2)</num><intro>Those policies and procedures must, in particular, address the following matters—</intro><level class="para1" eId="section-69-2-a"><num>(a)</num><content>how the responsible body, the other members of the superfund group, and the trustees of the superfund scheme are to interact with each other, and how any conflicts are to be resolved;</content></level><level class="para1" eId="section-69-2-b"><num>(b)</num><content>how investment decisions are to be taken in relation to the capital buffer and the superfund scheme;</content></level><level class="para1" eId="section-69-2-c"><num>(c)</num><content>the implications of receiving new superfund transfers;</content></level><level class="para1" eId="section-69-2-d"><num>(d)</num><content>the management of risks.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-3"><num>(3)</num><intro>The responsible body of an operating superfund must ensure that the superfund meets any conditions specified in regulations made by the Secretary of State as to—</intro><level class="para1" eId="section-69-3-a"><num>(a)</num><content>the corporate form, jurisdiction of incorporation or jurisdiction of tax residence of a member of the superfund group;</content></level><level class="para1" eId="section-69-3-b"><num>(b)</num><content>the structure of the superfund group;</content></level><level class="para1" eId="section-69-3-c"><num>(c)</num><content>the terms of the capital buffer arrangement (including as to how, by whom, in what jurisdiction and on what terms the capital buffer may be held);</content></level><level class="para1" eId="section-69-3-d"><num>(d)</num><content>compliance with tax legislation.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-4"><num>(4)</num><content><ref eId="c00040" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00041" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-69-1">subsection (1)</ref> or <ref href="#section-69-3">(3)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-5"><num>(5)</num><content>The Secretary of State may by regulations amend <ref href="#section-69">this section</ref> for the purpose of adding, removing or varying a matter which the policies and procedures mentioned in <ref href="#section-69-1">subsection (1)</ref> must address.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-6"><num>(6)</num><content>Regulations under <ref href="#section-69-3">subsection (3)</ref> or <ref href="#section-69-5">(5)</ref> are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70"><num>70</num><heading>Management documents</heading><subsection eId="section-70-1"><num>(1)</num><intro>The responsible body of an operating superfund must ensure that each of the management documents—</intro><level class="para1" eId="section-70-1-a"><num>(a)</num><content>is prepared in relation to the superfund,</content></level><level class="para1" eId="section-70-1-b"><num>(b)</num><content>complies with any requirements as to form or content specified in regulations made by the Secretary of State, and</content></level><level class="para1" eId="section-70-1-c"><num>(c)</num><content>is kept under review and revised if appropriate.</content></level></subsection><subsection eId="section-70-2"><num>(2)</num><content>The responsible body of an operating superfund must ensure, so far as reasonably practicable, that the superfund is managed and administered in accordance with the management documents.</content></subsection><subsection eId="section-70-3"><num>(3)</num><intro>“<term refersTo="#term-the-management-documents" eId="term-the-management-documents">The management documents</term>” means—</intro><level class="para1" eId="section-70-3-a"><num>(a)</num><content>a business plan;</content></level><level class="para1" eId="section-70-3-b"><num>(b)</num><content>a governance manual;</content></level><level class="para1" eId="section-70-3-c"><num>(c)</num><content>a continuity strategy;</content></level><level class="para1" eId="section-70-3-d"><num>(d)</num><content>a fees and expenses policy.</content></level></subsection><subsection eId="section-70-4"><num>(4)</num><intro>In <ref href="#section-70-3">subsection (3)</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-continuity-strategy" eId="term-continuity-strategy">continuity strategy</term>” means a strategy for protecting the interests of members of the superfund scheme if an event of concern occurs;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fees-and-expenses-policy" eId="term-fees-and-expenses-policy">fees and expenses policy</term>” means a document setting out how fees and expenses incurred by the superfund will be funded;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-governance-manual" eId="term-governance-manual">governance manual</term>” means a document setting out how and by whom the superfund is managed and administered.</content></hcontainer></subsection><subsection eId="section-70-5"><num>(5)</num><content><ref eId="c00042" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00043" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-70-1">subsection (1)</ref> or <ref href="#section-70-2">(2)</ref>.</content></subsection><subsection eId="section-70-6"><num>(6)</num><content>The Secretary of State may by regulations amend <ref href="#section-70">this section</ref> for the purpose of adding, removing or varying a management document in <ref href="#section-70-3">subsection (3)</ref>.</content></subsection><subsection eId="section-70-7"><num>(7)</num><content>Regulations under <ref href="#section-70-1">subsection (1)</ref><ref href="#section-70-1-b">(b)</ref> are subject to the negative procedure.</content></subsection><subsection eId="section-70-8"><num>(8)</num><content>Regulations under <ref href="#section-70-6">subsection (6)</ref> are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-1"><num>(1)</num><intro>The responsible body of an operating superfund must ensure that each of the management documents—</intro><level class="para1" eId="section-70-1-a"><num>(a)</num><content>is prepared in relation to the superfund,</content></level><level class="para1" eId="section-70-1-b"><num>(b)</num><content>complies with any requirements as to form or content specified in regulations made by the Secretary of State, and</content></level><level class="para1" eId="section-70-1-c"><num>(c)</num><content>is kept under review and revised if appropriate.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-2"><num>(2)</num><content>The responsible body of an operating superfund must ensure, so far as reasonably practicable, that the superfund is managed and administered in accordance with the management documents.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-3"><num>(3)</num><intro>“<term refersTo="#term-the-management-documents" eId="term-the-management-documents">The management documents</term>” means—</intro><level class="para1" eId="section-70-3-a"><num>(a)</num><content>a business plan;</content></level><level class="para1" eId="section-70-3-b"><num>(b)</num><content>a governance manual;</content></level><level class="para1" eId="section-70-3-c"><num>(c)</num><content>a continuity strategy;</content></level><level class="para1" eId="section-70-3-d"><num>(d)</num><content>a fees and expenses policy.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-4"><num>(4)</num><intro>In <ref href="#section-70-3">subsection (3)</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-continuity-strategy" eId="term-continuity-strategy">continuity strategy</term>” means a strategy for protecting the interests of members of the superfund scheme if an event of concern occurs;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fees-and-expenses-policy" eId="term-fees-and-expenses-policy">fees and expenses policy</term>” means a document setting out how fees and expenses incurred by the superfund will be funded;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-governance-manual" eId="term-governance-manual">governance manual</term>” means a document setting out how and by whom the superfund is managed and administered.</content></hcontainer></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-5"><num>(5)</num><content><ref eId="c00042" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00043" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-70-1">subsection (1)</ref> or <ref href="#section-70-2">(2)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-6"><num>(6)</num><content>The Secretary of State may by regulations amend <ref href="#section-70">this section</ref> for the purpose of adding, removing or varying a management document in <ref href="#section-70-3">subsection (3)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-7"><num>(7)</num><content>Regulations under <ref href="#section-70-1">subsection (1)</ref><ref href="#section-70-1-b">(b)</ref> are subject to the negative procedure.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-8"><num>(8)</num><content>Regulations under <ref href="#section-70-6">subsection (6)</ref> are subject to the affirmative procedure.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-3-chapter-4-crossheading-funding-and-investment"><heading>Funding and investment</heading><section eId="section-71"><num>71</num><heading>Duty to monitor financial thresholds</heading><subsection eId="section-71-1"><num>(1)</num><content>The responsible body of an operating superfund must ensure that the superfund has adequate policies and procedures in place for monitoring whether each financial threshold is met.</content></subsection><subsection eId="section-71-2"><num>(2)</num><content><ref eId="c00044" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00045" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-71-1">subsection (1)</ref>.</content></subsection><subsection eId="section-71-3"><num>(3)</num><content>See also <ref href="#part-3-chapter-5">Chapter 5</ref> (events of concern) for the consequences of a financial threshold ceasing to be met.</content></subsection></section><section eId="section-72"><num>72</num><heading>“Financial thresholds”</heading><subsection eId="section-72-1"><num>(1)</num><intro>“<term refersTo="#term-the-financial-thresholds" eId="term-the-financial-thresholds">The financial thresholds</term>” means—</intro><level class="para1" eId="section-72-1-a"><num>(a)</num><content>the capital adequacy threshold,</content></level><level class="para1" eId="section-72-1-b"><num>(b)</num><content>the technical provisions threshold,</content></level><level class="para1" eId="section-72-1-c"><num>(c)</num><content>the protected liabilities threshold, and</content></level><level class="para1" eId="section-72-1-d"><num>(d)</num><content>the scheme solvency threshold.</content></level></subsection><subsection eId="section-72-2"><num>(2)</num><content>“The capital adequacy threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer is such that there is a very high likelihood that the liabilities of the scheme to and in respect of its members will be satisfied in full.</content></subsection><subsection eId="section-72-3"><num>(3)</num><content>“The technical provisions threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer is greater than or equal to the scheme’s technical provisions.</content></subsection><subsection eId="section-72-4"><num>(4)</num><content>“The protected liabilities threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer exceeds a specified percentage of the amount of the scheme’s protected liabilities.</content></subsection><subsection eId="section-72-5"><num>(5)</num><content>“The scheme solvency threshold” is met in relation to a superfund on a given day if there is no material likelihood that the scheme will fail to satisfy all the liabilities to and in respect of members that it is required to satisfy during the 6 months beginning with that day.</content></subsection><subsection eId="section-72-6"><num>(6)</num><intro>In <ref href="#section-72">this section</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-protected-liabilities" eId="term-protected-liabilities">protected liabilities</term>” has the same meaning as in <ref eId="c00046" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2/chapter/3">Chapter 3</ref> of <ref eId="c00047" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2">Part 2</ref> of the <ref eId="c00048" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (see section 131 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in regulations made by the Secretary of State;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-technical-provisions" eId="term-technical-provisions">technical provisions</term>” has the same meaning as in <ref eId="c00049" href="https://www.legislation.gov.uk/ukpga/2004/35/section/222">section 222</ref> of the <ref eId="c00050" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (and a superfund scheme’s technical provisions are to be calculated for the purposes of this section in the same way as its technical provisions would be calculated for the purposes of that section).</content></hcontainer></subsection><subsection eId="section-72-7"><num>(7)</num><intro>The Secretary of State may by regulations make provision about how to determine whether any of the financial thresholds is met, including about—</intro><level class="para1" eId="section-72-7-a"><num>(a)</num><content>how and by whom the value of the assets, liabilities or protected liabilities of the scheme, or the value of the capital buffer, is to be determined;</content></level><level class="para1" eId="section-72-7-b"><num>(b)</num><content>how and by whom the likelihood of something happening is to be assessed;</content></level><level class="para1" eId="section-72-7-c"><num>(c)</num><content>what constitutes a “very high” or “material” likelihood (including provision defining those expressions by reference to particular percentages or particular criteria).</content></level></subsection><subsection eId="section-72-8"><num>(8)</num><content>Regulations under <ref href="#section-72-7">subsection (7)</ref> may confer a discretion.</content></subsection><subsection eId="section-72-9"><num>(9)</num><content>Regulations under <ref href="#section-72-4">subsection (4)</ref> or <ref href="#section-72-7">(7)</ref> are subject to the affirmative procedure.</content></subsection></section><section eId="section-73"><num>73</num><heading>Capital buffer: compulsory release to trustees</heading><subsection eId="section-73-1"><num>(1)</num><intro>A person that is a party to the capital buffer arrangement in relation to an operating superfund must ensure, so far as it is in their power to do so, that the capital buffer arrangement requires the release of the capital buffer to the trustees of the superfund scheme if and to the extent that the release is required by—</intro><level class="para1" eId="section-73-1-a"><num>(a)</num><content>an approved response plan (see <ref href="#section-88">sections 88</ref> and <ref href="#section-89">89</ref>), or</content></level><level class="para1" eId="section-73-1-b"><num>(b)</num><content>a direction of the Regulator under <ref href="#section-90">section 90</ref> (direction-making powers following event of concern).</content></level></subsection><subsection eId="section-73-2"><num>(2)</num><intro>The capital buffer is “released” to the extent that it is transferred or made available to any person otherwise than—</intro><level class="para1" eId="section-73-2-a"><num>(a)</num><content>in the ordinary course of the investment of the capital buffer, or</content></level><level class="para1" eId="section-73-2-b"><num>(b)</num><content>in payment of fees, expenses, taxes or other charges incurred (in each case) in connection with the management or administration of the capital buffer.</content></level></subsection><subsection eId="section-73-3"><num>(3)</num><content><ref eId="c00051" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00052" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (civil penalties) applies to the person if they breach <ref href="#section-73-1">subsection (1)</ref>.</content></subsection></section><section eId="section-74"><num>74</num><heading>Capital buffer: permitted release to other persons</heading><subsection eId="section-74-1"><num>(1)</num><content>A person that is a party to the capital buffer arrangement in relation to an operating superfund must ensure, so far as it is in their power to do so, that the capital buffer arrangement does not permit the release of the capital buffer to a person other than the trustees of the superfund scheme except in accordance with <ref href="#section-74-2">subsection (2)</ref> or <ref href="#section-74-3">(3)</ref>.</content></subsection><subsection eId="section-74-2"><num>(2)</num><intro>The capital buffer arrangement may permit the release of the whole capital buffer if—</intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content>the superfund scheme has satisfied all of its liabilities to and in respect of its members, or</content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content>an insurer buyout has taken effect in relation to the superfund scheme.</content></level></subsection><subsection eId="section-74-3"><num>(3)</num><content>The capital buffer arrangement may permit the release of an amount of the capital buffer to the extent that the release is a permitted profit extraction.</content></subsection><subsection eId="section-74-4"><num>(4)</num><intro>“<term refersTo="#term-permitted-profit-extraction" eId="term-permitted-profit-extraction">Permitted profit extraction</term>”, in relation to a superfund, means a release of the capital buffer—</intro><level class="para1" eId="section-74-4-a"><num>(a)</num><content>that takes place at a time when the capital adequacy threshold is exceeded to an extent, and has been exceeded for a period of time, specified in regulations made by the Secretary of State,</content></level><level class="para1" eId="section-74-4-b"><num>(b)</num><content>that is made to a person of a description specified in the regulations, and</content></level><level class="para1" eId="section-74-4-c"><num>(c)</num><content>in relation to which any other requirements specified in the regulations are met (which may include a requirement for the Regulator’s consent),</content></level><wrapUp>and for the purposes of <ref href="#section-74-4-a">paragraph (a)</ref> the capital adequacy threshold is “exceeded” if and to the extent that the total value of the assets of the scheme and the capital buffer is greater than the amount required in order for that threshold to be met.</wrapUp></subsection><subsection eId="section-74-5"><num>(5)</num><intro>A person commits an offence if they cause or permit the capital buffer to be released (to any extent)—</intro><level class="para1" eId="section-74-5-a"><num>(a)</num><content>to a person other than the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-74-5-b"><num>(b)</num><content>otherwise than in accordance with the capital buffer arrangement.</content></level></subsection><subsection eId="section-74-6"><num>(6)</num><intro>A person guilty of an offence under <ref href="#section-74-5">subsection (5)</ref> is liable—</intro><level class="para1" eId="section-74-6-a"><num>(a)</num><content>on summary conviction in England and Wales, to a fine;</content></level><level class="para1" eId="section-74-6-b"><num>(b)</num><content>on summary conviction in Scotland, to a fine not exceeding the statutory maximum;</content></level><level class="para1" eId="section-74-6-c"><num>(c)</num><content>on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine or both.</content></level></subsection><subsection eId="section-74-7"><num>(7)</num><intro><ref eId="c00053" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00054" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (civil penalties) applies to a person who causes or permits the capital buffer to be released (to any extent)—</intro><level class="para1" eId="section-74-7-a"><num>(a)</num><content>to a person other than the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-74-7-b"><num>(b)</num><content>otherwise than in accordance with the capital buffer arrangement</content></level><wrapUp>(but see subsection (10) of that section, which prevents a penalty from being imposed in respect of an act where the person has been convicted of an offence in respect of the same act, or where proceedings for such an offence are ongoing).</wrapUp></subsection><subsection eId="section-74-8"><num>(8)</num><content><ref eId="c00055" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00056" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to a person who breaches <ref href="#section-74-1">subsection (1)</ref>.</content></subsection><subsection eId="section-74-9"><num>(9)</num><content>Regulations under <ref href="#section-74-4">subsection (4)</ref> are subject to the affirmative procedure.</content></subsection></section><section eId="section-75"><num>75</num><heading>Capital buffer: investment</heading><subsection eId="section-75-1"><num>(1)</num><content>The responsible body of an operating superfund must ensure that this section is complied with.</content></subsection><subsection eId="section-75-2"><num>(2)</num><content>The capital buffer must be invested in accordance with a strategy prepared by or under the supervision of the responsible body (“the capital buffer investment strategy”).</content></subsection><subsection eId="section-75-3"><num>(3)</num><content>The capital buffer investment strategy must comply with any requirements specified in regulations made by the Secretary of State.</content></subsection><subsection eId="section-75-4"><num>(4)</num><intro>The requirements that may be specified by virtue of subsection <ref href="#section-75-3">(3)</ref> include requirements as to—</intro><level class="para1" eId="section-75-4-a"><num>(a)</num><content>the principles to be followed, and the matters to be taken into account, in investing the capital buffer;</content></level><level class="para1" eId="section-75-4-b"><num>(b)</num><content>the form and content of the capital buffer investment strategy.</content></level></subsection><subsection eId="section-75-5"><num>(5)</num><content>The capital buffer investment strategy may not be materially altered except with the agreement of the trustees of the superfund scheme.</content></subsection><subsection eId="section-75-6"><num>(6)</num><content>The Secretary of State may by regulations make provision about what counts as a “material” alteration for the purposes of subsection (5).</content></subsection><subsection eId="section-75-7"><num>(7)</num><content><ref eId="c00057" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00058" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-75-1">subsection (1)</ref>.</content></subsection><subsection eId="section-75-8"><num>(8)</num><content>Regulations under <ref href="#section-75-3">subsection (3)</ref> are subject to the affirmative procedure.</content></subsection><subsection eId="section-75-9"><num>(9)</num><content>Regulations under <ref href="#section-75-6">subsection (6)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-76"><num>76</num><heading>Capital buffer: verification of valuations</heading><subsection eId="section-76-1"><num>(1)</num><content>The responsible body of an operating superfund must appoint a person to be responsible for verifying valuations of the capital buffer that are carried out by or on behalf of the responsible body.</content></subsection><subsection eId="section-76-2"><num>(2)</num><content>The responsible body must ensure that the person appointed verifies such a valuation at least once in every period of 12 months.</content></subsection><subsection eId="section-76-3"><num>(3)</num><intro>The responsible body must also ensure that the person appointed verifies such a valuation—</intro><level class="para1" eId="section-76-3-a"><num>(a)</num><content>if asked to do so by the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-76-3-b"><num>(b)</num><content>where otherwise required by virtue of this Part.</content></level></subsection><subsection eId="section-76-4"><num>(4)</num><intro>The person appointed—</intro><level class="para1" eId="section-76-4-a"><num>(a)</num><content>must not be employed by, or involved in the management or administration of, a member of the superfund group, and</content></level><level class="para1" eId="section-76-4-b"><num>(b)</num><content>must be a person who, in the reasonable opinion of the responsible body, has the appropriate qualifications and experience.</content></level></subsection><subsection eId="section-76-5"><num>(5)</num><content>A person may not be appointed without the consent of the trustees of the superfund scheme.</content></subsection><subsection eId="section-76-6"><num>(6)</num><content><ref eId="c00059" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00060" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches this section.</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-71"><num>71</num><heading>Duty to monitor financial thresholds</heading><subsection eId="section-71-1"><num>(1)</num><content>The responsible body of an operating superfund must ensure that the superfund has adequate policies and procedures in place for monitoring whether each financial threshold is met.</content></subsection><subsection eId="section-71-2"><num>(2)</num><content><ref eId="c00044" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00045" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-71-1">subsection (1)</ref>.</content></subsection><subsection eId="section-71-3"><num>(3)</num><content>See also <ref href="#part-3-chapter-5">Chapter 5</ref> (events of concern) for the consequences of a financial threshold ceasing to be met.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72"><num>72</num><heading>“Financial thresholds”</heading><subsection eId="section-72-1"><num>(1)</num><intro>“<term refersTo="#term-the-financial-thresholds" eId="term-the-financial-thresholds">The financial thresholds</term>” means—</intro><level class="para1" eId="section-72-1-a"><num>(a)</num><content>the capital adequacy threshold,</content></level><level class="para1" eId="section-72-1-b"><num>(b)</num><content>the technical provisions threshold,</content></level><level class="para1" eId="section-72-1-c"><num>(c)</num><content>the protected liabilities threshold, and</content></level><level class="para1" eId="section-72-1-d"><num>(d)</num><content>the scheme solvency threshold.</content></level></subsection><subsection eId="section-72-2"><num>(2)</num><content>“The capital adequacy threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer is such that there is a very high likelihood that the liabilities of the scheme to and in respect of its members will be satisfied in full.</content></subsection><subsection eId="section-72-3"><num>(3)</num><content>“The technical provisions threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer is greater than or equal to the scheme’s technical provisions.</content></subsection><subsection eId="section-72-4"><num>(4)</num><content>“The protected liabilities threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer exceeds a specified percentage of the amount of the scheme’s protected liabilities.</content></subsection><subsection eId="section-72-5"><num>(5)</num><content>“The scheme solvency threshold” is met in relation to a superfund on a given day if there is no material likelihood that the scheme will fail to satisfy all the liabilities to and in respect of members that it is required to satisfy during the 6 months beginning with that day.</content></subsection><subsection eId="section-72-6"><num>(6)</num><intro>In <ref href="#section-72">this section</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-protected-liabilities" eId="term-protected-liabilities">protected liabilities</term>” has the same meaning as in <ref eId="c00046" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2/chapter/3">Chapter 3</ref> of <ref eId="c00047" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2">Part 2</ref> of the <ref eId="c00048" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (see section 131 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in regulations made by the Secretary of State;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-technical-provisions" eId="term-technical-provisions">technical provisions</term>” has the same meaning as in <ref eId="c00049" href="https://www.legislation.gov.uk/ukpga/2004/35/section/222">section 222</ref> of the <ref eId="c00050" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (and a superfund scheme’s technical provisions are to be calculated for the purposes of this section in the same way as its technical provisions would be calculated for the purposes of that section).</content></hcontainer></subsection><subsection eId="section-72-7"><num>(7)</num><intro>The Secretary of State may by regulations make provision about how to determine whether any of the financial thresholds is met, including about—</intro><level class="para1" eId="section-72-7-a"><num>(a)</num><content>how and by whom the value of the assets, liabilities or protected liabilities of the scheme, or the value of the capital buffer, is to be determined;</content></level><level class="para1" eId="section-72-7-b"><num>(b)</num><content>how and by whom the likelihood of something happening is to be assessed;</content></level><level class="para1" eId="section-72-7-c"><num>(c)</num><content>what constitutes a “very high” or “material” likelihood (including provision defining those expressions by reference to particular percentages or particular criteria).</content></level></subsection><subsection eId="section-72-8"><num>(8)</num><content>Regulations under <ref href="#section-72-7">subsection (7)</ref> may confer a discretion.</content></subsection><subsection eId="section-72-9"><num>(9)</num><content>Regulations under <ref href="#section-72-4">subsection (4)</ref> or <ref href="#section-72-7">(7)</ref> are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-1"><num>(1)</num><intro>“<term refersTo="#term-the-financial-thresholds" eId="term-the-financial-thresholds">The financial thresholds</term>” means—</intro><level class="para1" eId="section-72-1-a"><num>(a)</num><content>the capital adequacy threshold,</content></level><level class="para1" eId="section-72-1-b"><num>(b)</num><content>the technical provisions threshold,</content></level><level class="para1" eId="section-72-1-c"><num>(c)</num><content>the protected liabilities threshold, and</content></level><level class="para1" eId="section-72-1-d"><num>(d)</num><content>the scheme solvency threshold.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-2"><num>(2)</num><content>“The capital adequacy threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer is such that there is a very high likelihood that the liabilities of the scheme to and in respect of its members will be satisfied in full.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-3"><num>(3)</num><content>“The technical provisions threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer is greater than or equal to the scheme’s technical provisions.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-4"><num>(4)</num><content>“The protected liabilities threshold” is met in relation to a superfund if the total value of the assets of the scheme and the capital buffer exceeds a specified percentage of the amount of the scheme’s protected liabilities.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-5"><num>(5)</num><content>“The scheme solvency threshold” is met in relation to a superfund on a given day if there is no material likelihood that the scheme will fail to satisfy all the liabilities to and in respect of members that it is required to satisfy during the 6 months beginning with that day.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-6"><num>(6)</num><intro>In <ref href="#section-72">this section</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-protected-liabilities" eId="term-protected-liabilities">protected liabilities</term>” has the same meaning as in <ref eId="c00046" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2/chapter/3">Chapter 3</ref> of <ref eId="c00047" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2">Part 2</ref> of the <ref eId="c00048" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (see section 131 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in regulations made by the Secretary of State;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-technical-provisions" eId="term-technical-provisions">technical provisions</term>” has the same meaning as in <ref eId="c00049" href="https://www.legislation.gov.uk/ukpga/2004/35/section/222">section 222</ref> of the <ref eId="c00050" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (and a superfund scheme’s technical provisions are to be calculated for the purposes of this section in the same way as its technical provisions would be calculated for the purposes of that section).</content></hcontainer></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-7"><num>(7)</num><intro>The Secretary of State may by regulations make provision about how to determine whether any of the financial thresholds is met, including about—</intro><level class="para1" eId="section-72-7-a"><num>(a)</num><content>how and by whom the value of the assets, liabilities or protected liabilities of the scheme, or the value of the capital buffer, is to be determined;</content></level><level class="para1" eId="section-72-7-b"><num>(b)</num><content>how and by whom the likelihood of something happening is to be assessed;</content></level><level class="para1" eId="section-72-7-c"><num>(c)</num><content>what constitutes a “very high” or “material” likelihood (including provision defining those expressions by reference to particular percentages or particular criteria).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-8"><num>(8)</num><content>Regulations under <ref href="#section-72-7">subsection (7)</ref> may confer a discretion.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72-9"><num>(9)</num><content>Regulations under <ref href="#section-72-4">subsection (4)</ref> or <ref href="#section-72-7">(7)</ref> are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73"><num>73</num><heading>Capital buffer: compulsory release to trustees</heading><subsection eId="section-73-1"><num>(1)</num><intro>A person that is a party to the capital buffer arrangement in relation to an operating superfund must ensure, so far as it is in their power to do so, that the capital buffer arrangement requires the release of the capital buffer to the trustees of the superfund scheme if and to the extent that the release is required by—</intro><level class="para1" eId="section-73-1-a"><num>(a)</num><content>an approved response plan (see <ref href="#section-88">sections 88</ref> and <ref href="#section-89">89</ref>), or</content></level><level class="para1" eId="section-73-1-b"><num>(b)</num><content>a direction of the Regulator under <ref href="#section-90">section 90</ref> (direction-making powers following event of concern).</content></level></subsection><subsection eId="section-73-2"><num>(2)</num><intro>The capital buffer is “released” to the extent that it is transferred or made available to any person otherwise than—</intro><level class="para1" eId="section-73-2-a"><num>(a)</num><content>in the ordinary course of the investment of the capital buffer, or</content></level><level class="para1" eId="section-73-2-b"><num>(b)</num><content>in payment of fees, expenses, taxes or other charges incurred (in each case) in connection with the management or administration of the capital buffer.</content></level></subsection><subsection eId="section-73-3"><num>(3)</num><content><ref eId="c00051" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00052" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (civil penalties) applies to the person if they breach <ref href="#section-73-1">subsection (1)</ref>.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-1"><num>(1)</num><intro>A person that is a party to the capital buffer arrangement in relation to an operating superfund must ensure, so far as it is in their power to do so, that the capital buffer arrangement requires the release of the capital buffer to the trustees of the superfund scheme if and to the extent that the release is required by—</intro><level class="para1" eId="section-73-1-a"><num>(a)</num><content>an approved response plan (see <ref href="#section-88">sections 88</ref> and <ref href="#section-89">89</ref>), or</content></level><level class="para1" eId="section-73-1-b"><num>(b)</num><content>a direction of the Regulator under <ref href="#section-90">section 90</ref> (direction-making powers following event of concern).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-2"><num>(2)</num><intro>The capital buffer is “released” to the extent that it is transferred or made available to any person otherwise than—</intro><level class="para1" eId="section-73-2-a"><num>(a)</num><content>in the ordinary course of the investment of the capital buffer, or</content></level><level class="para1" eId="section-73-2-b"><num>(b)</num><content>in payment of fees, expenses, taxes or other charges incurred (in each case) in connection with the management or administration of the capital buffer.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-3"><num>(3)</num><content><ref eId="c00051" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00052" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (civil penalties) applies to the person if they breach <ref href="#section-73-1">subsection (1)</ref>.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74"><num>74</num><heading>Capital buffer: permitted release to other persons</heading><subsection eId="section-74-1"><num>(1)</num><content>A person that is a party to the capital buffer arrangement in relation to an operating superfund must ensure, so far as it is in their power to do so, that the capital buffer arrangement does not permit the release of the capital buffer to a person other than the trustees of the superfund scheme except in accordance with <ref href="#section-74-2">subsection (2)</ref> or <ref href="#section-74-3">(3)</ref>.</content></subsection><subsection eId="section-74-2"><num>(2)</num><intro>The capital buffer arrangement may permit the release of the whole capital buffer if—</intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content>the superfund scheme has satisfied all of its liabilities to and in respect of its members, or</content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content>an insurer buyout has taken effect in relation to the superfund scheme.</content></level></subsection><subsection eId="section-74-3"><num>(3)</num><content>The capital buffer arrangement may permit the release of an amount of the capital buffer to the extent that the release is a permitted profit extraction.</content></subsection><subsection eId="section-74-4"><num>(4)</num><intro>“<term refersTo="#term-permitted-profit-extraction" eId="term-permitted-profit-extraction">Permitted profit extraction</term>”, in relation to a superfund, means a release of the capital buffer—</intro><level class="para1" eId="section-74-4-a"><num>(a)</num><content>that takes place at a time when the capital adequacy threshold is exceeded to an extent, and has been exceeded for a period of time, specified in regulations made by the Secretary of State,</content></level><level class="para1" eId="section-74-4-b"><num>(b)</num><content>that is made to a person of a description specified in the regulations, and</content></level><level class="para1" eId="section-74-4-c"><num>(c)</num><content>in relation to which any other requirements specified in the regulations are met (which may include a requirement for the Regulator’s consent),</content></level><wrapUp>and for the purposes of <ref href="#section-74-4-a">paragraph (a)</ref> the capital adequacy threshold is “exceeded” if and to the extent that the total value of the assets of the scheme and the capital buffer is greater than the amount required in order for that threshold to be met.</wrapUp></subsection><subsection eId="section-74-5"><num>(5)</num><intro>A person commits an offence if they cause or permit the capital buffer to be released (to any extent)—</intro><level class="para1" eId="section-74-5-a"><num>(a)</num><content>to a person other than the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-74-5-b"><num>(b)</num><content>otherwise than in accordance with the capital buffer arrangement.</content></level></subsection><subsection eId="section-74-6"><num>(6)</num><intro>A person guilty of an offence under <ref href="#section-74-5">subsection (5)</ref> is liable—</intro><level class="para1" eId="section-74-6-a"><num>(a)</num><content>on summary conviction in England and Wales, to a fine;</content></level><level class="para1" eId="section-74-6-b"><num>(b)</num><content>on summary conviction in Scotland, to a fine not exceeding the statutory maximum;</content></level><level class="para1" eId="section-74-6-c"><num>(c)</num><content>on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine or both.</content></level></subsection><subsection eId="section-74-7"><num>(7)</num><intro><ref eId="c00053" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00054" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (civil penalties) applies to a person who causes or permits the capital buffer to be released (to any extent)—</intro><level class="para1" eId="section-74-7-a"><num>(a)</num><content>to a person other than the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-74-7-b"><num>(b)</num><content>otherwise than in accordance with the capital buffer arrangement</content></level><wrapUp>(but see subsection (10) of that section, which prevents a penalty from being imposed in respect of an act where the person has been convicted of an offence in respect of the same act, or where proceedings for such an offence are ongoing).</wrapUp></subsection><subsection eId="section-74-8"><num>(8)</num><content><ref eId="c00055" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00056" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to a person who breaches <ref href="#section-74-1">subsection (1)</ref>.</content></subsection><subsection eId="section-74-9"><num>(9)</num><content>Regulations under <ref href="#section-74-4">subsection (4)</ref> are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-1"><num>(1)</num><content>A person that is a party to the capital buffer arrangement in relation to an operating superfund must ensure, so far as it is in their power to do so, that the capital buffer arrangement does not permit the release of the capital buffer to a person other than the trustees of the superfund scheme except in accordance with <ref href="#section-74-2">subsection (2)</ref> or <ref href="#section-74-3">(3)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-2"><num>(2)</num><intro>The capital buffer arrangement may permit the release of the whole capital buffer if—</intro><level class="para1" eId="section-74-2-a"><num>(a)</num><content>the superfund scheme has satisfied all of its liabilities to and in respect of its members, or</content></level><level class="para1" eId="section-74-2-b"><num>(b)</num><content>an insurer buyout has taken effect in relation to the superfund scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-3"><num>(3)</num><content>The capital buffer arrangement may permit the release of an amount of the capital buffer to the extent that the release is a permitted profit extraction.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-4"><num>(4)</num><intro>“<term refersTo="#term-permitted-profit-extraction" eId="term-permitted-profit-extraction">Permitted profit extraction</term>”, in relation to a superfund, means a release of the capital buffer—</intro><level class="para1" eId="section-74-4-a"><num>(a)</num><content>that takes place at a time when the capital adequacy threshold is exceeded to an extent, and has been exceeded for a period of time, specified in regulations made by the Secretary of State,</content></level><level class="para1" eId="section-74-4-b"><num>(b)</num><content>that is made to a person of a description specified in the regulations, and</content></level><level class="para1" eId="section-74-4-c"><num>(c)</num><content>in relation to which any other requirements specified in the regulations are met (which may include a requirement for the Regulator’s consent),</content></level><wrapUp>and for the purposes of <ref href="#section-74-4-a">paragraph (a)</ref> the capital adequacy threshold is “exceeded” if and to the extent that the total value of the assets of the scheme and the capital buffer is greater than the amount required in order for that threshold to be met.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-5"><num>(5)</num><intro>A person commits an offence if they cause or permit the capital buffer to be released (to any extent)—</intro><level class="para1" eId="section-74-5-a"><num>(a)</num><content>to a person other than the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-74-5-b"><num>(b)</num><content>otherwise than in accordance with the capital buffer arrangement.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-6"><num>(6)</num><intro>A person guilty of an offence under <ref href="#section-74-5">subsection (5)</ref> is liable—</intro><level class="para1" eId="section-74-6-a"><num>(a)</num><content>on summary conviction in England and Wales, to a fine;</content></level><level class="para1" eId="section-74-6-b"><num>(b)</num><content>on summary conviction in Scotland, to a fine not exceeding the statutory maximum;</content></level><level class="para1" eId="section-74-6-c"><num>(c)</num><content>on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine or both.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-7"><num>(7)</num><intro><ref eId="c00053" href="https://www.legislation.gov.uk/ukpga/2004/35/section/88A">Section 88A</ref> of the <ref eId="c00054" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (civil penalties) applies to a person who causes or permits the capital buffer to be released (to any extent)—</intro><level class="para1" eId="section-74-7-a"><num>(a)</num><content>to a person other than the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-74-7-b"><num>(b)</num><content>otherwise than in accordance with the capital buffer arrangement</content></level><wrapUp>(but see subsection (10) of that section, which prevents a penalty from being imposed in respect of an act where the person has been convicted of an offence in respect of the same act, or where proceedings for such an offence are ongoing).</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-8"><num>(8)</num><content><ref eId="c00055" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00056" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to a person who breaches <ref href="#section-74-1">subsection (1)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-9"><num>(9)</num><content>Regulations under <ref href="#section-74-4">subsection (4)</ref> are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75"><num>75</num><heading>Capital buffer: investment</heading><subsection eId="section-75-1"><num>(1)</num><content>The responsible body of an operating superfund must ensure that this section is complied with.</content></subsection><subsection eId="section-75-2"><num>(2)</num><content>The capital buffer must be invested in accordance with a strategy prepared by or under the supervision of the responsible body (“the capital buffer investment strategy”).</content></subsection><subsection eId="section-75-3"><num>(3)</num><content>The capital buffer investment strategy must comply with any requirements specified in regulations made by the Secretary of State.</content></subsection><subsection eId="section-75-4"><num>(4)</num><intro>The requirements that may be specified by virtue of subsection <ref href="#section-75-3">(3)</ref> include requirements as to—</intro><level class="para1" eId="section-75-4-a"><num>(a)</num><content>the principles to be followed, and the matters to be taken into account, in investing the capital buffer;</content></level><level class="para1" eId="section-75-4-b"><num>(b)</num><content>the form and content of the capital buffer investment strategy.</content></level></subsection><subsection eId="section-75-5"><num>(5)</num><content>The capital buffer investment strategy may not be materially altered except with the agreement of the trustees of the superfund scheme.</content></subsection><subsection eId="section-75-6"><num>(6)</num><content>The Secretary of State may by regulations make provision about what counts as a “material” alteration for the purposes of subsection (5).</content></subsection><subsection eId="section-75-7"><num>(7)</num><content><ref eId="c00057" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00058" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-75-1">subsection (1)</ref>.</content></subsection><subsection eId="section-75-8"><num>(8)</num><content>Regulations under <ref href="#section-75-3">subsection (3)</ref> are subject to the affirmative procedure.</content></subsection><subsection eId="section-75-9"><num>(9)</num><content>Regulations under <ref href="#section-75-6">subsection (6)</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-1"><num>(1)</num><content>The responsible body of an operating superfund must ensure that this section is complied with.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-2"><num>(2)</num><content>The capital buffer must be invested in accordance with a strategy prepared by or under the supervision of the responsible body (“the capital buffer investment strategy”).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-3"><num>(3)</num><content>The capital buffer investment strategy must comply with any requirements specified in regulations made by the Secretary of State.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-4"><num>(4)</num><intro>The requirements that may be specified by virtue of subsection <ref href="#section-75-3">(3)</ref> include requirements as to—</intro><level class="para1" eId="section-75-4-a"><num>(a)</num><content>the principles to be followed, and the matters to be taken into account, in investing the capital buffer;</content></level><level class="para1" eId="section-75-4-b"><num>(b)</num><content>the form and content of the capital buffer investment strategy.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-5"><num>(5)</num><content>The capital buffer investment strategy may not be materially altered except with the agreement of the trustees of the superfund scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-6"><num>(6)</num><content>The Secretary of State may by regulations make provision about what counts as a “material” alteration for the purposes of subsection (5).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-7"><num>(7)</num><content><ref eId="c00057" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00058" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-75-1">subsection (1)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-8"><num>(8)</num><content>Regulations under <ref href="#section-75-3">subsection (3)</ref> are subject to the affirmative procedure.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-9"><num>(9)</num><content>Regulations under <ref href="#section-75-6">subsection (6)</ref> are subject to the negative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76"><num>76</num><heading>Capital buffer: verification of valuations</heading><subsection eId="section-76-1"><num>(1)</num><content>The responsible body of an operating superfund must appoint a person to be responsible for verifying valuations of the capital buffer that are carried out by or on behalf of the responsible body.</content></subsection><subsection eId="section-76-2"><num>(2)</num><content>The responsible body must ensure that the person appointed verifies such a valuation at least once in every period of 12 months.</content></subsection><subsection eId="section-76-3"><num>(3)</num><intro>The responsible body must also ensure that the person appointed verifies such a valuation—</intro><level class="para1" eId="section-76-3-a"><num>(a)</num><content>if asked to do so by the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-76-3-b"><num>(b)</num><content>where otherwise required by virtue of this Part.</content></level></subsection><subsection eId="section-76-4"><num>(4)</num><intro>The person appointed—</intro><level class="para1" eId="section-76-4-a"><num>(a)</num><content>must not be employed by, or involved in the management or administration of, a member of the superfund group, and</content></level><level class="para1" eId="section-76-4-b"><num>(b)</num><content>must be a person who, in the reasonable opinion of the responsible body, has the appropriate qualifications and experience.</content></level></subsection><subsection eId="section-76-5"><num>(5)</num><content>A person may not be appointed without the consent of the trustees of the superfund scheme.</content></subsection><subsection eId="section-76-6"><num>(6)</num><content><ref eId="c00059" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00060" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches this section.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-1"><num>(1)</num><content>The responsible body of an operating superfund must appoint a person to be responsible for verifying valuations of the capital buffer that are carried out by or on behalf of the responsible body.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-2"><num>(2)</num><content>The responsible body must ensure that the person appointed verifies such a valuation at least once in every period of 12 months.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-3"><num>(3)</num><intro>The responsible body must also ensure that the person appointed verifies such a valuation—</intro><level class="para1" eId="section-76-3-a"><num>(a)</num><content>if asked to do so by the trustees of the superfund scheme, and</content></level><level class="para1" eId="section-76-3-b"><num>(b)</num><content>where otherwise required by virtue of this Part.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-4"><num>(4)</num><intro>The person appointed—</intro><level class="para1" eId="section-76-4-a"><num>(a)</num><content>must not be employed by, or involved in the management or administration of, a member of the superfund group, and</content></level><level class="para1" eId="section-76-4-b"><num>(b)</num><content>must be a person who, in the reasonable opinion of the responsible body, has the appropriate qualifications and experience.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-5"><num>(5)</num><content>A person may not be appointed without the consent of the trustees of the superfund scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-6"><num>(6)</num><content><ref eId="c00059" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00060" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches this section.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-3-chapter-4-crossheading-approval-and-certification-of-key-personnel"><heading>Approval and certification of key personnel</heading><section eId="section-77"><num>77</num><heading>Key functions</heading><subsection eId="section-77-1"><num>(1)</num><content>The responsible body of an operating superfund must ensure that there is at all times at least one individual responsible for each key function.</content></subsection><subsection eId="section-77-2"><num>(2)</num><intro>Each of the following activities is a “<term refersTo="#term-key-function" eId="term-key-function">key function</term>” in relation to a superfund—</intro><level class="para1" eId="section-77-2-a"><num>(a)</num><content>taking management decisions;</content></level><level class="para1" eId="section-77-2-b"><num>(b)</num><content>taking financial decisions;</content></level><level class="para1" eId="section-77-2-c"><num>(c)</num><content>taking investment decisions;</content></level><level class="para1" eId="section-77-2-d"><num>(d)</num><content>risk management;</content></level><level class="para1" eId="section-77-2-e"><num>(e)</num><content>internal audit;</content></level><level class="para1" eId="section-77-2-f"><num>(f)</num><content>marketing and promotion.</content></level></subsection><subsection eId="section-77-3"><num>(3)</num><content>An activity is not a key function so far as it relates only to the superfund scheme and not to any other part of the superfund.</content></subsection><subsection eId="section-77-4"><num>(4)</num><content><ref eId="c00061" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00062" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches this section.</content></subsection><subsection eId="section-77-5"><num>(5)</num><content>The Secretary of State may by regulations amend <ref href="#section-77">this section</ref> for the purpose of adding, removing or varying a key function in <ref href="#section-77-2">subsection (2)</ref>.</content></subsection><subsection eId="section-77-6"><num>(6)</num><content>Regulations under <ref href="#section-77-5">subsection (5)</ref> are subject to the affirmative procedure.</content></subsection></section><section eId="section-78"><num>78</num><heading>Approval of individuals responsible for key functions</heading><subsection eId="section-78-1"><num>(1)</num><content>An individual may not be responsible for a key function in relation to an operating superfund unless they are approved by the Regulator to be responsible for that key function in relation to the superfund.</content></subsection><subsection eId="section-78-2"><num>(2)</num><content>The Regulator may approve an individual only if satisfied that they are a fit and proper person to be responsible for that key function in relation to the superfund.</content></subsection><subsection eId="section-78-3"><num>(3)</num><content>In deciding whether it is so satisfied the Regulator must take into account, in particular, any matters specified in regulations made by the Secretary of State.</content></subsection><subsection eId="section-78-4"><num>(4)</num><content>The Regulator may not approve an individual to be responsible for risk management if the individual is already responsible for taking investment decisions, and vice versa.</content></subsection><subsection eId="section-78-5"><num>(5)</num><content>An application for approval must be made in the manner and form specified by the Regulator.</content></subsection><subsection eId="section-78-6"><num>(6)</num><content>Approval may be given for a specified period or subject to specified conditions (in which case the person is only approved to be responsible for the key function in question for that period or while those conditions are met).</content></subsection><subsection eId="section-78-7"><num>(7)</num><content>Approval may be given in advance of the superfund being authorised or becoming an operating superfund.</content></subsection><subsection eId="section-78-8"><num>(8)</num><intro>If no longer satisfied as described in <ref href="#section-78-2">subsection (2)</ref> in relation to an individual, the Regulator may by notice to the responsible body—</intro><level class="para1" eId="section-78-8-a"><num>(a)</num><content>suspend its approval in relation to the individual for a period specified in the notice, or</content></level><level class="para1" eId="section-78-8-b"><num>(b)</num><content>revoke its approval in relation to the individual with effect from a date specified in the notice.</content></level></subsection><subsection eId="section-78-9"><num>(9)</num><intro><ref href="#section-78-1">Subsection (1)</ref> does not apply to an individual while—</intro><level class="para1" eId="section-78-9-a"><num>(a)</num><content>they are responsible for a key function on a temporary basis, and</content></level><level class="para1" eId="section-78-9-b"><num>(b)</num><content>the Regulator agrees, in light of the particular circumstances of the case, to the person’s being responsible for the key function on that basis without approval.</content></level></subsection><subsection eId="section-78-10"><num>(10)</num><intro>If an individual is responsible for a key function in relation to an operating superfund in breach of <ref href="#section-78-1">subsection (1)</ref>, <ref eId="c00063" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">section 10</ref> of the <ref eId="c00064" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to—</intro><level class="para1" eId="section-78-10-a"><num>(a)</num><content>the individual, and</content></level><level class="para1" eId="section-78-10-b"><num>(b)</num><content>the responsible body.</content></level></subsection><subsection eId="section-78-11"><num>(11)</num><content>Regulations under <ref href="#section-78-3">subsection (3)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-79"><num>79</num><heading>Certification of staff supporting individuals responsible for key functions</heading><subsection eId="section-79-1"><num>(1)</num><intro>The responsible body of an operating superfund must ensure, so far as reasonably practicable, that no individual carries out a key function in relation to the superfund unless the responsible body—</intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content>is satisfied, having conducted due diligence in relation to the individual, that the individual is a fit and proper person to carry out the key function, and</content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content>has issued a certificate to the individual confirming that it is so satisfied.</content></level></subsection><subsection eId="section-79-2"><num>(2)</num><content>The responsible body must keep a register of certificates issued under <ref href="#section-79-1">subsection (1)</ref>.</content></subsection><subsection eId="section-79-3"><num>(3)</num><content>In deciding whether it is satisfied as described in subsection (1)(a), the responsible body must take into account, in particular, any matters specified in regulations made by the Secretary of State.</content></subsection><subsection eId="section-79-4"><num>(4)</num><content>The Secretary of State may by regulations make provision about certificates issued under <ref href="#section-79-1">subsection (1)</ref>, including about the period of time for which a certificate is valid.</content></subsection><subsection eId="section-79-5"><num>(5)</num><content><ref eId="c00065" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00066" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-79-1">subsection (1)</ref>.</content></subsection><subsection eId="section-79-6"><num>(6)</num><content>Regulations under subsection <ref href="#section-79-3">(3)</ref> or <ref href="#section-79-4">(4)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-80"><num>80</num><heading>Approval of superfund scheme trustees</heading><subsection eId="section-80-1"><num>(1)</num><content>A person may not be a trustee of an operating superfund scheme unless they are approved by the Regulator to be a trustee of the scheme.</content></subsection><subsection eId="section-80-2"><num>(2)</num><content>The Regulator may approve a person to be a trustee of a superfund scheme only if satisfied they are a fit and proper person to be a trustee of the scheme.</content></subsection><subsection eId="section-80-3"><num>(3)</num><content>In assessing whether a person is a fit and proper person, the Regulator must take into account, in particular, any matters specified in regulations made by the Secretary of State.</content></subsection><subsection eId="section-80-4"><num>(4)</num><content>The Regulator may not approve a person to be a trustee of a superfund scheme if the person is employed by, or involved in the management or administration of, a member of the superfund group.</content></subsection><subsection eId="section-80-5"><num>(5)</num><content>An application for approval must be made in the manner and form specified by the Regulator.</content></subsection><subsection eId="section-80-6"><num>(6)</num><content>Approval may be given for a specified period or subject to specified conditions (in which case the person is approved to be a trustee only for that period or only while those conditions are met).</content></subsection><subsection eId="section-80-7"><num>(7)</num><content>Approval may be given in advance of the superfund being authorised or becoming an operating superfund.</content></subsection><subsection eId="section-80-8"><num>(8)</num><intro>If no longer satisfied as described in <ref href="#section-80-2">subsection (2)</ref> in relation to a person, the Regulator may by notice to the person—</intro><level class="para1" eId="section-80-8-a"><num>(a)</num><content>suspend its approval in relation to the person for a period specified in the notice, or</content></level><level class="para1" eId="section-80-8-b"><num>(b)</num><content>revoke its approval in relation to the person with effect from a date specified in the notice.</content></level></subsection><subsection eId="section-80-9"><num>(9)</num><intro><ref href="#section-78-1">Subsection (1)</ref> does not apply to a person while—</intro><level class="para1" eId="section-80-9-a"><num>(a)</num><content>they serve as a trustee of a superfund scheme on a temporary basis, and</content></level><level class="para1" eId="section-80-9-b"><num>(b)</num><content>the Regulator agrees, in light of the particular circumstances of the case, to their being a trustee on that basis without approval.</content></level></subsection><subsection eId="section-80-10"><num>(10)</num><intro>If a person becomes a trustee of an operating superfund scheme in breach of <ref href="#section-80-1">subsection (1)</ref>, <ref eId="c00067" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">section 10</ref> of the <ref eId="c00068" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> applies to—</intro><level class="para1" eId="section-80-10-a"><num>(a)</num><content>the person, and</content></level><level class="para1" eId="section-80-10-b"><num>(b)</num><content>the person who appointed them.</content></level></subsection><subsection eId="section-80-11"><num>(11)</num><content>Regulations under <ref href="#section-80-3">subsection (3)</ref> are subject to the negative procedure.</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77"><num>77</num><heading>Key functions</heading><subsection eId="section-77-1"><num>(1)</num><content>The responsible body of an operating superfund must ensure that there is at all times at least one individual responsible for each key function.</content></subsection><subsection eId="section-77-2"><num>(2)</num><intro>Each of the following activities is a “<term refersTo="#term-key-function" eId="term-key-function">key function</term>” in relation to a superfund—</intro><level class="para1" eId="section-77-2-a"><num>(a)</num><content>taking management decisions;</content></level><level class="para1" eId="section-77-2-b"><num>(b)</num><content>taking financial decisions;</content></level><level class="para1" eId="section-77-2-c"><num>(c)</num><content>taking investment decisions;</content></level><level class="para1" eId="section-77-2-d"><num>(d)</num><content>risk management;</content></level><level class="para1" eId="section-77-2-e"><num>(e)</num><content>internal audit;</content></level><level class="para1" eId="section-77-2-f"><num>(f)</num><content>marketing and promotion.</content></level></subsection><subsection eId="section-77-3"><num>(3)</num><content>An activity is not a key function so far as it relates only to the superfund scheme and not to any other part of the superfund.</content></subsection><subsection eId="section-77-4"><num>(4)</num><content><ref eId="c00061" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00062" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches this section.</content></subsection><subsection eId="section-77-5"><num>(5)</num><content>The Secretary of State may by regulations amend <ref href="#section-77">this section</ref> for the purpose of adding, removing or varying a key function in <ref href="#section-77-2">subsection (2)</ref>.</content></subsection><subsection eId="section-77-6"><num>(6)</num><content>Regulations under <ref href="#section-77-5">subsection (5)</ref> are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-1"><num>(1)</num><content>The responsible body of an operating superfund must ensure that there is at all times at least one individual responsible for each key function.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-2"><num>(2)</num><intro>Each of the following activities is a “<term refersTo="#term-key-function" eId="term-key-function">key function</term>” in relation to a superfund—</intro><level class="para1" eId="section-77-2-a"><num>(a)</num><content>taking management decisions;</content></level><level class="para1" eId="section-77-2-b"><num>(b)</num><content>taking financial decisions;</content></level><level class="para1" eId="section-77-2-c"><num>(c)</num><content>taking investment decisions;</content></level><level class="para1" eId="section-77-2-d"><num>(d)</num><content>risk management;</content></level><level class="para1" eId="section-77-2-e"><num>(e)</num><content>internal audit;</content></level><level class="para1" eId="section-77-2-f"><num>(f)</num><content>marketing and promotion.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-3"><num>(3)</num><content>An activity is not a key function so far as it relates only to the superfund scheme and not to any other part of the superfund.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-4"><num>(4)</num><content><ref eId="c00061" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00062" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches this section.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-5"><num>(5)</num><content>The Secretary of State may by regulations amend <ref href="#section-77">this section</ref> for the purpose of adding, removing or varying a key function in <ref href="#section-77-2">subsection (2)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-6"><num>(6)</num><content>Regulations under <ref href="#section-77-5">subsection (5)</ref> are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78"><num>78</num><heading>Approval of individuals responsible for key functions</heading><subsection eId="section-78-1"><num>(1)</num><content>An individual may not be responsible for a key function in relation to an operating superfund unless they are approved by the Regulator to be responsible for that key function in relation to the superfund.</content></subsection><subsection eId="section-78-2"><num>(2)</num><content>The Regulator may approve an individual only if satisfied that they are a fit and proper person to be responsible for that key function in relation to the superfund.</content></subsection><subsection eId="section-78-3"><num>(3)</num><content>In deciding whether it is so satisfied the Regulator must take into account, in particular, any matters specified in regulations made by the Secretary of State.</content></subsection><subsection eId="section-78-4"><num>(4)</num><content>The Regulator may not approve an individual to be responsible for risk management if the individual is already responsible for taking investment decisions, and vice versa.</content></subsection><subsection eId="section-78-5"><num>(5)</num><content>An application for approval must be made in the manner and form specified by the Regulator.</content></subsection><subsection eId="section-78-6"><num>(6)</num><content>Approval may be given for a specified period or subject to specified conditions (in which case the person is only approved to be responsible for the key function in question for that period or while those conditions are met).</content></subsection><subsection eId="section-78-7"><num>(7)</num><content>Approval may be given in advance of the superfund being authorised or becoming an operating superfund.</content></subsection><subsection eId="section-78-8"><num>(8)</num><intro>If no longer satisfied as described in <ref href="#section-78-2">subsection (2)</ref> in relation to an individual, the Regulator may by notice to the responsible body—</intro><level class="para1" eId="section-78-8-a"><num>(a)</num><content>suspend its approval in relation to the individual for a period specified in the notice, or</content></level><level class="para1" eId="section-78-8-b"><num>(b)</num><content>revoke its approval in relation to the individual with effect from a date specified in the notice.</content></level></subsection><subsection eId="section-78-9"><num>(9)</num><intro><ref href="#section-78-1">Subsection (1)</ref> does not apply to an individual while—</intro><level class="para1" eId="section-78-9-a"><num>(a)</num><content>they are responsible for a key function on a temporary basis, and</content></level><level class="para1" eId="section-78-9-b"><num>(b)</num><content>the Regulator agrees, in light of the particular circumstances of the case, to the person’s being responsible for the key function on that basis without approval.</content></level></subsection><subsection eId="section-78-10"><num>(10)</num><intro>If an individual is responsible for a key function in relation to an operating superfund in breach of <ref href="#section-78-1">subsection (1)</ref>, <ref eId="c00063" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">section 10</ref> of the <ref eId="c00064" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to—</intro><level class="para1" eId="section-78-10-a"><num>(a)</num><content>the individual, and</content></level><level class="para1" eId="section-78-10-b"><num>(b)</num><content>the responsible body.</content></level></subsection><subsection eId="section-78-11"><num>(11)</num><content>Regulations under <ref href="#section-78-3">subsection (3)</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-1"><num>(1)</num><content>An individual may not be responsible for a key function in relation to an operating superfund unless they are approved by the Regulator to be responsible for that key function in relation to the superfund.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-2"><num>(2)</num><content>The Regulator may approve an individual only if satisfied that they are a fit and proper person to be responsible for that key function in relation to the superfund.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-3"><num>(3)</num><content>In deciding whether it is so satisfied the Regulator must take into account, in particular, any matters specified in regulations made by the Secretary of State.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-4"><num>(4)</num><content>The Regulator may not approve an individual to be responsible for risk management if the individual is already responsible for taking investment decisions, and vice versa.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-5"><num>(5)</num><content>An application for approval must be made in the manner and form specified by the Regulator.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-6"><num>(6)</num><content>Approval may be given for a specified period or subject to specified conditions (in which case the person is only approved to be responsible for the key function in question for that period or while those conditions are met).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-7"><num>(7)</num><content>Approval may be given in advance of the superfund being authorised or becoming an operating superfund.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-8"><num>(8)</num><intro>If no longer satisfied as described in <ref href="#section-78-2">subsection (2)</ref> in relation to an individual, the Regulator may by notice to the responsible body—</intro><level class="para1" eId="section-78-8-a"><num>(a)</num><content>suspend its approval in relation to the individual for a period specified in the notice, or</content></level><level class="para1" eId="section-78-8-b"><num>(b)</num><content>revoke its approval in relation to the individual with effect from a date specified in the notice.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-9"><num>(9)</num><intro><ref href="#section-78-1">Subsection (1)</ref> does not apply to an individual while—</intro><level class="para1" eId="section-78-9-a"><num>(a)</num><content>they are responsible for a key function on a temporary basis, and</content></level><level class="para1" eId="section-78-9-b"><num>(b)</num><content>the Regulator agrees, in light of the particular circumstances of the case, to the person’s being responsible for the key function on that basis without approval.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-10"><num>(10)</num><intro>If an individual is responsible for a key function in relation to an operating superfund in breach of <ref href="#section-78-1">subsection (1)</ref>, <ref eId="c00063" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">section 10</ref> of the <ref eId="c00064" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to—</intro><level class="para1" eId="section-78-10-a"><num>(a)</num><content>the individual, and</content></level><level class="para1" eId="section-78-10-b"><num>(b)</num><content>the responsible body.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-11"><num>(11)</num><content>Regulations under <ref href="#section-78-3">subsection (3)</ref> are subject to the negative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79"><num>79</num><heading>Certification of staff supporting individuals responsible for key functions</heading><subsection eId="section-79-1"><num>(1)</num><intro>The responsible body of an operating superfund must ensure, so far as reasonably practicable, that no individual carries out a key function in relation to the superfund unless the responsible body—</intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content>is satisfied, having conducted due diligence in relation to the individual, that the individual is a fit and proper person to carry out the key function, and</content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content>has issued a certificate to the individual confirming that it is so satisfied.</content></level></subsection><subsection eId="section-79-2"><num>(2)</num><content>The responsible body must keep a register of certificates issued under <ref href="#section-79-1">subsection (1)</ref>.</content></subsection><subsection eId="section-79-3"><num>(3)</num><content>In deciding whether it is satisfied as described in subsection (1)(a), the responsible body must take into account, in particular, any matters specified in regulations made by the Secretary of State.</content></subsection><subsection eId="section-79-4"><num>(4)</num><content>The Secretary of State may by regulations make provision about certificates issued under <ref href="#section-79-1">subsection (1)</ref>, including about the period of time for which a certificate is valid.</content></subsection><subsection eId="section-79-5"><num>(5)</num><content><ref eId="c00065" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00066" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-79-1">subsection (1)</ref>.</content></subsection><subsection eId="section-79-6"><num>(6)</num><content>Regulations under subsection <ref href="#section-79-3">(3)</ref> or <ref href="#section-79-4">(4)</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-1"><num>(1)</num><intro>The responsible body of an operating superfund must ensure, so far as reasonably practicable, that no individual carries out a key function in relation to the superfund unless the responsible body—</intro><level class="para1" eId="section-79-1-a"><num>(a)</num><content>is satisfied, having conducted due diligence in relation to the individual, that the individual is a fit and proper person to carry out the key function, and</content></level><level class="para1" eId="section-79-1-b"><num>(b)</num><content>has issued a certificate to the individual confirming that it is so satisfied.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-2"><num>(2)</num><content>The responsible body must keep a register of certificates issued under <ref href="#section-79-1">subsection (1)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-3"><num>(3)</num><content>In deciding whether it is satisfied as described in subsection (1)(a), the responsible body must take into account, in particular, any matters specified in regulations made by the Secretary of State.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-4"><num>(4)</num><content>The Secretary of State may by regulations make provision about certificates issued under <ref href="#section-79-1">subsection (1)</ref>, including about the period of time for which a certificate is valid.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-5"><num>(5)</num><content><ref eId="c00065" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00066" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it breaches <ref href="#section-79-1">subsection (1)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-6"><num>(6)</num><content>Regulations under subsection <ref href="#section-79-3">(3)</ref> or <ref href="#section-79-4">(4)</ref> are subject to the negative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80"><num>80</num><heading>Approval of superfund scheme trustees</heading><subsection eId="section-80-1"><num>(1)</num><content>A person may not be a trustee of an operating superfund scheme unless they are approved by the Regulator to be a trustee of the scheme.</content></subsection><subsection eId="section-80-2"><num>(2)</num><content>The Regulator may approve a person to be a trustee of a superfund scheme only if satisfied they are a fit and proper person to be a trustee of the scheme.</content></subsection><subsection eId="section-80-3"><num>(3)</num><content>In assessing whether a person is a fit and proper person, the Regulator must take into account, in particular, any matters specified in regulations made by the Secretary of State.</content></subsection><subsection eId="section-80-4"><num>(4)</num><content>The Regulator may not approve a person to be a trustee of a superfund scheme if the person is employed by, or involved in the management or administration of, a member of the superfund group.</content></subsection><subsection eId="section-80-5"><num>(5)</num><content>An application for approval must be made in the manner and form specified by the Regulator.</content></subsection><subsection eId="section-80-6"><num>(6)</num><content>Approval may be given for a specified period or subject to specified conditions (in which case the person is approved to be a trustee only for that period or only while those conditions are met).</content></subsection><subsection eId="section-80-7"><num>(7)</num><content>Approval may be given in advance of the superfund being authorised or becoming an operating superfund.</content></subsection><subsection eId="section-80-8"><num>(8)</num><intro>If no longer satisfied as described in <ref href="#section-80-2">subsection (2)</ref> in relation to a person, the Regulator may by notice to the person—</intro><level class="para1" eId="section-80-8-a"><num>(a)</num><content>suspend its approval in relation to the person for a period specified in the notice, or</content></level><level class="para1" eId="section-80-8-b"><num>(b)</num><content>revoke its approval in relation to the person with effect from a date specified in the notice.</content></level></subsection><subsection eId="section-80-9"><num>(9)</num><intro><ref href="#section-78-1">Subsection (1)</ref> does not apply to a person while—</intro><level class="para1" eId="section-80-9-a"><num>(a)</num><content>they serve as a trustee of a superfund scheme on a temporary basis, and</content></level><level class="para1" eId="section-80-9-b"><num>(b)</num><content>the Regulator agrees, in light of the particular circumstances of the case, to their being a trustee on that basis without approval.</content></level></subsection><subsection eId="section-80-10"><num>(10)</num><intro>If a person becomes a trustee of an operating superfund scheme in breach of <ref href="#section-80-1">subsection (1)</ref>, <ref eId="c00067" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">section 10</ref> of the <ref eId="c00068" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> applies to—</intro><level class="para1" eId="section-80-10-a"><num>(a)</num><content>the person, and</content></level><level class="para1" eId="section-80-10-b"><num>(b)</num><content>the person who appointed them.</content></level></subsection><subsection eId="section-80-11"><num>(11)</num><content>Regulations under <ref href="#section-80-3">subsection (3)</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-1"><num>(1)</num><content>A person may not be a trustee of an operating superfund scheme unless they are approved by the Regulator to be a trustee of the scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-2"><num>(2)</num><content>The Regulator may approve a person to be a trustee of a superfund scheme only if satisfied they are a fit and proper person to be a trustee of the scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-3"><num>(3)</num><content>In assessing whether a person is a fit and proper person, the Regulator must take into account, in particular, any matters specified in regulations made by the Secretary of State.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-4"><num>(4)</num><content>The Regulator may not approve a person to be a trustee of a superfund scheme if the person is employed by, or involved in the management or administration of, a member of the superfund group.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-5"><num>(5)</num><content>An application for approval must be made in the manner and form specified by the Regulator.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-6"><num>(6)</num><content>Approval may be given for a specified period or subject to specified conditions (in which case the person is approved to be a trustee only for that period or only while those conditions are met).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-7"><num>(7)</num><content>Approval may be given in advance of the superfund being authorised or becoming an operating superfund.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-8"><num>(8)</num><intro>If no longer satisfied as described in <ref href="#section-80-2">subsection (2)</ref> in relation to a person, the Regulator may by notice to the person—</intro><level class="para1" eId="section-80-8-a"><num>(a)</num><content>suspend its approval in relation to the person for a period specified in the notice, or</content></level><level class="para1" eId="section-80-8-b"><num>(b)</num><content>revoke its approval in relation to the person with effect from a date specified in the notice.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-9"><num>(9)</num><intro><ref href="#section-78-1">Subsection (1)</ref> does not apply to a person while—</intro><level class="para1" eId="section-80-9-a"><num>(a)</num><content>they serve as a trustee of a superfund scheme on a temporary basis, and</content></level><level class="para1" eId="section-80-9-b"><num>(b)</num><content>the Regulator agrees, in light of the particular circumstances of the case, to their being a trustee on that basis without approval.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-10"><num>(10)</num><intro>If a person becomes a trustee of an operating superfund scheme in breach of <ref href="#section-80-1">subsection (1)</ref>, <ref eId="c00067" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">section 10</ref> of the <ref eId="c00068" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> applies to—</intro><level class="para1" eId="section-80-10-a"><num>(a)</num><content>the person, and</content></level><level class="para1" eId="section-80-10-b"><num>(b)</num><content>the person who appointed them.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-11"><num>(11)</num><content>Regulations under <ref href="#section-80-3">subsection (3)</ref> are subject to the negative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81"><num>81</num><heading>Events to be notified to the Regulator</heading><subsection eId="section-81-1"><num>(1)</num><intro>The responsible body of an operating superfund must notify the Regulator of any of the following—</intro><level class="para1" eId="section-81-1-a"><num>(a)</num><content>a material deterioration in the investment performance of the capital buffer;</content></level><level class="para1" eId="section-81-1-b"><num>(b)</num><content>a material change to any of the management documents;</content></level><level class="para1" eId="section-81-1-c"><num>(c)</num><content>a material change to the capital buffer arrangement;</content></level><level class="para1" eId="section-81-1-d"><num>(d)</num><content>a release of any of the capital buffer by way of permitted profit extraction;</content></level><level class="para1" eId="section-81-1-e"><num>(e)</num><content>the bringing of proceedings against, or the launching of an investigation by a public body into, a member of the superfund group;</content></level><level class="para1" eId="section-81-1-f"><num>(f)</num><content>a breach of any requirement of this Chapter.</content></level></subsection><subsection eId="section-81-2"><num>(2)</num><intro>The trustees of an operating superfund scheme must notify the Regulator of any of the following—</intro><level class="para1" eId="section-81-2-a"><num>(a)</num><content>a material deterioration in the investment performance of the scheme;</content></level><level class="para1" eId="section-81-2-b"><num>(b)</num><content>a material change to the rules of the scheme;</content></level><level class="para1" eId="section-81-2-c"><num>(c)</num><content>the bringing of proceedings against, or the launching of an investigation by a public body into, the trustees.</content></level></subsection><subsection eId="section-81-3"><num>(3)</num><intro>A notification under this section must be made—</intro><level class="para1" eId="section-81-3-a"><num>(a)</num><content>where the person responsible for the notification is aware in advance that the event in question is to take place, as soon as reasonably practicable after it becomes so aware;</content></level><level class="para1" eId="section-81-3-b"><num>(b)</num><content>otherwise, as soon as reasonably practicable after the event takes place.</content></level></subsection><subsection eId="section-81-4"><num>(4)</num><content>A notification under this section must be made in the manner and form specified by the Regulator.</content></subsection><subsection eId="section-81-5"><num>(5)</num><content>Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who breaches this section.</content></subsection><subsection eId="section-81-6"><num>(6)</num><intro>The Secretary of State may by regulations make provision (including provision amending this section)—</intro><level class="para1" eId="section-81-6-a"><num>(a)</num><content>for the purpose of adding, removing or varying a matter to be notified under <ref href="#section-81-1">subsection (1)</ref> or <ref href="#section-81-2">(2)</ref>;</content></level><level class="para1" eId="section-81-6-b"><num>(b)</num><content>about what counts as “<term refersTo="#term-material" eId="term-material">material</term>” for the purposes of any paragraph of <ref href="#section-81-1">subsection (1)</ref> or <ref href="#section-81-2">(2)</ref>.</content></level></subsection><subsection eId="section-81-7"><num>(7)</num><content>Regulations under <ref href="#section-81-6">subsection (6)</ref> are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-1"><num>(1)</num><intro>The responsible body of an operating superfund must notify the Regulator of any of the following—</intro><level class="para1" eId="section-81-1-a"><num>(a)</num><content>a material deterioration in the investment performance of the capital buffer;</content></level><level class="para1" eId="section-81-1-b"><num>(b)</num><content>a material change to any of the management documents;</content></level><level class="para1" eId="section-81-1-c"><num>(c)</num><content>a material change to the capital buffer arrangement;</content></level><level class="para1" eId="section-81-1-d"><num>(d)</num><content>a release of any of the capital buffer by way of permitted profit extraction;</content></level><level class="para1" eId="section-81-1-e"><num>(e)</num><content>the bringing of proceedings against, or the launching of an investigation by a public body into, a member of the superfund group;</content></level><level class="para1" eId="section-81-1-f"><num>(f)</num><content>a breach of any requirement of this Chapter.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-a"><num>(a)</num><content>a material deterioration in the investment performance of the capital buffer;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-b"><num>(b)</num><content>a material change to any of the management documents;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-c"><num>(c)</num><content>a material change to the capital buffer arrangement;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-d"><num>(d)</num><content>a release of any of the capital buffer by way of permitted profit extraction;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-e"><num>(e)</num><content>the bringing of proceedings against, or the launching of an investigation by a public body into, a member of the superfund group;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-f"><num>(f)</num><content>a breach of any requirement of this Chapter.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-2"><num>(2)</num><intro>The trustees of an operating superfund scheme must notify the Regulator of any of the following—</intro><level class="para1" eId="section-81-2-a"><num>(a)</num><content>a material deterioration in the investment performance of the scheme;</content></level><level class="para1" eId="section-81-2-b"><num>(b)</num><content>a material change to the rules of the scheme;</content></level><level class="para1" eId="section-81-2-c"><num>(c)</num><content>the bringing of proceedings against, or the launching of an investigation by a public body into, the trustees.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-3"><num>(3)</num><intro>A notification under this section must be made—</intro><level class="para1" eId="section-81-3-a"><num>(a)</num><content>where the person responsible for the notification is aware in advance that the event in question is to take place, as soon as reasonably practicable after it becomes so aware;</content></level><level class="para1" eId="section-81-3-b"><num>(b)</num><content>otherwise, as soon as reasonably practicable after the event takes place.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-4"><num>(4)</num><content>A notification under this section must be made in the manner and form specified by the Regulator.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-5"><num>(5)</num><content>Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who breaches this section.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-6"><num>(6)</num><intro>The Secretary of State may by regulations make provision (including provision amending this section)—</intro><level class="para1" eId="section-81-6-a"><num>(a)</num><content>for the purpose of adding, removing or varying a matter to be notified under <ref href="#section-81-1">subsection (1)</ref> or <ref href="#section-81-2">(2)</ref>;</content></level><level class="para1" eId="section-81-6-b"><num>(b)</num><content>about what counts as “<term refersTo="#term-material" eId="term-material">material</term>” for the purposes of any paragraph of <ref href="#section-81-1">subsection (1)</ref> or <ref href="#section-81-2">(2)</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-7"><num>(7)</num><content>Regulations under <ref href="#section-81-6">subsection (6)</ref> are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82"><num>82</num><heading>Regular reporting</heading><subsection eId="section-82-1"><num>(1)</num><content>The trustees of an operating superfund scheme must provide the Regulator with regular reports about the financial position of the superfund.</content></subsection><subsection eId="section-82-2"><num>(2)</num><intro>The reports must comply with any requirements specified in regulations made by the Secretary of State, which may in particular include requirements as to—</intro><level class="para1" eId="section-82-2-a"><num>(a)</num><content>the form and content of reports;</content></level><level class="para1" eId="section-82-2-b"><num>(b)</num><content>the times at which, and intervals at which, reports are to be provided.</content></level></subsection><subsection eId="section-82-3"><num>(3)</num><content>Section 10 of the Pensions Act 1995 (civil penalties) applies to the trustees if they breach this section.</content></subsection><subsection eId="section-82-4"><num>(4)</num><content>Regulations under <ref href="#section-82-2">subsection (2)</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-1"><num>(1)</num><content>The trustees of an operating superfund scheme must provide the Regulator with regular reports about the financial position of the superfund.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-2"><num>(2)</num><intro>The reports must comply with any requirements specified in regulations made by the Secretary of State, which may in particular include requirements as to—</intro><level class="para1" eId="section-82-2-a"><num>(a)</num><content>the form and content of reports;</content></level><level class="para1" eId="section-82-2-b"><num>(b)</num><content>the times at which, and intervals at which, reports are to be provided.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-3"><num>(3)</num><content>Section 10 of the Pensions Act 1995 (civil penalties) applies to the trustees if they breach this section.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-4"><num>(4)</num><content>Regulations under <ref href="#section-82-2">subsection (2)</ref> are subject to the negative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83"><num>83</num><heading>Returns</heading><subsection eId="section-83-1"><num>(1)</num><intro>The Regulator may, by notice to the responsible body of an operating superfund, require the responsible body to submit a return to the Regulator for the purpose of enabling the Regulator to monitor—</intro><level class="para1" eId="section-83-1-a"><num>(a)</num><content>the financial position of the superfund, or</content></level><level class="para1" eId="section-83-1-b"><num>(b)</num><content>the superfund’s compliance with the requirements of this Chapter.</content></level></subsection><subsection eId="section-83-2"><num>(2)</num><intro>The notice must specify—</intro><level class="para1" eId="section-83-2-a"><num>(a)</num><content>the period within which the return must be submitted, and</content></level><level class="para1" eId="section-83-2-b"><num>(b)</num><content>the information (or description of information) which the return must contain.</content></level></subsection><subsection eId="section-83-3"><num>(3)</num><content>The Regulator may not require the responsible body to submit a return more than once in any period of 12 months.</content></subsection><subsection eId="section-83-4"><num>(4)</num><content><ref eId="c00069" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00070" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it fails to submit a return in accordance with a notice under this section.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-1"><num>(1)</num><intro>The Regulator may, by notice to the responsible body of an operating superfund, require the responsible body to submit a return to the Regulator for the purpose of enabling the Regulator to monitor—</intro><level class="para1" eId="section-83-1-a"><num>(a)</num><content>the financial position of the superfund, or</content></level><level class="para1" eId="section-83-1-b"><num>(b)</num><content>the superfund’s compliance with the requirements of this Chapter.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-2"><num>(2)</num><intro>The notice must specify—</intro><level class="para1" eId="section-83-2-a"><num>(a)</num><content>the period within which the return must be submitted, and</content></level><level class="para1" eId="section-83-2-b"><num>(b)</num><content>the information (or description of information) which the return must contain.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-3"><num>(3)</num><content>The Regulator may not require the responsible body to submit a return more than once in any period of 12 months.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-4"><num>(4)</num><content><ref eId="c00069" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00070" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it fails to submit a return in accordance with a notice under this section.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84"><num>84</num><heading>Reports in relation to alleged compliance breaches</heading><subsection eId="section-84-1"><num>(1)</num><content>If the Regulator considers or suspects that a requirement of this Chapter has been breached in relation to an operating superfund, it may give the responsible body notice of its intention to appoint a person to prepare a report about the issue to which the alleged breach relates.</content></subsection><subsection eId="section-84-2"><num>(2)</num><intro>Where such notice is given, the responsible body—</intro><level class="para1" eId="section-84-2-a"><num>(a)</num><content>must provide the person appointed with whatever assistance the person reasonably requires, and</content></level><level class="para1" eId="section-84-2-b"><num>(b)</num><content>must meet the Regulator’s reasonable costs in respect of the report.</content></level></subsection><subsection eId="section-84-3"><num>(3)</num><content><ref eId="c00071" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00072" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it fails to comply with <ref href="#section-84-2">subsection (2)</ref>.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-1"><num>(1)</num><content>If the Regulator considers or suspects that a requirement of this Chapter has been breached in relation to an operating superfund, it may give the responsible body notice of its intention to appoint a person to prepare a report about the issue to which the alleged breach relates.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-2"><num>(2)</num><intro>Where such notice is given, the responsible body—</intro><level class="para1" eId="section-84-2-a"><num>(a)</num><content>must provide the person appointed with whatever assistance the person reasonably requires, and</content></level><level class="para1" eId="section-84-2-b"><num>(b)</num><content>must meet the Regulator’s reasonable costs in respect of the report.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84-3"><num>(3)</num><content><ref eId="c00071" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00072" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it fails to comply with <ref href="#section-84-2">subsection (2)</ref>.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85"><num>85</num><heading>Provision of information by responsible body to trustees</heading><subsection eId="section-85-1"><num>(1)</num><content>The responsible body of an operating superfund must provide the trustees of the superfund scheme with whatever information relating to the superfund the trustees may reasonably request to enable the trustees to comply with any legislation relating to pensions that applies to them in respect of the superfund scheme.</content></subsection><subsection eId="section-85-2"><num>(2)</num><content><ref eId="c00073" href="https://www.legislation.gov.uk/ukpga/1995/26/section/10">Section 10</ref> of the <ref eId="c00074" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (civil penalties) applies to the responsible body if it fails to comply with <ref href="#section-85-1">subsection (1)</ref>.</content></subsection></section>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="part-3-chapter-5"><num>Chapter 5</num><heading>Events of concern</heading><section eId="section-86"><num>86</num><heading>“Event of concern” and “period of concern”</heading><subsection eId="section-86-1"><num>(1)</num><intro>An “event of concern” takes place in relation to a superfund if any of the following takes place—</intro><level class="para1" eId="section-86-1-a"><num>(a)</num><content>any one of the financial thresholds ceases to be met (subject to <ref href="#section-86-4">subsection (4)</ref>);</content></level><level class="para1" eId="section-86-1-b"><num>(b)</num><content>a debt falls due to the trustees of the superfund scheme under <ref eId="c00075" href="https://www.legislation.gov.uk/ukpga/1995/26/section/75">section 75</ref> of the <ref eId="c00076" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>;</content></level><level class="para1" eId="section-86-1-c"><num>(c)</num><content>the capital buffer is released otherwise than in accordance with the capital buffer arrangement;</content></level><level class="para1" eId="section-86-1-d"><num>(d)</num><content>an insolvency event becomes, in the opinion of the directors of the responsible body, likely to occur in relation to the responsible body;</content></level><level class="para1" eId="section-86-1-e"><num>(e)</num><content>an insolvency event occurs in relation to a member of the superfund group;</content></level><level class="para1" eId="section-86-1-f"><num>(f)</num><content>the responsible body notifies the Regulator that it wishes to cease to be the responsible body;</content></level><level class="para1" eId="section-86-1-g"><num>(g)</num><content>a material transaction takes place;</content></level><level class="para1" eId="section-86-1-h"><num>(h)</num><content>a superfund transfer is made to the superfund scheme without approval under <ref href="#part-3-chapter-3">Chapter 3</ref>;</content></level><level class="para1" eId="section-86-1-i"><num>(i)</num><content>an application is made under <ref href="#part-3-chapter-3">Chapter 3</ref> for approval of a superfund transfer in relation to which the ceding scheme is itself a superfund scheme;</content></level><level class="para1" eId="section-86-1-j"><num>(j)</num><content>an application is made under <ref href="#part-3-chapter-3">Chapter 3</ref> for approval of a superfund transfer of a kind described in <ref href="#section-61">section 61</ref><ref href="#section-61-3">(3)</ref> (merger of sections etc);</content></level><level class="para1" eId="section-86-1-k"><num>(k)</num><intro>the responsible body or the trustees of the superfund scheme receive a notice from the Regulator stating that, in the Regulator’s opinion, the recipient of the notice—</intro><level class="para2" eId="section-86-1-k-i"><num>(i)</num><content>has breached a requirement of this Part or of any other legislation relating to pensions that applies to them in respect of the superfund, or</content></level><level class="para2" eId="section-86-1-k-ii"><num>(ii)</num><content>is likely to breach such a requirement if remedial action is not taken;</content></level></level><level class="para1" eId="section-86-1-l"><num>(l)</num><content>the Regulator withdraws the superfund’s authorisation under <ref href="#section-94">section 94</ref>.</content></level></subsection><subsection eId="section-86-2"><num>(2)</num><intro>“<term refersTo="#term-period-of-concern" eId="term-period-of-concern">Period of concern</term>”, in relation to an event of concern, means the period beginning when the event takes place and ending—</intro><level class="para1" eId="section-86-2-a"><num>(a)</num><content>when the Regulator gives the responsible body a notice under <ref href="#section-88">section 88</ref><ref href="#section-88-5">(5)</ref> (event of concern resolved) in respect of the event, or</content></level><level class="para1" eId="section-86-2-b"><num>(b)</num><content>when the superfund scheme is wound up.</content></level></subsection><subsection eId="section-86-3"><num>(3)</num><intro>In <ref href="#section-86-1">subsection (1)</ref><ref href="#section-86-1-g">(g)</ref> “<term refersTo="#term-material-transaction" eId="term-material-transaction">material transaction</term>” means—</intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content>a change in the person or persons who have control of the responsible body, or</content></level><level class="para1" eId="section-86-3-b"><num>(b)</num><content>a sale by a member of the superfund group of all or substantially all of its assets.</content></level></subsection><subsection eId="section-86-4"><num>(4)</num><intro>The Secretary of State may by regulations provide that an event of concern within <ref href="#section-86-1">subsection (1)</ref><ref href="#section-86-1-a">(a)</ref> does not take place—</intro><level class="para1" eId="section-86-4-a"><num>(a)</num><content>unless the Regulator is satisfied that the financial threshold in question is not met, or</content></level><level class="para1" eId="section-86-4-b"><num>(b)</num><content>unless the threshold is not met for a period, or in circumstances, specified in the regulations (and for that purpose the period or circumstances specified may involve the exercise of a discretion by the Regulator).</content></level></subsection><subsection eId="section-86-5"><num>(5)</num><intro>The Secretary of State may by regulations amend <ref href="#section-86">this section</ref> for the purpose of adding, removing or varying—</intro><level class="para1" eId="section-86-5-a"><num>(a)</num><content>an event of concern in <ref href="#section-86-1">subsection (1)</ref>;</content></level><level class="para1" eId="section-86-5-b"><num>(b)</num><content>a material transaction in <ref href="#section-86-3">subsection (3)</ref>.</content></level></subsection><subsection eId="section-86-6"><num>(6)</num><intro>In <ref href="#section-86">this section</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-control" eId="term-control">control</term>” has the same meaning as in section 435 of the Insolvency Act 1986;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-director" eId="term-director">director</term>” includes any person occupying the position of director, by whatever name called;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-insolvency-event" eId="term-insolvency-event">insolvency event</term>” has the same meaning as in <ref eId="c00077" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2">Part 2</ref> of the <ref eId="c00078" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (see section 121 of that Act).</content></hcontainer></subsection><subsection eId="section-86-7"><num>(7)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section><section eId="section-87"><num>87</num><heading>Notification of Regulator in respect of events of concern</heading><subsection eId="section-87-1"><num>(1)</num><intro>A relevant person in relation to an operating superfund must notify the Regulator as soon as reasonably practicable after becoming aware that an event of concern—</intro><level class="para1" eId="section-87-1-a"><num>(a)</num><content>will or is likely to take place in relation to the superfund, or</content></level><level class="para1" eId="section-87-1-b"><num>(b)</num><content>has already taken place in relation to the superfund.</content></level></subsection><subsection eId="section-87-2"><num>(2)</num><content>No notification need be given if the relevant person knows the Regulator already to be aware of the circumstances to be notified.</content></subsection><subsection eId="section-87-3"><num>(3)</num><intro>The following are “<term refersTo="#term-relevant-persons" eId="term-relevant-persons">relevant persons</term>” in relation to an operating superfund—</intro><level class="para1" eId="section-87-3-a"><num>(a)</num><content>the responsible body;</content></level><level class="para1" eId="section-87-3-b"><num>(b)</num><content>the trustees of the superfund scheme;</content></level><level class="para1" eId="section-87-3-c"><num>(c)</num><content>in relation to the event of concern in <ref href="#section-86">section 86</ref><ref href="#section-86-1">(1)</ref><ref href="#section-86-1-a">(a)</ref>, the actuary appointed under <ref eId="c00079" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">section 47</ref><ref eId="c00080" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">(1)</ref><ref eId="c00081" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">(b)</ref> of the <ref eId="c00082" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>in relation to the superfund scheme.</content></level></subsection></section><section eId="section-88"><num>88</num><heading>Responding to events of concern</heading><subsection eId="section-88-1"><num>(1)</num><content>If an event of concern takes place in relation to an operating superfund, the Regulator must require the responsible body or the trustees of the superfund scheme, or both jointly, to propose a plan for responding to the event of concern (a “response plan”) within a period specified by the Regulator.</content></subsection><subsection eId="section-88-2"><num>(2)</num><intro>The Regulator must approve a proposed response plan if satisfied, having regard to the interests of members of the superfund scheme, that the response plan—</intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content>meets the requirements of <ref href="#section-89">section 89</ref> (content of response plan), and</content></level><level class="para1" eId="section-88-2-b"><num>(b)</num><content>is an appropriate plan for responding to the event of concern.</content></level></subsection><subsection eId="section-88-3"><num>(3)</num><intro>If, having received a proposed response plan, the Regulator is not so satisfied—</intro><level class="para1" eId="section-88-3-a"><num>(a)</num><content>it must explain to the person that proposed the plan why not, and</content></level><level class="para1" eId="section-88-3-b"><num>(b)</num><content>that person must propose another response plan, within the period required by the Regulator, that takes account of that explanation.</content></level></subsection><subsection eId="section-88-4"><num>(4)</num><content>An approved response plan may be amended, or replaced with a new approved response plan, by agreement between the person that proposed the plan and the Regulator.</content></subsection><subsection eId="section-88-5"><num>(5)</num><intro>If the Regulator is satisfied—</intro><level class="para1" eId="section-88-5-a"><num>(a)</num><content>that an approved response plan has been carried out, and</content></level><level class="para1" eId="section-88-5-b"><num>(b)</num><content>that the event of concern in question has been adequately resolved,</content></level><wrapUp>it must give a notice to that effect to the person that proposed the plan.</wrapUp></subsection><subsection eId="section-88-6"><num>(6)</num><content>In <ref href="#section-88-2">subsections (2)</ref> and <ref href="#section-88-3">(3)</ref>, “<term refersTo="#term-proposed-response-plan" eId="term-proposed-response-plan">proposed response plan</term>” means a response plan proposed by virtue of <ref href="#section-88-1">subsection (1)</ref> or <ref href="#section-88-3">(3)</ref><ref href="#section-88-3-b">(b)</ref>.</content></subsection></section><section eId="section-89"><num>89</num><heading>Content of response plan</heading><subsection eId="section-89-1"><num>(1)</num><content>The requirements mentioned in <ref href="#section-88">section 88</ref><ref href="#section-88-2">(2)</ref><ref href="#section-88-2-a">(a)</ref> are the following.</content></subsection><subsection eId="section-89-2"><num>(2)</num><intro>A response plan must specify—</intro><level class="para1" eId="section-89-2-a"><num>(a)</num><content>the outcome which the plan is intended to achieve,</content></level><level class="para1" eId="section-89-2-b"><num>(b)</num><content>the key steps which are to be taken to achieve that outcome,</content></level><level class="para1" eId="section-89-2-c"><num>(c)</num><content>when and by whom those steps are to be taken, and</content></level><level class="para1" eId="section-89-2-d"><num>(d)</num><content>how members of the superfund scheme are to be kept informed about the carrying out of the plan.</content></level></subsection><subsection eId="section-89-3"><num>(3)</num><content>Where the event of concern is the technical provisions threshold ceasing to be met, the response plan must require the whole of the capital buffer to be released to the trustees.</content></subsection><subsection eId="section-89-4"><num>(4)</num><intro>Where the event of concern is the scheme solvency threshold ceasing to be met, the response plan must require so much of the capital buffer to be released to the trustees as equals the lower of the following—</intro><level class="para1" eId="section-89-4-a"><num>(a)</num><content>the amount that would enable the superfund scheme to meet the requirement in <ref eId="c00083" href="https://www.legislation.gov.uk/ukpga/2004/35/section/222">section 222</ref><ref eId="c00084" href="https://www.legislation.gov.uk/ukpga/2004/35/section/222">(1)</ref> of the <ref eId="c00085" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (requirement to cover technical provisions);</content></level><level class="para1" eId="section-89-4-b"><num>(b)</num><content>the total value of the capital buffer.</content></level></subsection><subsection eId="section-89-5"><num>(5)</num><intro>Where the event of concern is a debt falling due to the trustees of the superfund scheme under <ref eId="c00086" href="https://www.legislation.gov.uk/ukpga/1995/26/section/75">section 75</ref> of the <ref eId="c00087" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>, the response plan must require so much of the capital buffer to be released to the trustees as equals the lower of the following—</intro><level class="para1" eId="section-89-5-a"><num>(a)</num><content>the amount of the debt;</content></level><level class="para1" eId="section-89-5-b"><num>(b)</num><content>the total value of the capital buffer.</content></level></subsection><subsection eId="section-89-6"><num>(6)</num><content>Where the event of concern is the protected liabilities threshold ceasing to be met, the response plan must require the immediate winding up of the superfund scheme.</content></subsection><subsection eId="section-89-7"><num>(7)</num><content>A response plan must take account of the superfund’s continuity strategy (but may deviate from it if, in the opinion of the person proposing the plan, the course of action contemplated by the continuity strategy is not appropriate in the circumstances).</content></subsection><subsection eId="section-89-8"><num>(8)</num><content>A response plan must not require the release of the capital buffer (to any extent) except as set out in <ref href="#section-89-3">subsection (3)</ref>, <ref href="#section-89-4">(4)</ref> or <ref href="#section-89-5">(5)</ref>.</content></subsection><subsection eId="section-89-9"><num>(9)</num><content>A response plan must meet any other requirements specified in regulations made by the Secretary of State, including in particular as to how the value of the capital buffer, or of any assets released from it, is to be determined for the purposes of a requirement within <ref href="#section-89-4">subsection (4)</ref> or <ref href="#section-89-5">(5)</ref>.</content></subsection><subsection eId="section-89-10"><num>(10)</num><content>Regulations under <ref href="#section-89-9">subsection (9)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-90"><num>90</num><heading>Regulator’s direction-making powers during period of concern</heading><subsection eId="section-90-1"><num>(1)</num><intro>The Regulator may during a period of concern direct a member of the superfund group or the trustees of the superfund scheme to do any or all of the following—</intro><level class="para1" eId="section-90-1-a"><num>(a)</num><content>take a specified step that an approved response plan identifies as one which they are to take;</content></level><level class="para1" eId="section-90-1-b"><num>(b)</num><content>take a specified step that the Regulator considers likely to enable or facilitate the carrying out of an approved response plan;</content></level><level class="para1" eId="section-90-1-c"><num>(c)</num><content>if a person has failed to comply with section <ref href="#section-88">88</ref><ref href="#section-88-1">(1)</ref> or <ref href="#section-88-3">(3)</ref><ref href="#section-88-3-b">(b)</ref> (requirement to propose response plan or revised response plan), take a specified step that the Regulator considers necessary or expedient for the purpose of responding to the event of concern in the interests of members of the superfund scheme;</content></level><level class="para1" eId="section-90-1-d"><num>(d)</num><intro>ensure that for a specified period—</intro><level class="para2" eId="section-90-1-d-i"><num>(i)</num><content>no payments are made out of the assets of the superfund scheme to or in respect of members;</content></level><level class="para2" eId="section-90-1-d-ii"><num>(ii)</num><content>no transfers of liabilities are made from the superfund scheme.</content></level></level></subsection><subsection eId="section-90-2"><num>(2)</num><content>A direction under <ref href="#section-90-1">subsection (1)</ref><ref href="#section-90-1-c">(c)</ref> may not require the provision of financial support to the superfund scheme.</content></subsection><subsection eId="section-90-3"><num>(3)</num><content>A member of the superfund group, and the trustees of the superfund scheme, must comply with a direction given to them by the Regulator under <ref href="#section-90">this section</ref>; and if compliance with a direction results in a breach of the rules of the scheme, the breach is to be disregarded for all purposes.</content></subsection><subsection eId="section-90-4"><num>(4)</num><content>If an approved response plan contemplates that a person will become the responsible body of a superfund, and that person agrees to become the responsible body, the Regulator may direct that that person is to become the responsible body from a specified time.</content></subsection><subsection eId="section-90-5"><num>(5)</num><content>In <ref href="#section-90">this section</ref>, “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified (or of a description specified) in the direction.</content></subsection><subsection eId="section-90-6"><num>(6)</num><content>See <ref href="#section-91">section 91</ref> for further provision about directions under <ref href="#section-90-1">subsection (1)</ref><ref href="#section-90-1-d">(d)</ref>.</content></subsection></section><section eId="section-91"><num>91</num><heading>Directions to pause payments or transfers of liabilities: supplementary provision</heading><subsection eId="section-91-1"><num>(1)</num><content><ref href="#section-91">This section</ref> applies to a direction under <ref href="#section-90">section 90</ref><ref href="#section-90-1">(1)</ref><ref href="#section-90-1-d">(d)</ref> (a “pause direction”).</content></subsection><subsection eId="section-91-2"><num>(2)</num><content>The Regulator may make a pause direction only if satisfied that doing so is reasonably necessary to protect the interests of members of the superfund scheme.</content></subsection><subsection eId="section-91-3"><num>(3)</num><content>A pause direction may make different provision for different purposes.</content></subsection><subsection eId="section-91-4"><num>(4)</num><content>The Regulator must cancel a pause direction if no longer satisfied as described in <ref href="#section-91-2">subsection (2)</ref>.</content></subsection><subsection eId="section-91-5"><num>(5)</num><content>A pause direction, so far as not already cancelled, ceases to have effect when the period of concern to which it relates comes to an end.</content></subsection><subsection eId="section-91-6"><num>(6)</num><content>A payment that would have fallen due but for a pause direction falls due when the pause direction ceases to have effect.</content></subsection><subsection eId="section-91-7"><num>(7)</num><content>A pause direction within <ref href="#section-90">section 90</ref><ref href="#section-90-1">(1)</ref><ref href="#section-90-1-d">(d)</ref><ref href="#section-90-1-d-ii">(ii)</ref> (no transfers of liabilities) does not affect an order or provision falling within <ref eId="c00088" href="https://www.legislation.gov.uk/ukpga/1999/30/section/28">section 28</ref><ref eId="c00089" href="https://www.legislation.gov.uk/ukpga/1999/30/section/28">(1)</ref> of the <ref eId="c00090" href="https://www.legislation.gov.uk/ukpga/1999/30/contents">Welfare Reform and Pensions Act 1999</ref> (pension sharing orders or provisions).</content></subsection><subsection eId="section-91-8"><num>(8)</num><content>The Secretary of State may by regulations modify any provision of <ref eId="c00091" href="https://www.legislation.gov.uk/ukpga/1993/48/part/4ZA">Part 4ZA</ref> of the <ref eId="c00092" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (transfer rights etc) in its application to a superfund scheme in relation to which a pause direction has effect containing provision within <ref href="#section-90">section 90</ref><ref href="#section-90-1">(1)</ref><ref href="#section-90-1-d">(d)</ref><ref href="#section-90-1-d-ii">(ii)</ref> (no transfer of liabilities).</content></subsection><subsection eId="section-91-9"><num>(9)</num><content>Regulations under subsection <ref href="#section-91-8">(8)</ref> are subject to the affirmative procedure.</content></subsection></section><section eId="section-92"><num>92</num><heading>Fixed penalty notices</heading><subsection eId="section-92-1"><num>(1)</num><content>The Regulator may issue a fixed penalty notice to a person if it considers that the person has failed to comply with a requirement imposed by or under <ref href="#section-87">section 87</ref>, <ref href="#section-88">88</ref> or <ref href="#section-90">90</ref>.</content></subsection><subsection eId="section-92-2"><num>(2)</num><content>A “fixed penalty notice” is a notice requiring the person to whom it is issued to pay a penalty within the period specified in the notice.</content></subsection><subsection eId="section-92-3"><num>(3)</num><intro>The penalty—</intro><level class="para1" eId="section-92-3-a"><num>(a)</num><content>is to be determined in accordance with regulations made by the Secretary of State, and</content></level><level class="para1" eId="section-92-3-b"><num>(b)</num><content>must not exceed £100,000.</content></level></subsection><subsection eId="section-92-4"><num>(4)</num><intro>A fixed penalty notice must—</intro><level class="para1" eId="section-92-4-a"><num>(a)</num><content>state the amount of the penalty,</content></level><level class="para1" eId="section-92-4-b"><num>(b)</num><content>state the date before which the penalty must be paid, which must be at least 28 days after the date on which the notice is issued,</content></level><level class="para1" eId="section-92-4-c"><num>(c)</num><content>specify the failure to which the penalty relates,</content></level><level class="para1" eId="section-92-4-d"><num>(d)</num><content>state that the Regulator may issue an escalating penalty notice under <ref href="#section-93">section 93</ref> if the person fails to comply with the requirement in question, and</content></level><level class="para1" eId="section-92-4-e"><num>(e)</num><content>notify the person to whom the notice is issued of the review process under <ref eId="c00093" href="https://www.legislation.gov.uk/ukpga/2008/30/section/43">section 43</ref> of the <ref eId="c00094" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> and the right of referral to a tribunal under <ref eId="c00095" href="https://www.legislation.gov.uk/ukpga/2008/30/section/44">section 44</ref> of <ref eId="c00096" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">that Act</ref> (as applied by subsection <ref href="#section-92-5">(5)</ref>).</content></level></subsection><subsection eId="section-92-5"><num>(5)</num><intro>The following sections of the Pensions Act 2008 apply to a penalty notice under this section as they apply to a penalty notice under section 40 of that Act—</intro><level class="para1" eId="section-92-5-a"><num>(a)</num><content>section 42 (penalty notices: recovery);</content></level><level class="para1" eId="section-92-5-b"><num>(b)</num><content>section 43 (review of penalty notices);</content></level><level class="para1" eId="section-92-5-c"><num>(c)</num><content>section 44 (references to First-tier Tribunal or Upper Tribunal).</content></level></subsection><subsection eId="section-92-6"><num>(6)</num><content>Regulations under <ref href="#section-92-3">subsection (3)</ref><ref href="#section-92-3-a">(a)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-93"><num>93</num><heading>Escalating penalty notices</heading><subsection eId="section-93-1"><num>(1)</num><intro>The Regulator may issue an escalating penalty notice to a person if—</intro><level class="para1" eId="section-93-1-a"><num>(a)</num><content>it considers that the person has failed to comply with a requirement imposed by virtue of <ref href="#section-87">section 87</ref>, <ref href="#section-88">88</ref> or <ref href="#section-90">90</ref>,</content></level><level class="para1" eId="section-93-1-b"><num>(b)</num><content>it has already issued the person with a fixed penalty notice under section <ref href="#section-92">92</ref> in respect of that failure, and</content></level><level class="para1" eId="section-93-1-c"><num>(c)</num><content>the period for paying the penalty specified in that notice has passed without the requirement to which that notice related being complied with.</content></level></subsection><subsection eId="section-93-2"><num>(2)</num><content>An “escalating penalty notice” is a notice requiring a person to pay a penalty calculated by reference to a daily rate if the person fails before a specified date to comply with the requirement to which the notice relates.</content></subsection><subsection eId="section-93-3"><num>(3)</num><intro>The daily rate—</intro><level class="para1" eId="section-93-3-a"><num>(a)</num><content>is to be determined in accordance with regulations made by the Secretary of State, and</content></level><level class="para1" eId="section-93-3-b"><num>(b)</num><content>must not exceed £20,000.</content></level></subsection><subsection eId="section-93-4"><num>(4)</num><intro>The Regulator may not issue an escalating penalty notice to a person if—</intro><level class="para1" eId="section-93-4-a"><num>(a)</num><content>the person has exercised the right of referral to a tribunal under <ref eId="c00097" href="https://www.legislation.gov.uk/ukpga/2008/30/section/44">section 44</ref> of the <ref eId="c00098" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (as applied by section <ref href="#section-92">92</ref><ref href="#section-92-5">(5)</ref>) in respect of a fixed penalty notice issued under <ref href="#section-92">section 92</ref>,</content></level><level class="para1" eId="section-93-4-b"><num>(b)</num><content>the escalating penalty notice relates to the same failure as the fixed penalty notice, and</content></level><level class="para1" eId="section-93-4-c"><num>(c)</num><content>the reference in respect of the fixed penalty notice has not been determined.</content></level></subsection><subsection eId="section-93-5"><num>(5)</num><intro>An escalating penalty notice must—</intro><level class="para1" eId="section-93-5-a"><num>(a)</num><content>specify the failure to which the penalty relates,</content></level><level class="para1" eId="section-93-5-b"><num>(b)</num><content>state that, if the person fails to comply with the requirement to which the notice relates before a specified date, the person will be liable to pay an escalating penalty,</content></level><level class="para1" eId="section-93-5-c"><num>(c)</num><content>state the daily rate of the escalating penalty and the way in which the penalty is calculated,</content></level><level class="para1" eId="section-93-5-d"><num>(d)</num><content>state the date from which the escalating penalty will be payable,</content></level><level class="para1" eId="section-93-5-e"><num>(e)</num><content>state that the escalating penalty will continue to be payable at the daily rate until the date on which the person complies with the requirement to which the notice relates or an earlier date specified in the notice, and</content></level><level class="para1" eId="section-93-5-f"><num>(f)</num><content>notify the person to whom the notice is issued of the review process under <ref eId="c00099" href="https://www.legislation.gov.uk/ukpga/2008/30/section/43">section 43</ref> of the <ref eId="c00100" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> and the right of referral to a tribunal under <ref eId="c00101" href="https://www.legislation.gov.uk/ukpga/2008/30/section/44">section 44</ref> of <ref eId="c00102" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">that Act</ref> (as applied by subsection <ref href="#section-93-6">(6)</ref>).</content></level></subsection><subsection eId="section-93-6"><num>(6)</num><intro>The following sections of the <ref eId="c00103" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> apply to an escalating penalty notice under <ref href="#section-93">this section</ref> as they apply to an escalating penalty notice under <ref eId="c00104" href="https://www.legislation.gov.uk/ukpga/2008/30/section/41">section 41</ref> of <ref eId="c00105" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">that Act</ref>—</intro><level class="para1" eId="section-93-6-a"><num>(a)</num><content>section 42 (penalty notices: recovery);</content></level><level class="para1" eId="section-93-6-b"><num>(b)</num><content>section 43 (review of penalty notices);</content></level><level class="para1" eId="section-93-6-c"><num>(c)</num><content>section 44 (references to First-tier Tribunal or Upper Tribunal).</content></level></subsection><subsection eId="section-93-7"><num>(7)</num><content>Regulations under <ref href="#section-93-3">subsection (3)</ref><ref href="#section-93-3-a">(a)</ref> are subject to the negative procedure.</content></subsection></section><section eId="section-94"><num>94</num><heading>Withdrawal of authorisation</heading><content>The Regulator may during a period of concern withdraw authorisation from a superfund if satisfied that the superfund has failed to comply with the requirements of <ref href="#part-3-chapter-4">Chapter 4</ref> or <ref href="#part-3-chapter-5">this Chapter</ref>.</content></section><section eId="section-95"><num>95</num><heading>Release of capital buffer treated as reducing employer debt</heading><content>Where some or all of the capital buffer is released in consequence of a debt falling due to the trustees of the superfund scheme under <ref eId="c00106" href="https://www.legislation.gov.uk/ukpga/1995/26/section/75">section 75</ref> of the <ref eId="c00107" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>, the debt due under that section is treated as reduced by the value of the assets released (as calculated in accordance with regulations under <ref href="#section-89">section 89</ref><ref href="#section-89-9">(9)</ref>).</content></section></chapter>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86"><num>86</num><heading>“Event of concern” and “period of concern”</heading><subsection eId="section-86-1"><num>(1)</num><intro>An “event of concern” takes place in relation to a superfund if any of the following takes place—</intro><level class="para1" eId="section-86-1-a"><num>(a)</num><content>any one of the financial thresholds ceases to be met (subject to <ref href="#section-86-4">subsection (4)</ref>);</content></level><level class="para1" eId="section-86-1-b"><num>(b)</num><content>a debt falls due to the trustees of the superfund scheme under <ref eId="c00075" href="https://www.legislation.gov.uk/ukpga/1995/26/section/75">section 75</ref> of the <ref eId="c00076" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>;</content></level><level class="para1" eId="section-86-1-c"><num>(c)</num><content>the capital buffer is released otherwise than in accordance with the capital buffer arrangement;</content></level><level class="para1" eId="section-86-1-d"><num>(d)</num><content>an insolvency event becomes, in the opinion of the directors of the responsible body, likely to occur in relation to the responsible body;</content></level><level class="para1" eId="section-86-1-e"><num>(e)</num><content>an insolvency event occurs in relation to a member of the superfund group;</content></level><level class="para1" eId="section-86-1-f"><num>(f)</num><content>the responsible body notifies the Regulator that it wishes to cease to be the responsible body;</content></level><level class="para1" eId="section-86-1-g"><num>(g)</num><content>a material transaction takes place;</content></level><level class="para1" eId="section-86-1-h"><num>(h)</num><content>a superfund transfer is made to the superfund scheme without approval under <ref href="#part-3-chapter-3">Chapter 3</ref>;</content></level><level class="para1" eId="section-86-1-i"><num>(i)</num><content>an application is made under <ref href="#part-3-chapter-3">Chapter 3</ref> for approval of a superfund transfer in relation to which the ceding scheme is itself a superfund scheme;</content></level><level class="para1" eId="section-86-1-j"><num>(j)</num><content>an application is made under <ref href="#part-3-chapter-3">Chapter 3</ref> for approval of a superfund transfer of a kind described in <ref href="#section-61">section 61</ref><ref href="#section-61-3">(3)</ref> (merger of sections etc);</content></level><level class="para1" eId="section-86-1-k"><num>(k)</num><intro>the responsible body or the trustees of the superfund scheme receive a notice from the Regulator stating that, in the Regulator’s opinion, the recipient of the notice—</intro><level class="para2" eId="section-86-1-k-i"><num>(i)</num><content>has breached a requirement of this Part or of any other legislation relating to pensions that applies to them in respect of the superfund, or</content></level><level class="para2" eId="section-86-1-k-ii"><num>(ii)</num><content>is likely to breach such a requirement if remedial action is not taken;</content></level></level><level class="para1" eId="section-86-1-l"><num>(l)</num><content>the Regulator withdraws the superfund’s authorisation under <ref href="#section-94">section 94</ref>.</content></level></subsection><subsection eId="section-86-2"><num>(2)</num><intro>“<term refersTo="#term-period-of-concern" eId="term-period-of-concern">Period of concern</term>”, in relation to an event of concern, means the period beginning when the event takes place and ending—</intro><level class="para1" eId="section-86-2-a"><num>(a)</num><content>when the Regulator gives the responsible body a notice under <ref href="#section-88">section 88</ref><ref href="#section-88-5">(5)</ref> (event of concern resolved) in respect of the event, or</content></level><level class="para1" eId="section-86-2-b"><num>(b)</num><content>when the superfund scheme is wound up.</content></level></subsection><subsection eId="section-86-3"><num>(3)</num><intro>In <ref href="#section-86-1">subsection (1)</ref><ref href="#section-86-1-g">(g)</ref> “<term refersTo="#term-material-transaction" eId="term-material-transaction">material transaction</term>” means—</intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content>a change in the person or persons who have control of the responsible body, or</content></level><level class="para1" eId="section-86-3-b"><num>(b)</num><content>a sale by a member of the superfund group of all or substantially all of its assets.</content></level></subsection><subsection eId="section-86-4"><num>(4)</num><intro>The Secretary of State may by regulations provide that an event of concern within <ref href="#section-86-1">subsection (1)</ref><ref href="#section-86-1-a">(a)</ref> does not take place—</intro><level class="para1" eId="section-86-4-a"><num>(a)</num><content>unless the Regulator is satisfied that the financial threshold in question is not met, or</content></level><level class="para1" eId="section-86-4-b"><num>(b)</num><content>unless the threshold is not met for a period, or in circumstances, specified in the regulations (and for that purpose the period or circumstances specified may involve the exercise of a discretion by the Regulator).</content></level></subsection><subsection eId="section-86-5"><num>(5)</num><intro>The Secretary of State may by regulations amend <ref href="#section-86">this section</ref> for the purpose of adding, removing or varying—</intro><level class="para1" eId="section-86-5-a"><num>(a)</num><content>an event of concern in <ref href="#section-86-1">subsection (1)</ref>;</content></level><level class="para1" eId="section-86-5-b"><num>(b)</num><content>a material transaction in <ref href="#section-86-3">subsection (3)</ref>.</content></level></subsection><subsection eId="section-86-6"><num>(6)</num><intro>In <ref href="#section-86">this section</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-control" eId="term-control">control</term>” has the same meaning as in section 435 of the Insolvency Act 1986;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-director" eId="term-director">director</term>” includes any person occupying the position of director, by whatever name called;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-insolvency-event" eId="term-insolvency-event">insolvency event</term>” has the same meaning as in <ref eId="c00077" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2">Part 2</ref> of the <ref eId="c00078" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (see section 121 of that Act).</content></hcontainer></subsection><subsection eId="section-86-7"><num>(7)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-1"><num>(1)</num><intro>An “event of concern” takes place in relation to a superfund if any of the following takes place—</intro><level class="para1" eId="section-86-1-a"><num>(a)</num><content>any one of the financial thresholds ceases to be met (subject to <ref href="#section-86-4">subsection (4)</ref>);</content></level><level class="para1" eId="section-86-1-b"><num>(b)</num><content>a debt falls due to the trustees of the superfund scheme under <ref eId="c00075" href="https://www.legislation.gov.uk/ukpga/1995/26/section/75">section 75</ref> of the <ref eId="c00076" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>;</content></level><level class="para1" eId="section-86-1-c"><num>(c)</num><content>the capital buffer is released otherwise than in accordance with the capital buffer arrangement;</content></level><level class="para1" eId="section-86-1-d"><num>(d)</num><content>an insolvency event becomes, in the opinion of the directors of the responsible body, likely to occur in relation to the responsible body;</content></level><level class="para1" eId="section-86-1-e"><num>(e)</num><content>an insolvency event occurs in relation to a member of the superfund group;</content></level><level class="para1" eId="section-86-1-f"><num>(f)</num><content>the responsible body notifies the Regulator that it wishes to cease to be the responsible body;</content></level><level class="para1" eId="section-86-1-g"><num>(g)</num><content>a material transaction takes place;</content></level><level class="para1" eId="section-86-1-h"><num>(h)</num><content>a superfund transfer is made to the superfund scheme without approval under <ref href="#part-3-chapter-3">Chapter 3</ref>;</content></level><level class="para1" eId="section-86-1-i"><num>(i)</num><content>an application is made under <ref href="#part-3-chapter-3">Chapter 3</ref> for approval of a superfund transfer in relation to which the ceding scheme is itself a superfund scheme;</content></level><level class="para1" eId="section-86-1-j"><num>(j)</num><content>an application is made under <ref href="#part-3-chapter-3">Chapter 3</ref> for approval of a superfund transfer of a kind described in <ref href="#section-61">section 61</ref><ref href="#section-61-3">(3)</ref> (merger of sections etc);</content></level><level class="para1" eId="section-86-1-k"><num>(k)</num><intro>the responsible body or the trustees of the superfund scheme receive a notice from the Regulator stating that, in the Regulator’s opinion, the recipient of the notice—</intro><level class="para2" eId="section-86-1-k-i"><num>(i)</num><content>has breached a requirement of this Part or of any other legislation relating to pensions that applies to them in respect of the superfund, or</content></level><level class="para2" eId="section-86-1-k-ii"><num>(ii)</num><content>is likely to breach such a requirement if remedial action is not taken;</content></level></level><level class="para1" eId="section-86-1-l"><num>(l)</num><content>the Regulator withdraws the superfund’s authorisation under <ref href="#section-94">section 94</ref>.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-1-a"><num>(a)</num><content>any one of the financial thresholds ceases to be met (subject to <ref href="#section-86-4">subsection (4)</ref>);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-1-b"><num>(b)</num><content>a debt falls due to the trustees of the superfund scheme under <ref eId="c00075" href="https://www.legislation.gov.uk/ukpga/1995/26/section/75">section 75</ref> of the <ref eId="c00076" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-1-c"><num>(c)</num><content>the capital buffer is released otherwise than in accordance with the capital buffer arrangement;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-1-d"><num>(d)</num><content>an insolvency event becomes, in the opinion of the directors of the responsible body, likely to occur in relation to the responsible body;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-1-e"><num>(e)</num><content>an insolvency event occurs in relation to a member of the superfund group;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-1-f"><num>(f)</num><content>the responsible body notifies the Regulator that it wishes to cease to be the responsible body;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-1-g"><num>(g)</num><content>a material transaction takes place;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-1-h"><num>(h)</num><content>a superfund transfer is made to the superfund scheme without approval under <ref href="#part-3-chapter-3">Chapter 3</ref>;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-1-i"><num>(i)</num><content>an application is made under <ref href="#part-3-chapter-3">Chapter 3</ref> for approval of a superfund transfer in relation to which the ceding scheme is itself a superfund scheme;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-1-j"><num>(j)</num><content>an application is made under <ref href="#part-3-chapter-3">Chapter 3</ref> for approval of a superfund transfer of a kind described in <ref href="#section-61">section 61</ref><ref href="#section-61-3">(3)</ref> (merger of sections etc);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-1-k"><num>(k)</num><intro>the responsible body or the trustees of the superfund scheme receive a notice from the Regulator stating that, in the Regulator’s opinion, the recipient of the notice—</intro><level class="para2" eId="section-86-1-k-i"><num>(i)</num><content>has breached a requirement of this Part or of any other legislation relating to pensions that applies to them in respect of the superfund, or</content></level><level class="para2" eId="section-86-1-k-ii"><num>(ii)</num><content>is likely to breach such a requirement if remedial action is not taken;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-1-l"><num>(l)</num><content>the Regulator withdraws the superfund’s authorisation under <ref href="#section-94">section 94</ref>.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-2"><num>(2)</num><intro>“<term refersTo="#term-period-of-concern" eId="term-period-of-concern">Period of concern</term>”, in relation to an event of concern, means the period beginning when the event takes place and ending—</intro><level class="para1" eId="section-86-2-a"><num>(a)</num><content>when the Regulator gives the responsible body a notice under <ref href="#section-88">section 88</ref><ref href="#section-88-5">(5)</ref> (event of concern resolved) in respect of the event, or</content></level><level class="para1" eId="section-86-2-b"><num>(b)</num><content>when the superfund scheme is wound up.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-3"><num>(3)</num><intro>In <ref href="#section-86-1">subsection (1)</ref><ref href="#section-86-1-g">(g)</ref> “<term refersTo="#term-material-transaction" eId="term-material-transaction">material transaction</term>” means—</intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content>a change in the person or persons who have control of the responsible body, or</content></level><level class="para1" eId="section-86-3-b"><num>(b)</num><content>a sale by a member of the superfund group of all or substantially all of its assets.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-4"><num>(4)</num><intro>The Secretary of State may by regulations provide that an event of concern within <ref href="#section-86-1">subsection (1)</ref><ref href="#section-86-1-a">(a)</ref> does not take place—</intro><level class="para1" eId="section-86-4-a"><num>(a)</num><content>unless the Regulator is satisfied that the financial threshold in question is not met, or</content></level><level class="para1" eId="section-86-4-b"><num>(b)</num><content>unless the threshold is not met for a period, or in circumstances, specified in the regulations (and for that purpose the period or circumstances specified may involve the exercise of a discretion by the Regulator).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-5"><num>(5)</num><intro>The Secretary of State may by regulations amend <ref href="#section-86">this section</ref> for the purpose of adding, removing or varying—</intro><level class="para1" eId="section-86-5-a"><num>(a)</num><content>an event of concern in <ref href="#section-86-1">subsection (1)</ref>;</content></level><level class="para1" eId="section-86-5-b"><num>(b)</num><content>a material transaction in <ref href="#section-86-3">subsection (3)</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-6"><num>(6)</num><intro>In <ref href="#section-86">this section</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-control" eId="term-control">control</term>” has the same meaning as in section 435 of the Insolvency Act 1986;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-director" eId="term-director">director</term>” includes any person occupying the position of director, by whatever name called;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-insolvency-event" eId="term-insolvency-event">insolvency event</term>” has the same meaning as in <ref eId="c00077" href="https://www.legislation.gov.uk/ukpga/2004/35/part/2">Part 2</ref> of the <ref eId="c00078" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (see section 121 of that Act).</content></hcontainer></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-7"><num>(7)</num><content>Regulations under this section are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87"><num>87</num><heading>Notification of Regulator in respect of events of concern</heading><subsection eId="section-87-1"><num>(1)</num><intro>A relevant person in relation to an operating superfund must notify the Regulator as soon as reasonably practicable after becoming aware that an event of concern—</intro><level class="para1" eId="section-87-1-a"><num>(a)</num><content>will or is likely to take place in relation to the superfund, or</content></level><level class="para1" eId="section-87-1-b"><num>(b)</num><content>has already taken place in relation to the superfund.</content></level></subsection><subsection eId="section-87-2"><num>(2)</num><content>No notification need be given if the relevant person knows the Regulator already to be aware of the circumstances to be notified.</content></subsection><subsection eId="section-87-3"><num>(3)</num><intro>The following are “<term refersTo="#term-relevant-persons" eId="term-relevant-persons">relevant persons</term>” in relation to an operating superfund—</intro><level class="para1" eId="section-87-3-a"><num>(a)</num><content>the responsible body;</content></level><level class="para1" eId="section-87-3-b"><num>(b)</num><content>the trustees of the superfund scheme;</content></level><level class="para1" eId="section-87-3-c"><num>(c)</num><content>in relation to the event of concern in <ref href="#section-86">section 86</ref><ref href="#section-86-1">(1)</ref><ref href="#section-86-1-a">(a)</ref>, the actuary appointed under <ref eId="c00079" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">section 47</ref><ref eId="c00080" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">(1)</ref><ref eId="c00081" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">(b)</ref> of the <ref eId="c00082" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>in relation to the superfund scheme.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-1"><num>(1)</num><intro>A relevant person in relation to an operating superfund must notify the Regulator as soon as reasonably practicable after becoming aware that an event of concern—</intro><level class="para1" eId="section-87-1-a"><num>(a)</num><content>will or is likely to take place in relation to the superfund, or</content></level><level class="para1" eId="section-87-1-b"><num>(b)</num><content>has already taken place in relation to the superfund.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-2"><num>(2)</num><content>No notification need be given if the relevant person knows the Regulator already to be aware of the circumstances to be notified.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-3"><num>(3)</num><intro>The following are “<term refersTo="#term-relevant-persons" eId="term-relevant-persons">relevant persons</term>” in relation to an operating superfund—</intro><level class="para1" eId="section-87-3-a"><num>(a)</num><content>the responsible body;</content></level><level class="para1" eId="section-87-3-b"><num>(b)</num><content>the trustees of the superfund scheme;</content></level><level class="para1" eId="section-87-3-c"><num>(c)</num><content>in relation to the event of concern in <ref href="#section-86">section 86</ref><ref href="#section-86-1">(1)</ref><ref href="#section-86-1-a">(a)</ref>, the actuary appointed under <ref eId="c00079" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">section 47</ref><ref eId="c00080" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">(1)</ref><ref eId="c00081" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">(b)</ref> of the <ref eId="c00082" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>in relation to the superfund scheme.</content></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88"><num>88</num><heading>Responding to events of concern</heading><subsection eId="section-88-1"><num>(1)</num><content>If an event of concern takes place in relation to an operating superfund, the Regulator must require the responsible body or the trustees of the superfund scheme, or both jointly, to propose a plan for responding to the event of concern (a “response plan”) within a period specified by the Regulator.</content></subsection><subsection eId="section-88-2"><num>(2)</num><intro>The Regulator must approve a proposed response plan if satisfied, having regard to the interests of members of the superfund scheme, that the response plan—</intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content>meets the requirements of <ref href="#section-89">section 89</ref> (content of response plan), and</content></level><level class="para1" eId="section-88-2-b"><num>(b)</num><content>is an appropriate plan for responding to the event of concern.</content></level></subsection><subsection eId="section-88-3"><num>(3)</num><intro>If, having received a proposed response plan, the Regulator is not so satisfied—</intro><level class="para1" eId="section-88-3-a"><num>(a)</num><content>it must explain to the person that proposed the plan why not, and</content></level><level class="para1" eId="section-88-3-b"><num>(b)</num><content>that person must propose another response plan, within the period required by the Regulator, that takes account of that explanation.</content></level></subsection><subsection eId="section-88-4"><num>(4)</num><content>An approved response plan may be amended, or replaced with a new approved response plan, by agreement between the person that proposed the plan and the Regulator.</content></subsection><subsection eId="section-88-5"><num>(5)</num><intro>If the Regulator is satisfied—</intro><level class="para1" eId="section-88-5-a"><num>(a)</num><content>that an approved response plan has been carried out, and</content></level><level class="para1" eId="section-88-5-b"><num>(b)</num><content>that the event of concern in question has been adequately resolved,</content></level><wrapUp>it must give a notice to that effect to the person that proposed the plan.</wrapUp></subsection><subsection eId="section-88-6"><num>(6)</num><content>In <ref href="#section-88-2">subsections (2)</ref> and <ref href="#section-88-3">(3)</ref>, “<term refersTo="#term-proposed-response-plan" eId="term-proposed-response-plan">proposed response plan</term>” means a response plan proposed by virtue of <ref href="#section-88-1">subsection (1)</ref> or <ref href="#section-88-3">(3)</ref><ref href="#section-88-3-b">(b)</ref>.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-1"><num>(1)</num><content>If an event of concern takes place in relation to an operating superfund, the Regulator must require the responsible body or the trustees of the superfund scheme, or both jointly, to propose a plan for responding to the event of concern (a “response plan”) within a period specified by the Regulator.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-2"><num>(2)</num><intro>The Regulator must approve a proposed response plan if satisfied, having regard to the interests of members of the superfund scheme, that the response plan—</intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content>meets the requirements of <ref href="#section-89">section 89</ref> (content of response plan), and</content></level><level class="para1" eId="section-88-2-b"><num>(b)</num><content>is an appropriate plan for responding to the event of concern.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-3"><num>(3)</num><intro>If, having received a proposed response plan, the Regulator is not so satisfied—</intro><level class="para1" eId="section-88-3-a"><num>(a)</num><content>it must explain to the person that proposed the plan why not, and</content></level><level class="para1" eId="section-88-3-b"><num>(b)</num><content>that person must propose another response plan, within the period required by the Regulator, that takes account of that explanation.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-4"><num>(4)</num><content>An approved response plan may be amended, or replaced with a new approved response plan, by agreement between the person that proposed the plan and the Regulator.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-5"><num>(5)</num><intro>If the Regulator is satisfied—</intro><level class="para1" eId="section-88-5-a"><num>(a)</num><content>that an approved response plan has been carried out, and</content></level><level class="para1" eId="section-88-5-b"><num>(b)</num><content>that the event of concern in question has been adequately resolved,</content></level><wrapUp>it must give a notice to that effect to the person that proposed the plan.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-6"><num>(6)</num><content>In <ref href="#section-88-2">subsections (2)</ref> and <ref href="#section-88-3">(3)</ref>, “<term refersTo="#term-proposed-response-plan" eId="term-proposed-response-plan">proposed response plan</term>” means a response plan proposed by virtue of <ref href="#section-88-1">subsection (1)</ref> or <ref href="#section-88-3">(3)</ref><ref href="#section-88-3-b">(b)</ref>.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89"><num>89</num><heading>Content of response plan</heading><subsection eId="section-89-1"><num>(1)</num><content>The requirements mentioned in <ref href="#section-88">section 88</ref><ref href="#section-88-2">(2)</ref><ref href="#section-88-2-a">(a)</ref> are the following.</content></subsection><subsection eId="section-89-2"><num>(2)</num><intro>A response plan must specify—</intro><level class="para1" eId="section-89-2-a"><num>(a)</num><content>the outcome which the plan is intended to achieve,</content></level><level class="para1" eId="section-89-2-b"><num>(b)</num><content>the key steps which are to be taken to achieve that outcome,</content></level><level class="para1" eId="section-89-2-c"><num>(c)</num><content>when and by whom those steps are to be taken, and</content></level><level class="para1" eId="section-89-2-d"><num>(d)</num><content>how members of the superfund scheme are to be kept informed about the carrying out of the plan.</content></level></subsection><subsection eId="section-89-3"><num>(3)</num><content>Where the event of concern is the technical provisions threshold ceasing to be met, the response plan must require the whole of the capital buffer to be released to the trustees.</content></subsection><subsection eId="section-89-4"><num>(4)</num><intro>Where the event of concern is the scheme solvency threshold ceasing to be met, the response plan must require so much of the capital buffer to be released to the trustees as equals the lower of the following—</intro><level class="para1" eId="section-89-4-a"><num>(a)</num><content>the amount that would enable the superfund scheme to meet the requirement in <ref eId="c00083" href="https://www.legislation.gov.uk/ukpga/2004/35/section/222">section 222</ref><ref eId="c00084" href="https://www.legislation.gov.uk/ukpga/2004/35/section/222">(1)</ref> of the <ref eId="c00085" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (requirement to cover technical provisions);</content></level><level class="para1" eId="section-89-4-b"><num>(b)</num><content>the total value of the capital buffer.</content></level></subsection><subsection eId="section-89-5"><num>(5)</num><intro>Where the event of concern is a debt falling due to the trustees of the superfund scheme under <ref eId="c00086" href="https://www.legislation.gov.uk/ukpga/1995/26/section/75">section 75</ref> of the <ref eId="c00087" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>, the response plan must require so much of the capital buffer to be released to the trustees as equals the lower of the following—</intro><level class="para1" eId="section-89-5-a"><num>(a)</num><content>the amount of the debt;</content></level><level class="para1" eId="section-89-5-b"><num>(b)</num><content>the total value of the capital buffer.</content></level></subsection><subsection eId="section-89-6"><num>(6)</num><content>Where the event of concern is the protected liabilities threshold ceasing to be met, the response plan must require the immediate winding up of the superfund scheme.</content></subsection><subsection eId="section-89-7"><num>(7)</num><content>A response plan must take account of the superfund’s continuity strategy (but may deviate from it if, in the opinion of the person proposing the plan, the course of action contemplated by the continuity strategy is not appropriate in the circumstances).</content></subsection><subsection eId="section-89-8"><num>(8)</num><content>A response plan must not require the release of the capital buffer (to any extent) except as set out in <ref href="#section-89-3">subsection (3)</ref>, <ref href="#section-89-4">(4)</ref> or <ref href="#section-89-5">(5)</ref>.</content></subsection><subsection eId="section-89-9"><num>(9)</num><content>A response plan must meet any other requirements specified in regulations made by the Secretary of State, including in particular as to how the value of the capital buffer, or of any assets released from it, is to be determined for the purposes of a requirement within <ref href="#section-89-4">subsection (4)</ref> or <ref href="#section-89-5">(5)</ref>.</content></subsection><subsection eId="section-89-10"><num>(10)</num><content>Regulations under <ref href="#section-89-9">subsection (9)</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-1"><num>(1)</num><content>The requirements mentioned in <ref href="#section-88">section 88</ref><ref href="#section-88-2">(2)</ref><ref href="#section-88-2-a">(a)</ref> are the following.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-2"><num>(2)</num><intro>A response plan must specify—</intro><level class="para1" eId="section-89-2-a"><num>(a)</num><content>the outcome which the plan is intended to achieve,</content></level><level class="para1" eId="section-89-2-b"><num>(b)</num><content>the key steps which are to be taken to achieve that outcome,</content></level><level class="para1" eId="section-89-2-c"><num>(c)</num><content>when and by whom those steps are to be taken, and</content></level><level class="para1" eId="section-89-2-d"><num>(d)</num><content>how members of the superfund scheme are to be kept informed about the carrying out of the plan.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-3"><num>(3)</num><content>Where the event of concern is the technical provisions threshold ceasing to be met, the response plan must require the whole of the capital buffer to be released to the trustees.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-4"><num>(4)</num><intro>Where the event of concern is the scheme solvency threshold ceasing to be met, the response plan must require so much of the capital buffer to be released to the trustees as equals the lower of the following—</intro><level class="para1" eId="section-89-4-a"><num>(a)</num><content>the amount that would enable the superfund scheme to meet the requirement in <ref eId="c00083" href="https://www.legislation.gov.uk/ukpga/2004/35/section/222">section 222</ref><ref eId="c00084" href="https://www.legislation.gov.uk/ukpga/2004/35/section/222">(1)</ref> of the <ref eId="c00085" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> (requirement to cover technical provisions);</content></level><level class="para1" eId="section-89-4-b"><num>(b)</num><content>the total value of the capital buffer.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-5"><num>(5)</num><intro>Where the event of concern is a debt falling due to the trustees of the superfund scheme under <ref eId="c00086" href="https://www.legislation.gov.uk/ukpga/1995/26/section/75">section 75</ref> of the <ref eId="c00087" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>, the response plan must require so much of the capital buffer to be released to the trustees as equals the lower of the following—</intro><level class="para1" eId="section-89-5-a"><num>(a)</num><content>the amount of the debt;</content></level><level class="para1" eId="section-89-5-b"><num>(b)</num><content>the total value of the capital buffer.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-6"><num>(6)</num><content>Where the event of concern is the protected liabilities threshold ceasing to be met, the response plan must require the immediate winding up of the superfund scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-7"><num>(7)</num><content>A response plan must take account of the superfund’s continuity strategy (but may deviate from it if, in the opinion of the person proposing the plan, the course of action contemplated by the continuity strategy is not appropriate in the circumstances).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-8"><num>(8)</num><content>A response plan must not require the release of the capital buffer (to any extent) except as set out in <ref href="#section-89-3">subsection (3)</ref>, <ref href="#section-89-4">(4)</ref> or <ref href="#section-89-5">(5)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-9"><num>(9)</num><content>A response plan must meet any other requirements specified in regulations made by the Secretary of State, including in particular as to how the value of the capital buffer, or of any assets released from it, is to be determined for the purposes of a requirement within <ref href="#section-89-4">subsection (4)</ref> or <ref href="#section-89-5">(5)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-10"><num>(10)</num><content>Regulations under <ref href="#section-89-9">subsection (9)</ref> are subject to the negative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90"><num>90</num><heading>Regulator’s direction-making powers during period of concern</heading><subsection eId="section-90-1"><num>(1)</num><intro>The Regulator may during a period of concern direct a member of the superfund group or the trustees of the superfund scheme to do any or all of the following—</intro><level class="para1" eId="section-90-1-a"><num>(a)</num><content>take a specified step that an approved response plan identifies as one which they are to take;</content></level><level class="para1" eId="section-90-1-b"><num>(b)</num><content>take a specified step that the Regulator considers likely to enable or facilitate the carrying out of an approved response plan;</content></level><level class="para1" eId="section-90-1-c"><num>(c)</num><content>if a person has failed to comply with section <ref href="#section-88">88</ref><ref href="#section-88-1">(1)</ref> or <ref href="#section-88-3">(3)</ref><ref href="#section-88-3-b">(b)</ref> (requirement to propose response plan or revised response plan), take a specified step that the Regulator considers necessary or expedient for the purpose of responding to the event of concern in the interests of members of the superfund scheme;</content></level><level class="para1" eId="section-90-1-d"><num>(d)</num><intro>ensure that for a specified period—</intro><level class="para2" eId="section-90-1-d-i"><num>(i)</num><content>no payments are made out of the assets of the superfund scheme to or in respect of members;</content></level><level class="para2" eId="section-90-1-d-ii"><num>(ii)</num><content>no transfers of liabilities are made from the superfund scheme.</content></level></level></subsection><subsection eId="section-90-2"><num>(2)</num><content>A direction under <ref href="#section-90-1">subsection (1)</ref><ref href="#section-90-1-c">(c)</ref> may not require the provision of financial support to the superfund scheme.</content></subsection><subsection eId="section-90-3"><num>(3)</num><content>A member of the superfund group, and the trustees of the superfund scheme, must comply with a direction given to them by the Regulator under <ref href="#section-90">this section</ref>; and if compliance with a direction results in a breach of the rules of the scheme, the breach is to be disregarded for all purposes.</content></subsection><subsection eId="section-90-4"><num>(4)</num><content>If an approved response plan contemplates that a person will become the responsible body of a superfund, and that person agrees to become the responsible body, the Regulator may direct that that person is to become the responsible body from a specified time.</content></subsection><subsection eId="section-90-5"><num>(5)</num><content>In <ref href="#section-90">this section</ref>, “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified (or of a description specified) in the direction.</content></subsection><subsection eId="section-90-6"><num>(6)</num><content>See <ref href="#section-91">section 91</ref> for further provision about directions under <ref href="#section-90-1">subsection (1)</ref><ref href="#section-90-1-d">(d)</ref>.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-1"><num>(1)</num><intro>The Regulator may during a period of concern direct a member of the superfund group or the trustees of the superfund scheme to do any or all of the following—</intro><level class="para1" eId="section-90-1-a"><num>(a)</num><content>take a specified step that an approved response plan identifies as one which they are to take;</content></level><level class="para1" eId="section-90-1-b"><num>(b)</num><content>take a specified step that the Regulator considers likely to enable or facilitate the carrying out of an approved response plan;</content></level><level class="para1" eId="section-90-1-c"><num>(c)</num><content>if a person has failed to comply with section <ref href="#section-88">88</ref><ref href="#section-88-1">(1)</ref> or <ref href="#section-88-3">(3)</ref><ref href="#section-88-3-b">(b)</ref> (requirement to propose response plan or revised response plan), take a specified step that the Regulator considers necessary or expedient for the purpose of responding to the event of concern in the interests of members of the superfund scheme;</content></level><level class="para1" eId="section-90-1-d"><num>(d)</num><intro>ensure that for a specified period—</intro><level class="para2" eId="section-90-1-d-i"><num>(i)</num><content>no payments are made out of the assets of the superfund scheme to or in respect of members;</content></level><level class="para2" eId="section-90-1-d-ii"><num>(ii)</num><content>no transfers of liabilities are made from the superfund scheme.</content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-1-a"><num>(a)</num><content>take a specified step that an approved response plan identifies as one which they are to take;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-1-b"><num>(b)</num><content>take a specified step that the Regulator considers likely to enable or facilitate the carrying out of an approved response plan;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-1-c"><num>(c)</num><content>if a person has failed to comply with section <ref href="#section-88">88</ref><ref href="#section-88-1">(1)</ref> or <ref href="#section-88-3">(3)</ref><ref href="#section-88-3-b">(b)</ref> (requirement to propose response plan or revised response plan), take a specified step that the Regulator considers necessary or expedient for the purpose of responding to the event of concern in the interests of members of the superfund scheme;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-1-d"><num>(d)</num><intro>ensure that for a specified period—</intro><level class="para2" eId="section-90-1-d-i"><num>(i)</num><content>no payments are made out of the assets of the superfund scheme to or in respect of members;</content></level><level class="para2" eId="section-90-1-d-ii"><num>(ii)</num><content>no transfers of liabilities are made from the superfund scheme.</content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-2"><num>(2)</num><content>A direction under <ref href="#section-90-1">subsection (1)</ref><ref href="#section-90-1-c">(c)</ref> may not require the provision of financial support to the superfund scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-3"><num>(3)</num><content>A member of the superfund group, and the trustees of the superfund scheme, must comply with a direction given to them by the Regulator under <ref href="#section-90">this section</ref>; and if compliance with a direction results in a breach of the rules of the scheme, the breach is to be disregarded for all purposes.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-4"><num>(4)</num><content>If an approved response plan contemplates that a person will become the responsible body of a superfund, and that person agrees to become the responsible body, the Regulator may direct that that person is to become the responsible body from a specified time.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-5"><num>(5)</num><content>In <ref href="#section-90">this section</ref>, “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified (or of a description specified) in the direction.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-6"><num>(6)</num><content>See <ref href="#section-91">section 91</ref> for further provision about directions under <ref href="#section-90-1">subsection (1)</ref><ref href="#section-90-1-d">(d)</ref>.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91"><num>91</num><heading>Directions to pause payments or transfers of liabilities: supplementary provision</heading><subsection eId="section-91-1"><num>(1)</num><content><ref href="#section-91">This section</ref> applies to a direction under <ref href="#section-90">section 90</ref><ref href="#section-90-1">(1)</ref><ref href="#section-90-1-d">(d)</ref> (a “pause direction”).</content></subsection><subsection eId="section-91-2"><num>(2)</num><content>The Regulator may make a pause direction only if satisfied that doing so is reasonably necessary to protect the interests of members of the superfund scheme.</content></subsection><subsection eId="section-91-3"><num>(3)</num><content>A pause direction may make different provision for different purposes.</content></subsection><subsection eId="section-91-4"><num>(4)</num><content>The Regulator must cancel a pause direction if no longer satisfied as described in <ref href="#section-91-2">subsection (2)</ref>.</content></subsection><subsection eId="section-91-5"><num>(5)</num><content>A pause direction, so far as not already cancelled, ceases to have effect when the period of concern to which it relates comes to an end.</content></subsection><subsection eId="section-91-6"><num>(6)</num><content>A payment that would have fallen due but for a pause direction falls due when the pause direction ceases to have effect.</content></subsection><subsection eId="section-91-7"><num>(7)</num><content>A pause direction within <ref href="#section-90">section 90</ref><ref href="#section-90-1">(1)</ref><ref href="#section-90-1-d">(d)</ref><ref href="#section-90-1-d-ii">(ii)</ref> (no transfers of liabilities) does not affect an order or provision falling within <ref eId="c00088" href="https://www.legislation.gov.uk/ukpga/1999/30/section/28">section 28</ref><ref eId="c00089" href="https://www.legislation.gov.uk/ukpga/1999/30/section/28">(1)</ref> of the <ref eId="c00090" href="https://www.legislation.gov.uk/ukpga/1999/30/contents">Welfare Reform and Pensions Act 1999</ref> (pension sharing orders or provisions).</content></subsection><subsection eId="section-91-8"><num>(8)</num><content>The Secretary of State may by regulations modify any provision of <ref eId="c00091" href="https://www.legislation.gov.uk/ukpga/1993/48/part/4ZA">Part 4ZA</ref> of the <ref eId="c00092" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (transfer rights etc) in its application to a superfund scheme in relation to which a pause direction has effect containing provision within <ref href="#section-90">section 90</ref><ref href="#section-90-1">(1)</ref><ref href="#section-90-1-d">(d)</ref><ref href="#section-90-1-d-ii">(ii)</ref> (no transfer of liabilities).</content></subsection><subsection eId="section-91-9"><num>(9)</num><content>Regulations under subsection <ref href="#section-91-8">(8)</ref> are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-1"><num>(1)</num><content><ref href="#section-91">This section</ref> applies to a direction under <ref href="#section-90">section 90</ref><ref href="#section-90-1">(1)</ref><ref href="#section-90-1-d">(d)</ref> (a “pause direction”).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-2"><num>(2)</num><content>The Regulator may make a pause direction only if satisfied that doing so is reasonably necessary to protect the interests of members of the superfund scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-3"><num>(3)</num><content>A pause direction may make different provision for different purposes.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-4"><num>(4)</num><content>The Regulator must cancel a pause direction if no longer satisfied as described in <ref href="#section-91-2">subsection (2)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-5"><num>(5)</num><content>A pause direction, so far as not already cancelled, ceases to have effect when the period of concern to which it relates comes to an end.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-6"><num>(6)</num><content>A payment that would have fallen due but for a pause direction falls due when the pause direction ceases to have effect.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-7"><num>(7)</num><content>A pause direction within <ref href="#section-90">section 90</ref><ref href="#section-90-1">(1)</ref><ref href="#section-90-1-d">(d)</ref><ref href="#section-90-1-d-ii">(ii)</ref> (no transfers of liabilities) does not affect an order or provision falling within <ref eId="c00088" href="https://www.legislation.gov.uk/ukpga/1999/30/section/28">section 28</ref><ref eId="c00089" href="https://www.legislation.gov.uk/ukpga/1999/30/section/28">(1)</ref> of the <ref eId="c00090" href="https://www.legislation.gov.uk/ukpga/1999/30/contents">Welfare Reform and Pensions Act 1999</ref> (pension sharing orders or provisions).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-8"><num>(8)</num><content>The Secretary of State may by regulations modify any provision of <ref eId="c00091" href="https://www.legislation.gov.uk/ukpga/1993/48/part/4ZA">Part 4ZA</ref> of the <ref eId="c00092" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (transfer rights etc) in its application to a superfund scheme in relation to which a pause direction has effect containing provision within <ref href="#section-90">section 90</ref><ref href="#section-90-1">(1)</ref><ref href="#section-90-1-d">(d)</ref><ref href="#section-90-1-d-ii">(ii)</ref> (no transfer of liabilities).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-9"><num>(9)</num><content>Regulations under subsection <ref href="#section-91-8">(8)</ref> are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92"><num>92</num><heading>Fixed penalty notices</heading><subsection eId="section-92-1"><num>(1)</num><content>The Regulator may issue a fixed penalty notice to a person if it considers that the person has failed to comply with a requirement imposed by or under <ref href="#section-87">section 87</ref>, <ref href="#section-88">88</ref> or <ref href="#section-90">90</ref>.</content></subsection><subsection eId="section-92-2"><num>(2)</num><content>A “fixed penalty notice” is a notice requiring the person to whom it is issued to pay a penalty within the period specified in the notice.</content></subsection><subsection eId="section-92-3"><num>(3)</num><intro>The penalty—</intro><level class="para1" eId="section-92-3-a"><num>(a)</num><content>is to be determined in accordance with regulations made by the Secretary of State, and</content></level><level class="para1" eId="section-92-3-b"><num>(b)</num><content>must not exceed £100,000.</content></level></subsection><subsection eId="section-92-4"><num>(4)</num><intro>A fixed penalty notice must—</intro><level class="para1" eId="section-92-4-a"><num>(a)</num><content>state the amount of the penalty,</content></level><level class="para1" eId="section-92-4-b"><num>(b)</num><content>state the date before which the penalty must be paid, which must be at least 28 days after the date on which the notice is issued,</content></level><level class="para1" eId="section-92-4-c"><num>(c)</num><content>specify the failure to which the penalty relates,</content></level><level class="para1" eId="section-92-4-d"><num>(d)</num><content>state that the Regulator may issue an escalating penalty notice under <ref href="#section-93">section 93</ref> if the person fails to comply with the requirement in question, and</content></level><level class="para1" eId="section-92-4-e"><num>(e)</num><content>notify the person to whom the notice is issued of the review process under <ref eId="c00093" href="https://www.legislation.gov.uk/ukpga/2008/30/section/43">section 43</ref> of the <ref eId="c00094" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> and the right of referral to a tribunal under <ref eId="c00095" href="https://www.legislation.gov.uk/ukpga/2008/30/section/44">section 44</ref> of <ref eId="c00096" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">that Act</ref> (as applied by subsection <ref href="#section-92-5">(5)</ref>).</content></level></subsection><subsection eId="section-92-5"><num>(5)</num><intro>The following sections of the Pensions Act 2008 apply to a penalty notice under this section as they apply to a penalty notice under section 40 of that Act—</intro><level class="para1" eId="section-92-5-a"><num>(a)</num><content>section 42 (penalty notices: recovery);</content></level><level class="para1" eId="section-92-5-b"><num>(b)</num><content>section 43 (review of penalty notices);</content></level><level class="para1" eId="section-92-5-c"><num>(c)</num><content>section 44 (references to First-tier Tribunal or Upper Tribunal).</content></level></subsection><subsection eId="section-92-6"><num>(6)</num><content>Regulations under <ref href="#section-92-3">subsection (3)</ref><ref href="#section-92-3-a">(a)</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-1"><num>(1)</num><content>The Regulator may issue a fixed penalty notice to a person if it considers that the person has failed to comply with a requirement imposed by or under <ref href="#section-87">section 87</ref>, <ref href="#section-88">88</ref> or <ref href="#section-90">90</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-2"><num>(2)</num><content>A “fixed penalty notice” is a notice requiring the person to whom it is issued to pay a penalty within the period specified in the notice.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-3"><num>(3)</num><intro>The penalty—</intro><level class="para1" eId="section-92-3-a"><num>(a)</num><content>is to be determined in accordance with regulations made by the Secretary of State, and</content></level><level class="para1" eId="section-92-3-b"><num>(b)</num><content>must not exceed £100,000.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-4"><num>(4)</num><intro>A fixed penalty notice must—</intro><level class="para1" eId="section-92-4-a"><num>(a)</num><content>state the amount of the penalty,</content></level><level class="para1" eId="section-92-4-b"><num>(b)</num><content>state the date before which the penalty must be paid, which must be at least 28 days after the date on which the notice is issued,</content></level><level class="para1" eId="section-92-4-c"><num>(c)</num><content>specify the failure to which the penalty relates,</content></level><level class="para1" eId="section-92-4-d"><num>(d)</num><content>state that the Regulator may issue an escalating penalty notice under <ref href="#section-93">section 93</ref> if the person fails to comply with the requirement in question, and</content></level><level class="para1" eId="section-92-4-e"><num>(e)</num><content>notify the person to whom the notice is issued of the review process under <ref eId="c00093" href="https://www.legislation.gov.uk/ukpga/2008/30/section/43">section 43</ref> of the <ref eId="c00094" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> and the right of referral to a tribunal under <ref eId="c00095" href="https://www.legislation.gov.uk/ukpga/2008/30/section/44">section 44</ref> of <ref eId="c00096" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">that Act</ref> (as applied by subsection <ref href="#section-92-5">(5)</ref>).</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-4-a"><num>(a)</num><content>state the amount of the penalty,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-4-b"><num>(b)</num><content>state the date before which the penalty must be paid, which must be at least 28 days after the date on which the notice is issued,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-4-c"><num>(c)</num><content>specify the failure to which the penalty relates,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-4-d"><num>(d)</num><content>state that the Regulator may issue an escalating penalty notice under <ref href="#section-93">section 93</ref> if the person fails to comply with the requirement in question, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-4-e"><num>(e)</num><content>notify the person to whom the notice is issued of the review process under <ref eId="c00093" href="https://www.legislation.gov.uk/ukpga/2008/30/section/43">section 43</ref> of the <ref eId="c00094" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> and the right of referral to a tribunal under <ref eId="c00095" href="https://www.legislation.gov.uk/ukpga/2008/30/section/44">section 44</ref> of <ref eId="c00096" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">that Act</ref> (as applied by subsection <ref href="#section-92-5">(5)</ref>).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-5"><num>(5)</num><intro>The following sections of the Pensions Act 2008 apply to a penalty notice under this section as they apply to a penalty notice under section 40 of that Act—</intro><level class="para1" eId="section-92-5-a"><num>(a)</num><content>section 42 (penalty notices: recovery);</content></level><level class="para1" eId="section-92-5-b"><num>(b)</num><content>section 43 (review of penalty notices);</content></level><level class="para1" eId="section-92-5-c"><num>(c)</num><content>section 44 (references to First-tier Tribunal or Upper Tribunal).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-6"><num>(6)</num><content>Regulations under <ref href="#section-92-3">subsection (3)</ref><ref href="#section-92-3-a">(a)</ref> are subject to the negative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93"><num>93</num><heading>Escalating penalty notices</heading><subsection eId="section-93-1"><num>(1)</num><intro>The Regulator may issue an escalating penalty notice to a person if—</intro><level class="para1" eId="section-93-1-a"><num>(a)</num><content>it considers that the person has failed to comply with a requirement imposed by virtue of <ref href="#section-87">section 87</ref>, <ref href="#section-88">88</ref> or <ref href="#section-90">90</ref>,</content></level><level class="para1" eId="section-93-1-b"><num>(b)</num><content>it has already issued the person with a fixed penalty notice under section <ref href="#section-92">92</ref> in respect of that failure, and</content></level><level class="para1" eId="section-93-1-c"><num>(c)</num><content>the period for paying the penalty specified in that notice has passed without the requirement to which that notice related being complied with.</content></level></subsection><subsection eId="section-93-2"><num>(2)</num><content>An “escalating penalty notice” is a notice requiring a person to pay a penalty calculated by reference to a daily rate if the person fails before a specified date to comply with the requirement to which the notice relates.</content></subsection><subsection eId="section-93-3"><num>(3)</num><intro>The daily rate—</intro><level class="para1" eId="section-93-3-a"><num>(a)</num><content>is to be determined in accordance with regulations made by the Secretary of State, and</content></level><level class="para1" eId="section-93-3-b"><num>(b)</num><content>must not exceed £20,000.</content></level></subsection><subsection eId="section-93-4"><num>(4)</num><intro>The Regulator may not issue an escalating penalty notice to a person if—</intro><level class="para1" eId="section-93-4-a"><num>(a)</num><content>the person has exercised the right of referral to a tribunal under <ref eId="c00097" href="https://www.legislation.gov.uk/ukpga/2008/30/section/44">section 44</ref> of the <ref eId="c00098" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (as applied by section <ref href="#section-92">92</ref><ref href="#section-92-5">(5)</ref>) in respect of a fixed penalty notice issued under <ref href="#section-92">section 92</ref>,</content></level><level class="para1" eId="section-93-4-b"><num>(b)</num><content>the escalating penalty notice relates to the same failure as the fixed penalty notice, and</content></level><level class="para1" eId="section-93-4-c"><num>(c)</num><content>the reference in respect of the fixed penalty notice has not been determined.</content></level></subsection><subsection eId="section-93-5"><num>(5)</num><intro>An escalating penalty notice must—</intro><level class="para1" eId="section-93-5-a"><num>(a)</num><content>specify the failure to which the penalty relates,</content></level><level class="para1" eId="section-93-5-b"><num>(b)</num><content>state that, if the person fails to comply with the requirement to which the notice relates before a specified date, the person will be liable to pay an escalating penalty,</content></level><level class="para1" eId="section-93-5-c"><num>(c)</num><content>state the daily rate of the escalating penalty and the way in which the penalty is calculated,</content></level><level class="para1" eId="section-93-5-d"><num>(d)</num><content>state the date from which the escalating penalty will be payable,</content></level><level class="para1" eId="section-93-5-e"><num>(e)</num><content>state that the escalating penalty will continue to be payable at the daily rate until the date on which the person complies with the requirement to which the notice relates or an earlier date specified in the notice, and</content></level><level class="para1" eId="section-93-5-f"><num>(f)</num><content>notify the person to whom the notice is issued of the review process under <ref eId="c00099" href="https://www.legislation.gov.uk/ukpga/2008/30/section/43">section 43</ref> of the <ref eId="c00100" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> and the right of referral to a tribunal under <ref eId="c00101" href="https://www.legislation.gov.uk/ukpga/2008/30/section/44">section 44</ref> of <ref eId="c00102" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">that Act</ref> (as applied by subsection <ref href="#section-93-6">(6)</ref>).</content></level></subsection><subsection eId="section-93-6"><num>(6)</num><intro>The following sections of the <ref eId="c00103" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> apply to an escalating penalty notice under <ref href="#section-93">this section</ref> as they apply to an escalating penalty notice under <ref eId="c00104" href="https://www.legislation.gov.uk/ukpga/2008/30/section/41">section 41</ref> of <ref eId="c00105" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">that Act</ref>—</intro><level class="para1" eId="section-93-6-a"><num>(a)</num><content>section 42 (penalty notices: recovery);</content></level><level class="para1" eId="section-93-6-b"><num>(b)</num><content>section 43 (review of penalty notices);</content></level><level class="para1" eId="section-93-6-c"><num>(c)</num><content>section 44 (references to First-tier Tribunal or Upper Tribunal).</content></level></subsection><subsection eId="section-93-7"><num>(7)</num><content>Regulations under <ref href="#section-93-3">subsection (3)</ref><ref href="#section-93-3-a">(a)</ref> are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-1"><num>(1)</num><intro>The Regulator may issue an escalating penalty notice to a person if—</intro><level class="para1" eId="section-93-1-a"><num>(a)</num><content>it considers that the person has failed to comply with a requirement imposed by virtue of <ref href="#section-87">section 87</ref>, <ref href="#section-88">88</ref> or <ref href="#section-90">90</ref>,</content></level><level class="para1" eId="section-93-1-b"><num>(b)</num><content>it has already issued the person with a fixed penalty notice under section <ref href="#section-92">92</ref> in respect of that failure, and</content></level><level class="para1" eId="section-93-1-c"><num>(c)</num><content>the period for paying the penalty specified in that notice has passed without the requirement to which that notice related being complied with.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-2"><num>(2)</num><content>An “escalating penalty notice” is a notice requiring a person to pay a penalty calculated by reference to a daily rate if the person fails before a specified date to comply with the requirement to which the notice relates.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-3"><num>(3)</num><intro>The daily rate—</intro><level class="para1" eId="section-93-3-a"><num>(a)</num><content>is to be determined in accordance with regulations made by the Secretary of State, and</content></level><level class="para1" eId="section-93-3-b"><num>(b)</num><content>must not exceed £20,000.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-4"><num>(4)</num><intro>The Regulator may not issue an escalating penalty notice to a person if—</intro><level class="para1" eId="section-93-4-a"><num>(a)</num><content>the person has exercised the right of referral to a tribunal under <ref eId="c00097" href="https://www.legislation.gov.uk/ukpga/2008/30/section/44">section 44</ref> of the <ref eId="c00098" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (as applied by section <ref href="#section-92">92</ref><ref href="#section-92-5">(5)</ref>) in respect of a fixed penalty notice issued under <ref href="#section-92">section 92</ref>,</content></level><level class="para1" eId="section-93-4-b"><num>(b)</num><content>the escalating penalty notice relates to the same failure as the fixed penalty notice, and</content></level><level class="para1" eId="section-93-4-c"><num>(c)</num><content>the reference in respect of the fixed penalty notice has not been determined.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-5"><num>(5)</num><intro>An escalating penalty notice must—</intro><level class="para1" eId="section-93-5-a"><num>(a)</num><content>specify the failure to which the penalty relates,</content></level><level class="para1" eId="section-93-5-b"><num>(b)</num><content>state that, if the person fails to comply with the requirement to which the notice relates before a specified date, the person will be liable to pay an escalating penalty,</content></level><level class="para1" eId="section-93-5-c"><num>(c)</num><content>state the daily rate of the escalating penalty and the way in which the penalty is calculated,</content></level><level class="para1" eId="section-93-5-d"><num>(d)</num><content>state the date from which the escalating penalty will be payable,</content></level><level class="para1" eId="section-93-5-e"><num>(e)</num><content>state that the escalating penalty will continue to be payable at the daily rate until the date on which the person complies with the requirement to which the notice relates or an earlier date specified in the notice, and</content></level><level class="para1" eId="section-93-5-f"><num>(f)</num><content>notify the person to whom the notice is issued of the review process under <ref eId="c00099" href="https://www.legislation.gov.uk/ukpga/2008/30/section/43">section 43</ref> of the <ref eId="c00100" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> and the right of referral to a tribunal under <ref eId="c00101" href="https://www.legislation.gov.uk/ukpga/2008/30/section/44">section 44</ref> of <ref eId="c00102" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">that Act</ref> (as applied by subsection <ref href="#section-93-6">(6)</ref>).</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-5-a"><num>(a)</num><content>specify the failure to which the penalty relates,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-5-b"><num>(b)</num><content>state that, if the person fails to comply with the requirement to which the notice relates before a specified date, the person will be liable to pay an escalating penalty,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-5-c"><num>(c)</num><content>state the daily rate of the escalating penalty and the way in which the penalty is calculated,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-5-d"><num>(d)</num><content>state the date from which the escalating penalty will be payable,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-5-e"><num>(e)</num><content>state that the escalating penalty will continue to be payable at the daily rate until the date on which the person complies with the requirement to which the notice relates or an earlier date specified in the notice, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-5-f"><num>(f)</num><content>notify the person to whom the notice is issued of the review process under <ref eId="c00099" href="https://www.legislation.gov.uk/ukpga/2008/30/section/43">section 43</ref> of the <ref eId="c00100" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> and the right of referral to a tribunal under <ref eId="c00101" href="https://www.legislation.gov.uk/ukpga/2008/30/section/44">section 44</ref> of <ref eId="c00102" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">that Act</ref> (as applied by subsection <ref href="#section-93-6">(6)</ref>).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-6"><num>(6)</num><intro>The following sections of the <ref eId="c00103" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> apply to an escalating penalty notice under <ref href="#section-93">this section</ref> as they apply to an escalating penalty notice under <ref eId="c00104" href="https://www.legislation.gov.uk/ukpga/2008/30/section/41">section 41</ref> of <ref eId="c00105" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">that Act</ref>—</intro><level class="para1" eId="section-93-6-a"><num>(a)</num><content>section 42 (penalty notices: recovery);</content></level><level class="para1" eId="section-93-6-b"><num>(b)</num><content>section 43 (review of penalty notices);</content></level><level class="para1" eId="section-93-6-c"><num>(c)</num><content>section 44 (references to First-tier Tribunal or Upper Tribunal).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-7"><num>(7)</num><content>Regulations under <ref href="#section-93-3">subsection (3)</ref><ref href="#section-93-3-a">(a)</ref> are subject to the negative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94"><num>94</num><heading>Withdrawal of authorisation</heading><content>The Regulator may during a period of concern withdraw authorisation from a superfund if satisfied that the superfund has failed to comply with the requirements of <ref href="#part-3-chapter-4">Chapter 4</ref> or <ref href="#part-3-chapter-5">this Chapter</ref>.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-95"><num>95</num><heading>Release of capital buffer treated as reducing employer debt</heading><content>Where some or all of the capital buffer is released in consequence of a debt falling due to the trustees of the superfund scheme under <ref eId="c00106" href="https://www.legislation.gov.uk/ukpga/1995/26/section/75">section 75</ref> of the <ref eId="c00107" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>, the debt due under that section is treated as reduced by the value of the assets released (as calculated in accordance with regulations under <ref href="#section-89">section 89</ref><ref href="#section-89-9">(9)</ref>).</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96"><num>96</num><heading>Power to extend superfunds legislation to similar structures</heading><subsection eId="section-96-1"><num>(1)</num><intro>The Secretary of State may by regulations—</intro><level class="para1" eId="section-96-1-a"><num>(a)</num><content>apply any superfunds legislation, with or without modifications, to a similar structure;</content></level><level class="para1" eId="section-96-1-b"><num>(b)</num><content>make, in relation to a similar structure, provision that is similar to or that corresponds to any superfunds legislation.</content></level></subsection><subsection eId="section-96-2"><num>(2)</num><content>“<term refersTo="#term-superfunds-legislation" eId="term-superfunds-legislation">Superfunds legislation</term>” means provision made by this Act (including provision amending other legislation) so far as it applies in relation to superfunds.</content></subsection><subsection eId="section-96-3"><num>(3)</num><intro>“<term refersTo="#term-similar-structure" eId="term-similar-structure">Similar structure</term>” means arrangements to which this Part does not (ignoring this section) apply but that involve a trust-based occupational pension scheme—</intro><level class="para1" eId="section-96-3-a"><num>(a)</num><content>that has defined-benefit liabilities, and</content></level><level class="para1" eId="section-96-3-b"><num>(b)</num><content>that is not supported by a substantive employer covenant</content></level><wrapUp>(whether or not the scheme receives, or is managed or administered with a view to its receiving, transfers of defined-benefit liabilities from other schemes).</wrapUp></subsection><subsection eId="section-96-4"><num>(4)</num><content>The power under <ref href="#section-96-1">subsection (1)</ref> can be exercised so as to amend an Act.</content></subsection><subsection eId="section-96-5"><num>(5)</num><content>Regulations under <ref href="#section-96-1">subsection (1)</ref> are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-1"><num>(1)</num><intro>The Secretary of State may by regulations—</intro><level class="para1" eId="section-96-1-a"><num>(a)</num><content>apply any superfunds legislation, with or without modifications, to a similar structure;</content></level><level class="para1" eId="section-96-1-b"><num>(b)</num><content>make, in relation to a similar structure, provision that is similar to or that corresponds to any superfunds legislation.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-2"><num>(2)</num><content>“<term refersTo="#term-superfunds-legislation" eId="term-superfunds-legislation">Superfunds legislation</term>” means provision made by this Act (including provision amending other legislation) so far as it applies in relation to superfunds.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-3"><num>(3)</num><intro>“<term refersTo="#term-similar-structure" eId="term-similar-structure">Similar structure</term>” means arrangements to which this Part does not (ignoring this section) apply but that involve a trust-based occupational pension scheme—</intro><level class="para1" eId="section-96-3-a"><num>(a)</num><content>that has defined-benefit liabilities, and</content></level><level class="para1" eId="section-96-3-b"><num>(b)</num><content>that is not supported by a substantive employer covenant</content></level><wrapUp>(whether or not the scheme receives, or is managed or administered with a view to its receiving, transfers of defined-benefit liabilities from other schemes).</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-4"><num>(4)</num><content>The power under <ref href="#section-96-1">subsection (1)</ref> can be exercised so as to amend an Act.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-5"><num>(5)</num><content>Regulations under <ref href="#section-96-1">subsection (1)</ref> are subject to the affirmative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97"><num>97</num><heading>Construction of “occupational pension scheme” and “<term refersTo="#term-employer" eId="term-employer">employer</term>” in relation to superfund schemes</heading><subsection eId="section-97-1"><num>(1)</num><intro>This section applies to a pension scheme—</intro><level class="para1" eId="section-97-1-a"><num>(a)</num><content>that is established for the purpose of receiving superfund transfers, and</content></level><level class="para1" eId="section-97-1-b"><num>(b)</num><content>that, immediately after it is established, is capable of having effect so as to provide benefits to or in respect of people with service in employment of a description.</content></level></subsection><subsection eId="section-97-2"><num>(2)</num><content>For the purposes of the definition of “occupational pension scheme” in section 1(1) of the Pension Schemes Act 1993, the scheme is assumed to meet the condition in paragraph (a) of that definition (condition that scheme be established by employer for the purpose of providing benefits to employees).</content></subsection><subsection eId="section-97-3"><num>(3)</num><content>For the purposes of the definitions of “employer” in <ref eId="c00108" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">section 124</ref><ref eId="c00109" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">(1)</ref> of the <ref eId="c00110" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>, <ref eId="c00111" href="https://www.legislation.gov.uk/ukpga/2004/35/section/318">section 318</ref><ref eId="c00112" href="https://www.legislation.gov.uk/ukpga/2004/35/section/318">(1)</ref>(a) of the <ref eId="c00113" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> and section <ref href="#section-100">100</ref> of this Act, the scheme is assumed to relate to the description of employment mentioned in <ref href="#section-97-1">subsection (1)</ref><ref href="#section-97-1-b">(b)</ref> above (in addition to any other description of employment to which it relates).</content></subsection><subsection eId="section-97-4"><num>(4)</num><intro>If—</intro><level class="para1" eId="section-97-4-a"><num>(a)</num><content>the scheme includes more than one section, and</content></level><level class="para1" eId="section-97-4-b"><num>(b)</num><content>a section of the scheme is, immediately after the section comes into being, capable of having effect so as to provide benefits to or in respect of people with service in employment of a description,</content></level><wrapUp>then for the purposes of the definitions mentioned in <ref href="#section-97-3">subsection (3)</ref>, both the section and the scheme are assumed to relate to the description of employment mentioned in paragraph <ref href="#section-97-4-b">(b)</ref> (in addition to any other description of employment to which they relate).</wrapUp></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-1"><num>(1)</num><intro>This section applies to a pension scheme—</intro><level class="para1" eId="section-97-1-a"><num>(a)</num><content>that is established for the purpose of receiving superfund transfers, and</content></level><level class="para1" eId="section-97-1-b"><num>(b)</num><content>that, immediately after it is established, is capable of having effect so as to provide benefits to or in respect of people with service in employment of a description.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-2"><num>(2)</num><content>For the purposes of the definition of “occupational pension scheme” in section 1(1) of the Pension Schemes Act 1993, the scheme is assumed to meet the condition in paragraph (a) of that definition (condition that scheme be established by employer for the purpose of providing benefits to employees).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-3"><num>(3)</num><content>For the purposes of the definitions of “employer” in <ref eId="c00108" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">section 124</ref><ref eId="c00109" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">(1)</ref> of the <ref eId="c00110" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>, <ref eId="c00111" href="https://www.legislation.gov.uk/ukpga/2004/35/section/318">section 318</ref><ref eId="c00112" href="https://www.legislation.gov.uk/ukpga/2004/35/section/318">(1)</ref>(a) of the <ref eId="c00113" href="https://www.legislation.gov.uk/ukpga/2004/35/contents">Pensions Act 2004</ref> and section <ref href="#section-100">100</ref> of this Act, the scheme is assumed to relate to the description of employment mentioned in <ref href="#section-97-1">subsection (1)</ref><ref href="#section-97-1-b">(b)</ref> above (in addition to any other description of employment to which it relates).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-4"><num>(4)</num><intro>If—</intro><level class="para1" eId="section-97-4-a"><num>(a)</num><content>the scheme includes more than one section, and</content></level><level class="para1" eId="section-97-4-b"><num>(b)</num><content>a section of the scheme is, immediately after the section comes into being, capable of having effect so as to provide benefits to or in respect of people with service in employment of a description,</content></level><wrapUp>then for the purposes of the definitions mentioned in <ref href="#section-97-3">subsection (3)</ref>, both the section and the scheme are assumed to relate to the description of employment mentioned in paragraph <ref href="#section-97-4-b">(b)</ref> (in addition to any other description of employment to which they relate).</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-3"><num>(3)</num><content>See also <ref href="#schedule">the Schedule</ref>, which contains amendments to the Pensions Act 2004 that (in some cases) are consequential on this Part.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99"><num>99</num><heading>Transitional provision</heading><subsection eId="section-99-1"><num>(1)</num><intro>The provision that may be made by virtue of <ref href="#section-133">section 133</ref><ref href="#section-133-13">(13)</ref><ref href="#section-133-13-a">(a)</ref> (power to make transitional or saving provision in connection with coming into force of Act) includes special provision in relation to a superfund that has been authorised under the interim regime; for example, provision—</intro><level class="para1" eId="section-99-1-a"><num>(a)</num><content>for a provision of this Part not to apply to, or to apply differently in respect of, a superfund that has been authorised under the interim regime;</content></level><level class="para1" eId="section-99-1-b"><num>(b)</num><content>for a superfund that has been authorised under the interim regime to be treated for the purposes of any provision of Chapter 4 or 5 as an operating superfund.</content></level></subsection><subsection eId="section-99-2"><num>(2)</num><content>For the purposes of <ref href="#section-99-1">subsection (1)</ref>, a superfund is “authorised under the interim regime” if its name has been published on the Regulator’s website as a result of its having made a successful application to the Regulator under the arrangements for the assessment and supervision of superfunds operated by the Regulator before the coming into force of <ref href="#part-3">this Part</ref>.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99-1"><num>(1)</num><intro>The provision that may be made by virtue of <ref href="#section-133">section 133</ref><ref href="#section-133-13">(13)</ref><ref href="#section-133-13-a">(a)</ref> (power to make transitional or saving provision in connection with coming into force of Act) includes special provision in relation to a superfund that has been authorised under the interim regime; for example, provision—</intro><level class="para1" eId="section-99-1-a"><num>(a)</num><content>for a provision of this Part not to apply to, or to apply differently in respect of, a superfund that has been authorised under the interim regime;</content></level><level class="para1" eId="section-99-1-b"><num>(b)</num><content>for a superfund that has been authorised under the interim regime to be treated for the purposes of any provision of Chapter 4 or 5 as an operating superfund.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99-2"><num>(2)</num><content>For the purposes of <ref href="#section-99-1">subsection (1)</ref>, a superfund is “authorised under the interim regime” if its name has been published on the Regulator’s website as a result of its having made a successful application to the Regulator under the arrangements for the assessment and supervision of superfunds operated by the Regulator before the coming into force of <ref href="#part-3">this Part</ref>.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100"><num>100</num><heading>Interpretation of Part</heading><subsection eId="section-100-1"><num>(1)</num><intro>In <ref href="#part-3">this Part</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-approved-response-plan" eId="term-approved-response-plan">approved response plan</term>” means a response plan which has been approved by the Regulator under <ref href="#section-88">section 88</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-assets" eId="term-assets">assets</term>”, in relation to the capital buffer, includes cash;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-associate" eId="term-associate">associate</term>”, in relation to a body corporate, has the meaning given in <ref eId="c00115" href="https://www.legislation.gov.uk/ukpga/1986/45/section/435">section 435</ref><ref eId="c00116" href="https://www.legislation.gov.uk/ukpga/1986/45/section/435">(6)</ref> of the <ref eId="c00117" href="https://www.legislation.gov.uk/ukpga/1986/45/contents">Insolvency Act 1986</ref> (read with section 435(11));</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-authorised" eId="term-authorised">authorised</term>”, in relation to a superfund, means authorised under <ref href="#part-3-chapter-2">Chapter 2</ref> (except in <ref href="#section-99">section 99</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-capital-adequacy-threshold" eId="term-the-capital-adequacy-threshold">the capital adequacy threshold</term>” has the meaning given by <ref href="#section-72">section 72</ref><ref href="#section-72-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-capital-buffer" eId="term-capital-buffer">capital buffer</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-capital-buffer-arrangement" eId="term-the-capital-buffer-arrangement">the capital buffer arrangement</term>”, in relation to the capital buffer, means the contract or other arrangement referred to in <ref href="#section-60">section 60</ref><ref href="#section-60-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-ceding-scheme" eId="term-the-ceding-scheme">the ceding scheme</term>” has the meaning given by <ref href="#section-66">section 66</ref><ref href="#section-66-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-continuity-strategy" eId="term-continuity-strategy">continuity strategy</term>” has the meaning given by <ref href="#section-70">section 70</ref><ref href="#section-70-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-defined-benefits" eId="term-defined-benefits">defined benefits</term>” has the same meaning as in <ref eId="c00118" href="https://www.legislation.gov.uk/ukpga/2008/30/part/1">Part 1</ref> of the <ref eId="c00119" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (see section 99 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-defined-benefit-liability" eId="term-defined-benefit-liability">defined-benefit liability</term>” means a liability to pay defined benefits to a member of a pension scheme;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-employer" eId="term-the-employer">the employer</term>”, in relation to an occupational pension scheme, means the employer of persons in the description of employment to which the scheme in question relates (and see also <ref href="#section-97">section 97</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-event-of-concern" eId="term-event-of-concern">event of concern</term>” has the meaning given by <ref href="#section-86">section 86</ref><ref href="#section-86-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-financial-thresholds" eId="term-the-financial-thresholds">the financial thresholds</term>” has the meaning given by <ref href="#section-72">section 72</ref><ref href="#section-72-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-insurer-buyout" eId="term-insurer-buyout">insurer buyout</term>”, in relation to a pension scheme, means an arrangement under which an insurer takes on responsibility for satisfying all the liabilities of the scheme in full;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-key-function" eId="term-key-function">key function</term>” has the meaning given by <ref href="#section-77">section 77</ref><ref href="#section-77-2">(2)</ref> and <ref href="#section-77-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-liabilities" eId="term-liabilities">liabilities</term>”, in relation to a pension scheme, includes present and future liabilities;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-management-documents" eId="term-the-management-documents">the management documents</term>” has the meaning given by <ref href="#section-70">section 70</ref><ref href="#section-70-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-not-supported-by-a-substantive-employer-covenant" eId="term-not-supported-by-a-substantive-employer-covenant">not supported by a substantive employer covenant</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-occupational-pension-scheme" eId="term-occupational-pension-scheme">occupational pension scheme</term>” has the same meaning as in the <ref eId="c00120" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (see section 1 of that Act and <ref href="#section-97">section 97</ref> above);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-onboarding-conditions" eId="term-the-onboarding-conditions">the onboarding conditions</term>” has the meaning given by <ref href="#section-66">section 66</ref><ref href="#section-66-2">(2)</ref> (read with any regulations under section <ref href="#section-66">66</ref><ref href="#section-66-4">(4)</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-operating-superfund" eId="term-operating-superfund">operating superfund</term>” means a superfund of which the superfund scheme is an operating superfund scheme;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-operating-superfund-scheme" eId="term-operating-superfund-scheme">operating superfund scheme</term>” means a superfund scheme—</intro><level class="para1"><num>(a)</num><content>that is part of an authorised superfund or of a superfund whose authorisation has been withdrawn under <ref href="#section-94">section 94</ref>, and</content></level><level class="para1"><num>(b)</num><content>to which one or more superfund transfers have been made;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme" eId="term-pension-scheme">pension scheme</term>” has the meaning given by <ref eId="c00121" href="https://www.legislation.gov.uk/ukpga/1993/48/section/1">section 1</ref><ref eId="c00122" href="https://www.legislation.gov.uk/ukpga/1993/48/section/1">(5)</ref> of the <ref eId="c00123" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-period-of-concern" eId="term-period-of-concern">period of concern</term>” has the meaning given by <ref href="#section-86">section 86</ref><ref href="#section-86-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-permitted-profit-extraction" eId="term-permitted-profit-extraction">permitted profit extraction</term>” has the meaning given by <ref href="#section-74">section 74</ref><ref href="#section-74-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-protected-liabilities-threshold" eId="term-the-protected-liabilities-threshold">the protected liabilities threshold</term>” has the meaning given by <ref href="#section-72">section 72</ref><ref href="#section-72-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-receiving-superfund" eId="term-the-receiving-superfund">the receiving superfund</term>” has the meaning given by <ref href="#section-66">section 66</ref><ref href="#section-66-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-regulator" eId="term-the-regulator">the Regulator</term>” means the Pensions Regulator;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-release" eId="term-release">release</term>”, in relation to the capital buffer, has the meaning given by <ref href="#section-73">section 73</ref><ref href="#section-73-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-response-plan" eId="term-response-plan">response plan</term>” has the meaning given by <ref href="#section-88">section 88</ref><ref href="#section-88-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-responsible-body" eId="term-the-responsible-body">the responsible body</term>”, in relation to an authorised superfund, means—</intro><level class="para1"><num>(a)</num><content>the body corporate that applied for the superfund to be authorised (see <ref href="#section-63">section 63</ref><ref href="#section-63-2">(2)</ref>), or</content></level><level class="para1"><num>(b)</num><content>where the Regulator has directed under <ref href="#section-90">section 90</ref><ref href="#section-90-4">(4)</ref> that another person is to become the responsible body, that other person;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-rules-of-the-scheme" eId="term-the-rules-of-the-scheme">the rules of the scheme</term>”, in relation to a trust-based occupational pension scheme, includes the trust deed;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-scheme-solvency-threshold" eId="term-the-scheme-solvency-threshold">the scheme solvency threshold</term>” has the meaning given by <ref href="#section-72">section 72</ref><ref href="#section-72-5">(5)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-section" eId="term-section">section</term>” has the meaning given by <ref href="#section-61">section 61</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-superfund" eId="term-superfund">superfund</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-5">(5)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-superfund-group" eId="term-superfund-group">superfund group</term>”, in relation to a superfund, means the responsible body and every body corporate—</intro><level class="para1"><num>(a)</num><content>that is involved in the management or administration of the superfund, and</content></level><level class="para1"><num>(b)</num><content>that is an associate of the responsible body;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-superfund-scheme" eId="term-superfund-scheme">superfund scheme</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-1">(1)</ref> (read with <ref href="#section-61">section 61</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-superfund-transfer" eId="term-superfund-transfer">superfund transfer</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-6">(6)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-supported-by-a-capital-buffer" eId="term-supported-by-a-capital-buffer">supported by a capital buffer</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-technical-provisions-threshold" eId="term-the-technical-provisions-threshold">the technical provisions threshold</term>” has the meaning given by <ref href="#section-72">section 72</ref><ref href="#section-72-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer" eId="term-transfer">transfer</term>”, in relation to liabilities of a pension scheme, is to be read with <ref href="#section-100-2">subsection (2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-transferred-liabilities" eId="term-the-transferred-liabilities">the transferred liabilities</term>” has the meaning given by <ref href="#section-66">section 66</ref><ref href="#section-66-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-trust-based-occupational-pension-scheme" eId="term-trust-based-occupational-pension-scheme">trust-based occupational pension scheme</term>” means an occupational pension scheme established under a trust.</content></hcontainer></subsection><subsection eId="section-100-2"><num>(2)</num><intro>References in <ref href="#part-3">this Part</ref> to a transfer of liabilities from one pension scheme to another are to any transaction whereby—</intro><level class="para1" eId="section-100-2-a"><num>(a)</num><content>a person who has present or future rights to receive defined benefits under the first scheme ceases to have those rights, and</content></level><level class="para1" eId="section-100-2-b"><num>(b)</num><content>that person instead acquires present or future rights to receive defined benefits under the second scheme.</content></level></subsection><subsection eId="section-100-3"><num>(3)</num><content>The Secretary of State may by regulations amend <ref href="#section-100">this section</ref> for the purpose of changing the definition of “superfund group”.</content></subsection><subsection eId="section-100-4"><num>(4)</num><content>Regulations under <ref href="#section-100-3">subsection (3)</ref> are subject to the affirmative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-1"><num>(1)</num><intro>In <ref href="#part-3">this Part</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-approved-response-plan" eId="term-approved-response-plan">approved response plan</term>” means a response plan which has been approved by the Regulator under <ref href="#section-88">section 88</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-assets" eId="term-assets">assets</term>”, in relation to the capital buffer, includes cash;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-associate" eId="term-associate">associate</term>”, in relation to a body corporate, has the meaning given in <ref eId="c00115" href="https://www.legislation.gov.uk/ukpga/1986/45/section/435">section 435</ref><ref eId="c00116" href="https://www.legislation.gov.uk/ukpga/1986/45/section/435">(6)</ref> of the <ref eId="c00117" href="https://www.legislation.gov.uk/ukpga/1986/45/contents">Insolvency Act 1986</ref> (read with section 435(11));</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-authorised" eId="term-authorised">authorised</term>”, in relation to a superfund, means authorised under <ref href="#part-3-chapter-2">Chapter 2</ref> (except in <ref href="#section-99">section 99</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-capital-adequacy-threshold" eId="term-the-capital-adequacy-threshold">the capital adequacy threshold</term>” has the meaning given by <ref href="#section-72">section 72</ref><ref href="#section-72-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-capital-buffer" eId="term-capital-buffer">capital buffer</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-capital-buffer-arrangement" eId="term-the-capital-buffer-arrangement">the capital buffer arrangement</term>”, in relation to the capital buffer, means the contract or other arrangement referred to in <ref href="#section-60">section 60</ref><ref href="#section-60-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-ceding-scheme" eId="term-the-ceding-scheme">the ceding scheme</term>” has the meaning given by <ref href="#section-66">section 66</ref><ref href="#section-66-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-continuity-strategy" eId="term-continuity-strategy">continuity strategy</term>” has the meaning given by <ref href="#section-70">section 70</ref><ref href="#section-70-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-defined-benefits" eId="term-defined-benefits">defined benefits</term>” has the same meaning as in <ref eId="c00118" href="https://www.legislation.gov.uk/ukpga/2008/30/part/1">Part 1</ref> of the <ref eId="c00119" href="https://www.legislation.gov.uk/ukpga/2008/30/contents">Pensions Act 2008</ref> (see section 99 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-defined-benefit-liability" eId="term-defined-benefit-liability">defined-benefit liability</term>” means a liability to pay defined benefits to a member of a pension scheme;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-employer" eId="term-the-employer">the employer</term>”, in relation to an occupational pension scheme, means the employer of persons in the description of employment to which the scheme in question relates (and see also <ref href="#section-97">section 97</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-event-of-concern" eId="term-event-of-concern">event of concern</term>” has the meaning given by <ref href="#section-86">section 86</ref><ref href="#section-86-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-financial-thresholds" eId="term-the-financial-thresholds">the financial thresholds</term>” has the meaning given by <ref href="#section-72">section 72</ref><ref href="#section-72-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-insurer-buyout" eId="term-insurer-buyout">insurer buyout</term>”, in relation to a pension scheme, means an arrangement under which an insurer takes on responsibility for satisfying all the liabilities of the scheme in full;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-key-function" eId="term-key-function">key function</term>” has the meaning given by <ref href="#section-77">section 77</ref><ref href="#section-77-2">(2)</ref> and <ref href="#section-77-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-liabilities" eId="term-liabilities">liabilities</term>”, in relation to a pension scheme, includes present and future liabilities;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-management-documents" eId="term-the-management-documents">the management documents</term>” has the meaning given by <ref href="#section-70">section 70</ref><ref href="#section-70-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-not-supported-by-a-substantive-employer-covenant" eId="term-not-supported-by-a-substantive-employer-covenant">not supported by a substantive employer covenant</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-occupational-pension-scheme" eId="term-occupational-pension-scheme">occupational pension scheme</term>” has the same meaning as in the <ref eId="c00120" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (see section 1 of that Act and <ref href="#section-97">section 97</ref> above);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-onboarding-conditions" eId="term-the-onboarding-conditions">the onboarding conditions</term>” has the meaning given by <ref href="#section-66">section 66</ref><ref href="#section-66-2">(2)</ref> (read with any regulations under section <ref href="#section-66">66</ref><ref href="#section-66-4">(4)</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-operating-superfund" eId="term-operating-superfund">operating superfund</term>” means a superfund of which the superfund scheme is an operating superfund scheme;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-operating-superfund-scheme" eId="term-operating-superfund-scheme">operating superfund scheme</term>” means a superfund scheme—</intro><level class="para1"><num>(a)</num><content>that is part of an authorised superfund or of a superfund whose authorisation has been withdrawn under <ref href="#section-94">section 94</ref>, and</content></level><level class="para1"><num>(b)</num><content>to which one or more superfund transfers have been made;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-scheme" eId="term-pension-scheme">pension scheme</term>” has the meaning given by <ref eId="c00121" href="https://www.legislation.gov.uk/ukpga/1993/48/section/1">section 1</ref><ref eId="c00122" href="https://www.legislation.gov.uk/ukpga/1993/48/section/1">(5)</ref> of the <ref eId="c00123" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-period-of-concern" eId="term-period-of-concern">period of concern</term>” has the meaning given by <ref href="#section-86">section 86</ref><ref href="#section-86-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-permitted-profit-extraction" eId="term-permitted-profit-extraction">permitted profit extraction</term>” has the meaning given by <ref href="#section-74">section 74</ref><ref href="#section-74-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-protected-liabilities-threshold" eId="term-the-protected-liabilities-threshold">the protected liabilities threshold</term>” has the meaning given by <ref href="#section-72">section 72</ref><ref href="#section-72-4">(4)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-receiving-superfund" eId="term-the-receiving-superfund">the receiving superfund</term>” has the meaning given by <ref href="#section-66">section 66</ref><ref href="#section-66-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-regulator" eId="term-the-regulator">the Regulator</term>” means the Pensions Regulator;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-release" eId="term-release">release</term>”, in relation to the capital buffer, has the meaning given by <ref href="#section-73">section 73</ref><ref href="#section-73-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-response-plan" eId="term-response-plan">response plan</term>” has the meaning given by <ref href="#section-88">section 88</ref><ref href="#section-88-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-responsible-body" eId="term-the-responsible-body">the responsible body</term>”, in relation to an authorised superfund, means—</intro><level class="para1"><num>(a)</num><content>the body corporate that applied for the superfund to be authorised (see <ref href="#section-63">section 63</ref><ref href="#section-63-2">(2)</ref>), or</content></level><level class="para1"><num>(b)</num><content>where the Regulator has directed under <ref href="#section-90">section 90</ref><ref href="#section-90-4">(4)</ref> that another person is to become the responsible body, that other person;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-rules-of-the-scheme" eId="term-the-rules-of-the-scheme">the rules of the scheme</term>”, in relation to a trust-based occupational pension scheme, includes the trust deed;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-scheme-solvency-threshold" eId="term-the-scheme-solvency-threshold">the scheme solvency threshold</term>” has the meaning given by <ref href="#section-72">section 72</ref><ref href="#section-72-5">(5)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-section" eId="term-section">section</term>” has the meaning given by <ref href="#section-61">section 61</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-superfund" eId="term-superfund">superfund</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-5">(5)</ref>;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-superfund-group" eId="term-superfund-group">superfund group</term>”, in relation to a superfund, means the responsible body and every body corporate—</intro><level class="para1"><num>(a)</num><content>that is involved in the management or administration of the superfund, and</content></level><level class="para1"><num>(b)</num><content>that is an associate of the responsible body;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-superfund-scheme" eId="term-superfund-scheme">superfund scheme</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-1">(1)</ref> (read with <ref href="#section-61">section 61</ref>);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-superfund-transfer" eId="term-superfund-transfer">superfund transfer</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-6">(6)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-supported-by-a-capital-buffer" eId="term-supported-by-a-capital-buffer">supported by a capital buffer</term>” has the meaning given by <ref href="#section-60">section 60</ref><ref href="#section-60-2">(2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-technical-provisions-threshold" eId="term-the-technical-provisions-threshold">the technical provisions threshold</term>” has the meaning given by <ref href="#section-72">section 72</ref><ref href="#section-72-3">(3)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-transfer" eId="term-transfer">transfer</term>”, in relation to liabilities of a pension scheme, is to be read with <ref href="#section-100-2">subsection (2)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-transferred-liabilities" eId="term-the-transferred-liabilities">the transferred liabilities</term>” has the meaning given by <ref href="#section-66">section 66</ref><ref href="#section-66-7">(7)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-trust-based-occupational-pension-scheme" eId="term-trust-based-occupational-pension-scheme">trust-based occupational pension scheme</term>” means an occupational pension scheme established under a trust.</content></hcontainer></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-2"><num>(2)</num><intro>References in <ref href="#part-3">this Part</ref> to a transfer of liabilities from one pension scheme to another are to any transaction whereby—</intro><level class="para1" eId="section-100-2-a"><num>(a)</num><content>a person who has present or future rights to receive defined benefits under the first scheme ceases to have those rights, and</content></level><level class="para1" eId="section-100-2-b"><num>(b)</num><content>that person instead acquires present or future rights to receive defined benefits under the second scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-3"><num>(3)</num><content>The Secretary of State may by regulations amend <ref href="#section-100">this section</ref> for the purpose of changing the definition of “superfund group”.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-4"><num>(4)</num><content>Regulations under <ref href="#section-100-3">subsection (3)</ref> are subject to the affirmative procedure.</content></subsection>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-4"><num>Part 4</num><heading>Miscellaneous</heading><chapter eId="part-4-chapter-1"><num>Chapter 1</num><heading>Validity of certain alterations to salary-related contracted-out pension schemes</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-chapter-1-crossheading-schemes-in-great-britain"><heading>Schemes in Great Britain</heading><section eId="section-101"><num>101</num><heading>Sections <ref href="#section-101">101</ref> to <ref href="#section-104">104</ref>: interpretation and scope</heading><subsection eId="section-101-1"><num>(1)</num><content>The following provisions of <ref href="#section-101">this section</ref> have effect for the purposes of <ref href="#section-101">this section</ref> and <ref href="#section-102">sections 102</ref> to <ref href="#section-104">104</ref> .</content></subsection><subsection eId="section-101-2"><num>(2)</num><content>“<term refersTo="#term-gb-scheme" eId="term-gb-scheme">GB scheme</term>” means an occupational pension scheme that was a salary-related contracted-out scheme in England and Wales or Scotland; and for this purpose an occupational pension scheme was a salary-related contracted-out scheme in England and Wales or Scotland at any time if the scheme was contracted-out at that time by virtue of satisfying <ref eId="c00124" href="https://www.legislation.gov.uk/ukpga/1993/48/section/9">section 9</ref><ref eId="c00125" href="https://www.legislation.gov.uk/ukpga/1993/48/section/9">(2)</ref> of the <ref eId="c00126" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (as it then had effect).</content></subsection><subsection eId="section-101-3"><num>(3)</num><intro>“<term refersTo="#term-scheme-actuary" eId="term-scheme-actuary">Scheme actuary</term>”, in relation to a GB scheme, means—</intro><level class="para1" eId="section-101-3-a"><num>(a)</num><content>the person for the time being appointed as actuary for the scheme under <ref eId="c00127" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">section 47</ref> of the <ref eId="c00128" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (professional advisers), or</content></level><level class="para1" eId="section-101-3-b"><num>(b)</num><content>if there is no person so appointed, a Fellow of the Institute and Faculty of Actuaries appointed by the trustees or managers of the scheme to carry out the functions of the scheme actuary under <ref href="#section-102">section 102</ref>.</content></level></subsection><subsection eId="section-101-4"><num>(4)</num><content>“<term refersTo="#term-section-371" eId="term-section-371">Section 37(1)</term>” refers to <ref eId="c00129" href="https://www.legislation.gov.uk/ukpga/1993/48/section/37">section 37</ref><ref eId="c00130" href="https://www.legislation.gov.uk/ukpga/1993/48/section/37">(1)</ref> of the <ref eId="c00131" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (prohibition of alterations to rules of contracted-out schemes in certain circumstances).</content></subsection><subsection eId="section-101-5"><num>(5)</num><content>“<term refersTo="#term-regulation-42" eId="term-regulation-42">Regulation 42</term>” refers to <ref eId="c00132" href="https://www.legislation.gov.uk/uksi/1996/1172/regulation/42">regulation 42</ref> of the <ref eId="c00133" href="https://www.legislation.gov.uk/uksi/1996/1172/contents">Occupational Pension Schemes (Contracting-out) Regulations 1996</ref> (<ref eId="c00134" href="http://www.legislation.gov.uk/id/uksi/1996/1172">S.I. 1996/1172</ref>) (requirements for alterations to rules of contracted-out schemes).</content></subsection><subsection eId="section-101-6"><num>(6)</num><content>References to non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42 include non-compliance with the requirement in either paragraph (2)(a) or (2)(b) (as well as with both requirements).</content></subsection><subsection eId="section-101-7"><num>(7)</num><intro>An alteration purporting to have been made to the rules of a GB scheme is a “potentially remediable alteration” if—</intro><level class="para1" eId="section-101-7-a"><num>(a)</num><content>by virtue of <ref href="#section-37">section 37</ref><ref href="#section-37-1">(1)</ref> and paragraphs (1) and (2) of regulation 42 (as they had effect at the time), the alteration could not be made unless the requirements of paragraph (2)(a), (b) and (c) of regulation 42 (as they then had effect) had been met,</content></level><level class="para1" eId="section-101-7-b"><num>(b)</num><content>it was treated by the trustees or managers of the scheme, after it was purportedly made, as a valid alteration,</content></level><level class="para1" eId="section-101-7-c"><num>(c)</num><content>no positive action has been taken by the trustees or managers of the scheme on the basis that they consider the alteration to be void (and so of no legal effect) by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42, and</content></level><level class="para1" eId="section-101-7-d"><num>(d)</num><content>it is not excluded from the scope of remediation under <ref href="#section-102">sections 102</ref> and <ref href="#section-103">103</ref> (see subsection (9)).</content></level></subsection><subsection eId="section-101-8"><num>(8)</num><intro>In <ref href="#section-101-7">subsection (7)</ref><ref href="#section-101-7-c">(c)</ref> “<term refersTo="#term-positive-action" eId="term-positive-action">positive action</term>”, in relation to the purported alteration, means—</intro><level class="para1" eId="section-101-8-a"><num>(a)</num><content>notifying any members of the scheme in writing to the effect that the trustees or managers consider the alteration to be void (by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42) and that the scheme will be administered on the basis that it has no legal effect, or</content></level><level class="para1" eId="section-101-8-b"><num>(b)</num><content>notifying any members of the scheme in writing (in consequence of the trustees or managers being of the view mentioned in <ref href="#section-101-7">subsection (7)</ref><ref href="#section-101-7-c">(c)</ref>) to the effect that the trustees or managers are taking (or have taken) any other step in relation to the administration of the scheme which has (or will have) the effect of altering payments to or in respect of members of the scheme.</content></level></subsection><subsection eId="section-101-9"><num>(9)</num><intro>An alteration purporting to have been made to the rules of a GB scheme is excluded from the scope of remediation under sections <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref> if any question relating to the validity of the alteration, so far as relating to the requirements of paragraph (2)(a) and (b) of regulation 42—</intro><level class="para1" eId="section-101-9-a"><num>(a)</num><content>has, before <ref href="#section-101">this section</ref> comes into force, been determined by the court in qualifying legal proceedings,</content></level><level class="para1" eId="section-101-9-b"><num>(b)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings, but has been settled by agreement between the parties at any time before <ref href="#section-101">this section</ref> comes into force, or</content></level><level class="para1" eId="section-101-9-c"><num>(c)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings and remains in issue in those proceedings when <ref href="#section-101">this section</ref> comes into force.</content></level></subsection><subsection eId="section-101-10"><num>(10)</num><intro>In subsection <ref href="#section-101-9">(9)</ref> “<term refersTo="#term-legal-proceedings" eId="term-legal-proceedings">legal proceedings</term>” means proceedings for the determination of a dispute that have been brought before a court in the United Kingdom; and such proceedings are “qualifying legal proceedings” if —</intro><level class="para1" eId="section-101-10-a"><num>(a)</num><content>they will determine a dispute as to the rules of the scheme, and</content></level><level class="para1" eId="section-101-10-b"><num>(b)</num><intro>the parties are (or include)—</intro><level class="para2" eId="section-101-10-b-i"><num>(i)</num><content>the trustees or managers of the scheme, and</content></level><level class="para2" eId="section-101-10-b-ii"><num>(ii)</num><content>one or more members or other beneficiaries of the scheme (or a person acting on behalf of one or more members or other beneficiaries).</content></level></level></subsection></section><section eId="section-102"><num>102</num><heading>Validity of certain alterations to GB salary-related contracted-out pension schemes: subsisting schemes</heading><subsection eId="section-102-1"><num>(1)</num><content>This section applies to any potentially remediable alteration purportedly made to a GB scheme other than a potentially remediable alteration to which section <ref href="#section-103">103</ref> applies.</content></subsection><subsection eId="section-102-2"><num>(2)</num><content>If the conditions mentioned in subsection <ref href="#section-102-3">(3)</ref> are met in relation to it, the alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made, and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection><subsection eId="section-102-3"><num>(3)</num><intro>The conditions are—</intro><level class="para1" eId="section-102-3-a"><num>(a)</num><content>that the trustees or managers of the scheme have made a request in writing to the scheme actuary for the actuary to consider whether or not, on the assumption that it was validly made, the alteration would have prevented the scheme from continuing to satisfy the statutory standard, and</content></level><level class="para1" eId="section-102-3-b"><num>(b)</num><content>that the scheme actuary has confirmed to the trustees or managers in writing that in the actuary’s opinion it is reasonable to conclude that, on the assumption that it was validly made, the alteration would not have prevented the scheme from continuing to satisfy the statutory standard.</content></level><wrapUp>In this subsection “<term refersTo="#term-the-statutory-standard" eId="term-the-statutory-standard">the statutory standard</term>” means the statutory standard for a contracted-out scheme under section 12A of the Pension Schemes Act 1993 as it had effect at the time the alteration was purportedly made.</wrapUp></subsection><subsection eId="section-102-4"><num>(4)</num><intro>A scheme actuary who has received a request as mentioned in subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-a">(a)</ref> in relation to a potentially remediable alteration to a scheme—</intro><level class="para1" eId="section-102-4-a"><num>(a)</num><content>may act on the basis of the information available to the actuary, as long as the actuary considers it sufficient for the purpose of forming an opinion on the subject-matter of the request;</content></level><level class="para1" eId="section-102-4-b"><num>(b)</num><content>may take any professional approach (including making assumptions or relying on presumptions) that is open to the actuary in all the circumstances of the case.</content></level></subsection><subsection eId="section-102-5"><num>(5)</num><content>A condition mentioned in subsection <ref href="#section-102-3">(3)</ref> may be met by action taken before (as well as action taken after) this section comes into force.</content></subsection><subsection eId="section-102-6"><num>(6)</num><intro>Subsection <ref href="#section-102-7">(7)</ref> applies to a scheme if —</intro><level class="para1" eId="section-102-6-a"><num>(a)</num><content>there is an assessment period in relation to the scheme within the meaning of Part 2 of the Pensions Act 2004, or</content></level><level class="para1" eId="section-102-6-b"><num>(b)</num><content>the scheme is operating as a closed scheme under section 153 of that Act.</content></level></subsection><subsection eId="section-102-7"><num>(7)</num><intro>The powers of the Board of the Pension Protection Fund under section 134 and section 155 of the Pensions Act 2004 to give directions includes power to give a direction to the trustees or managers of the scheme requiring them—</intro><level class="para1" eId="section-102-7-a"><num>(a)</num><content>to make a request under subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-a">(a)</ref> above in relation to a potentially remediable alteration to the scheme, and</content></level><level class="para1" eId="section-102-7-b"><num>(b)</num><content>to take any necessary action to enable or facilitate the making of a decision by the scheme actuary as to whether to give the confirmation described in subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-b">(b)</ref> above in relation to that alteration.</content></level></subsection><subsection eId="section-102-8"><num>(8)</num><content>This section has effect, in relation to a potentially remediable alteration purportedly made to a public service scheme, as if the references in subsections <ref href="#section-102-3">(3)</ref> and <ref href="#section-102-7">(7)</ref> to the trustees or managers of the scheme were references to the responsible authority.</content></subsection><subsection eId="section-102-9"><num>(9)</num><intro>In subsection <ref href="#section-102-8">(8)</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-public-service-scheme" eId="term-public-service-scheme">public service scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>a pension scheme established under section 1 of the Public Service Pensions Act 2013, or</content></level><level class="para1"><num>(b)</num><content>a statutory pension scheme which is connected with a scheme referred to in paragraph (a) (and for this purpose “statutory pension scheme” and “connected” have the meanings given in that Act);</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-responsible-authority" eId="term-responsible-authority">responsible authority</term>”, in relation to a public service scheme, means the authority that is the responsible authority for the scheme by virtue of section 2 of, and Schedule 2 to, that Act.</content></hcontainer></subsection></section><section eId="section-103"><num>103</num><heading>Validity of certain alterations to GB salary-related contracted-out pension schemes: wound up schemes and other special cases</heading><subsection eId="section-103-1"><num>(1)</num><intro>This section applies to any potentially remediable alteration purportedly made to the rules of—</intro><level class="para1" eId="section-103-1-a"><num>(a)</num><content>a GB scheme, or a part of a GB scheme, which has been wound up before this section comes into force,</content></level><level class="para1" eId="section-103-1-b"><num>(b)</num><content>a GB scheme, or a part of a GB scheme, for which the Board of the Pension Protection Fund has, before this section comes into force, assumed responsibility in accordance with Chapter 3 of Part 2 of the Pensions Act 2004 (see section 161 of that Act), or</content></level><level class="para1" eId="section-103-1-c"><num>(c)</num><content>a GB scheme which is a qualifying pension scheme for the purposes of regulation 9 of the Financial Assistance Scheme Regulations 2005 (<ref eId="c00135" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) and in respect of which payments are required to be made under section 286 of the Pensions Act 2004.</content></level></subsection><subsection eId="section-103-2"><num>(2)</num><content>The alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection></section><section eId="section-104"><num>104</num><heading>Powers to amend provisions of Chapter 1 etc: Great Britain</heading><subsection eId="section-104-1"><num>(1)</num><content>The Secretary of State may by regulations amend any of sections <ref href="#section-101">101</ref>, <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref> for the purpose of providing for purported alterations of any specified description to be outside the scope of remediation under either or both of sections <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref>.</content></subsection><subsection eId="section-104-2"><num>(2)</num><content>In <ref href="#section-104-1">subsection (1)</ref> “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the regulations; and a specified description of purported alterations may be framed by reference to features of the alterations or of the schemes purportedly altered by them (or a combination of both).</content></subsection><subsection eId="section-104-3"><num>(3)</num><content>Regulations under <ref href="#section-104-1">subsection (1)</ref> are subject to the negative procedure.</content></subsection><subsection eId="section-104-4"><num>(4)</num><content>The Secretary of State may by regulations make incidental, supplementary, consequential or transitional provision in connection with any provision of this Chapter (other than this section and section <ref href="#section-108">108</ref>).</content></subsection><subsection eId="section-104-5"><num>(5)</num><content>Regulations under <ref href="#section-104-4">subsection (4)</ref> may amend any Act passed before or in the same Session as this Act.</content></subsection><subsection eId="section-104-6"><num>(6)</num><content>Regulations under <ref href="#section-104-4">subsection (4)</ref> are subject to the affirmative procedure if they contain provision made under subsection (5); otherwise they are subject to the negative procedure.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-chapter-1-crossheading-schemes-in-northern-ireland"><heading>Schemes in Northern Ireland</heading><section eId="section-105"><num>105</num><heading>Sections <ref href="#section-105">105</ref> to <ref href="#section-108">108</ref>: interpretation and scope</heading><subsection eId="section-105-1"><num>(1)</num><content>The provisions of this section have effect for the purposes of this section and sections <ref href="#section-106">106</ref> to <ref href="#section-108">108</ref>.</content></subsection><subsection eId="section-105-2"><num>(2)</num><content>“<term refersTo="#term-ni-scheme" eId="term-ni-scheme">NI scheme</term>” means an occupational pension scheme that was a salary-related contracted-out scheme in Northern Ireland; and for this purpose an occupational pension scheme was a salary-related contracted-out scheme in Northern Ireland at any time if the scheme was contracted-out at that time by virtue of satisfying section 5(2) of the Pension Schemes (Northern Ireland) Act 1993 (as it then had effect).</content></subsection><subsection eId="section-105-3"><num>(3)</num><intro>“<term refersTo="#term-scheme-actuary" eId="term-scheme-actuary">Scheme actuary</term>”, in relation to an NI scheme, means—</intro><level class="para1" eId="section-105-3-a"><num>(a)</num><content>the person for the time being appointed as actuary for the scheme under Article 47 of the Pensions (Northern Ireland) Order 1995 (<ref eId="c00136" href="http://www.legislation.gov.uk/id/nisi/1995/3213">S.I. 1995/3213 (N.I. 22)</ref>) (professional advisers), or</content></level><level class="para1" eId="section-105-3-b"><num>(b)</num><content>if there is no person so appointed, a Fellow of the Institute and Faculty of Actuaries appointed by the trustees or managers of the scheme to carry out the functions of the scheme actuary under section <ref href="#section-106">106</ref>.</content></level></subsection><subsection eId="section-105-4"><num>(4)</num><content>“<term refersTo="#term-section-331" eId="term-section-331">Section 33(1)</term>” refers to section 33(1) of the Pension Schemes (Northern Ireland) Act 1993 (prohibition of alterations to rules of contracted-out schemes in certain circumstances).</content></subsection><subsection eId="section-105-5"><num>(5)</num><content>“<term refersTo="#term-regulation-42" eId="term-regulation-42">Regulation 42</term>” refers to regulation 42 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 (<ref eId="c00137" href="http://www.legislation.gov.uk/id/nisr/1996/493">S.R. (N.I.) 1996 No. 493</ref>).</content></subsection><subsection eId="section-105-6"><num>(6)</num><content>References to non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42 include non-compliance with the requirement in either paragraph (2)(a) or (2)(b) (as well as with both requirements).</content></subsection><subsection eId="section-105-7"><num>(7)</num><intro>An alteration purporting to have been made to the rules of an NI scheme is a “potentially remediable alteration” if—</intro><level class="para1" eId="section-105-7-a"><num>(a)</num><content>by virtue of section 33(1) and paragraphs (1) and (2) of regulation 42 (as they had effect at the time), the alteration could not be made unless the requirements of paragraph (2)(a), (b) and (c) of regulation 42 (as they then had effect) had been met,</content></level><level class="para1" eId="section-105-7-b"><num>(b)</num><content>it was treated by the trustees or managers of the scheme, after it was purportedly made, as a valid alteration,</content></level><level class="para1" eId="section-105-7-c"><num>(c)</num><content>no positive action has been taken by the trustees or managers of the scheme on the basis that they consider the alteration to be void (and so of no legal effect) by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42, and</content></level><level class="para1" eId="section-105-7-d"><num>(d)</num><content>it is not excluded from the scope of remediation under <ref href="#section-106">sections 106</ref> and <ref href="#section-107">107</ref> (see subsection (9)).</content></level></subsection><subsection eId="section-105-8"><num>(8)</num><intro>In <ref href="#section-105-7">subsection (7)</ref><ref href="#section-105-7-c">(c)</ref> “<term refersTo="#term-positive-action" eId="term-positive-action">positive action</term>”, in relation to the purported alteration, means—</intro><level class="para1" eId="section-105-8-a"><num>(a)</num><content>notifying any members of the scheme in writing to the effect that the trustees or managers consider the alteration to be void (by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42) and that the scheme will be administered on the basis that it has no legal effect, or</content></level><level class="para1" eId="section-105-8-b"><num>(b)</num><content>notifying any members of the scheme in writing (in consequence of the trustees or managers being of the view mentioned in <ref href="#section-105-7">subsection (7)</ref><ref href="#section-105-7-c">(c)</ref>) to the effect that the trustees or managers are taking (or have taken) any other step in relation to the administration of the scheme which has (or will have) the effect of altering payments to or in respect of members of the scheme.</content></level></subsection><subsection eId="section-105-9"><num>(9)</num><intro>An alteration purporting to have been made to the rules of an NI scheme is excluded from the scope of remediation under sections <ref href="#section-106">106</ref> and <ref href="#section-107">107</ref> if any question relating to the validity of the alteration, so far as relating to the requirements of paragraph (2)(a) and (b) of regulation 42—</intro><level class="para1" eId="section-105-9-a"><num>(a)</num><content>has, before this section comes into force, been determined by the court in qualifying legal proceedings,</content></level><level class="para1" eId="section-105-9-b"><num>(b)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings, but has been settled by agreement between the parties at any time before this section comes into force, or</content></level><level class="para1" eId="section-105-9-c"><num>(c)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings and remains in issue in those proceedings when this section comes into force.</content></level></subsection><subsection eId="section-105-10"><num>(10)</num><intro>In subsection <ref href="#section-105-9">(9)</ref> “<term refersTo="#term-legal-proceedings" eId="term-legal-proceedings">legal proceedings</term>” means proceedings for the determination of a dispute that have been brought before a court in the United Kingdom; and such proceedings are “qualifying legal proceedings” if—</intro><level class="para1" eId="section-105-10-a"><num>(a)</num><content>they will determine a dispute as to the rules of the scheme, and</content></level><level class="para1" eId="section-105-10-b"><num>(b)</num><intro>the parties are (or include)—</intro><level class="para2" eId="section-105-10-b-i"><num>(i)</num><content>the trustees or managers of the scheme, and</content></level><level class="para2" eId="section-105-10-b-ii"><num>(ii)</num><content>one or more members or other beneficiaries of the scheme (or a person acting on behalf of one or more members or other beneficiaries).</content></level></level></subsection></section><section eId="section-106"><num>106</num><heading>Validity of certain alterations to NI salary-related contracted-out pension schemes: subsisting schemes</heading><subsection eId="section-106-1"><num>(1)</num><content>This section applies to any potentially remediable alteration purportedly made to an NI scheme other than a potentially remediable alteration to which section <ref href="#section-107">107</ref> applies.</content></subsection><subsection eId="section-106-2"><num>(2)</num><content>If the conditions mentioned in subsection <ref href="#section-106-3">(3)</ref> are met in relation to it, the alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made, and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection><subsection eId="section-106-3"><num>(3)</num><intro>The conditions are—</intro><level class="para1" eId="section-106-3-a"><num>(a)</num><content>that the trustees or managers of the scheme have made a request in writing to the scheme actuary for the actuary to consider whether or not, on the assumption that it was validly made, the alteration would have prevented the scheme from continuing to satisfy the statutory standard, and</content></level><level class="para1" eId="section-106-3-b"><num>(b)</num><content>that the scheme actuary has confirmed to the trustees or managers in writing that in the actuary’s opinion it is reasonable to conclude that, on the assumption that it was validly made, the alteration would not have prevented the scheme from continuing to satisfy the statutory standard.</content></level><wrapUp>In this subsection “<term refersTo="#term-the-statutory-standard" eId="term-the-statutory-standard">the statutory standard</term>” means the statutory standard for a contracted-out scheme under section 8A of the Pension Schemes (Northern Ireland) Act 1993 as it had effect at the time the alteration was purportedly made.</wrapUp></subsection><subsection eId="section-106-4"><num>(4)</num><intro>A scheme actuary who has received a request as mentioned in subsection (3)(a) in relation to a potentially remediable alteration to a scheme—</intro><level class="para1" eId="section-106-4-a"><num>(a)</num><content>may act on the basis of the information available to the actuary, as long as the actuary considers it sufficient for the purpose of forming an opinion on the subject-matter of the request;</content></level><level class="para1" eId="section-106-4-b"><num>(b)</num><content>may take any professional approach (including making assumptions or relying on presumptions) that is open to the actuary in all the circumstances of the case.</content></level></subsection><subsection eId="section-106-5"><num>(5)</num><content>A condition mentioned in <ref href="#section-106-3">subsection (3)</ref> may be met by action taken before (as well as action taken after) this section comes into force.</content></subsection><subsection eId="section-106-6"><num>(6)</num><intro>Subsection <ref href="#section-106-7">(7)</ref> applies to an NI scheme if —</intro><level class="para1" eId="section-106-6-a"><num>(a)</num><content>there is an assessment period in relation to the scheme within the meaning of Part 3 of the Pensions (Northern Ireland) Order 2005 (<ref eId="c00138" href="http://www.legislation.gov.uk/id/nisi/2005/255">S.I. 2005/255 (N.I. 1)</ref>), or</content></level><level class="para1" eId="section-106-6-b"><num>(b)</num><content>the scheme is operating as a closed scheme under Article 137 of that Order.</content></level></subsection><subsection eId="section-106-7"><num>(7)</num><intro>The powers of the Board of the Pension Protection Fund under Article 118 and 139 of the Pensions (Northern Ireland) Order 2005 to give directions include power to give a direction to the trustees or managers of the scheme requiring them—</intro><level class="para1" eId="section-106-7-a"><num>(a)</num><content>to make a request under subsection (3)(a) in relation to a potentially remediable alteration to the scheme, and</content></level><level class="para1" eId="section-106-7-b"><num>(b)</num><content>to take any necessary action to enable or facilitate the making of a decision by the actuary as to whether to give the confirmation described in subsection (3)(b) in relation to that alteration.</content></level></subsection><subsection eId="section-106-8"><num>(8)</num><content>This section has effect, in relation to a potentially remediable alteration purportedly made to a public service scheme, as if the references in subsections <ref href="#section-106-3">(3)</ref> and <ref href="#section-106-7">(7)</ref> to the trustees or managers of the scheme were references to the responsible authority.</content></subsection><subsection eId="section-106-9"><num>(9)</num><intro>In <ref href="#section-106-8">subsection (8)</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-public-service-scheme" eId="term-public-service-scheme">public service scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>a pension scheme established under section 1 of the Public Service Pensions (Northern Ireland) Act 2014 (<ref eId="c00139" href="http://www.legislation.gov.uk/id/ukpga/2014/2">2014 c. 2)</ref>, or</content></level><level class="para1"><num>(b)</num><content>a statutory pension scheme which is connected with a scheme referred to in paragraph (a) (and for this purpose “statutory pension scheme” and “connected” have the meanings given in that Act);</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-responsible-authority" eId="term-responsible-authority">responsible authority</term>”, in relation to a public service scheme, means the authority that is the responsible authority for the scheme by virtue of section 2 of and Schedule 2 to that Act.</content></hcontainer></subsection></section><section eId="section-107"><num>107</num><heading>Validity of certain alterations to NI salary-related contracted-out pension schemes: wound up schemes and other special cases</heading><subsection eId="section-107-1"><num>(1)</num><intro>This section applies to any potentially remediable alteration purportedly made to the rules of—</intro><level class="para1" eId="section-107-1-a"><num>(a)</num><content>an NI scheme, or a part of an NI scheme, which has been wound up before this section comes into force,</content></level><level class="para1" eId="section-107-1-b"><num>(b)</num><content>an NI scheme, or a part of an NI scheme, for which the Board of the Pension Protection Fund has, before this section comes into force, assumed responsibility in accordance with Chapter 3 of Part 3 of the Pensions (Northern Ireland) Order 2005 (see Article 145 of that Order), or</content></level><level class="para1" eId="section-107-1-c"><num>(c)</num><content>an NI scheme which is a qualifying pension scheme for the purposes of regulation 9 of the Financial Assistance Scheme Regulations 2005 (<ref eId="c00140" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) and in respect of which payments are required to be made under section 286 of the Pensions Act 2004.</content></level></subsection><subsection eId="section-107-2"><num>(2)</num><content>The alteration is be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection></section><section eId="section-108"><num>108</num><heading>Powers to amend Chapter 1 etc: Northern Ireland</heading><subsection eId="section-108-1"><num>(1)</num><content>The Department for Communities in Northern Ireland may by regulations amend any of <ref href="#section-105">sections 105</ref>, <ref href="#section-106">106</ref> and <ref href="#section-107">107</ref> for the purpose of providing for purported alterations of any specified description to be outside the scope of remediation under either or both of <ref href="#section-106">sections 106</ref> and <ref href="#section-107">107</ref>.</content></subsection><subsection eId="section-108-2"><num>(2)</num><content>In <ref href="#section-108-1">subsection (1)</ref> “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the regulations; and a specified description of purported alterations may be framed by reference to features of the alterations or of the schemes purportedly altered by them (or a combination of both).</content></subsection><subsection eId="section-108-3"><num>(3)</num><content>Regulations under <ref href="#section-108-1">subsection (1)</ref> are subject to negative resolution.</content></subsection><subsection eId="section-108-4"><num>(4)</num><content>The Department for Communities in Northern Ireland may by regulations make incidental, supplementary, consequential or transitional provision in connection with any provision of <ref href="#part-4-chapter-1">this Chapter</ref> (other than section <ref href="#section-104">104</ref> and this section).</content></subsection><subsection eId="section-108-5"><num>(5)</num><content>Regulations under <ref href="#section-108-4">subsection (4)</ref> may amend Northern Ireland legislation, or an Act of Parliament, passed or made before or in the same Session as this Act.</content></subsection><subsection eId="section-108-6"><num>(6)</num><intro>Regulations under <ref href="#section-108-4">subsection (4)</ref> which contain provision made under <ref href="#section-108-5">subsection (5)</ref>—</intro><level class="para1" eId="section-108-6-a"><num>(a)</num><content>must be laid before the Northern Ireland Assembly after being made,</content></level><level class="para1" eId="section-108-6-b"><num>(b)</num><content>take effect on such date as may be specified in the regulations, and</content></level><level class="para1" eId="section-108-6-c"><num>(c)</num><content>cease to have effect on the expiry of the period of six months beginning with the day on which they take effect, unless the regulations have been approved during that period by resolution of the Assembly.</content></level><wrapUp><ref href="#section-108-6-c">Paragraph (c)</ref> is without prejudice to the validity of anything done under the regulations or to the making of new regulations.</wrapUp></subsection><subsection eId="section-108-7"><num>(7)</num><content>Regulations under <ref href="#section-108-4">subsection (4)</ref> which do not contain provision made under <ref href="#section-108-5">subsection (5)</ref> are subject to negative resolution.</content></subsection><subsection eId="section-108-8"><num>(8)</num><content>In <ref href="#section-108">this section</ref> “<term refersTo="#term-subject-to-negative-resolution" eId="term-subject-to-negative-resolution">subject to negative resolution</term>” has the meaning given by <ref eId="c00141" href="https://www.legislation.gov.uk/apni/1954/33/section/41">section 41</ref><ref eId="c00142" href="https://www.legislation.gov.uk/apni/1954/33/section/41">(6)</ref> of the <ref eId="c00143" href="https://www.legislation.gov.uk/apni/1954/33/contents">Interpretation Act (Northern Ireland) 1954</ref>.</content></subsection><subsection eId="section-108-9"><num>(9)</num><content>The power of the Department for Communities in Northern Ireland to make regulations under <ref href="#section-108">this section</ref> is exercisable by statutory rule for the purposes of the <ref eId="c00144" href="https://www.legislation.gov.uk/nisi/1979/1573/contents">Statutory Rules (Northern Ireland) Order 1979</ref> (<ref eId="c00145" href="http://www.legislation.gov.uk/id/nisi/1979/1573">S.I. 1979/1573 (N.I. 12)</ref>).</content></subsection></section></hcontainer></chapter><chapter eId="part-4-chapter-2"><num>Chapter 2</num><heading>Pension compensation: indexation</heading><section eId="section-109"><num>109</num><heading>Indexation of periodic compensation for pre-1997 service: Great Britain</heading><subsection eId="section-109-1"><num>(1)</num><content>Schedule 7 to the Pensions Act 2004 (pension compensation provisions) is amended in accordance with subsections <ref href="#section-109-2">(2)</ref> and <ref href="#section-109-3">(3)</ref>.</content></subsection><subsection eId="section-109-2"><num>(2)</num><intro>In paragraph 28—</intro><level class="para1" eId="section-109-2-a"><num>(a)</num><content><mod>for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e18268"><num>(2)</num><intro>Where a person is entitled to periodic compensation under any of those paragraphs, the person is entitled, on the indexation date, to an increase under this paragraph of—</intro><level class="para1"><num>(a)</num><content>where sub-paragraph <ref href="#d25e18313">(2A)</ref> applies, the aggregate of the amount mentioned in sub-paragraph <ref href="#d25e18364">(2C)</ref> and the amount mentioned in sub-paragraph <ref href="#d25e18400">(2E)</ref>;</content></level><level class="para1"><num>(b)</num><content>where sub-paragraph <ref href="#d25e18337">(2B)</ref> applies, the aggregate of the amount mentioned in sub-paragraph <ref href="#d25e18382">(2D)</ref> and the amount mentioned in sub-paragraph <ref href="#d25e18400">(2E)</ref>;</content></level><level class="para1"><num>(c)</num><content>in any other case, the amount mentioned in sub-paragraph <ref href="#d25e18400">(2E)</ref>.</content></level></subparagraph><subparagraph eId="d25e18313"><num>(2A)</num><intro>This sub-paragraph applies where, immediately before the assessment date—</intro><level class="para1" eId="d25e18319"><num>(a)</num><content>the admissible rules of the scheme included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para1"><num>(b)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para1"><num>(c)</num><content>that requirement applied in relation to pre-1997 service in respect of which the compensation is payable.</content></level></subparagraph><subparagraph eId="d25e18337"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(b)</num><content>that accrual was in relation to GMP indexed service in respect of which the compensation is payable, and</content></level><level class="para1"><num>(c)</num><content>sub-paragraph <ref href="#d25e18313">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e18364"><num>(2C)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the pre-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e18382"><num>(2D)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the notional pre-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e18400"><num>(2E)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the post-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e18418"><num>(2F)</num><content>In any case where it is unclear to the Board whether, immediately before the assessment date, the admissible rules of the scheme included a requirement of the kind mentioned in <ref href="#d25e18313">sub-paragraph (2A)</ref><ref href="#d25e18319">(a)</ref>, this paragraph has effect as if the scheme included such a requirement.</content></subparagraph><subparagraph><num>(2G)</num><content>In any case where it is unclear to the Board whether, immediately before the assessment date, a requirement of the scheme of a kind mentioned in <ref href="#d25e18313">sub-paragraph (2A)</ref><ref href="#d25e18319">(a)</ref> (including such a requirement included by virtue of sub-paragraph <ref href="#d25e18418">(2F)</ref>) applied in relation to particular pre-1997 service, this paragraph has effect as if the requirement applied in relation to such service.</content></subparagraph><subparagraph eId="d25e18443"><num>(2H)</num><content>In any case where it is unclear to the Board whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, this paragraph has effect as if the scheme so provided.</content></subparagraph><subparagraph><num>(2I)</num><content>In any case where it is unclear to the Board whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of <ref href="#d25e18443">sub-paragraph (2H)</ref>) was in relation to particular GMP indexed service, this paragraph has effect as if the accrual was in relation to such service.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-109-2-b"><num>(b)</num><intro>in sub-paragraph (3)—</intro><level class="para2" eId="section-109-2-b-i"><num>(i)</num><content><mod>in the opening words for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs <ref href="#d25e18268">(2)</ref> to <ref href="#d25e18400">(2E)</ref>”</quotedText>;</mod></content></level><level class="para2" eId="section-109-2-b-ii"><num>(ii)</num><content><mod>for both definitions of “underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e18497">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e18516">(a)</ref> and <ref href="#d25e18520">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e18542">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e18561">(a)</ref> and <ref href="#d25e18565">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e18587">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e18606">(a)</ref> and <ref href="#d25e18610">(b)</ref> of this definition immediately before the indexation date.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level></level><level class="para1" eId="section-109-2-c"><num>(c)</num><intro>in sub-paragraph (5)—</intro><level class="para2" eId="section-109-2-c-i"><num>(i)</num><content><mod>in paragraph (a), for “sub-paragraph (2), each definition of “underlying rate”” substitute <quotedText>“sub-paragraphs <ref href="#d25e18364">(2C)</ref> to <ref href="#d25e18400">(2E)</ref>, each definition of “notional pre-1997 underlying rate”, “post-1997 underlying rate” and “pre-1997 underlying rate””</quotedText>;</mod></content></level><level class="para2" eId="section-109-2-c-ii"><num>(ii)</num><content><mod>in paragraph (c), for “sub-paragraph (2), the definition of “underlying rate”” substitute <quotedText>“sub-paragraphs <ref href="#d25e18364">(2C)</ref> to <ref href="#d25e18400">(2E)</ref>, the definition of “notional pre-1997 underlying rate”, the definition of “post-1997 underlying rate” and the definition of “pre-1997 underlying rate””</quotedText>;</mod></content></level></level><level class="para1" eId="section-109-2-d"><num>(d)</num><content><mod>in sub-paragraph (6), before the definition of “post-1997 service” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-gmp-equalisation-obligation">GMP equalisation obligation</term>” means any obligation under an enactment, a rule of law or the scheme rules which relates to the removal of inequalities as between men and women in respect of the provision of a guaranteed minimum pension;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-gmp-indexation-period">GMP indexation period</term>” means the period beginning with 6 April 1988 and ending with 5 April 1997;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-gmp-indexed-service">GMP indexed service</term>” means—</intro><level class="para1"><num>(a)</num><content>pensionable service which is within paragraph 36(4)(a) and occurs during the GMP indexation period, or</content></level><level class="para1"><num>(b)</num><content>pensionable service which is within paragraph 36(4)(b) and meets such requirements as may be prescribed;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-guaranteed-minimum-pension">guaranteed minimum pension</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 8(2) of that Act);</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-109-2-e"><num>(e)</num><content><mod>in sub-paragraph (7), for “and “pre-1997 service”” substitute <quotedText>“, “pre-1997 service” and “GMP indexed service””</quotedText>.</mod></content></level></subsection><subsection eId="section-109-3"><num>(3)</num><content><mod>In paragraph 29, for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><intro>The Board may also determine the percentage that is to be—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage for the purposes of sub-paragraphs <ref href="#d25e18364">(2C)</ref> and <ref href="#d25e18382">(2D)</ref> of paragraph 28;</content></level><level class="para1"><num>(b)</num><content>the appropriate percentage for the purposes of sub-paragraph <ref href="#d25e18400">(2E)</ref> of that paragraph,</content></level><wrapUp>(and where it does so, the definition of “appropriate percentage” in paragraph 28(3) does not apply in relation to the sub-paragraph in question).</wrapUp></subparagraph></quotedStructure></mod></content></subsection><subsection eId="section-109-4"><num>(4)</num><content>Schedule 5 to the Pensions Act 2008 (pension compensation payable on discharge of pension compensation credit) is amended in accordance with subsections <ref href="#section-109-5">(5)</ref> and <ref href="#section-109-6">(6)</ref>.</content></subsection><subsection eId="section-109-5"><num>(5)</num><intro>In paragraph 17—</intro><level class="para1" eId="section-109-5-a"><num>(a)</num><content><mod>for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><intro>Subject to sub-paragraph (3), the transferee is entitled, on each indexation date, to an increase of—</intro><level class="para1"><num>(a)</num><content>where <ref href="#d25e18833">sub-paragraph (2A)</ref> applies, the amount mentioned in <ref href="#d25e18935">sub-paragraph (2E)</ref>;</content></level><level class="para1"><num>(b)</num><content>where <ref href="#d25e18872">sub-paragraph (2B)</ref> applies, the amount mentioned in <ref href="#d25e18941">sub-paragraph (2F)</ref>;</content></level><level class="para1"><num>(c)</num><content>where <ref href="#d25e18905">sub-paragraph (2C)</ref> applies, the amount mentioned in <ref href="#d25e18947">sub-paragraph (2G)</ref>;</content></level><level class="para1"><num>(d)</num><content>where <ref href="#d25e18929">sub-paragraph (2D)</ref> applies, the amount mentioned in <ref href="#d25e18953">sub-paragraph (2H)</ref>.</content></level></subparagraph><subparagraph eId="d25e18833"><num>(2A)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with paragraph 3, 5, 8, 11, 15 or 22 of Schedule 7 to the Pensions Act 2004 (“<term refersTo="#term-the-relevant-schedule-7-provisions">the relevant Schedule 7 provisions</term>”), and</content></level><level class="para1" eId="d25e18848"><num>(b)</num><intro>immediately before the assessment date—</intro><level class="para2" eId="d25e18854"><num>(i)</num><content>the admissible rules of the scheme in respect of which that compensation is payable included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para2"><num>(ii)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para2"><num>(iii)</num><content>that requirement applied in relation to pre-1997 service in respect of which that compensation is payable.</content></level></level></subparagraph><subparagraph eId="d25e18872"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with the relevant Schedule 7 provisions,</content></level><level class="para1"><num>(b)</num><content>the scheme in respect of which that compensation is payable provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(c)</num><content>that accrual was in relation to GMP indexed service in respect of which that compensation is payable, and</content></level><level class="para1"><num>(d)</num><content>sub-paragraph <ref href="#d25e18833">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e18905"><num>(2C)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with the relevant Schedule 7 provisions, and</content></level><level class="para1"><num>(b)</num><content>neither sub-paragraph <ref href="#d25e18833">(2A)</ref> nor sub-paragraph <ref href="#d25e18872">(2B)</ref> applies.</content></level></subparagraph><subparagraph eId="d25e18929"><num>(2D)</num><content>This sub-paragraph applies where the transferor's PPF compensation is payable otherwise than in accordance with the relevant Schedule 7 provisions.</content></subparagraph><subparagraph eId="d25e18935"><num>(2E)</num><content>The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e18941"><num>(2F)</num><content>The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the notional pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e18947"><num>(2G)</num><content>The amount mentioned in this sub-paragraph is the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e18953"><num>(2H)</num><content>The amount mentioned in this sub-paragraph is the appropriate percentage of the general underlying rate.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-109-5-b"><num>(b)</num><content><mod>in sub-paragraph (3), for “(2)” substitute <quotedText>“<ref href="#d25e18935">(2E)</ref>, <ref href="#d25e18941">(2F)</ref>, <ref href="#d25e18947">(2G)</ref> or <ref href="#d25e18953">(2H)</ref> (as the case may be)”</quotedText>;</mod></content></level><level class="para1" eId="section-109-5-c"><num>(c)</num><content><mod>after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(3A)</num><intro>For the purposes of sub-paragraphs <ref href="#d25e18833">(2A)</ref> to <ref href="#d25e18905">(2C)</ref>—</intro><level class="para1" eId="d25e19001"><num>(a)</num><content>in any case where it is unclear to the Board whether, immediately before the assessment date, the admissible rules of the scheme included a requirement of the kind mentioned in <ref href="#d25e18833">sub-paragraph (2A)</ref><ref href="#d25e18848">(b)</ref><ref href="#d25e18854">(i)</ref>, those sub-paragraphs have effect as if the scheme included such a requirement;</content></level><level class="para1"><num>(b)</num><content>in any case where it is unclear to the Board whether, immediately before the assessment date, a requirement of the scheme of a kind mentioned in <ref href="#d25e18833">sub-paragraph (2A)</ref><ref href="#d25e18848">(b)</ref><ref href="#d25e18854">(i)</ref> (including such a requirement included by virtue of paragraph <ref href="#d25e19001">(a)</ref>) applied in relation to particular pre-1997 service, those sub-paragraphs have effect as if the requirement applied in relation to such service;</content></level><level class="para1" eId="d25e19030"><num>(c)</num><content>in any case where it is unclear to the Board whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, those sub-paragraphs have effect as if the scheme so provided;</content></level><level class="para1"><num>(d)</num><content>in any case where it is unclear to the Board whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of paragraph <ref href="#d25e19030">(c)</ref>) was in relation to particular GMP indexed service, those sub-paragraphs have effect as if the accrual was in relation to such service.</content></level></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-109-5-d"><num>(d)</num><intro>in sub-paragraph (4)—</intro><level class="para2" eId="section-109-5-d-i"><num>(i)</num><content><mod>in the opening words, for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs (2) to <ref href="#d25e18953">(2H)</ref>”</quotedText>;</mod></content></level><level class="para2" eId="section-109-5-d-ii"><num>(ii)</num><content><mod>for the definition of “the underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-the-general-underlying-rate">the general underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the general indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e19081">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e19081">(a)</ref> and <ref href="#d25e19085">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-notional-pre-1997-underlying-rate">the notional pre-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the notional pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e19110">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e19110">(a)</ref> and <ref href="#d25e19114">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-post-1997-underlying-rate">the post-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the post-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e19139">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e19139">(a)</ref> and <ref href="#d25e19143">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-pre-1997-underlying-rate">the pre-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e19168">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e19168">(a)</ref> and <ref href="#d25e19172">(b)</ref>.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level></level><level class="para1" eId="section-109-5-e"><num>(e)</num><content>omit sub-paragraphs (5) and (6);</content></level><level class="para1" eId="section-109-5-f"><num>(f)</num><content><mod>before sub-paragraph (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(6A)</num><content>For the purposes of paragraph (a) of the definition of “the general underlying rate”, “the general indexed proportion” is such proportion as is determined in accordance with regulations made by the Secretary of State.</content></subparagraph><subparagraph><num>(6B)</num><content>For the purposes of paragraph (a) of the definition of “the notional pre-1997 underlying rate”, “the notional pre-1997 indexed proportion” is such proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of Schedule 7 to the Pensions Act 2004 under which the transferor’s PPF compensation is payable that is attributable to pre-1997 service as may be prescribed.</content></subparagraph><subparagraph><num>(6C)</num><content>For the purposes of paragraph (a) of the definition of “the post-1997 underlying rate”, “the post-1997 indexed proportion” is the proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of that Schedule under which the transferor’s PPF compensation is payable that is attributable to post-1997 service.</content></subparagraph><subparagraph><num>(6D)</num><content>For the purposes of paragraph (a) of the definition of “the pre-1997 underlying rate”, “the pre-1997 indexed proportion” is the proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of that Schedule under which the transferor’s PPF compensation is payable that is attributable to pre-1997 service.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-109-5-g"><num>(g)</num><content><mod>in sub-paragraph (7), for ““the underlying rate”” substitute <quotedText>““the general underlying rate”, the definition of “the notional pre-1997 underlying rate”, the definition of “the post-1997 underlying rate” and the definition of “the pre-1997 underlying rate””</quotedText>;</mod></content></level><level class="para1" eId="section-109-5-h"><num>(h)</num><content><mod>in sub-paragraph (9), for the definition of “post-1997 service” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-gmp-equalisation-obligation">GMP equalisation obligation</term>” has the same meaning as in paragraph 28 of Schedule 7 to the Pensions Act 2004 (annual increase in periodic pension compensation);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-gmp-indexation-period">GMP indexation period</term>” means the period beginning with 6 April 1988 and ending with 5 April 1997;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-guaranteed-minimum-pension">guaranteed minimum pension</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 8(2) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-post-1997-service">post-1997 service</term>”, “<term refersTo="#term-pre-1997-service">pre-1997 service</term>” and “<term refersTo="#term-gmp-indexed-service">GMP indexed service</term>” have the same meaning as in paragraph 28 of Schedule 7 to the Pensions Act 2004;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-assessment-date">the assessment date</term>” and “<term refersTo="#term-admissible-rules">admissible rules</term>”, in relation to a pension scheme, have the same meaning as in that Schedule (see paragraphs 2 and 35 of that Schedule);</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></level></subsection><subsection eId="section-109-6"><num>(6)</num><content><mod>In paragraph 20, in sub-paragraph (1)(b), for “for the purposes of paragraph 17(2)” substitute <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para2"><num>(i)</num><content>of the pre-1997 underlying rate and of the notional pre-1997 underlying rate for the purposes of sub-paragraphs <ref href="#d25e18935">(2E)</ref> and <ref href="#d25e18941">(2F)</ref> of paragraph 17;</content></level><level class="para2"><num>(ii)</num><content>of the post-1997 underlying rate for the purposes of sub-paragraphs <ref href="#d25e18935">(2E)</ref>, <ref href="#d25e18941">(2F)</ref> and <ref href="#d25e18947">(2G)</ref> of that paragraph;</content></level><level class="para2"><num>(iii)</num><content>of the general underlying rate for the purposes of sub-paragraph <ref href="#d25e18953">(2H)</ref> of that paragraph.</content></level></quotedStructure></mod></content></subsection></section><section eId="section-110"><num>110</num><heading>Indexation of periodic compensation for pre-1997 service: Northern Ireland</heading><subsection eId="section-110-1"><num>(1)</num><content>Schedule 6 to the Pensions (Northern Ireland) Order 2005 (<ref eId="c00146" href="http://www.legislation.gov.uk/id/nisi/2005/255">S.I. 2005/255 (N.I. 1)</ref>) (pension compensation provisions) is amended in accordance with subsections <ref href="#section-110-2">(2)</ref> and <ref href="#section-110-3">(3)</ref>.</content></subsection><subsection eId="section-110-2"><num>(2)</num><intro>In paragraph 28—</intro><level class="para1" eId="section-110-2-a"><num>(a)</num><content><mod>for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e19374"><num>(2)</num><intro>Where a person is entitled to periodic compensation under any of those paragraphs, the person is entitled, on the indexation date, to an increase under this paragraph of—</intro><level class="para1"><num>(a)</num><content>where sub-paragraph <ref href="#d25e19419">(2A)</ref> applies, the aggregate of the amount mentioned in sub-paragraph <ref href="#d25e19470">(2C)</ref> and the amount mentioned in sub-paragraph <ref href="#d25e19506">(2E)</ref>;</content></level><level class="para1"><num>(b)</num><content>where sub-paragraph <ref href="#d25e19443">(2B)</ref> applies, the aggregate of the amount mentioned in sub-paragraph <ref href="#d25e19488">(2D)</ref> and the amount mentioned in sub-paragraph <ref href="#d25e19506">(2E)</ref>;</content></level><level class="para1"><num>(c)</num><content>in any other case, the amount mentioned in sub-paragraph <ref href="#d25e19506">(2E)</ref>.</content></level></subparagraph><subparagraph eId="d25e19419"><num>(2A)</num><intro>This sub-paragraph applies where, immediately before the assessment date—</intro><level class="para1" eId="d25e19425"><num>(a)</num><content>the admissible rules of the scheme included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para1"><num>(b)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para1"><num>(c)</num><content>that requirement applied in relation to pre-1997 service in respect of which the compensation is payable.</content></level></subparagraph><subparagraph eId="d25e19443"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(b)</num><content>that accrual was in relation to GMP indexed service in respect of which the compensation is payable, and</content></level><level class="para1"><num>(c)</num><content>sub-paragraph <ref href="#d25e19419">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e19470"><num>(2C)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the pre-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e19488"><num>(2D)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the notional pre-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e19506"><num>(2E)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the post-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e19524"><num>(2F)</num><content>In any case where it is unclear to the Board whether, immediately before the assessment date, the admissible rules of the scheme included a requirement of the kind mentioned in <ref href="#d25e19419">sub-paragraph (2A)</ref><ref href="#d25e19425">(a)</ref>, this paragraph has effect as if the scheme included such a requirement.</content></subparagraph><subparagraph><num>(2G)</num><content>In any case where it is unclear to the Board whether, immediately before the assessment date, a requirement of the scheme of a kind mentioned in <ref href="#d25e19419">sub-paragraph (2A)</ref><ref href="#d25e19425">(a)</ref> (including such a requirement included by virtue of sub-paragraph <ref href="#d25e19524">(2F)</ref>) applied in relation to particular pre-1997 service, this paragraph has effect as if the requirement applied in relation to such service.</content></subparagraph><subparagraph eId="d25e19549"><num>(2H)</num><content>In any case where it is unclear to the Board whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, this paragraph has effect as if the scheme so provided.</content></subparagraph><subparagraph><num>(2I)</num><content>In any case where it is unclear to the Board whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of sub-paragraph <ref href="#d25e19549">(2H)</ref>) was in relation to particular GMP indexed service, this paragraph has effect as if the accrual was in relation to such service.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-110-2-b"><num>(b)</num><intro>in sub-paragraph (3)—</intro><level class="para2" eId="section-110-2-b-i"><num>(i)</num><content><mod>in the opening words for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs <ref href="#d25e19374">(2)</ref> to <ref href="#d25e19506">(2E)</ref>”</quotedText>;</mod></content></level><level class="para2" eId="section-110-2-b-ii"><num>(ii)</num><content><mod>for both definitions of “underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e19603">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e19622">(a)</ref> and <ref href="#d25e19626">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e19648">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e19667">(a)</ref> and <ref href="#d25e19671">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e19693">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e19712">(a)</ref> and <ref href="#d25e19716">(b)</ref> of this definition immediately before the indexation date.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level></level><level class="para1" eId="section-110-2-c"><num>(c)</num><intro>in sub-paragraph (5)—</intro><level class="para2" eId="section-110-2-c-i"><num>(i)</num><content><mod>in paragraph (a), for “sub-paragraph (2), each definition of “underlying rate”” substitute <quotedText>“sub-paragraphs <ref href="#d25e19470">(2C)</ref> to <ref href="#d25e19506">(2E)</ref>, each definition of “notional pre-1997 underlying rate”, “post-1997 underlying rate” and “pre-1997 underlying rate””</quotedText>;</mod></content></level><level class="para2" eId="section-110-2-c-ii"><num>(ii)</num><content><mod>in paragraph (c), for “sub-paragraph (2), the definition of “underlying rate”” substitute <quotedText>“sub-paragraphs <ref href="#d25e19470">(2C)</ref> to <ref href="#d25e19506">(2E)</ref>, the definition of “notional pre-1997 underlying rate”, the definition of “post-1997 underlying rate” and the definition of “pre-1997 underlying rate””</quotedText>;</mod></content></level></level><level class="para1" eId="section-110-2-d"><num>(d)</num><content><mod>in sub-paragraph (6), before the definition of “post-1997 service” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-gmp-equalisation-obligation">GMP equalisation obligation</term>” means any obligation under an enactment, a rule of law or the scheme rules which relates to the removal of inequalities as between men and women in respect of the provision of a guaranteed minimum pension;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-gmp-indexation-period">GMP indexation period</term>” means the period beginning with 6 April 1988 and ending with 5 April 1997;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-gmp-indexed-service">GMP indexed service</term>” means—</intro><level class="para1"><num>(a)</num><content>pensionable service which is within paragraph 36(4)(a) and occurs during the GMP indexation period, or</content></level><level class="para1"><num>(b)</num><content>pensionable service which is within paragraph 36(4)(b) and meets such requirements as may be prescribed;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-guaranteed-minimum-pension">guaranteed minimum pension</term>” has the same meaning as in the Pension Schemes Act (see section 4(2) of that Act);</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-110-2-e"><num>(e)</num><content><mod>in sub-paragraph (7), for “and “pre-1997 service”” substitute <quotedText>“, “pre-1997 service” and “GMP indexed service””</quotedText>.</mod></content></level></subsection><subsection eId="section-110-3"><num>(3)</num><content><mod>In paragraph 29, for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><intro>The Board may also determine the percentage that is to be—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage for the purposes of sub-paragraphs <ref href="#d25e19470">(2C)</ref> and <ref href="#d25e19488">(2D)</ref> of paragraph 28;</content></level><level class="para1"><num>(b)</num><content>the appropriate percentage for the purposes of sub-paragraph <ref href="#d25e19506">(2E)</ref> of that paragraph,</content></level><wrapUp>(and where it does so, the definition of “appropriate percentage” in paragraph 28(3) does not apply in relation to the sub-paragraph in question).</wrapUp></subparagraph></quotedStructure></mod></content></subsection><subsection eId="section-110-4"><num>(4)</num><content>Schedule 4 to the Pensions (No.2) Act (Northern Ireland) 2008 (pension compensation payable on discharge of pension compensation credit) is amended in accordance with subsections <ref href="#section-110-5">(5)</ref> and <ref href="#section-110-6">(6)</ref>.</content></subsection><subsection eId="section-110-5"><num>(5)</num><intro>In paragraph 17—</intro><level class="para1" eId="section-110-5-a"><num>(a)</num><content><mod>for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><intro>Subject to sub-paragraph (3), the transferee is entitled, on each indexation date, to an increase of—</intro><level class="para1"><num>(a)</num><content>where <ref href="#d25e19939">sub-paragraph (2A)</ref> applies, the amount mentioned in <ref href="#d25e20041">sub-paragraph (2E)</ref>;</content></level><level class="para1"><num>(b)</num><content>where <ref href="#d25e19978">sub-paragraph (2B)</ref> applies, the amount mentioned in <ref href="#d25e20047">sub-paragraph (2F)</ref>;</content></level><level class="para1"><num>(c)</num><content>where <ref href="#d25e20011">sub-paragraph (2C)</ref> applies, the amount mentioned in <ref href="#d25e20053">sub-paragraph (2G)</ref>;</content></level><level class="para1"><num>(d)</num><content>where <ref href="#d25e20035">sub-paragraph (2D)</ref> applies, the amount mentioned in <ref href="#d25e20059">sub-paragraph (2H)</ref>.</content></level></subparagraph><subparagraph eId="d25e19939"><num>(2A)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with paragraph 3, 5, 8, 11, 15 or 22 of Schedule 6 to the 2005 Order (“<term refersTo="#term-the-relevant-schedule-6-provisions">the relevant Schedule 6 provisions</term>”), and</content></level><level class="para1" eId="d25e19954"><num>(b)</num><intro>immediately before the assessment date —</intro><level class="para2" eId="d25e19960"><num>(i)</num><content>the admissible rules of the scheme in respect of which that compensation is payable included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para2"><num>(ii)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para2"><num>(iii)</num><content>that requirement applied in relation to pre-1997 service in respect of which that compensation is payable.</content></level></level></subparagraph><subparagraph eId="d25e19978"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with the relevant Schedule 6 provisions,</content></level><level class="para1"><num>(b)</num><content>the scheme in respect of which that compensation is payable provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(c)</num><content>that accrual was in relation to GMP indexed service in respect of which that compensation is payable, and</content></level><level class="para1"><num>(d)</num><content>sub-paragraph <ref href="#d25e19939">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e20011"><num>(2C)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with the relevant Schedule 6 provisions, and</content></level><level class="para1"><num>(b)</num><content>neither sub-paragraph <ref href="#d25e19939">(2A)</ref> nor sub-paragraph <ref href="#d25e19978">(2B)</ref> applies.</content></level></subparagraph><subparagraph eId="d25e20035"><num>(2D)</num><content>This sub-paragraph applies where the transferor's PPF compensation is payable otherwise than in accordance with the relevant Schedule 6 provisions.</content></subparagraph><subparagraph eId="d25e20041"><num>(2E)</num><content>The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e20047"><num>(2F)</num><content>The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the notional pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e20053"><num>(2G)</num><content>The amount mentioned in this sub-paragraph is the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e20059"><num>(2H)</num><content>The amount mentioned in this sub-paragraph is the appropriate percentage of the general underlying rate.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-110-5-b"><num>(b)</num><content><mod>in sub-paragraph (3), for “(2)” substitute <quotedText>“<ref href="#d25e20041">(2E)</ref>, <ref href="#d25e20047">(2F)</ref>, <ref href="#d25e20053">(2G)</ref> or <ref href="#d25e20059">(2H)</ref> (as the case may be)”</quotedText>;</mod></content></level><level class="para1" eId="section-110-5-c"><num>(c)</num><content><mod>after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(3A)</num><intro>For the purposes of sub-paragraphs <ref href="#d25e19939">(2A)</ref> to <ref href="#d25e20011">(2C)</ref>—</intro><level class="para1" eId="d25e20107"><num>(a)</num><content>in any case where it is unclear to the Board whether, immediately before the assessment date, the admissible rules of the scheme included a requirement of the kind mentioned in <ref href="#d25e19939">sub-paragraph (2A)</ref><ref href="#d25e19954">(b)</ref><ref href="#d25e19960">(i)</ref>, those sub-paragraphs have effect as if the scheme included such a requirement;</content></level><level class="para1"><num>(b)</num><content>in any case where it is unclear to the Board whether, immediately before the assessment date, a requirement of the scheme of a kind mentioned in <ref href="#d25e19939">sub-paragraph (2A)</ref><ref href="#d25e19954">(b)</ref><ref href="#d25e19960">(i)</ref> (including such a requirement included by virtue of paragraph <ref href="#d25e20107">(a)</ref>) applied in relation to particular pre-1997 service, those sub-paragraphs have effect as if the requirement applied in relation to such service;</content></level><level class="para1" eId="d25e20136"><num>(c)</num><content>in any case where it is unclear to the Board whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, those sub-paragraphs have effect as if the scheme so provided;</content></level><level class="para1"><num>(d)</num><content>in any case where it is unclear to the Board whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of paragraph <ref href="#d25e20136">(c)</ref>) was in relation to particular GMP indexed service, those sub-paragraphs have effect as if the accrual was in relation to such service.</content></level></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-110-5-d"><num>(d)</num><intro>in sub-paragraph (4)—</intro><level class="para2" eId="section-110-5-d-i"><num>(i)</num><content><mod>in the opening words, for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs (2) to <ref href="#d25e20059">(2H)</ref>”</quotedText>;</mod></content></level><level class="para2" eId="section-110-5-d-ii"><num>(ii)</num><content><mod>for the definition of “the underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-the-general-underlying-rate">the general underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the general indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e20187">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e20187">(a)</ref> and <ref href="#d25e20191">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-notional-pre-1997-underlying-rate">the notional pre-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the notional pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e20216">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e20216">(a)</ref> and <ref href="#d25e20220">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-post-1997-underlying-rate">the post-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the post-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e20245">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e20245">(a)</ref> and <ref href="#d25e20249">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-pre-1997-underlying-rate">the pre-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e20274">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e20274">(a)</ref> and <ref href="#d25e20278">(b)</ref>.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level></level><level class="para1" eId="section-110-5-e"><num>(e)</num><content>omit sub-paragraphs (5) and (6);</content></level><level class="para1" eId="section-110-5-f"><num>(f)</num><content><mod>before sub-paragraph (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(6A)</num><content>For the purposes of paragraph (a) of the definition of “the general underlying rate”, “the general indexed proportion” is such proportion as is determined in accordance with regulations made by the Department.</content></subparagraph><subparagraph><num>(6B)</num><content>For the purposes of paragraph (a) of the definition of “the notional pre-1997 underlying rate”, “the notional pre-1997 indexed proportion” is such proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of Schedule 6 to the 2005 Order under which the transferor’s PPF compensation is payable that is attributable to pre-1997 service as may be prescribed.</content></subparagraph><subparagraph><num>(6C)</num><content>For the purposes of paragraph (a) of the definition of “the post-1997 underlying rate”, “the post-1997 indexed proportion” is the proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of that Schedule under which the transferor’s PPF compensation is payable that is attributable to post-1997 service.</content></subparagraph><subparagraph><num>(6D)</num><content>For the purposes of paragraph (a) of the definition of “the pre-1997 underlying rate”, “the pre-1997 indexed proportion” is the proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of that Schedule under which the transferor’s PPF compensation is payable that is attributable to pre-1997 service.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-110-5-g"><num>(g)</num><content><mod>in sub-paragraph (7), for ““the underlying rate”” substitute <quotedText>““the general underlying rate”, the definition of “the notional pre-1997 underlying rate”, the definition of “the post-1997 underlying rate” and the definition of “the pre-1997 underlying rate””</quotedText>;</mod></content></level><level class="para1" eId="section-110-5-h"><num>(h)</num><content><mod>for sub-paragraph (9) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(9)</num><intro>In this paragraph—</intro><hcontainer name="definition"><content>“<term refersTo="#term-gmp-equalisation-obligation">GMP equalisation obligation</term>” has the same meaning as in paragraph 28 of Schedule 6 to the 2005 Order (annual increase in periodic pension compensation);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-gmp-indexation-period">GMP indexation period</term>” means the period beginning with 6 April 1988 and ending with 5 April 1997;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-guaranteed-minimum-pension">guaranteed minimum pension</term>” has the same meaning as in the Pension Schemes Act (see section 4(2) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-post-1997-service">post-1997 service</term>”, “<term refersTo="#term-pre-1997-service">pre-1997 service</term>” and “<term refersTo="#term-gmp-indexed-service">GMP indexed service</term>” have the same meaning as in paragraph 28 of Schedule 6 to the 2005 Order;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-assessment-date">the assessment date</term>” and “<term refersTo="#term-admissible-rules">admissible rules</term>”, in relation to a pension scheme, have the same meaning as in that Schedule (see paragraphs 2 and 35 of that Schedule).</content></hcontainer></subparagraph></quotedStructure></mod></content></level></subsection><subsection eId="section-110-6"><num>(6)</num><content><mod>In paragraph 20, in sub-paragraph (1)(b), for “for the purposes of paragraph 17(2)” substitute <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para2"><num>(i)</num><content>of the pre-1997 underlying rate and of the notional pre-1997 underlying rate for the purposes of sub-paragraphs <ref href="#d25e20041">(2E)</ref> and <ref href="#d25e20047">(2F)</ref> of paragraph 17;</content></level><level class="para2"><num>(ii)</num><content>of the post-1997 underlying rate for the purposes of sub-paragraphs <ref href="#d25e20041">(2E)</ref>, <ref href="#d25e20047">(2F)</ref> and <ref href="#d25e20053">(2G)</ref> of that paragraph;</content></level><level class="para2"><num>(iii)</num><content>of the general underlying rate for the purposes of sub-paragraph <ref href="#d25e20059">(2H)</ref> of that paragraph.</content></level></quotedStructure></mod></content></subsection></section><section eId="section-111"><num>111</num><heading>Financial Assistance Scheme: indexation of payments for pre-1997 service</heading><subsection eId="section-111-1"><num>(1)</num><content>The Financial Assistance Scheme Regulations 2005 (<ref eId="c00147" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) are amended as follows.</content></subsection><subsection eId="section-111-2"><num>(2)</num><content><mod>In paragraph 7(1)(b) of Schedule 2 (determination of annual and initial payments), after “(b)(i)” insert <quotedText>“, <ref href="#d25e20544">(ia)</ref> and <ref href="#d25e20553">(ib)</ref>”</quotedText>.</mod></content></subsection><subsection eId="section-111-3"><num>(3)</num><content>Paragraph 9 of that Schedule is amended in accordance with subsections <ref href="#section-111-4">(4)</ref> to <ref href="#section-111-6">(6)</ref>.</content></subsection><subsection eId="section-111-4"><num>(4)</num><intro>In sub-paragraph (2)—</intro><level class="para1" eId="section-111-4-a"><num>(a)</num><content><mod>in paragraph (a) of the definition of “underlying rate”, after sub-paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(ia)</num><content>where <ref href="#d25e20604">sub-paragraph (2A)</ref> applies, the product of X multiplied by so much of the expected pension as is attributable to pre-1997 service;</content></level><level class="para2"><num>(ib)</num><content>where <ref href="#d25e20628">sub-paragraph (2B)</ref> applies, the product of X multiplied by the relevant percentage of so much of the expected pension as is attributable to pre-1997 service;</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-111-4-b"><num>(b)</num><intro>in paragraph (b) of the definition of “underlying rate”—</intro><level class="para2" eId="section-111-4-b-i"><num>(i)</num><content>omit the “and” at the end of sub-paragraph (i);</content></level><level class="para2" eId="section-111-4-b-ii"><num>(ii)</num><content><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2" eId="d25e20544"><num>(ia)</num><content>where <ref href="#d25e20604">sub-paragraph (2A)</ref> applies, so much of the expected pension as is, proportionally, attributable to pre-1997 service;</content></level><level class="para2" eId="d25e20553"><num>(ib)</num><content>where <ref href="#d25e20628">sub-paragraph (2B)</ref> applies, the relevant percentage of so much of the expected pension as is, proportionally, attributable to pre-1997 service; and</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level></level><level class="para1" eId="section-111-4-c"><num>(c)</num><content><mod>after the definition of “post-1997 service” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-service">pre-1997 service</term>” means—</intro><level class="para1"><num>(a)</num><content>pensionable service (whether actual or notional) which occurs before 6th April 1997; or</content></level><level class="para1"><num>(b)</num><content>where the annual payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred before 6th April 1997;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-percentage">relevant percentage</term>” means such percentage as may be determined by the Secretary of State;</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></level></subsection><subsection eId="section-111-5"><num>(5)</num><content><mod>After sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e20604"><num>(2A)</num><intro>This sub-paragraph applies where, immediately before the qualifying pension scheme began to wind up—</intro><level class="para1" eId="d25e20610"><num>(a)</num><content>the scheme rules included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para1"><num>(b)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para1"><num>(c)</num><content>that requirement applied in relation to pre-1997 service in respect of which the annual payment is payable.</content></level></subparagraph><subparagraph eId="d25e20628"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the qualifying pension scheme provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(b)</num><content>that accrual was in relation to GMP indexed service in respect of which the annual payment is payable, and</content></level><level class="para1"><num>(c)</num><content>sub-paragraph <ref href="#d25e20604">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e20655"><num>(2C)</num><intro>For the purposes of sub-paragraphs <ref href="#d25e20604">(2A)</ref> and <ref href="#d25e20628">(2B)</ref>—</intro><level class="para1" eId="d25e20667"><num>(a)</num><content>in any case where it is unclear to the scheme manager whether, immediately before the scheme began to wind up, the scheme rules included a requirement of the kind mentioned in <ref href="#d25e20604">sub-paragraph (2A)</ref><ref href="#d25e20610">(a)</ref>, those sub-paragraphs have effect as if the scheme included such a requirement;</content></level><level class="para1"><num>(b)</num><content>in any case where it is unclear to the scheme manager whether, immediately before the scheme began to wind up, a requirement of the scheme of a kind mentioned in <ref href="#d25e20604">sub-paragraph (2A)</ref><ref href="#d25e20610">(a)</ref> (including such a requirement included by virtue of paragraph <ref href="#d25e20667">(a)</ref>) applied in relation to particular pre-1997 service, those sub-paragraphs have effect as if the requirement applied in relation to such service;</content></level><level class="para1" eId="d25e20692"><num>(c)</num><content>in any case where it is unclear to the scheme manager whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, those sub-paragraphs have effect as if the scheme so provided;</content></level><level class="para1"><num>(d)</num><content>in any case where it is unclear to the scheme manager whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of paragraph <ref href="#d25e20692">(c)</ref>) was in relation to particular GMP indexed service, those sub-paragraphs have effect as if the accrual was in relation to such service.</content></level></subparagraph><subparagraph><num>(2D)</num><intro>In sub-paragraphs <ref href="#d25e20604">(2A)</ref> to <ref href="#d25e20655">(2C)</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-gmp-equalisation-obligation">GMP equalisation obligation</term>” means any obligation under an enactment, a rule of law or the scheme rules which relates to the removal of inequalities as between men and women in respect of the provision of a guaranteed minimum pension;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-gmp-indexation-period">GMP indexation period</term>” means the period beginning with 6 April 1988 and ending with 5 April 1997;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-gmp-indexed-service">GMP indexed service</term>” means—</intro><level class="para1"><num>(a)</num><content>pensionable service (whether actual or notional) which occurs during the GMP indexation period; or</content></level><level class="para1"><num>(b)</num><content>where the annual payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred during the GMP indexation period.</content></level></hcontainer></subparagraph></quotedStructure></mod></content></subsection><subsection eId="section-111-6"><num>(6)</num><intro>In sub-paragraph (3)—</intro><level class="para1" eId="section-111-6-a"><num>(a)</num><content><mod>after “attributable to” insert <quotedText>“pre-1997 service or”</quotedText>;</mod></content></level><level class="para1" eId="section-111-6-b"><num>(b)</num><content><mod>for “that amount” substitute <quotedText>“the amount in question”</quotedText>.</mod></content></level></subsection><subsection eId="section-111-7"><num>(7)</num><content><mod>In paragraph 7(1)(b) of Schedule 2A (determination of ill health and interim ill health payments), after “(b)(i)” insert <quotedText>“, <ref href="#d25e20544">(ia)</ref> and <ref href="#d25e20553">(ib)</ref>”</quotedText>.</mod></content></subsection><subsection eId="section-111-8"><num>(8)</num><content>Paragraph 9 of that Schedule is amended in accordance with subsections <ref href="#section-111-9">(9)</ref> to <ref href="#section-111-11">(11)</ref>.</content></subsection><subsection eId="section-111-9"><num>(9)</num><intro>In sub-paragraph (2)—</intro><level class="para1" eId="section-111-9-a"><num>(a)</num><content><mod>after the definition of “E” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-ea">EA</term>” means so much of the expected pension as is attributable to pre-1997 service;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-eb">EB</term>” means the relevant percentage of so much of the expected pension as is attributable to pre-1997 service;</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-111-9-b"><num>(b)</num><content><mod>after the definition of “post-1997 service” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-service">pre-1997 service</term>” means—</intro><level class="para1"><num>(a)</num><content>pensionable service (whether actual or notional) which occurs before 6th April 1997; or</content></level><level class="para1"><num>(b)</num><content>where the ill health payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred before 6th April 1997;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-percentage">relevant percentage</term>” means such percentage as may be determined by the Secretary of State;</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-111-9-c"><num>(c)</num><content><mod>in paragraph (a) of the definition of “underlying rate”, after sub-paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(ia)</num><content>where sub-paragraph <ref href="#d25e20943">(2A)</ref> applies, the product of X multiplied by (C x EA);</content></level><level class="para2"><num>(ib)</num><content>where sub-paragraph <ref href="#d25e20967">(2B)</ref> applies, the product of X multiplied by (C x EB);</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-111-9-d"><num>(d)</num><intro>in paragraph (b) of the definition of “underlying rate”—</intro><level class="para2" eId="section-111-9-d-i"><num>(i)</num><content>omit the “and” at the end of sub-paragraph (i);</content></level><level class="para2" eId="section-111-9-d-ii"><num>(ii)</num><content><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(ia)</num><content>where sub-paragraph <ref href="#d25e20943">(2A)</ref> applies, so much of the amount “<term refersTo="#term-a">A</term>” for the purposes of paragraph 2 as is, proportionately, attributable to pre-1997 service;</content></level><level class="para2"><num>(ib)</num><content>where sub-paragraph <ref href="#d25e20967">(2B)</ref> applies, the relevant percentage of so much of the amount “<term refersTo="#term-a">A</term>” for the purposes of paragraph 2 as is, proportionately, attributable to pre-1997 service; and</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></level></level></subsection><subsection eId="section-111-10"><num>(10)</num><content><mod>After sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e20943"><num>(2A)</num><intro>This sub-paragraph applies where immediately before the qualifying pension scheme began to wind up—</intro><level class="para1" eId="d25e20949"><num>(a)</num><content>the scheme rules included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para1"><num>(b)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para1"><num>(c)</num><content>that requirement applied in relation to pre-1997 service in respect of which the ill health payment is payable.</content></level></subparagraph><subparagraph eId="d25e20967"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the qualifying pension scheme provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(b)</num><content>that accrual was in relation to GMP indexed service in respect of which the ill health payment is payable, and</content></level><level class="para1"><num>(c)</num><content>sub-paragraph <ref href="#d25e20943">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e20994"><num>(2C)</num><intro>For the purposes of sub-paragraphs <ref href="#d25e20943">(2A)</ref> and <ref href="#d25e20967">(2B)</ref>—</intro><level class="para1" eId="d25e21006"><num>(a)</num><content>in any case where it is unclear to the scheme manager whether, immediately before the scheme began to wind up, the scheme rules included a requirement of the kind mentioned in <ref href="#d25e20943">sub-paragraph (2A)</ref><ref href="#d25e20949">(a)</ref>, those sub-paragraphs have effect as if the scheme included such a requirement;</content></level><level class="para1"><num>(b)</num><content>in any case where it is unclear to the scheme manager whether, immediately before the scheme began to wind up, a requirement of the scheme of a kind mentioned in <ref href="#d25e20943">sub-paragraph (2A)</ref><ref href="#d25e20949">(a)</ref> (including such a requirement included by virtue of paragraph <ref href="#d25e21006">(a)</ref>) applied in relation to particular pre-1997 service, those sub-paragraphs have effect as if the requirement applied in relation to such service;</content></level><level class="para1" eId="d25e21031"><num>(c)</num><content>in any case where it is unclear to the scheme manager whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, those sub-paragraphs have effect as if the scheme so provided;</content></level><level class="para1"><num>(d)</num><content>in any case where it is unclear to the scheme manager whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of paragraph <ref href="#d25e21031">(c)</ref>) was in relation to particular GMP indexed service, those sub-paragraphs have effect as if the accrual was in relation to such service.</content></level></subparagraph><subparagraph><num>(2D)</num><intro>In sub-paragraphs <ref href="#d25e20943">(2A)</ref> to <ref href="#d25e20994">(2C)</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-gmp-equalisation-obligation">GMP equalisation obligation</term>” means any obligation under an enactment, a rule of law or the scheme rules which relates to the removal of inequalities as between men and women in respect of the provision of a guaranteed minimum pension;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-gmp-indexation-period">GMP indexation period</term>” means the period beginning with 6 April 1988 and ending with 5 April 1997;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-gmp-indexed-service">GMP indexed service</term>” means—</intro><level class="para1"><num>(a)</num><content>pensionable service (whether actual or notional) which occurs during the GMP indexation period; or</content></level><level class="para1"><num>(b)</num><content>where the ill health payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred during the GMP indexation period;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-guaranteed-minimum-pension">guaranteed minimum pension</term>” has the meaning given in section 8(2) of the 1993 Act.</content></hcontainer></subparagraph></quotedStructure></mod></content></subsection><subsection eId="section-111-11"><num>(11)</num><intro>In sub-paragraph (3)—</intro><level class="para1" eId="section-111-11-a"><num>(a)</num><content><mod>after “attributable to” insert <quotedText>“pre-1997 service or”</quotedText>;</mod></content></level><level class="para1" eId="section-111-11-b"><num>(b)</num><content><mod>for “that amount” substitute <quotedText>“the amount in question”</quotedText>.</mod></content></level></subsection></section></chapter><chapter eId="part-4-chapter-3"><num>Chapter 3</num><heading>AWE Pension Scheme</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-chapter-3-crossheading-new-public-pension-schemes"><heading>New public pension schemes</heading><section eId="section-112"><num>112</num><heading>Establishment of new public schemes and transfer of rights</heading><subsection eId="section-112-1"><num>(1)</num><content>The Secretary of State may by regulations establish one or more schemes (“new public schemes”) which provide for pensions or other benefits to be payable to or in respect of persons who are or have been members of the AWE Pension Scheme (“qualifying persons”).</content></subsection><subsection eId="section-112-2"><num>(2)</num><content>The Secretary of State may by regulations make provision for the transfer of qualifying accrued rights to a new public scheme (without the need for any approval or consent of the trustee company or AWE PLC, or any other person, to the transfer).</content></subsection><subsection eId="section-112-3"><num>(3)</num><content>Regulations under <ref href="#section-112-2">subsection (2)</ref> may include provision for the discharge of liabilities in respect of qualifying accrued rights that are transferred.</content></subsection><subsection eId="section-112-4"><num>(4)</num><intro>In this Chapter—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-qualifying-accrued-rights" eId="term-qualifying-accrued-rights">qualifying accrued rights</term>” means—</intro><level class="para1"><num>(a)</num><content>any right to future benefits under the AWE Pension Scheme which, at the qualifying time, has accrued to or in respect of a qualifying person,</content></level><level class="para1"><num>(b)</num><content>any entitlement under the AWE Pension Scheme to the present payment of a pension or other benefit which a qualifying person has at the qualifying time, or</content></level><level class="para1"><num>(c)</num><content>any entitlement to benefits, or right to future benefits, under the AWE Pension Scheme which a survivor of a qualifying person has at the qualifying time in respect of the qualifying person;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-qualifying-time" eId="term-the-qualifying-time">the qualifying time</term>” means the time immediately before the date specified or described in regulations.</content></hcontainer></subsection><subsection eId="section-112-5"><num>(5)</num><intro>For the purposes of the definition of “qualifying accrued rights”—</intro><level class="para1" eId="section-112-5-a"><num>(a)</num><content>references to pensions or other benefits (including future benefits) includes money purchase benefits, and</content></level><level class="para1" eId="section-112-5-b"><num>(b)</num><content>references to a right include a pension credit right.</content></level></subsection><subsection eId="section-112-6"><num>(6)</num><content>Regulations under <ref href="#section-112-4">subsection (4)</ref> specifying or describing a date for the purposes of the definition of “the qualifying time” may make provision for the purposes of transfers of qualifying accrued rights generally, transfers of a particular description or a particular transfer.</content></subsection></section><section eId="section-113"><num>113</num><heading>New public schemes: further provision</heading><subsection eId="section-113-1"><num>(1)</num><intro>A new public scheme may include provision—</intro><level class="para1" eId="section-113-1-a"><num>(a)</num><content>for pensions or other benefits to be payable to or in respect of some or all persons described in <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></level><level class="para1" eId="section-113-1-b"><num>(b)</num><content>for the provision of money purchase benefits or benefits that are not money purchase benefits (or both);</content></level><level class="para1" eId="section-113-1-c"><num>(c)</num><content>for increasing in particular circumstances the amounts payable in respect of qualifying accrued rights;</content></level><level class="para1" eId="section-113-1-d"><num>(d)</num><content>for the payment or receipt of transfer values or other lump sum payments for the purpose of creating rights to benefits under a new public scheme or otherwise;</content></level><level class="para1" eId="section-113-1-e"><num>(e)</num><content>in relation to any persons who are active members of the AWE Pension Scheme which differs from the provision made in relation to persons who are deferred members of the AWE Pension Scheme, other than provision in relation to qualifying accrued rights.</content></level></subsection><subsection eId="section-113-2"><num>(2)</num><intro>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> may—</intro><level class="para1" eId="section-113-2-a"><num>(a)</num><content>provide for a new public scheme to be treated as an occupational pension scheme, a previously contracted-out scheme or another type of occupational pension scheme for the purposes of an enactment specified or described in the regulations;</content></level><level class="para1" eId="section-113-2-b"><num>(b)</num><content>provide for the enactment to apply in relation to a new public scheme subject to modifications specified in the regulations.</content></level></subsection><subsection eId="section-113-3"><num>(3)</num><content>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> amending a new public scheme may make retrospective provision.</content></subsection><subsection eId="section-113-4"><num>(4)</num><intro>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> may—</intro><level class="para1" eId="section-113-4-a"><num>(a)</num><content>confer functions on the Secretary of State or another person;</content></level><level class="para1" eId="section-113-4-b"><num>(b)</num><content>provide for a person to exercise a discretion in dealing with a matter.</content></level></subsection><subsection eId="section-113-5"><num>(5)</num><intro>The Secretary of State may—</intro><level class="para1" eId="section-113-5-a"><num>(a)</num><content>make arrangements for a new public scheme to be administered by any person;</content></level><level class="para1" eId="section-113-5-b"><num>(b)</num><content>delegate to any person a function exercisable by the Secretary of State under a new public scheme.</content></level></subsection><subsection eId="section-113-6"><num>(6)</num><content>In <ref href="#section-113">this section</ref>, a “<term refersTo="#term-previously-contracted-out-scheme" eId="term-previously-contracted-out-scheme">previously contracted-out scheme</term>” means a scheme that before 6 April 2016 was a salary related contracted-out scheme within the meaning of <ref eId="c00148" href="https://www.legislation.gov.uk/ukpga/1993/48/part/3">Part 3</ref> of the <ref eId="c00149" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>.</content></subsection></section><section eId="section-114"><num>114</num><heading>Protection against adverse treatment: transfer of rights</heading><subsection eId="section-114-1"><num>(1)</num><intro>When making regulations under <ref href="#section-112">section 112</ref> which transfer qualifying accrued rights to a new public scheme, the Secretary of State must ensure that the following requirements are met in respect of each person whose qualifying accrued rights are transferred—</intro><level class="para1" eId="section-114-1-a"><num>(a)</num><content>the general scheme requirement (see <ref href="#section-114-2">subsection (2)</ref>), and</content></level><level class="para1" eId="section-114-1-b"><num>(b)</num><content>where the qualifying accrued rights transferred are a person’s rights or entitlements to money purchase benefits other than pensions in payment, the money purchase requirement (see <ref href="#section-114-3">subsection (3)</ref>).</content></level></subsection><subsection eId="section-114-2"><num>(2)</num><content>The general scheme requirement is that, so far as relevant to the qualifying accrued rights transferred by the regulations, the provision in the new public scheme immediately after the regulations are made is in all material respects at least as good as the provision in the AWE Pension Scheme immediately before that time.</content></subsection><subsection eId="section-114-3"><num>(3)</num><content>The money purchase requirement is that the value of the rights or entitlements to money purchase benefits, other than pensions in payment, that a person has under the new public scheme immediately after, and as a result of, the transfer is at least equivalent to the value of the qualifying accrued rights of the person that are transferred.</content></subsection><subsection eId="section-114-4"><num>(4)</num><content>The Secretary of State may by regulations make provision about the determination of the value of rights or entitlements for the purposes of <ref href="#section-114-3">subsection (3)</ref>.</content></subsection><subsection eId="section-114-5"><num>(5)</num><intro>Regulations under <ref href="#section-114-4">subsection (4)</ref> may, among other things—</intro><level class="para1" eId="section-114-5-a"><num>(a)</num><content>make provision about the person by whom, and the manner in which, the value of rights or entitlements is to be determined,</content></level><level class="para1" eId="section-114-5-b"><num>(b)</num><content>make provision about the date or period by reference to which the value of the qualifying accrued rights transferred is to be determined (subject to <ref href="#section-114-6">subsection (6)</ref>), and</content></level><level class="para1" eId="section-114-5-c"><num>(c)</num><content>make provision that applies generally or only for a specific purpose (for example, in relation to a particular transfer).</content></level></subsection><subsection eId="section-114-6"><num>(6)</num><content>Regulations under <ref href="#section-114-4">subsection (4)</ref> may not make provision for the value of the qualifying accrued rights transferred to be determined by reference to a date which falls, or a period which ends, more than three months before the transfer.</content></subsection><subsection eId="section-114-7"><num>(7)</num><content><ref href="#section-114-1">Subsection (1)</ref> does not require provision to be included in a new public scheme if the Secretary of State is of the opinion that the provision would be incompatible with an enactment (including an enactment applying as a result of any provision made by or under this Chapter).</content></subsection><subsection eId="section-114-8"><num>(8)</num><intro>Nothing in <ref href="#section-114-1">subsections (1)</ref> to <ref href="#section-114-3">(3)</ref> is to be read as—</intro><level class="para1" eId="section-114-8-a"><num>(a)</num><content>requiring particular provisions of a new public scheme to take a particular form,</content></level><level class="para1" eId="section-114-8-b"><num>(b)</num><content>requiring a new public scheme to be established in a particular way,</content></level><level class="para1" eId="section-114-8-c"><num>(c)</num><content>requiring any power or duty conferred or imposed by a new public scheme to be exercised or performed in a particular way, or</content></level><level class="para1" eId="section-114-8-d"><num>(d)</num><content>affecting any power of any person to amend a new public scheme.</content></level></subsection></section><section eId="section-115"><num>115</num><heading>Protection against adverse treatment: amendment of new public schemes</heading><subsection eId="section-115-1"><num>(1)</num><intro>The Secretary of State may not make regulations under <ref href="#section-112">section 112</ref> amending a new public scheme unless—</intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content>in a case where the amendment, on coming into force, would or might adversely affect subsisting rights at that time, the consent requirements or the procedure requirements are satisfied in relation to the amendment, or</content></level><level class="para1" eId="section-115-1-b"><num>(b)</num><content>in any other case, the consultation requirements are satisfied in relation to the amendment.</content></level></subsection><subsection eId="section-115-2"><num>(2)</num><content>The consent requirements are requirements specified or described in regulations made by the Secretary of State for the purpose of obtaining the consent of interested persons, or their representatives, to amendment of a new public scheme.</content></subsection><subsection eId="section-115-3"><num>(3)</num><content>The consultation requirements are requirements specified or described in regulations made by the Secretary of State for the purpose of consulting interested persons, or their representatives, about amendment of a new public scheme.</content></subsection><subsection eId="section-115-4"><num>(4)</num><intro>The procedure requirements are requirements which—</intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content>are specified or described in regulations made by the Secretary of State for steps to be taken before amending a new public scheme, and</content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content>are not requirements for the purpose of obtaining the consent of, or consulting, interested persons or their representatives.</content></level></subsection><subsection eId="section-115-5"><num>(5)</num><intro>In <ref href="#section-115">this section</ref>, “<term refersTo="#term-subsisting-rights" eId="term-subsisting-rights">subsisting rights</term>”, in relation to any time, means—</intro><level class="para1" eId="section-115-5-a"><num>(a)</num><content>any right to future benefits under a new public scheme which, at that time, has accrued to or in respect of a member of the scheme,</content></level><level class="para1" eId="section-115-5-b"><num>(b)</num><content>any entitlement under a new public scheme to the present payment of a pension or other benefit which a member of the scheme has at that time, or</content></level><level class="para1" eId="section-115-5-c"><num>(c)</num><content>any entitlement to benefits, or rights to future benefits, under a new public scheme which a survivor of a member of the scheme has at that time in respect of the member.</content></level></subsection><subsection eId="section-115-6"><num>(6)</num><intro>For the purposes of the definition of “subsisting rights”—</intro><level class="para1" eId="section-115-6-a"><num>(a)</num><content>references to pensions or other benefits (including future benefits) include money purchase benefits, and</content></level><level class="para1" eId="section-115-6-b"><num>(b)</num><content>references to a right include a pension credit right.</content></level></subsection><subsection eId="section-115-7"><num>(7)</num><content>In <ref href="#section-115">this section</ref>, “<term refersTo="#term-interested-persons" eId="term-interested-persons">interested persons</term>”, in relation to an amendment of a scheme, means persons who appear to the Secretary of State to be likely to be affected by the amendment.</content></subsection></section><section eId="section-116"><num>116</num><heading>Transfer of assets and liabilities</heading><subsection eId="section-116-1"><num>(1)</num><intro>The Secretary of State may by regulations provide for the transfer of assets or liabilities of the AWE Pension Scheme (without the need for any approval or consent of the trustee company or AWE PLC, or any other person, to the transfer) to—</intro><level class="para1" eId="section-116-1-a"><num>(a)</num><content>the Secretary of State,</content></level><level class="para1" eId="section-116-1-b"><num>(b)</num><content>a nominee of the Secretary of State or the Treasury, or</content></level><level class="para1" eId="section-116-1-c"><num>(c)</num><content>a company established by the Secretary of State or the Treasury for the purpose of holding the assets or the liabilities pending their disposal or discharge.</content></level></subsection><subsection eId="section-116-2"><num>(2)</num><intro>Where any assets of the AWE Pension Scheme are transferred before regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-2">(2)</ref> are made, regulations under this section must make provision for the purposes of—</intro><level class="para1" eId="section-116-2-a"><num>(a)</num><content>securing the ability of the trustee company to meet any liability it has, or may have, or</content></level><level class="para1" eId="section-116-2-b"><num>(b)</num><content>securing that any such liability is to be met by the Secretary of State or the Treasury.</content></level></subsection><subsection eId="section-116-3"><num>(3)</num><intro>The regulations may in connection with those purposes, or otherwise in connection with a transfer of assets or liabilities under the regulations—</intro><level class="para1" eId="section-116-3-a"><num>(a)</num><content>make provision for the Secretary of State or the Treasury to give directions to the trustee company or AWE PLC;</content></level><level class="para1" eId="section-116-3-b"><num>(b)</num><content>exempt the trustee company, or AWE PLC, from liability in connection with acts or omissions pursuant to any such directions;</content></level><level class="para1" eId="section-116-3-c"><num>(c)</num><content>disapply (to such extent as is specified) any specified statutory provision or rule of law;</content></level><level class="para1" eId="section-116-3-d"><num>(d)</num><content>provide for any specified statutory provision to apply (whether or not it would otherwise apply) with specified modifications;</content></level><level class="para1" eId="section-116-3-e"><num>(e)</num><content>impose a moratorium on the commencement or continuation of proceedings or other legal processes of any specified description.</content></level></subsection><subsection eId="section-116-4"><num>(4)</num><content>“<term refersTo="#term-specified" eId="term-specified">Specified</term>” means specified in the regulations.</content></subsection><subsection eId="section-116-5"><num>(5)</num><content>Regulations under <ref href="#section-116">this section</ref> may include provision for the making of payments into the Consolidated Fund.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-chapter-3-crossheading-supplementary"><heading>Supplementary</heading><section eId="section-117"><num>117</num><heading>Taxation</heading><subsection eId="section-117-1"><num>(1)</num><intro>The Treasury may by regulations make provision for varying the way in which any relevant tax would, apart from the regulations, have effect in relation to—</intro><level class="para1" eId="section-117-1-a"><num>(a)</num><content>a new public scheme;</content></level><level class="para1" eId="section-117-1-b"><num>(b)</num><content>members of a new public scheme;</content></level><level class="para1" eId="section-117-1-c"><num>(c)</num><content>persons who have survived a member of a new public scheme and who have an entitlement to benefits, or a right to future benefits, under the scheme in respect of the member;</content></level><level class="para1" eId="section-117-1-d"><num>(d)</num><content>a person within <ref href="#section-116">section 116</ref><ref href="#section-116-1">(1)</ref><ref href="#section-116-1-a">(a)</ref>, <ref href="#section-116-1-b">(b)</ref> or <ref href="#section-116-1-c">(c)</ref>.</content></level></subsection><subsection eId="section-117-2"><num>(2)</num><content>Regulations under <ref href="#section-117-1">subsection (1)</ref> may include provision for treating a new public scheme as a registered pension scheme.</content></subsection><subsection eId="section-117-3"><num>(3)</num><intro>The Treasury may by regulations make provision for varying the way in which any relevant tax would, apart from the regulations, have effect in relation to, or in connection with, anything done by or under, or in consequence of, regulations made under this Chapter in relation to—</intro><level class="para1" eId="section-117-3-a"><num>(a)</num><content>the AWE Pension Scheme;</content></level><level class="para1" eId="section-117-3-b"><num>(b)</num><content>the trustee company;</content></level><level class="para1" eId="section-117-3-c"><num>(c)</num><content>AWE PLC;</content></level><level class="para1" eId="section-117-3-d"><num>(d)</num><content>the Secretary of State;</content></level><level class="para1" eId="section-117-3-e"><num>(e)</num><content>a qualifying person;</content></level><level class="para1" eId="section-117-3-f"><num>(f)</num><content>a person who has survived a qualifying person and who has an entitlement to benefits, or a right to future benefits, under the scheme in respect of the qualifying person.</content></level></subsection><subsection eId="section-117-4"><num>(4)</num><intro>Regulations under <ref href="#section-117-1">subsection (1)</ref> or <ref href="#section-117-3">(3)</ref> may include provision for any of the following—</intro><level class="para1" eId="section-117-4-a"><num>(a)</num><content>a tax provision not to apply or to apply with modifications;</content></level><level class="para1" eId="section-117-4-b"><num>(b)</num><content>anything done to have or not to have a specified consequence for the purposes of a tax provision;</content></level><level class="para1" eId="section-117-4-c"><num>(c)</num><content>the withdrawal of relief and the charging of a relevant tax.</content></level></subsection><subsection eId="section-117-5"><num>(5)</num><content>Provision made by regulations under <ref href="#section-117-1">subsection (1)</ref> or <ref href="#section-117-3">(3)</ref>, other than provision withdrawing a relief or charging a relevant tax, may make retrospective provision.</content></subsection><subsection eId="section-117-6"><num>(6)</num><intro>In <ref href="#section-117">this section</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-tax" eId="term-relevant-tax">relevant tax</term>” means—</intro><level class="para1"><num>(a)</num><content>income tax;</content></level><level class="para1"><num>(b)</num><content>capital gains tax;</content></level><level class="para1"><num>(c)</num><content>corporation tax;</content></level><level class="para1"><num>(d)</num><content>inheritance tax;</content></level><level class="para1"><num>(e)</num><content>stamp duty and stamp duty reserve tax;</content></level><level class="para1"><num>(f)</num><content>stamp duty land tax;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-registered-pension-scheme" eId="term-registered-pension-scheme">registered pension scheme</term>” has the meaning given in <ref eId="c00150" href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</ref> of the <ref eId="c00151" href="https://www.legislation.gov.uk/ukpga/2004/12/contents">Finance Act 2004</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tax-provision" eId="term-tax-provision">tax provision</term>” means any provision made by or under an enactment relating to a relevant tax.</content></hcontainer></subsection></section><section eId="section-118"><num>118</num><heading>Information</heading><subsection eId="section-118-1"><num>(1)</num><content>The Secretary of State may by regulations make provision requiring a person specified or described in the regulations to give the Secretary of State a document or other information specified or described in the regulations.</content></subsection><subsection eId="section-118-2"><num>(2)</num><intro>Regulations under <ref href="#section-118-1">subsection (1)</ref> may only make provision in respect of documents or other information which the Secretary of State reasonably requires for the purposes of—</intro><level class="para1" eId="section-118-2-a"><num>(a)</num><content>making regulations under this Chapter, or</content></level><level class="para1" eId="section-118-2-b"><num>(b)</num><content>establishing or administering a new public scheme, including transferring qualifying accrued rights to such a scheme.</content></level></subsection><subsection eId="section-118-3"><num>(3)</num><intro>Regulations under <ref href="#section-118-1">subsection (1)</ref> may, among other things, include—</intro><level class="para1" eId="section-118-3-a"><num>(a)</num><content>provision about the time when the document or other information must be given;</content></level><level class="para1" eId="section-118-3-b"><num>(b)</num><content>provision about the form and manner in which it must be given;</content></level><level class="para1" eId="section-118-3-c"><num>(c)</num><content>provision for the imposition of a financial penalty on a person who, without reasonable excuse, fails to comply with a requirement imposed by the regulations (including provision for appeals to a court or tribunal).</content></level></subsection><subsection eId="section-118-4"><num>(4)</num><intro>For the purposes of facilitating the establishment or administration of a new public scheme, including the transfer of qualifying accrued rights to such a scheme, information described in <ref href="#section-118-5">subsection (5)</ref> may be shared among the following persons—</intro><level class="para1" eId="section-118-4-a"><num>(a)</num><content>the Secretary of State;</content></level><level class="para1" eId="section-118-4-b"><num>(b)</num><content>the Treasury;</content></level><level class="para1" eId="section-118-4-c"><num>(c)</num><content>a trustee company of the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-4-d"><num>(d)</num><content>a person who exercises functions under the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-4-e"><num>(e)</num><content>AWE PLC;</content></level><level class="para1" eId="section-118-4-f"><num>(f)</num><content>a person who administers, or exercises functions under, a new public scheme.</content></level></subsection><subsection eId="section-118-5"><num>(5)</num><intro>The information is information relating to—</intro><level class="para1" eId="section-118-5-a"><num>(a)</num><content>rights or entitlements to pensions or other benefits under the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-5-b"><num>(b)</num><content>the administration of the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-5-c"><num>(c)</num><content>rights or entitlements to pensions or other benefits under a new public scheme, so far as they are rights or entitlements of, or in respect of, qualifying persons;</content></level><level class="para1" eId="section-118-5-d"><num>(d)</num><content>the administration of a new public scheme.</content></level></subsection><subsection eId="section-118-6"><num>(6)</num><intro>The disclosure of information in accordance with <ref href="#section-118">this section</ref>, or regulations made under <ref href="#section-118">this section</ref>, does not breach—</intro><level class="para1" eId="section-118-6-a"><num>(a)</num><content>any obligation of confidence owed by a person in relation to that information, or</content></level><level class="para1" eId="section-118-6-b"><num>(b)</num><content>any other restriction on the disclosure of information (however imposed).</content></level></subsection></section><section eId="section-119"><num>119</num><heading>Regulations</heading><subsection eId="section-119-1"><num>(1)</num><intro>The Secretary of State must consult the trustee company before making—</intro><level class="para1" eId="section-119-1-a"><num>(a)</num><content>regulations under <ref href="#section-112">section 112</ref> which establish a new public scheme or transfer qualifying accrued rights to a new public scheme, or</content></level><level class="para1" eId="section-119-1-b"><num>(b)</num><content>regulations under <ref href="#section-116">section 116</ref> which make provision for the transfer of assets or liabilities.</content></level></subsection><subsection eId="section-119-2"><num>(2)</num><content>The Secretary of State may not make regulations under any provision of this Chapter, other than under <ref href="#section-118">section 118</ref><ref href="#section-118-1">(1)</ref>, unless the Treasury have consented to the making of the regulations.</content></subsection><subsection eId="section-119-3"><num>(3)</num><intro>Regulations under <ref href="#section-112">section 112</ref> are subject to the affirmative procedure if—</intro><level class="para1" eId="section-119-3-a"><num>(a)</num><content>the making of the regulations is subject to the consent requirements (see <ref href="#section-115">section 115</ref>), or</content></level><level class="para1" eId="section-119-3-b"><num>(b)</num><content>the regulations make provision which has retrospective effect.</content></level></subsection><subsection eId="section-119-4"><num>(4)</num><content>Regulations under <ref href="#section-116">section 116</ref> are subject to the affirmative procedure if they make provision falling with subsection <ref href="#section-116-3">(3)</ref><ref href="#section-116-3-c">(c)</ref>, <ref href="#section-116-3-d">(d)</ref> or <ref href="#section-116-3-e">(e)</ref> of that section.</content></subsection><subsection eId="section-119-5"><num>(5)</num><content>Regulations under <ref href="#section-118">section 118</ref><ref href="#section-118-1">(1)</ref> are subject to the affirmative procedure if they make provision about the amount of a financial penalty.</content></subsection><subsection eId="section-119-6"><num>(6)</num><content>A statutory instrument containing regulations under <ref href="#section-117">section 117</ref> is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection><subsection eId="section-119-7"><num>(7)</num><content>Any other regulations under this Chapter are subject to the negative procedure.</content></subsection></section><section eId="section-120"><num>120</num><heading>Interpretation</heading><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-active-member" eId="term-active-member">active member</term>” has the meaning given by section 124(1) of the Pensions Act 1995;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-deferred-member" eId="term-deferred-member">deferred member</term>” has the meaning given by section 124(1) of the Pensions Act 1995;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-enactment" eId="term-enactment">enactment</term>” includes—</intro><level class="para1"><num>(a)</num><content>an enactment comprised in subordinate legislation (within the meaning given by <ref eId="c00152" href="https://www.legislation.gov.uk/ukpga/1978/30/section/21">section 21</ref> of the <ref eId="c00153" href="https://www.legislation.gov.uk/ukpga/1978/30/contents">Interpretation Act 1978</ref>),</content></level><level class="para1"><num>(b)</num><content>an enactment comprised in, or in an instrument made under, a Measure or Act of Senedd Cymru,</content></level><level class="para1"><num>(c)</num><content>an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament,</content></level><level class="para1"><num>(d)</num><content>an enactment comprised in, or in an instrument made under, Northern Ireland legislation;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-member" eId="term-member">member</term>” has the meaning given by <ref eId="c00154" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">section 124</ref><ref eId="c00155" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">(1)</ref> of the <ref eId="c00156" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the meaning given by <ref eId="c00157" href="https://www.legislation.gov.uk/ukpga/1993/48/section/181">section 181</ref> of the <ref eId="c00158" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-new-public-scheme" eId="term-new-public-scheme">new public scheme</term>” has the meaning given by <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-occupational-pension-scheme" eId="term-occupational-pension-scheme">occupational pension scheme</term>” has the meaning given by <ref eId="c00159" href="https://www.legislation.gov.uk/ukpga/1993/48/section/1">section 1</ref> of the <ref eId="c00160" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-credit-right" eId="term-pension-credit-right">pension credit right</term>” has the meaning given by <ref eId="c00161" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">section 124</ref><ref eId="c00162" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">(1)</ref> of the <ref eId="c00163" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-qualifying-person" eId="term-qualifying-person">qualifying person</term>” has the meaning given by <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-trustee-company" eId="term-the-trustee-company">the trustee company</term>” means AWE Pension Trustees Ltd.</content></hcontainer></section></hcontainer></chapter><chapter eId="part-4-chapter-4"><num>Chapter 4</num><heading>Other miscellaneous provision</heading><section eId="section-121"><num>121</num><heading>Alienation or forfeiture of occupational pension</heading><subsection eId="section-121-1"><num>(1)</num><content>The <ref eId="c00164" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> is amended in accordance with <ref href="#section-121-2">subsections (2)</ref> and <ref href="#section-121-3">(3)</ref>.</content></subsection><subsection eId="section-121-2"><num>(2)</num><intro>In <ref eId="c00165" href="https://www.legislation.gov.uk/ukpga/1995/26/section/91">section 91</ref> (inalienability of occupational pension)—</intro><level class="para1" eId="section-121-2-a"><num>(a)</num><intro>in <ref eId="c00166" href="https://www.legislation.gov.uk/ukpga/1995/26/section/91">subsection (6)</ref>, in the words after <ref eId="c00167" href="https://www.legislation.gov.uk/ukpga/1995/26/section/91">paragraph (b)</ref>—</intro><level class="para2" eId="section-121-2-a-i"><num>(i)</num><content><mod>for “there is a dispute as to its amount” substitute <quotedText>“a dispute has arisen as to the amount of the monetary obligation in question”</quotedText>;</mod></content></level><level class="para2" eId="section-121-2-a-ii"><num>(ii)</num><content><mod>for the words from “the obligation in question” to the end substitute <quotedText>“one of the following conditions is met.”</quotedText>;</mod></content></level></level><level class="para1" eId="section-121-2-b"><num>(b)</num><content><mod>after <ref eId="c00168" href="https://www.legislation.gov.uk/ukpga/1995/26/section/91">subsection (6)</ref> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro>The conditions mentioned in subsection (6) are—</intro><level class="para1"><num>(a)</num><content>that the dispute has been resolved by the parties to it;</content></level><level class="para1"><num>(b)</num><content>that the Pensions Ombudsman has made a determination under <ref eId="c00169" href="https://www.legislation.gov.uk/ukpga/1993/48/part/10">Part 10</ref> of the <ref eId="c00170" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>or <ref eId="c00171" href="https://www.legislation.gov.uk/ukpga/1993/49/part/10">Part 10</ref> of the <ref eId="c00172" href="https://www.legislation.gov.uk/ukpga/1993/49/contents">Pension Schemes (Northern Ireland) Act 1993</ref> (investigations) as to the amount of the monetary obligation in question;</content></level><level class="para1"><num>(c)</num><intro>that the monetary obligation in question has become enforceable—</intro><level class="para2"><num>(i)</num><content>under an order of a competent court, or</content></level><level class="para2"><num>(ii)</num><content>in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.</content></level></level></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-121-3"><num>(3)</num><intro>In <ref eId="c00173" href="https://www.legislation.gov.uk/ukpga/1995/26/section/93">section 93</ref> (forfeiture by reference to obligation to employer), in <ref eId="c00174" href="https://www.legislation.gov.uk/ukpga/1995/26/section/93">subsection (3)</ref>—</intro><level class="para1" eId="section-121-3-a"><num>(a)</num><content><mod>for “there is a dispute” substitute <quotedText>“a dispute has arisen”</quotedText>;</mod></content></level><level class="para1" eId="section-121-3-b"><num>(b)</num><content><mod>for the words from “the obligation has become” to the end substitute <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content>the dispute has been resolved by the parties to it,</content></level><level class="para1"><num>(b)</num><content>the Pensions Ombudsman has made a determination under <ref eId="c00175" href="https://www.legislation.gov.uk/ukpga/1993/48/part/10">Part 10</ref> of the <ref eId="c00176" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>or <ref eId="c00177" href="https://www.legislation.gov.uk/ukpga/1993/49/part/10">Part 10</ref> of the <ref eId="c00178" href="https://www.legislation.gov.uk/ukpga/1993/49/contents">Pension Schemes (Northern Ireland) Act 1993</ref> (investigations) as to the amount of the monetary obligation in question, or</content></level><level class="para1"><num>(c)</num><intro>the monetary obligation in question has become enforceable—</intro><level class="para2"><num>(i)</num><content>under an order of a competent court, or</content></level><level class="para2"><num>(ii)</num><content>in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.</content></level></level></quotedStructure></mod></content></level></subsection><subsection eId="section-121-4"><num>(4)</num><content>The <ref eId="c00179" href="https://www.legislation.gov.uk/nisi/1995/3213/contents">Pensions (Northern Ireland) Order 1995</ref> is amended in accordance with <ref href="#section-121-5">subsections (5)</ref> and <ref href="#section-121-6">(6)</ref>.</content></subsection><subsection eId="section-121-5"><num>(5)</num><intro>In <ref eId="c00180" href="https://www.legislation.gov.uk/nisi/1995/3213/article/89">Article 89</ref> (inalienability of occupational pension)—</intro><level class="para1" eId="section-121-5-a"><num>(a)</num><intro>in <ref eId="c00181" href="https://www.legislation.gov.uk/nisi/1995/3213/article/89">paragraph (6)</ref>, in the words after <ref eId="c00182" href="https://www.legislation.gov.uk/nisi/1995/3213/article/89">sub-paragraph (b)</ref>—</intro><level class="para2" eId="section-121-5-a-i"><num>(i)</num><content><mod>for “there is a dispute as to its amount” substitute <quotedText>“a dispute has arisen as to the amount of the monetary obligation in question”</quotedText>;</mod></content></level><level class="para2" eId="section-121-5-a-ii"><num>(ii)</num><content><mod>for the words from “the obligation in question” to the end substitute <quotedText>“one of the following conditions is met.”</quotedText>;</mod></content></level></level><level class="para1" eId="section-121-5-b"><num>(b)</num><content><mod>after <ref eId="c00183" href="https://www.legislation.gov.uk/nisi/1995/3213/article/89">paragraph (6)</ref> insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(6A)</num><intro>The conditions mentioned in paragraph (6) are—</intro><level class="para1"><num>(a)</num><content>that the dispute has been resolved by the parties to it;</content></level><level class="para1"><num>(b)</num><content>that the Pensions Ombudsman has made a determination under <ref eId="c00184" href="https://www.legislation.gov.uk/ukpga/1993/49/part/10">Part 10</ref> of the <ref eId="c00185" href="https://www.legislation.gov.uk/ukpga/1993/49/contents">Pension Schemes (Northern Ireland) Act 1993</ref> or <ref eId="c00186" href="https://www.legislation.gov.uk/ukpga/1993/48/part/10">Part 10</ref> of the <ref eId="c00187" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (investigations) as to the amount of the monetary obligation in question;</content></level><level class="para1"><num>(c)</num><intro>that the monetary obligation in question has become enforceable—</intro><level class="para2"><num>(i)</num><content>under an order of a competent court, or</content></level><level class="para2"><num>(ii)</num><content>in consequence of an award of an arbitrator.</content></level></level></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-121-6"><num>(6)</num><intro>In <ref eId="c00188" href="https://www.legislation.gov.uk/nisi/1995/3213/article/91">Article 91</ref> (forfeiture by reference to obligation to employer), in <ref eId="c00189" href="https://www.legislation.gov.uk/nisi/1995/3213/article/91">paragraph (3)</ref>—</intro><level class="para1" eId="section-121-6-a"><num>(a)</num><content><mod>for “there is a dispute” substitute <quotedText>“a dispute has arisen”</quotedText>;</mod></content></level><level class="para1" eId="section-121-6-b"><num>(b)</num><content><mod>for the words from “the obligation has become” to the end substitute <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content>the dispute has been resolved by the parties to it,</content></level><level class="para1"><num>(b)</num><content>the Pensions Ombudsman has made a determination under <ref eId="c00190" href="https://www.legislation.gov.uk/ukpga/1993/49/part/10">Part 10</ref> of the <ref eId="c00191" href="https://www.legislation.gov.uk/ukpga/1993/49/contents">Pension Schemes (Northern Ireland) Act 1993</ref> or <ref eId="c00192" href="https://www.legislation.gov.uk/ukpga/1993/48/part/10">Part 10</ref> of the <ref eId="c00193" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (investigations) as to the amount of the monetary obligation in question, or</content></level><level class="para1"><num>(c)</num><intro>the monetary obligation in question has become enforceable—</intro><level class="para2"><num>(i)</num><content>under an order of a competent court, or</content></level><level class="para2"><num>(ii)</num><content>in consequence of an award of an arbitrator.</content></level></level></quotedStructure></mod></content></level></subsection></section><section eId="section-122"><num>122</num><heading>Terminal illness</heading><intro><mod>In the following provisions (which relate to the life expectancy required for a person to be regarded as “terminally ill” for purposes relating to compensation or assistance from the Pension Protection Fund or Financial Assistance Scheme), for “6 months” or “six months” substitute <quotedText>“12 months”</quotedText>—</mod></intro><level class="para1" eId="section-122-a"><num>(a)</num><content>in the Pensions Act 2004, in Schedule 7, paragraph 25B(3);</content></level><level class="para1" eId="section-122-b"><num>(b)</num><content>in the Pensions (Northern Ireland) Order 2005 (<ref eId="c00194" href="http://www.legislation.gov.uk/id/nisi/2005/255">S.I. 2005/255 (N.I. 1)</ref>), in Schedule 6, paragraph 25B(3);</content></level><level class="para1" eId="section-122-c"><num>(c)</num><content>in the Pensions Act 2008, in Schedule 5, paragraph 12(3);</content></level><level class="para1" eId="section-122-d"><num>(d)</num><content>in the Pensions (No. 2) Act (Northern Ireland) <ref eId="c00195" href="http://www.legislation.gov.uk/id/nia/2008/13">2008 (c.13 (N.I.))</ref>, in Schedule 4, paragraph 12(3);</content></level><level class="para1" eId="section-122-e"><num>(e)</num><content>in the Financial Assistance Scheme Regulations 2005 (<ref eId="c00196" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>), regulations 2(9) and 17(3D)(b)(i).</content></level></section><section eId="section-123"><num>123</num><heading>Pension protection levies</heading><subsection eId="section-123-1"><num>(1)</num><content>The Pensions Act 2004 is amended as follows.</content></subsection><subsection eId="section-123-2"><num>(2)</num><content>In section 113 (investment of funds), in subsection (2)(b), omit “174 or”.</content></subsection><subsection eId="section-123-3"><num>(3)</num><content><mod>For the italic heading before section 174 substitute <quotedText>“Pension protection levies”</quotedText>.</mod></content></subsection><subsection eId="section-123-4"><num>(4)</num><content>Omit section 174 (initial levy).</content></subsection><subsection eId="section-123-5"><num>(5)</num><intro>In section 175 (pension protection levies)—</intro><level class="para1" eId="section-123-5-a"><num>(a)</num><content><mod>for subsection (1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1)</num><intro>For each financial year, the Board—</intro><level class="para1"><num>(a)</num><content>may impose a risk-based pension protection levy in respect of a description of eligible scheme (or in respect of all eligible schemes), and</content></level><level class="para1"><num>(b)</num><content>if it does so, may also impose a scheme-based pension protection levy in respect of the same or a different description of eligible scheme (or in respect of all eligible schemes).</content></level><wrapUp>In this Chapter “<term refersTo="#term-pension-protection-levy">pension protection levy</term>” means a levy imposed in accordance with this section.</wrapUp></subsection></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-123-5-b"><num>(b)</num><content><mod>in subsection (3), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e22869"><num>(aa)</num><content>the risks associated with a description of scheme which the Board considers is not supported by a substantive employer covenant;</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-123-5-c"><num>(c)</num><content><mod>in subsection (5), in the words before paragraph (a), after “financial year” insert <quotedText>“for which it decides to impose the pension protection levies (or one of them)”</quotedText>;</mod></content></level><level class="para1" eId="section-123-5-d"><num>(d)</num><content>omit subsection (7);</content></level><level class="para1" eId="section-123-5-e"><num>(e)</num><content><mod>before subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7A)</num><intro>For the purposes of subsection (3)<ref href="#d25e22869">(aa)</ref>, a scheme is “not supported by a substantive employer covenant” if, based on the financial position of the employer, there is no realistic prospect of the employer being able to provide the trustees or managers with material financial support for the purpose of satisfying liabilities of the scheme.For that purpose the employer’s “<term refersTo="#term-financial-position">financial position</term>” means its financial position ignoring—</intro><level class="para1"><num>(a)</num><content>any capital buffer (within the meaning of <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026), and</content></level><level class="para1"><num>(b)</num><content>any financial support which it may obtain from another person but to which it is not entitled.</content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-123-5-f"><num>(f)</num><content>in subsection (8), omit the definition of “initial period”;</content></level><level class="para1" eId="section-123-5-g"><num>(g)</num><intro>in subsection (10)—</intro><level class="para2" eId="section-123-5-g-i"><num>(i)</num><content><mod>in the words before paragraph (a), for “duty” substitute <quotedText>“power”</quotedText>;</mod></content></level><level class="para2" eId="section-123-5-g-ii"><num>(ii)</num><content>omit paragraph (b) and the “and” before it.</content></level></level></subsection><subsection eId="section-123-6"><num>(6)</num><intro>In section 176 (supplementary provisions about pension protection levies)—</intro><level class="para1" eId="section-123-6-a"><num>(a)</num><intro>in subsection (1)—</intro><level class="para2" eId="section-123-6-a-i"><num>(i)</num><content><mod>for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(a)</num><content>no pension protection levies were imposed in the previous financial year, or</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para2" eId="section-123-6-a-ii"><num>(ii)</num><content><mod>in paragraph (b), for “the pension protection levies” substitute <quotedText>“any pension protection levies”</quotedText>;</mod></content></level><level class="para2" eId="section-123-6-a-iii"><num>(iii)</num><content>omit paragraph (c) and the “or” before it;</content></level></level><level class="para1" eId="section-123-6-b"><num>(b)</num><content><mod>for subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(2)</num><intro>The Board must publish in the prescribed manner details of—</intro><level class="para1"><num>(a)</num><content>any decision to impose, or not to impose, the levies for a financial year in respect of a description of scheme;</content></level><level class="para1"><num>(b)</num><content>any determination under section 175(5).</content></level></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-123-7"><num>(7)</num><intro>In section 177 (amounts to be raised by the pension protection levies)—</intro><level class="para1" eId="section-123-7-a"><num>(a)</num><content><mod>at the beginning insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>A1</num><content>Subsections (1) to (5) apply where the Board decides to impose one or both of the pension protection levies for a financial year.</content></subsection></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-123-7-b"><num>(b)</num><content><mod>in each of subsections (1), (2) and (3), for “a financial year” substitute <quotedText>“the financial year”</quotedText>;</mod></content></level><level class="para1" eId="section-123-7-c"><num>(c)</num><content>omit subsection (4);</content></level><level class="para1" eId="section-123-7-d"><num>(d)</num><content><mod>for subsection (5) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(5)</num><intro>The Board must impose pension protection levies for the financial year in a form which it estimates will raise an amount which does not exceed the sum of—</intro><level class="para1"><num>(a)</num><content>the amount estimated under subsection (1) in respect of any pension protection levies imposed for the previous financial year, and</content></level><level class="para1"><num>(b)</num><content>25% of the levy ceiling for the previous financial year.</content></level></subsection></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-123-7-e"><num>(e)</num><content><mod>in subsection (8), for the words from “Regulations” to “(6),” substitute <quotedText>“An order under subsection (6)”</quotedText>;</mod></content></level><level class="para1" eId="section-123-7-f"><num>(f)</num><content>in subsection (9), omit paragraph (b) and the “and” before it.</content></level></subsection><subsection eId="section-123-8"><num>(8)</num><intro>In section 178 (levy ceiling)—</intro><level class="para1" eId="section-123-8-a"><num>(a)</num><content>in subsection (1), omit “for which levies are required to be imposed under section 175”;</content></level><level class="para1" eId="section-123-8-b"><num>(b)</num><content>omit subsection (2);</content></level><level class="para1" eId="section-123-8-c"><num>(c)</num><content>in subsection (3), in the words before paragraph (a), omit “after the first year for which levies are imposed under section 175”.</content></level></subsection><subsection eId="section-123-9"><num>(9)</num><content>Omit section 180 (transitional provision now spent).</content></subsection><subsection eId="section-123-10"><num>(10)</num><content>In section 181 (calculation, collection and recovery of levies), in subsection (1), omit paragraph (a) and the “and” after it.</content></subsection><subsection eId="section-123-11"><num>(11)</num><content>In section 316 (parliamentary control of subordinate legislation), in subsection (2), omit paragraph (c).</content></subsection></section><section eId="section-124"><num>124</num><heading>Pensions dashboards</heading><subsection eId="section-124-1"><num>(1)</num><intro>In section 4A of the Financial Guidance and Claims Act 2018 (specific functions included in the pensions guidance function)—</intro><level class="para1" eId="section-124-1-a"><num>(a)</num><intro>in subsection (2)—</intro><level class="para2" eId="section-124-1-a-i"><num>(i)</num><content>omit the “and” after paragraph (b);</content></level><level class="para2" eId="section-124-1-a-ii"><num>(ii)</num><content><mod>after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(d)</num><content>the Pension Protection Fund, including information relating to an individual, and</content></level><level class="para1"><num>(e)</num><content>the financial assistance scheme, including information relating to an individual.</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level></level><level class="para1" eId="section-124-1-b"><num>(b)</num><content><mod>in subsection (6), at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-financial-assistance-scheme">financial assistance scheme</term>” means the scheme provided for by regulations under section 286 of the Pensions Act 2004 (financial assistance scheme for members of certain pension schemes);</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></level></subsection><subsection eId="section-124-2"><num>(2)</num><content>The Pensions Act 2004 is amended as follows.</content></subsection><subsection eId="section-124-3"><num>(3)</num><intro>In section 203 (provision of information relating to the Pension Protection Fund to members of schemes etc)—</intro><level class="para1" eId="section-124-3-a"><num>(a)</num><content><mod>in subsection (1)(a), after “times” insert <quotedText>“or in prescribed circumstances”</quotedText>;</mod></content></level><level class="para1" eId="section-124-3-b"><num>(b)</num><content><mod>after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e23236"><num>(1A)</num><intro>Regulations under subsection (1)(a) may make provision about how information is to be provided, including provision requiring—</intro><level class="para1"><num>(a)</num><content>the use of electronic communications;</content></level><level class="para1"><num>(b)</num><content>the use of facilities or services specified or of a description specified in the regulations;</content></level><level class="para1"><num>(c)</num><intro>information to be provided in such a way that it can subsequently be provided by means of—</intro><level class="para2"><num>(i)</num><content>a qualifying pensions dashboard service, or</content></level><level class="para2"><num>(ii)</num><content>the pensions dashboard service provided by the Money and Pensions Service.</content></level></level></subsection><subsection><num>(1B)</num><intro>In subsection <ref href="#d25e23236">(1A)</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-pensions-dashboard-service">pensions dashboard service</term>” means a pensions dashboard service within the meaning of section 238A(1);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-qualifying-pensions-dashboard-service">qualifying pensions dashboard service</term>” has the meaning given by section 238A(2).</content></hcontainer></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-124-4"><num>(4)</num><content><mod>In section 238A (qualifying pensions dashboard service), in subsection (4), after paragraph (b) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ba)</num><intro>information of a prescribed description about—</intro><level class="para2"><num>(i)</num><content>the Pension Protection Fund;</content></level><level class="para2"><num>(ii)</num><content>the financial assistance scheme;</content></level></level><level class="para1"><num>(bb)</num><content>Pension Protection Fund information relating to the individual in question of such description as may be prescribed;</content></level><level class="para1"><num>(bc)</num><content>financial assistance scheme information relating to the individual in question of such description as may be prescribed;</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-124-5"><num>(5)</num><content><mod>In section 238C (interpretation), in subsection (4), at the appropriate place insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-financial-assistance-scheme">financial assistance scheme</term>” means the scheme provided for by regulations under section 286 (financial assistance scheme for members of certain pension schemes);</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></subsection></section><section eId="section-125"><num>125</num><heading>Information to be given to pension schemes by employers</heading><subsection eId="section-125-1"><num>(1)</num><content>Part 1 of the Pensions Act 2008 (pension scheme membership for jobholders) is amended as follows.</content></subsection><subsection eId="section-125-2"><num>(2)</num><content><mod>After section 11 (information to be given to the Pensions Regulator) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e23376"><num>11A</num><heading>Information to be given to pension schemes</heading><subsection eId="d25e23380"><num>(1)</num><intro>The Secretary of State may make regulations requiring employers to provide information relating to—</intro><level class="para1" eId="d25e23386"><num>(a)</num><content>jobholders who are active members of a qualifying scheme, or</content></level><level class="para1" eId="d25e23392"><num>(b)</num><content>workers who are active members of a pension scheme that satisfies the requirements of section 9,</content></level><wrapUp>to the trustees or managers of the scheme (where the scheme is an occupational pension scheme) or the provider of the scheme (where the scheme is a personal pension scheme).</wrapUp></subsection><subsection><num>(2)</num><intro>Regulations under this section may make provision—</intro><level class="para1"><num>(a)</num><content>specifying the information to be provided;</content></level><level class="para1"><num>(b)</num><content>about when, or the frequency with which, the information (or a particular item of information) is to be provided;</content></level><level class="para1"><num>(c)</num><content>about how and in what form the information is to be provided.</content></level></subsection><subsection><num>(3)</num><content>The information that regulations under this section may require employers to provide includes information about persons ceasing to be jobholders or workers within <ref href="#d25e23380">subsection (1)</ref><ref href="#d25e23386">(a)</ref> or <ref href="#d25e23392">(b)</ref>.</content></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-125-3"><num>(3)</num><content><mod>In section 34 (effect of failure to comply), in subsection (3), for “11” substitute <quotedText>“<ref href="#d25e23376">11A</ref>”</quotedText>.</mod></content></subsection></section><section eId="section-126"><num>126</num><heading>Funding of the Board of the Pension Protection Fund</heading><subsection eId="section-126-1"><num>(1)</num><content>The Pensions Act 2004 is amended in accordance with subsections <ref href="#section-126-2">(2)</ref> to <ref href="#section-126-5">(5)</ref>.</content></subsection><subsection eId="section-126-2"><num>(2)</num><content>Omit section 116 (power of Secretary of State to pay grants to Board of Pension Protection Fund).</content></subsection><subsection eId="section-126-3"><num>(3)</num><content>Omit section 117 (power of Secretary of State to impose administration levy on pension schemes).</content></subsection><subsection eId="section-126-4"><num>(4)</num><content><mod>In section 173 (Pension Protection Fund), in subsection (3), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content>any sums required to meet expenditure of the Board that is attributable to the operation or administration of the Pension Protection Fund,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-126-5"><num>(5)</num><content><mod>In section 188 (fraud compensation fund), in subsection (3), before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(za)</num><content>any sums required to meet expenditure of the Board that is attributable to the operation or administration of the Fraud Compensation Fund,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-126-6"><num>(6)</num><content>No amount is payable to the Secretary of State by virtue of section 117 of the Pensions Act 2004 (administration levy) in respect of the financial years beginning with 1 April 2023 and 1 April 2024.</content></subsection><subsection eId="section-126-7"><num>(7)</num><content>In the Pensions Act 2008, in Schedule 10 (interest on late payment of levies), omit paragraph 3 (which makes an amendment about interest for late payment of the administration levy that has not been brought into force).</content></subsection></section><section eId="section-127"><num>127</num><heading>Funding of the Ombudsman for the Board of the Pension Protection Fund</heading><subsection eId="section-127-1"><num>(1)</num><intro>In the Pension Schemes Act 1993, in section 175(1) (general levy)—</intro><level class="para1" eId="section-127-1-a"><num>(a)</num><content>omit the “or” at the end of paragraph (d);</content></level><level class="para1" eId="section-127-1-b"><num>(b)</num><content><mod> after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(da)</num><content>of the Secretary of State under section 209(6) of the Pensions Act 2004 (payments to PPF Ombudsman), or</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></level></subsection><subsection eId="section-127-2"><num>(2)</num><content>In section 209 of the Pensions Act 2004 (ombudsman for the Board of the Pension Protection Fund), omit subsections (7) and (8).</content></subsection></section><section eId="section-128"><num>128</num><heading>Public service pension schemes</heading><subsection eId="section-128-1"><num>(1)</num><intro>The Government Actuary must, before the end of the period of 12 months beginning with the day on which this section comes into force—</intro><level class="para1" eId="section-128-1-a"><num>(a)</num><content>prepare and publish a document setting out cash flow projections for each of the next 50 years that cover the public service pension schemes within subsection <ref href="#section-128-4">(4)</ref>;</content></level><level class="para1" eId="section-128-1-b"><num>(b)</num><content>provide the document to the Treasury and the Office for Budget Responsibility.</content></level></subsection><subsection eId="section-128-2"><num>(2)</num><content>The Treasury must lay the document before Parliament.</content></subsection><subsection eId="section-128-3"><num>(3)</num><intro>For the purposes of this section “<term refersTo="#term-cash-flow" eId="term-cash-flow">cash flow</term>” means—</intro><level class="para1" eId="section-128-3-a"><num>(a)</num><content>expenditure on benefits, and</content></level><level class="para1" eId="section-128-3-b"><num>(b)</num><content>income from member contributions.</content></level></subsection><subsection eId="section-128-4"><num>(4)</num><intro>The following public service pension schemes are within this subsection—</intro><level class="para1" eId="section-128-4-a"><num>(a)</num><intro>any scheme under section 1 of the Public Service Pensions Act 2013 (schemes for persons in public service) which—</intro><level class="para2" eId="section-128-4-a-i"><num>(i)</num><content>is a defined benefits scheme (within the meaning of that Act), and</content></level><level class="para2" eId="section-128-4-a-ii"><num>(ii)</num><content>is not a scheme for local government workers (within the meaning of that Act);</content></level></level><level class="para1" eId="section-128-4-b"><num>(b)</num><intro>any scheme under section 1 of the Public Service Pensions Act (Northern Ireland) 2014 (schemes for persons in public service) which—</intro><level class="para2" eId="section-128-4-b-i"><num>(i)</num><content>is a defined benefits scheme (within the meaning of that Act), and</content></level><level class="para2" eId="section-128-4-b-ii"><num>(ii)</num><content>is not a scheme for local government workers (within the meaning of that Act).</content></level></level></subsection></section></chapter></part>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-4-chapter-1"><num>Chapter 1</num><heading>Validity of certain alterations to salary-related contracted-out pension schemes</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-chapter-1-crossheading-schemes-in-great-britain"><heading>Schemes in Great Britain</heading><section eId="section-101"><num>101</num><heading>Sections <ref href="#section-101">101</ref> to <ref href="#section-104">104</ref>: interpretation and scope</heading><subsection eId="section-101-1"><num>(1)</num><content>The following provisions of <ref href="#section-101">this section</ref> have effect for the purposes of <ref href="#section-101">this section</ref> and <ref href="#section-102">sections 102</ref> to <ref href="#section-104">104</ref> .</content></subsection><subsection eId="section-101-2"><num>(2)</num><content>“<term refersTo="#term-gb-scheme" eId="term-gb-scheme">GB scheme</term>” means an occupational pension scheme that was a salary-related contracted-out scheme in England and Wales or Scotland; and for this purpose an occupational pension scheme was a salary-related contracted-out scheme in England and Wales or Scotland at any time if the scheme was contracted-out at that time by virtue of satisfying <ref eId="c00124" href="https://www.legislation.gov.uk/ukpga/1993/48/section/9">section 9</ref><ref eId="c00125" href="https://www.legislation.gov.uk/ukpga/1993/48/section/9">(2)</ref> of the <ref eId="c00126" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (as it then had effect).</content></subsection><subsection eId="section-101-3"><num>(3)</num><intro>“<term refersTo="#term-scheme-actuary" eId="term-scheme-actuary">Scheme actuary</term>”, in relation to a GB scheme, means—</intro><level class="para1" eId="section-101-3-a"><num>(a)</num><content>the person for the time being appointed as actuary for the scheme under <ref eId="c00127" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">section 47</ref> of the <ref eId="c00128" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (professional advisers), or</content></level><level class="para1" eId="section-101-3-b"><num>(b)</num><content>if there is no person so appointed, a Fellow of the Institute and Faculty of Actuaries appointed by the trustees or managers of the scheme to carry out the functions of the scheme actuary under <ref href="#section-102">section 102</ref>.</content></level></subsection><subsection eId="section-101-4"><num>(4)</num><content>“<term refersTo="#term-section-371" eId="term-section-371">Section 37(1)</term>” refers to <ref eId="c00129" href="https://www.legislation.gov.uk/ukpga/1993/48/section/37">section 37</ref><ref eId="c00130" href="https://www.legislation.gov.uk/ukpga/1993/48/section/37">(1)</ref> of the <ref eId="c00131" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (prohibition of alterations to rules of contracted-out schemes in certain circumstances).</content></subsection><subsection eId="section-101-5"><num>(5)</num><content>“<term refersTo="#term-regulation-42" eId="term-regulation-42">Regulation 42</term>” refers to <ref eId="c00132" href="https://www.legislation.gov.uk/uksi/1996/1172/regulation/42">regulation 42</ref> of the <ref eId="c00133" href="https://www.legislation.gov.uk/uksi/1996/1172/contents">Occupational Pension Schemes (Contracting-out) Regulations 1996</ref> (<ref eId="c00134" href="http://www.legislation.gov.uk/id/uksi/1996/1172">S.I. 1996/1172</ref>) (requirements for alterations to rules of contracted-out schemes).</content></subsection><subsection eId="section-101-6"><num>(6)</num><content>References to non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42 include non-compliance with the requirement in either paragraph (2)(a) or (2)(b) (as well as with both requirements).</content></subsection><subsection eId="section-101-7"><num>(7)</num><intro>An alteration purporting to have been made to the rules of a GB scheme is a “potentially remediable alteration” if—</intro><level class="para1" eId="section-101-7-a"><num>(a)</num><content>by virtue of <ref href="#section-37">section 37</ref><ref href="#section-37-1">(1)</ref> and paragraphs (1) and (2) of regulation 42 (as they had effect at the time), the alteration could not be made unless the requirements of paragraph (2)(a), (b) and (c) of regulation 42 (as they then had effect) had been met,</content></level><level class="para1" eId="section-101-7-b"><num>(b)</num><content>it was treated by the trustees or managers of the scheme, after it was purportedly made, as a valid alteration,</content></level><level class="para1" eId="section-101-7-c"><num>(c)</num><content>no positive action has been taken by the trustees or managers of the scheme on the basis that they consider the alteration to be void (and so of no legal effect) by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42, and</content></level><level class="para1" eId="section-101-7-d"><num>(d)</num><content>it is not excluded from the scope of remediation under <ref href="#section-102">sections 102</ref> and <ref href="#section-103">103</ref> (see subsection (9)).</content></level></subsection><subsection eId="section-101-8"><num>(8)</num><intro>In <ref href="#section-101-7">subsection (7)</ref><ref href="#section-101-7-c">(c)</ref> “<term refersTo="#term-positive-action" eId="term-positive-action">positive action</term>”, in relation to the purported alteration, means—</intro><level class="para1" eId="section-101-8-a"><num>(a)</num><content>notifying any members of the scheme in writing to the effect that the trustees or managers consider the alteration to be void (by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42) and that the scheme will be administered on the basis that it has no legal effect, or</content></level><level class="para1" eId="section-101-8-b"><num>(b)</num><content>notifying any members of the scheme in writing (in consequence of the trustees or managers being of the view mentioned in <ref href="#section-101-7">subsection (7)</ref><ref href="#section-101-7-c">(c)</ref>) to the effect that the trustees or managers are taking (or have taken) any other step in relation to the administration of the scheme which has (or will have) the effect of altering payments to or in respect of members of the scheme.</content></level></subsection><subsection eId="section-101-9"><num>(9)</num><intro>An alteration purporting to have been made to the rules of a GB scheme is excluded from the scope of remediation under sections <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref> if any question relating to the validity of the alteration, so far as relating to the requirements of paragraph (2)(a) and (b) of regulation 42—</intro><level class="para1" eId="section-101-9-a"><num>(a)</num><content>has, before <ref href="#section-101">this section</ref> comes into force, been determined by the court in qualifying legal proceedings,</content></level><level class="para1" eId="section-101-9-b"><num>(b)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings, but has been settled by agreement between the parties at any time before <ref href="#section-101">this section</ref> comes into force, or</content></level><level class="para1" eId="section-101-9-c"><num>(c)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings and remains in issue in those proceedings when <ref href="#section-101">this section</ref> comes into force.</content></level></subsection><subsection eId="section-101-10"><num>(10)</num><intro>In subsection <ref href="#section-101-9">(9)</ref> “<term refersTo="#term-legal-proceedings" eId="term-legal-proceedings">legal proceedings</term>” means proceedings for the determination of a dispute that have been brought before a court in the United Kingdom; and such proceedings are “qualifying legal proceedings” if —</intro><level class="para1" eId="section-101-10-a"><num>(a)</num><content>they will determine a dispute as to the rules of the scheme, and</content></level><level class="para1" eId="section-101-10-b"><num>(b)</num><intro>the parties are (or include)—</intro><level class="para2" eId="section-101-10-b-i"><num>(i)</num><content>the trustees or managers of the scheme, and</content></level><level class="para2" eId="section-101-10-b-ii"><num>(ii)</num><content>one or more members or other beneficiaries of the scheme (or a person acting on behalf of one or more members or other beneficiaries).</content></level></level></subsection></section><section eId="section-102"><num>102</num><heading>Validity of certain alterations to GB salary-related contracted-out pension schemes: subsisting schemes</heading><subsection eId="section-102-1"><num>(1)</num><content>This section applies to any potentially remediable alteration purportedly made to a GB scheme other than a potentially remediable alteration to which section <ref href="#section-103">103</ref> applies.</content></subsection><subsection eId="section-102-2"><num>(2)</num><content>If the conditions mentioned in subsection <ref href="#section-102-3">(3)</ref> are met in relation to it, the alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made, and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection><subsection eId="section-102-3"><num>(3)</num><intro>The conditions are—</intro><level class="para1" eId="section-102-3-a"><num>(a)</num><content>that the trustees or managers of the scheme have made a request in writing to the scheme actuary for the actuary to consider whether or not, on the assumption that it was validly made, the alteration would have prevented the scheme from continuing to satisfy the statutory standard, and</content></level><level class="para1" eId="section-102-3-b"><num>(b)</num><content>that the scheme actuary has confirmed to the trustees or managers in writing that in the actuary’s opinion it is reasonable to conclude that, on the assumption that it was validly made, the alteration would not have prevented the scheme from continuing to satisfy the statutory standard.</content></level><wrapUp>In this subsection “<term refersTo="#term-the-statutory-standard" eId="term-the-statutory-standard">the statutory standard</term>” means the statutory standard for a contracted-out scheme under section 12A of the Pension Schemes Act 1993 as it had effect at the time the alteration was purportedly made.</wrapUp></subsection><subsection eId="section-102-4"><num>(4)</num><intro>A scheme actuary who has received a request as mentioned in subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-a">(a)</ref> in relation to a potentially remediable alteration to a scheme—</intro><level class="para1" eId="section-102-4-a"><num>(a)</num><content>may act on the basis of the information available to the actuary, as long as the actuary considers it sufficient for the purpose of forming an opinion on the subject-matter of the request;</content></level><level class="para1" eId="section-102-4-b"><num>(b)</num><content>may take any professional approach (including making assumptions or relying on presumptions) that is open to the actuary in all the circumstances of the case.</content></level></subsection><subsection eId="section-102-5"><num>(5)</num><content>A condition mentioned in subsection <ref href="#section-102-3">(3)</ref> may be met by action taken before (as well as action taken after) this section comes into force.</content></subsection><subsection eId="section-102-6"><num>(6)</num><intro>Subsection <ref href="#section-102-7">(7)</ref> applies to a scheme if —</intro><level class="para1" eId="section-102-6-a"><num>(a)</num><content>there is an assessment period in relation to the scheme within the meaning of Part 2 of the Pensions Act 2004, or</content></level><level class="para1" eId="section-102-6-b"><num>(b)</num><content>the scheme is operating as a closed scheme under section 153 of that Act.</content></level></subsection><subsection eId="section-102-7"><num>(7)</num><intro>The powers of the Board of the Pension Protection Fund under section 134 and section 155 of the Pensions Act 2004 to give directions includes power to give a direction to the trustees or managers of the scheme requiring them—</intro><level class="para1" eId="section-102-7-a"><num>(a)</num><content>to make a request under subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-a">(a)</ref> above in relation to a potentially remediable alteration to the scheme, and</content></level><level class="para1" eId="section-102-7-b"><num>(b)</num><content>to take any necessary action to enable or facilitate the making of a decision by the scheme actuary as to whether to give the confirmation described in subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-b">(b)</ref> above in relation to that alteration.</content></level></subsection><subsection eId="section-102-8"><num>(8)</num><content>This section has effect, in relation to a potentially remediable alteration purportedly made to a public service scheme, as if the references in subsections <ref href="#section-102-3">(3)</ref> and <ref href="#section-102-7">(7)</ref> to the trustees or managers of the scheme were references to the responsible authority.</content></subsection><subsection eId="section-102-9"><num>(9)</num><intro>In subsection <ref href="#section-102-8">(8)</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-public-service-scheme" eId="term-public-service-scheme">public service scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>a pension scheme established under section 1 of the Public Service Pensions Act 2013, or</content></level><level class="para1"><num>(b)</num><content>a statutory pension scheme which is connected with a scheme referred to in paragraph (a) (and for this purpose “statutory pension scheme” and “connected” have the meanings given in that Act);</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-responsible-authority" eId="term-responsible-authority">responsible authority</term>”, in relation to a public service scheme, means the authority that is the responsible authority for the scheme by virtue of section 2 of, and Schedule 2 to, that Act.</content></hcontainer></subsection></section><section eId="section-103"><num>103</num><heading>Validity of certain alterations to GB salary-related contracted-out pension schemes: wound up schemes and other special cases</heading><subsection eId="section-103-1"><num>(1)</num><intro>This section applies to any potentially remediable alteration purportedly made to the rules of—</intro><level class="para1" eId="section-103-1-a"><num>(a)</num><content>a GB scheme, or a part of a GB scheme, which has been wound up before this section comes into force,</content></level><level class="para1" eId="section-103-1-b"><num>(b)</num><content>a GB scheme, or a part of a GB scheme, for which the Board of the Pension Protection Fund has, before this section comes into force, assumed responsibility in accordance with Chapter 3 of Part 2 of the Pensions Act 2004 (see section 161 of that Act), or</content></level><level class="para1" eId="section-103-1-c"><num>(c)</num><content>a GB scheme which is a qualifying pension scheme for the purposes of regulation 9 of the Financial Assistance Scheme Regulations 2005 (<ref eId="c00135" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) and in respect of which payments are required to be made under section 286 of the Pensions Act 2004.</content></level></subsection><subsection eId="section-103-2"><num>(2)</num><content>The alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection></section><section eId="section-104"><num>104</num><heading>Powers to amend provisions of Chapter 1 etc: Great Britain</heading><subsection eId="section-104-1"><num>(1)</num><content>The Secretary of State may by regulations amend any of sections <ref href="#section-101">101</ref>, <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref> for the purpose of providing for purported alterations of any specified description to be outside the scope of remediation under either or both of sections <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref>.</content></subsection><subsection eId="section-104-2"><num>(2)</num><content>In <ref href="#section-104-1">subsection (1)</ref> “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the regulations; and a specified description of purported alterations may be framed by reference to features of the alterations or of the schemes purportedly altered by them (or a combination of both).</content></subsection><subsection eId="section-104-3"><num>(3)</num><content>Regulations under <ref href="#section-104-1">subsection (1)</ref> are subject to the negative procedure.</content></subsection><subsection eId="section-104-4"><num>(4)</num><content>The Secretary of State may by regulations make incidental, supplementary, consequential or transitional provision in connection with any provision of this Chapter (other than this section and section <ref href="#section-108">108</ref>).</content></subsection><subsection eId="section-104-5"><num>(5)</num><content>Regulations under <ref href="#section-104-4">subsection (4)</ref> may amend any Act passed before or in the same Session as this Act.</content></subsection><subsection eId="section-104-6"><num>(6)</num><content>Regulations under <ref href="#section-104-4">subsection (4)</ref> are subject to the affirmative procedure if they contain provision made under subsection (5); otherwise they are subject to the negative procedure.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-chapter-1-crossheading-schemes-in-northern-ireland"><heading>Schemes in Northern Ireland</heading><section eId="section-105"><num>105</num><heading>Sections <ref href="#section-105">105</ref> to <ref href="#section-108">108</ref>: interpretation and scope</heading><subsection eId="section-105-1"><num>(1)</num><content>The provisions of this section have effect for the purposes of this section and sections <ref href="#section-106">106</ref> to <ref href="#section-108">108</ref>.</content></subsection><subsection eId="section-105-2"><num>(2)</num><content>“<term refersTo="#term-ni-scheme" eId="term-ni-scheme">NI scheme</term>” means an occupational pension scheme that was a salary-related contracted-out scheme in Northern Ireland; and for this purpose an occupational pension scheme was a salary-related contracted-out scheme in Northern Ireland at any time if the scheme was contracted-out at that time by virtue of satisfying section 5(2) of the Pension Schemes (Northern Ireland) Act 1993 (as it then had effect).</content></subsection><subsection eId="section-105-3"><num>(3)</num><intro>“<term refersTo="#term-scheme-actuary" eId="term-scheme-actuary">Scheme actuary</term>”, in relation to an NI scheme, means—</intro><level class="para1" eId="section-105-3-a"><num>(a)</num><content>the person for the time being appointed as actuary for the scheme under Article 47 of the Pensions (Northern Ireland) Order 1995 (<ref eId="c00136" href="http://www.legislation.gov.uk/id/nisi/1995/3213">S.I. 1995/3213 (N.I. 22)</ref>) (professional advisers), or</content></level><level class="para1" eId="section-105-3-b"><num>(b)</num><content>if there is no person so appointed, a Fellow of the Institute and Faculty of Actuaries appointed by the trustees or managers of the scheme to carry out the functions of the scheme actuary under section <ref href="#section-106">106</ref>.</content></level></subsection><subsection eId="section-105-4"><num>(4)</num><content>“<term refersTo="#term-section-331" eId="term-section-331">Section 33(1)</term>” refers to section 33(1) of the Pension Schemes (Northern Ireland) Act 1993 (prohibition of alterations to rules of contracted-out schemes in certain circumstances).</content></subsection><subsection eId="section-105-5"><num>(5)</num><content>“<term refersTo="#term-regulation-42" eId="term-regulation-42">Regulation 42</term>” refers to regulation 42 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 (<ref eId="c00137" href="http://www.legislation.gov.uk/id/nisr/1996/493">S.R. (N.I.) 1996 No. 493</ref>).</content></subsection><subsection eId="section-105-6"><num>(6)</num><content>References to non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42 include non-compliance with the requirement in either paragraph (2)(a) or (2)(b) (as well as with both requirements).</content></subsection><subsection eId="section-105-7"><num>(7)</num><intro>An alteration purporting to have been made to the rules of an NI scheme is a “potentially remediable alteration” if—</intro><level class="para1" eId="section-105-7-a"><num>(a)</num><content>by virtue of section 33(1) and paragraphs (1) and (2) of regulation 42 (as they had effect at the time), the alteration could not be made unless the requirements of paragraph (2)(a), (b) and (c) of regulation 42 (as they then had effect) had been met,</content></level><level class="para1" eId="section-105-7-b"><num>(b)</num><content>it was treated by the trustees or managers of the scheme, after it was purportedly made, as a valid alteration,</content></level><level class="para1" eId="section-105-7-c"><num>(c)</num><content>no positive action has been taken by the trustees or managers of the scheme on the basis that they consider the alteration to be void (and so of no legal effect) by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42, and</content></level><level class="para1" eId="section-105-7-d"><num>(d)</num><content>it is not excluded from the scope of remediation under <ref href="#section-106">sections 106</ref> and <ref href="#section-107">107</ref> (see subsection (9)).</content></level></subsection><subsection eId="section-105-8"><num>(8)</num><intro>In <ref href="#section-105-7">subsection (7)</ref><ref href="#section-105-7-c">(c)</ref> “<term refersTo="#term-positive-action" eId="term-positive-action">positive action</term>”, in relation to the purported alteration, means—</intro><level class="para1" eId="section-105-8-a"><num>(a)</num><content>notifying any members of the scheme in writing to the effect that the trustees or managers consider the alteration to be void (by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42) and that the scheme will be administered on the basis that it has no legal effect, or</content></level><level class="para1" eId="section-105-8-b"><num>(b)</num><content>notifying any members of the scheme in writing (in consequence of the trustees or managers being of the view mentioned in <ref href="#section-105-7">subsection (7)</ref><ref href="#section-105-7-c">(c)</ref>) to the effect that the trustees or managers are taking (or have taken) any other step in relation to the administration of the scheme which has (or will have) the effect of altering payments to or in respect of members of the scheme.</content></level></subsection><subsection eId="section-105-9"><num>(9)</num><intro>An alteration purporting to have been made to the rules of an NI scheme is excluded from the scope of remediation under sections <ref href="#section-106">106</ref> and <ref href="#section-107">107</ref> if any question relating to the validity of the alteration, so far as relating to the requirements of paragraph (2)(a) and (b) of regulation 42—</intro><level class="para1" eId="section-105-9-a"><num>(a)</num><content>has, before this section comes into force, been determined by the court in qualifying legal proceedings,</content></level><level class="para1" eId="section-105-9-b"><num>(b)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings, but has been settled by agreement between the parties at any time before this section comes into force, or</content></level><level class="para1" eId="section-105-9-c"><num>(c)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings and remains in issue in those proceedings when this section comes into force.</content></level></subsection><subsection eId="section-105-10"><num>(10)</num><intro>In subsection <ref href="#section-105-9">(9)</ref> “<term refersTo="#term-legal-proceedings" eId="term-legal-proceedings">legal proceedings</term>” means proceedings for the determination of a dispute that have been brought before a court in the United Kingdom; and such proceedings are “qualifying legal proceedings” if—</intro><level class="para1" eId="section-105-10-a"><num>(a)</num><content>they will determine a dispute as to the rules of the scheme, and</content></level><level class="para1" eId="section-105-10-b"><num>(b)</num><intro>the parties are (or include)—</intro><level class="para2" eId="section-105-10-b-i"><num>(i)</num><content>the trustees or managers of the scheme, and</content></level><level class="para2" eId="section-105-10-b-ii"><num>(ii)</num><content>one or more members or other beneficiaries of the scheme (or a person acting on behalf of one or more members or other beneficiaries).</content></level></level></subsection></section><section eId="section-106"><num>106</num><heading>Validity of certain alterations to NI salary-related contracted-out pension schemes: subsisting schemes</heading><subsection eId="section-106-1"><num>(1)</num><content>This section applies to any potentially remediable alteration purportedly made to an NI scheme other than a potentially remediable alteration to which section <ref href="#section-107">107</ref> applies.</content></subsection><subsection eId="section-106-2"><num>(2)</num><content>If the conditions mentioned in subsection <ref href="#section-106-3">(3)</ref> are met in relation to it, the alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made, and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection><subsection eId="section-106-3"><num>(3)</num><intro>The conditions are—</intro><level class="para1" eId="section-106-3-a"><num>(a)</num><content>that the trustees or managers of the scheme have made a request in writing to the scheme actuary for the actuary to consider whether or not, on the assumption that it was validly made, the alteration would have prevented the scheme from continuing to satisfy the statutory standard, and</content></level><level class="para1" eId="section-106-3-b"><num>(b)</num><content>that the scheme actuary has confirmed to the trustees or managers in writing that in the actuary’s opinion it is reasonable to conclude that, on the assumption that it was validly made, the alteration would not have prevented the scheme from continuing to satisfy the statutory standard.</content></level><wrapUp>In this subsection “<term refersTo="#term-the-statutory-standard" eId="term-the-statutory-standard">the statutory standard</term>” means the statutory standard for a contracted-out scheme under section 8A of the Pension Schemes (Northern Ireland) Act 1993 as it had effect at the time the alteration was purportedly made.</wrapUp></subsection><subsection eId="section-106-4"><num>(4)</num><intro>A scheme actuary who has received a request as mentioned in subsection (3)(a) in relation to a potentially remediable alteration to a scheme—</intro><level class="para1" eId="section-106-4-a"><num>(a)</num><content>may act on the basis of the information available to the actuary, as long as the actuary considers it sufficient for the purpose of forming an opinion on the subject-matter of the request;</content></level><level class="para1" eId="section-106-4-b"><num>(b)</num><content>may take any professional approach (including making assumptions or relying on presumptions) that is open to the actuary in all the circumstances of the case.</content></level></subsection><subsection eId="section-106-5"><num>(5)</num><content>A condition mentioned in <ref href="#section-106-3">subsection (3)</ref> may be met by action taken before (as well as action taken after) this section comes into force.</content></subsection><subsection eId="section-106-6"><num>(6)</num><intro>Subsection <ref href="#section-106-7">(7)</ref> applies to an NI scheme if —</intro><level class="para1" eId="section-106-6-a"><num>(a)</num><content>there is an assessment period in relation to the scheme within the meaning of Part 3 of the Pensions (Northern Ireland) Order 2005 (<ref eId="c00138" href="http://www.legislation.gov.uk/id/nisi/2005/255">S.I. 2005/255 (N.I. 1)</ref>), or</content></level><level class="para1" eId="section-106-6-b"><num>(b)</num><content>the scheme is operating as a closed scheme under Article 137 of that Order.</content></level></subsection><subsection eId="section-106-7"><num>(7)</num><intro>The powers of the Board of the Pension Protection Fund under Article 118 and 139 of the Pensions (Northern Ireland) Order 2005 to give directions include power to give a direction to the trustees or managers of the scheme requiring them—</intro><level class="para1" eId="section-106-7-a"><num>(a)</num><content>to make a request under subsection (3)(a) in relation to a potentially remediable alteration to the scheme, and</content></level><level class="para1" eId="section-106-7-b"><num>(b)</num><content>to take any necessary action to enable or facilitate the making of a decision by the actuary as to whether to give the confirmation described in subsection (3)(b) in relation to that alteration.</content></level></subsection><subsection eId="section-106-8"><num>(8)</num><content>This section has effect, in relation to a potentially remediable alteration purportedly made to a public service scheme, as if the references in subsections <ref href="#section-106-3">(3)</ref> and <ref href="#section-106-7">(7)</ref> to the trustees or managers of the scheme were references to the responsible authority.</content></subsection><subsection eId="section-106-9"><num>(9)</num><intro>In <ref href="#section-106-8">subsection (8)</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-public-service-scheme" eId="term-public-service-scheme">public service scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>a pension scheme established under section 1 of the Public Service Pensions (Northern Ireland) Act 2014 (<ref eId="c00139" href="http://www.legislation.gov.uk/id/ukpga/2014/2">2014 c. 2)</ref>, or</content></level><level class="para1"><num>(b)</num><content>a statutory pension scheme which is connected with a scheme referred to in paragraph (a) (and for this purpose “statutory pension scheme” and “connected” have the meanings given in that Act);</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-responsible-authority" eId="term-responsible-authority">responsible authority</term>”, in relation to a public service scheme, means the authority that is the responsible authority for the scheme by virtue of section 2 of and Schedule 2 to that Act.</content></hcontainer></subsection></section><section eId="section-107"><num>107</num><heading>Validity of certain alterations to NI salary-related contracted-out pension schemes: wound up schemes and other special cases</heading><subsection eId="section-107-1"><num>(1)</num><intro>This section applies to any potentially remediable alteration purportedly made to the rules of—</intro><level class="para1" eId="section-107-1-a"><num>(a)</num><content>an NI scheme, or a part of an NI scheme, which has been wound up before this section comes into force,</content></level><level class="para1" eId="section-107-1-b"><num>(b)</num><content>an NI scheme, or a part of an NI scheme, for which the Board of the Pension Protection Fund has, before this section comes into force, assumed responsibility in accordance with Chapter 3 of Part 3 of the Pensions (Northern Ireland) Order 2005 (see Article 145 of that Order), or</content></level><level class="para1" eId="section-107-1-c"><num>(c)</num><content>an NI scheme which is a qualifying pension scheme for the purposes of regulation 9 of the Financial Assistance Scheme Regulations 2005 (<ref eId="c00140" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) and in respect of which payments are required to be made under section 286 of the Pensions Act 2004.</content></level></subsection><subsection eId="section-107-2"><num>(2)</num><content>The alteration is be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection></section><section eId="section-108"><num>108</num><heading>Powers to amend Chapter 1 etc: Northern Ireland</heading><subsection eId="section-108-1"><num>(1)</num><content>The Department for Communities in Northern Ireland may by regulations amend any of <ref href="#section-105">sections 105</ref>, <ref href="#section-106">106</ref> and <ref href="#section-107">107</ref> for the purpose of providing for purported alterations of any specified description to be outside the scope of remediation under either or both of <ref href="#section-106">sections 106</ref> and <ref href="#section-107">107</ref>.</content></subsection><subsection eId="section-108-2"><num>(2)</num><content>In <ref href="#section-108-1">subsection (1)</ref> “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the regulations; and a specified description of purported alterations may be framed by reference to features of the alterations or of the schemes purportedly altered by them (or a combination of both).</content></subsection><subsection eId="section-108-3"><num>(3)</num><content>Regulations under <ref href="#section-108-1">subsection (1)</ref> are subject to negative resolution.</content></subsection><subsection eId="section-108-4"><num>(4)</num><content>The Department for Communities in Northern Ireland may by regulations make incidental, supplementary, consequential or transitional provision in connection with any provision of <ref href="#part-4-chapter-1">this Chapter</ref> (other than section <ref href="#section-104">104</ref> and this section).</content></subsection><subsection eId="section-108-5"><num>(5)</num><content>Regulations under <ref href="#section-108-4">subsection (4)</ref> may amend Northern Ireland legislation, or an Act of Parliament, passed or made before or in the same Session as this Act.</content></subsection><subsection eId="section-108-6"><num>(6)</num><intro>Regulations under <ref href="#section-108-4">subsection (4)</ref> which contain provision made under <ref href="#section-108-5">subsection (5)</ref>—</intro><level class="para1" eId="section-108-6-a"><num>(a)</num><content>must be laid before the Northern Ireland Assembly after being made,</content></level><level class="para1" eId="section-108-6-b"><num>(b)</num><content>take effect on such date as may be specified in the regulations, and</content></level><level class="para1" eId="section-108-6-c"><num>(c)</num><content>cease to have effect on the expiry of the period of six months beginning with the day on which they take effect, unless the regulations have been approved during that period by resolution of the Assembly.</content></level><wrapUp><ref href="#section-108-6-c">Paragraph (c)</ref> is without prejudice to the validity of anything done under the regulations or to the making of new regulations.</wrapUp></subsection><subsection eId="section-108-7"><num>(7)</num><content>Regulations under <ref href="#section-108-4">subsection (4)</ref> which do not contain provision made under <ref href="#section-108-5">subsection (5)</ref> are subject to negative resolution.</content></subsection><subsection eId="section-108-8"><num>(8)</num><content>In <ref href="#section-108">this section</ref> “<term refersTo="#term-subject-to-negative-resolution" eId="term-subject-to-negative-resolution">subject to negative resolution</term>” has the meaning given by <ref eId="c00141" href="https://www.legislation.gov.uk/apni/1954/33/section/41">section 41</ref><ref eId="c00142" href="https://www.legislation.gov.uk/apni/1954/33/section/41">(6)</ref> of the <ref eId="c00143" href="https://www.legislation.gov.uk/apni/1954/33/contents">Interpretation Act (Northern Ireland) 1954</ref>.</content></subsection><subsection eId="section-108-9"><num>(9)</num><content>The power of the Department for Communities in Northern Ireland to make regulations under <ref href="#section-108">this section</ref> is exercisable by statutory rule for the purposes of the <ref eId="c00144" href="https://www.legislation.gov.uk/nisi/1979/1573/contents">Statutory Rules (Northern Ireland) Order 1979</ref> (<ref eId="c00145" href="http://www.legislation.gov.uk/id/nisi/1979/1573">S.I. 1979/1573 (N.I. 12)</ref>).</content></subsection></section></hcontainer></chapter>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-4-chapter-1-crossheading-schemes-in-great-britain"><heading>Schemes in Great Britain</heading><section eId="section-101"><num>101</num><heading>Sections <ref href="#section-101">101</ref> to <ref href="#section-104">104</ref>: interpretation and scope</heading><subsection eId="section-101-1"><num>(1)</num><content>The following provisions of <ref href="#section-101">this section</ref> have effect for the purposes of <ref href="#section-101">this section</ref> and <ref href="#section-102">sections 102</ref> to <ref href="#section-104">104</ref> .</content></subsection><subsection eId="section-101-2"><num>(2)</num><content>“<term refersTo="#term-gb-scheme" eId="term-gb-scheme">GB scheme</term>” means an occupational pension scheme that was a salary-related contracted-out scheme in England and Wales or Scotland; and for this purpose an occupational pension scheme was a salary-related contracted-out scheme in England and Wales or Scotland at any time if the scheme was contracted-out at that time by virtue of satisfying <ref eId="c00124" href="https://www.legislation.gov.uk/ukpga/1993/48/section/9">section 9</ref><ref eId="c00125" href="https://www.legislation.gov.uk/ukpga/1993/48/section/9">(2)</ref> of the <ref eId="c00126" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (as it then had effect).</content></subsection><subsection eId="section-101-3"><num>(3)</num><intro>“<term refersTo="#term-scheme-actuary" eId="term-scheme-actuary">Scheme actuary</term>”, in relation to a GB scheme, means—</intro><level class="para1" eId="section-101-3-a"><num>(a)</num><content>the person for the time being appointed as actuary for the scheme under <ref eId="c00127" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">section 47</ref> of the <ref eId="c00128" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (professional advisers), or</content></level><level class="para1" eId="section-101-3-b"><num>(b)</num><content>if there is no person so appointed, a Fellow of the Institute and Faculty of Actuaries appointed by the trustees or managers of the scheme to carry out the functions of the scheme actuary under <ref href="#section-102">section 102</ref>.</content></level></subsection><subsection eId="section-101-4"><num>(4)</num><content>“<term refersTo="#term-section-371" eId="term-section-371">Section 37(1)</term>” refers to <ref eId="c00129" href="https://www.legislation.gov.uk/ukpga/1993/48/section/37">section 37</ref><ref eId="c00130" href="https://www.legislation.gov.uk/ukpga/1993/48/section/37">(1)</ref> of the <ref eId="c00131" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (prohibition of alterations to rules of contracted-out schemes in certain circumstances).</content></subsection><subsection eId="section-101-5"><num>(5)</num><content>“<term refersTo="#term-regulation-42" eId="term-regulation-42">Regulation 42</term>” refers to <ref eId="c00132" href="https://www.legislation.gov.uk/uksi/1996/1172/regulation/42">regulation 42</ref> of the <ref eId="c00133" href="https://www.legislation.gov.uk/uksi/1996/1172/contents">Occupational Pension Schemes (Contracting-out) Regulations 1996</ref> (<ref eId="c00134" href="http://www.legislation.gov.uk/id/uksi/1996/1172">S.I. 1996/1172</ref>) (requirements for alterations to rules of contracted-out schemes).</content></subsection><subsection eId="section-101-6"><num>(6)</num><content>References to non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42 include non-compliance with the requirement in either paragraph (2)(a) or (2)(b) (as well as with both requirements).</content></subsection><subsection eId="section-101-7"><num>(7)</num><intro>An alteration purporting to have been made to the rules of a GB scheme is a “potentially remediable alteration” if—</intro><level class="para1" eId="section-101-7-a"><num>(a)</num><content>by virtue of <ref href="#section-37">section 37</ref><ref href="#section-37-1">(1)</ref> and paragraphs (1) and (2) of regulation 42 (as they had effect at the time), the alteration could not be made unless the requirements of paragraph (2)(a), (b) and (c) of regulation 42 (as they then had effect) had been met,</content></level><level class="para1" eId="section-101-7-b"><num>(b)</num><content>it was treated by the trustees or managers of the scheme, after it was purportedly made, as a valid alteration,</content></level><level class="para1" eId="section-101-7-c"><num>(c)</num><content>no positive action has been taken by the trustees or managers of the scheme on the basis that they consider the alteration to be void (and so of no legal effect) by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42, and</content></level><level class="para1" eId="section-101-7-d"><num>(d)</num><content>it is not excluded from the scope of remediation under <ref href="#section-102">sections 102</ref> and <ref href="#section-103">103</ref> (see subsection (9)).</content></level></subsection><subsection eId="section-101-8"><num>(8)</num><intro>In <ref href="#section-101-7">subsection (7)</ref><ref href="#section-101-7-c">(c)</ref> “<term refersTo="#term-positive-action" eId="term-positive-action">positive action</term>”, in relation to the purported alteration, means—</intro><level class="para1" eId="section-101-8-a"><num>(a)</num><content>notifying any members of the scheme in writing to the effect that the trustees or managers consider the alteration to be void (by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42) and that the scheme will be administered on the basis that it has no legal effect, or</content></level><level class="para1" eId="section-101-8-b"><num>(b)</num><content>notifying any members of the scheme in writing (in consequence of the trustees or managers being of the view mentioned in <ref href="#section-101-7">subsection (7)</ref><ref href="#section-101-7-c">(c)</ref>) to the effect that the trustees or managers are taking (or have taken) any other step in relation to the administration of the scheme which has (or will have) the effect of altering payments to or in respect of members of the scheme.</content></level></subsection><subsection eId="section-101-9"><num>(9)</num><intro>An alteration purporting to have been made to the rules of a GB scheme is excluded from the scope of remediation under sections <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref> if any question relating to the validity of the alteration, so far as relating to the requirements of paragraph (2)(a) and (b) of regulation 42—</intro><level class="para1" eId="section-101-9-a"><num>(a)</num><content>has, before <ref href="#section-101">this section</ref> comes into force, been determined by the court in qualifying legal proceedings,</content></level><level class="para1" eId="section-101-9-b"><num>(b)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings, but has been settled by agreement between the parties at any time before <ref href="#section-101">this section</ref> comes into force, or</content></level><level class="para1" eId="section-101-9-c"><num>(c)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings and remains in issue in those proceedings when <ref href="#section-101">this section</ref> comes into force.</content></level></subsection><subsection eId="section-101-10"><num>(10)</num><intro>In subsection <ref href="#section-101-9">(9)</ref> “<term refersTo="#term-legal-proceedings" eId="term-legal-proceedings">legal proceedings</term>” means proceedings for the determination of a dispute that have been brought before a court in the United Kingdom; and such proceedings are “qualifying legal proceedings” if —</intro><level class="para1" eId="section-101-10-a"><num>(a)</num><content>they will determine a dispute as to the rules of the scheme, and</content></level><level class="para1" eId="section-101-10-b"><num>(b)</num><intro>the parties are (or include)—</intro><level class="para2" eId="section-101-10-b-i"><num>(i)</num><content>the trustees or managers of the scheme, and</content></level><level class="para2" eId="section-101-10-b-ii"><num>(ii)</num><content>one or more members or other beneficiaries of the scheme (or a person acting on behalf of one or more members or other beneficiaries).</content></level></level></subsection></section><section eId="section-102"><num>102</num><heading>Validity of certain alterations to GB salary-related contracted-out pension schemes: subsisting schemes</heading><subsection eId="section-102-1"><num>(1)</num><content>This section applies to any potentially remediable alteration purportedly made to a GB scheme other than a potentially remediable alteration to which section <ref href="#section-103">103</ref> applies.</content></subsection><subsection eId="section-102-2"><num>(2)</num><content>If the conditions mentioned in subsection <ref href="#section-102-3">(3)</ref> are met in relation to it, the alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made, and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection><subsection eId="section-102-3"><num>(3)</num><intro>The conditions are—</intro><level class="para1" eId="section-102-3-a"><num>(a)</num><content>that the trustees or managers of the scheme have made a request in writing to the scheme actuary for the actuary to consider whether or not, on the assumption that it was validly made, the alteration would have prevented the scheme from continuing to satisfy the statutory standard, and</content></level><level class="para1" eId="section-102-3-b"><num>(b)</num><content>that the scheme actuary has confirmed to the trustees or managers in writing that in the actuary’s opinion it is reasonable to conclude that, on the assumption that it was validly made, the alteration would not have prevented the scheme from continuing to satisfy the statutory standard.</content></level><wrapUp>In this subsection “<term refersTo="#term-the-statutory-standard" eId="term-the-statutory-standard">the statutory standard</term>” means the statutory standard for a contracted-out scheme under section 12A of the Pension Schemes Act 1993 as it had effect at the time the alteration was purportedly made.</wrapUp></subsection><subsection eId="section-102-4"><num>(4)</num><intro>A scheme actuary who has received a request as mentioned in subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-a">(a)</ref> in relation to a potentially remediable alteration to a scheme—</intro><level class="para1" eId="section-102-4-a"><num>(a)</num><content>may act on the basis of the information available to the actuary, as long as the actuary considers it sufficient for the purpose of forming an opinion on the subject-matter of the request;</content></level><level class="para1" eId="section-102-4-b"><num>(b)</num><content>may take any professional approach (including making assumptions or relying on presumptions) that is open to the actuary in all the circumstances of the case.</content></level></subsection><subsection eId="section-102-5"><num>(5)</num><content>A condition mentioned in subsection <ref href="#section-102-3">(3)</ref> may be met by action taken before (as well as action taken after) this section comes into force.</content></subsection><subsection eId="section-102-6"><num>(6)</num><intro>Subsection <ref href="#section-102-7">(7)</ref> applies to a scheme if —</intro><level class="para1" eId="section-102-6-a"><num>(a)</num><content>there is an assessment period in relation to the scheme within the meaning of Part 2 of the Pensions Act 2004, or</content></level><level class="para1" eId="section-102-6-b"><num>(b)</num><content>the scheme is operating as a closed scheme under section 153 of that Act.</content></level></subsection><subsection eId="section-102-7"><num>(7)</num><intro>The powers of the Board of the Pension Protection Fund under section 134 and section 155 of the Pensions Act 2004 to give directions includes power to give a direction to the trustees or managers of the scheme requiring them—</intro><level class="para1" eId="section-102-7-a"><num>(a)</num><content>to make a request under subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-a">(a)</ref> above in relation to a potentially remediable alteration to the scheme, and</content></level><level class="para1" eId="section-102-7-b"><num>(b)</num><content>to take any necessary action to enable or facilitate the making of a decision by the scheme actuary as to whether to give the confirmation described in subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-b">(b)</ref> above in relation to that alteration.</content></level></subsection><subsection eId="section-102-8"><num>(8)</num><content>This section has effect, in relation to a potentially remediable alteration purportedly made to a public service scheme, as if the references in subsections <ref href="#section-102-3">(3)</ref> and <ref href="#section-102-7">(7)</ref> to the trustees or managers of the scheme were references to the responsible authority.</content></subsection><subsection eId="section-102-9"><num>(9)</num><intro>In subsection <ref href="#section-102-8">(8)</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-public-service-scheme" eId="term-public-service-scheme">public service scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>a pension scheme established under section 1 of the Public Service Pensions Act 2013, or</content></level><level class="para1"><num>(b)</num><content>a statutory pension scheme which is connected with a scheme referred to in paragraph (a) (and for this purpose “statutory pension scheme” and “connected” have the meanings given in that Act);</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-responsible-authority" eId="term-responsible-authority">responsible authority</term>”, in relation to a public service scheme, means the authority that is the responsible authority for the scheme by virtue of section 2 of, and Schedule 2 to, that Act.</content></hcontainer></subsection></section><section eId="section-103"><num>103</num><heading>Validity of certain alterations to GB salary-related contracted-out pension schemes: wound up schemes and other special cases</heading><subsection eId="section-103-1"><num>(1)</num><intro>This section applies to any potentially remediable alteration purportedly made to the rules of—</intro><level class="para1" eId="section-103-1-a"><num>(a)</num><content>a GB scheme, or a part of a GB scheme, which has been wound up before this section comes into force,</content></level><level class="para1" eId="section-103-1-b"><num>(b)</num><content>a GB scheme, or a part of a GB scheme, for which the Board of the Pension Protection Fund has, before this section comes into force, assumed responsibility in accordance with Chapter 3 of Part 2 of the Pensions Act 2004 (see section 161 of that Act), or</content></level><level class="para1" eId="section-103-1-c"><num>(c)</num><content>a GB scheme which is a qualifying pension scheme for the purposes of regulation 9 of the Financial Assistance Scheme Regulations 2005 (<ref eId="c00135" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) and in respect of which payments are required to be made under section 286 of the Pensions Act 2004.</content></level></subsection><subsection eId="section-103-2"><num>(2)</num><content>The alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection></section><section eId="section-104"><num>104</num><heading>Powers to amend provisions of Chapter 1 etc: Great Britain</heading><subsection eId="section-104-1"><num>(1)</num><content>The Secretary of State may by regulations amend any of sections <ref href="#section-101">101</ref>, <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref> for the purpose of providing for purported alterations of any specified description to be outside the scope of remediation under either or both of sections <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref>.</content></subsection><subsection eId="section-104-2"><num>(2)</num><content>In <ref href="#section-104-1">subsection (1)</ref> “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the regulations; and a specified description of purported alterations may be framed by reference to features of the alterations or of the schemes purportedly altered by them (or a combination of both).</content></subsection><subsection eId="section-104-3"><num>(3)</num><content>Regulations under <ref href="#section-104-1">subsection (1)</ref> are subject to the negative procedure.</content></subsection><subsection eId="section-104-4"><num>(4)</num><content>The Secretary of State may by regulations make incidental, supplementary, consequential or transitional provision in connection with any provision of this Chapter (other than this section and section <ref href="#section-108">108</ref>).</content></subsection><subsection eId="section-104-5"><num>(5)</num><content>Regulations under <ref href="#section-104-4">subsection (4)</ref> may amend any Act passed before or in the same Session as this Act.</content></subsection><subsection eId="section-104-6"><num>(6)</num><content>Regulations under <ref href="#section-104-4">subsection (4)</ref> are subject to the affirmative procedure if they contain provision made under subsection (5); otherwise they are subject to the negative procedure.</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101"><num>101</num><heading>Sections <ref href="#section-101">101</ref> to <ref href="#section-104">104</ref>: interpretation and scope</heading><subsection eId="section-101-1"><num>(1)</num><content>The following provisions of <ref href="#section-101">this section</ref> have effect for the purposes of <ref href="#section-101">this section</ref> and <ref href="#section-102">sections 102</ref> to <ref href="#section-104">104</ref> .</content></subsection><subsection eId="section-101-2"><num>(2)</num><content>“<term refersTo="#term-gb-scheme" eId="term-gb-scheme">GB scheme</term>” means an occupational pension scheme that was a salary-related contracted-out scheme in England and Wales or Scotland; and for this purpose an occupational pension scheme was a salary-related contracted-out scheme in England and Wales or Scotland at any time if the scheme was contracted-out at that time by virtue of satisfying <ref eId="c00124" href="https://www.legislation.gov.uk/ukpga/1993/48/section/9">section 9</ref><ref eId="c00125" href="https://www.legislation.gov.uk/ukpga/1993/48/section/9">(2)</ref> of the <ref eId="c00126" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (as it then had effect).</content></subsection><subsection eId="section-101-3"><num>(3)</num><intro>“<term refersTo="#term-scheme-actuary" eId="term-scheme-actuary">Scheme actuary</term>”, in relation to a GB scheme, means—</intro><level class="para1" eId="section-101-3-a"><num>(a)</num><content>the person for the time being appointed as actuary for the scheme under <ref eId="c00127" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">section 47</ref> of the <ref eId="c00128" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (professional advisers), or</content></level><level class="para1" eId="section-101-3-b"><num>(b)</num><content>if there is no person so appointed, a Fellow of the Institute and Faculty of Actuaries appointed by the trustees or managers of the scheme to carry out the functions of the scheme actuary under <ref href="#section-102">section 102</ref>.</content></level></subsection><subsection eId="section-101-4"><num>(4)</num><content>“<term refersTo="#term-section-371" eId="term-section-371">Section 37(1)</term>” refers to <ref eId="c00129" href="https://www.legislation.gov.uk/ukpga/1993/48/section/37">section 37</ref><ref eId="c00130" href="https://www.legislation.gov.uk/ukpga/1993/48/section/37">(1)</ref> of the <ref eId="c00131" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (prohibition of alterations to rules of contracted-out schemes in certain circumstances).</content></subsection><subsection eId="section-101-5"><num>(5)</num><content>“<term refersTo="#term-regulation-42" eId="term-regulation-42">Regulation 42</term>” refers to <ref eId="c00132" href="https://www.legislation.gov.uk/uksi/1996/1172/regulation/42">regulation 42</ref> of the <ref eId="c00133" href="https://www.legislation.gov.uk/uksi/1996/1172/contents">Occupational Pension Schemes (Contracting-out) Regulations 1996</ref> (<ref eId="c00134" href="http://www.legislation.gov.uk/id/uksi/1996/1172">S.I. 1996/1172</ref>) (requirements for alterations to rules of contracted-out schemes).</content></subsection><subsection eId="section-101-6"><num>(6)</num><content>References to non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42 include non-compliance with the requirement in either paragraph (2)(a) or (2)(b) (as well as with both requirements).</content></subsection><subsection eId="section-101-7"><num>(7)</num><intro>An alteration purporting to have been made to the rules of a GB scheme is a “potentially remediable alteration” if—</intro><level class="para1" eId="section-101-7-a"><num>(a)</num><content>by virtue of <ref href="#section-37">section 37</ref><ref href="#section-37-1">(1)</ref> and paragraphs (1) and (2) of regulation 42 (as they had effect at the time), the alteration could not be made unless the requirements of paragraph (2)(a), (b) and (c) of regulation 42 (as they then had effect) had been met,</content></level><level class="para1" eId="section-101-7-b"><num>(b)</num><content>it was treated by the trustees or managers of the scheme, after it was purportedly made, as a valid alteration,</content></level><level class="para1" eId="section-101-7-c"><num>(c)</num><content>no positive action has been taken by the trustees or managers of the scheme on the basis that they consider the alteration to be void (and so of no legal effect) by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42, and</content></level><level class="para1" eId="section-101-7-d"><num>(d)</num><content>it is not excluded from the scope of remediation under <ref href="#section-102">sections 102</ref> and <ref href="#section-103">103</ref> (see subsection (9)).</content></level></subsection><subsection eId="section-101-8"><num>(8)</num><intro>In <ref href="#section-101-7">subsection (7)</ref><ref href="#section-101-7-c">(c)</ref> “<term refersTo="#term-positive-action" eId="term-positive-action">positive action</term>”, in relation to the purported alteration, means—</intro><level class="para1" eId="section-101-8-a"><num>(a)</num><content>notifying any members of the scheme in writing to the effect that the trustees or managers consider the alteration to be void (by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42) and that the scheme will be administered on the basis that it has no legal effect, or</content></level><level class="para1" eId="section-101-8-b"><num>(b)</num><content>notifying any members of the scheme in writing (in consequence of the trustees or managers being of the view mentioned in <ref href="#section-101-7">subsection (7)</ref><ref href="#section-101-7-c">(c)</ref>) to the effect that the trustees or managers are taking (or have taken) any other step in relation to the administration of the scheme which has (or will have) the effect of altering payments to or in respect of members of the scheme.</content></level></subsection><subsection eId="section-101-9"><num>(9)</num><intro>An alteration purporting to have been made to the rules of a GB scheme is excluded from the scope of remediation under sections <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref> if any question relating to the validity of the alteration, so far as relating to the requirements of paragraph (2)(a) and (b) of regulation 42—</intro><level class="para1" eId="section-101-9-a"><num>(a)</num><content>has, before <ref href="#section-101">this section</ref> comes into force, been determined by the court in qualifying legal proceedings,</content></level><level class="para1" eId="section-101-9-b"><num>(b)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings, but has been settled by agreement between the parties at any time before <ref href="#section-101">this section</ref> comes into force, or</content></level><level class="para1" eId="section-101-9-c"><num>(c)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings and remains in issue in those proceedings when <ref href="#section-101">this section</ref> comes into force.</content></level></subsection><subsection eId="section-101-10"><num>(10)</num><intro>In subsection <ref href="#section-101-9">(9)</ref> “<term refersTo="#term-legal-proceedings" eId="term-legal-proceedings">legal proceedings</term>” means proceedings for the determination of a dispute that have been brought before a court in the United Kingdom; and such proceedings are “qualifying legal proceedings” if —</intro><level class="para1" eId="section-101-10-a"><num>(a)</num><content>they will determine a dispute as to the rules of the scheme, and</content></level><level class="para1" eId="section-101-10-b"><num>(b)</num><intro>the parties are (or include)—</intro><level class="para2" eId="section-101-10-b-i"><num>(i)</num><content>the trustees or managers of the scheme, and</content></level><level class="para2" eId="section-101-10-b-ii"><num>(ii)</num><content>one or more members or other beneficiaries of the scheme (or a person acting on behalf of one or more members or other beneficiaries).</content></level></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-1"><num>(1)</num><content>The following provisions of <ref href="#section-101">this section</ref> have effect for the purposes of <ref href="#section-101">this section</ref> and <ref href="#section-102">sections 102</ref> to <ref href="#section-104">104</ref> .</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-2"><num>(2)</num><content>“<term refersTo="#term-gb-scheme" eId="term-gb-scheme">GB scheme</term>” means an occupational pension scheme that was a salary-related contracted-out scheme in England and Wales or Scotland; and for this purpose an occupational pension scheme was a salary-related contracted-out scheme in England and Wales or Scotland at any time if the scheme was contracted-out at that time by virtue of satisfying <ref eId="c00124" href="https://www.legislation.gov.uk/ukpga/1993/48/section/9">section 9</ref><ref eId="c00125" href="https://www.legislation.gov.uk/ukpga/1993/48/section/9">(2)</ref> of the <ref eId="c00126" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (as it then had effect).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-3"><num>(3)</num><intro>“<term refersTo="#term-scheme-actuary" eId="term-scheme-actuary">Scheme actuary</term>”, in relation to a GB scheme, means—</intro><level class="para1" eId="section-101-3-a"><num>(a)</num><content>the person for the time being appointed as actuary for the scheme under <ref eId="c00127" href="https://www.legislation.gov.uk/ukpga/1995/26/section/47">section 47</ref> of the <ref eId="c00128" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> (professional advisers), or</content></level><level class="para1" eId="section-101-3-b"><num>(b)</num><content>if there is no person so appointed, a Fellow of the Institute and Faculty of Actuaries appointed by the trustees or managers of the scheme to carry out the functions of the scheme actuary under <ref href="#section-102">section 102</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-4"><num>(4)</num><content>“<term refersTo="#term-section-371" eId="term-section-371">Section 37(1)</term>” refers to <ref eId="c00129" href="https://www.legislation.gov.uk/ukpga/1993/48/section/37">section 37</ref><ref eId="c00130" href="https://www.legislation.gov.uk/ukpga/1993/48/section/37">(1)</ref> of the <ref eId="c00131" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref> (prohibition of alterations to rules of contracted-out schemes in certain circumstances).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-5"><num>(5)</num><content>“<term refersTo="#term-regulation-42" eId="term-regulation-42">Regulation 42</term>” refers to <ref eId="c00132" href="https://www.legislation.gov.uk/uksi/1996/1172/regulation/42">regulation 42</ref> of the <ref eId="c00133" href="https://www.legislation.gov.uk/uksi/1996/1172/contents">Occupational Pension Schemes (Contracting-out) Regulations 1996</ref> (<ref eId="c00134" href="http://www.legislation.gov.uk/id/uksi/1996/1172">S.I. 1996/1172</ref>) (requirements for alterations to rules of contracted-out schemes).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-6"><num>(6)</num><content>References to non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42 include non-compliance with the requirement in either paragraph (2)(a) or (2)(b) (as well as with both requirements).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-7"><num>(7)</num><intro>An alteration purporting to have been made to the rules of a GB scheme is a “potentially remediable alteration” if—</intro><level class="para1" eId="section-101-7-a"><num>(a)</num><content>by virtue of <ref href="#section-37">section 37</ref><ref href="#section-37-1">(1)</ref> and paragraphs (1) and (2) of regulation 42 (as they had effect at the time), the alteration could not be made unless the requirements of paragraph (2)(a), (b) and (c) of regulation 42 (as they then had effect) had been met,</content></level><level class="para1" eId="section-101-7-b"><num>(b)</num><content>it was treated by the trustees or managers of the scheme, after it was purportedly made, as a valid alteration,</content></level><level class="para1" eId="section-101-7-c"><num>(c)</num><content>no positive action has been taken by the trustees or managers of the scheme on the basis that they consider the alteration to be void (and so of no legal effect) by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42, and</content></level><level class="para1" eId="section-101-7-d"><num>(d)</num><content>it is not excluded from the scope of remediation under <ref href="#section-102">sections 102</ref> and <ref href="#section-103">103</ref> (see subsection (9)).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-8"><num>(8)</num><intro>In <ref href="#section-101-7">subsection (7)</ref><ref href="#section-101-7-c">(c)</ref> “<term refersTo="#term-positive-action" eId="term-positive-action">positive action</term>”, in relation to the purported alteration, means—</intro><level class="para1" eId="section-101-8-a"><num>(a)</num><content>notifying any members of the scheme in writing to the effect that the trustees or managers consider the alteration to be void (by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42) and that the scheme will be administered on the basis that it has no legal effect, or</content></level><level class="para1" eId="section-101-8-b"><num>(b)</num><content>notifying any members of the scheme in writing (in consequence of the trustees or managers being of the view mentioned in <ref href="#section-101-7">subsection (7)</ref><ref href="#section-101-7-c">(c)</ref>) to the effect that the trustees or managers are taking (or have taken) any other step in relation to the administration of the scheme which has (or will have) the effect of altering payments to or in respect of members of the scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-9"><num>(9)</num><intro>An alteration purporting to have been made to the rules of a GB scheme is excluded from the scope of remediation under sections <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref> if any question relating to the validity of the alteration, so far as relating to the requirements of paragraph (2)(a) and (b) of regulation 42—</intro><level class="para1" eId="section-101-9-a"><num>(a)</num><content>has, before <ref href="#section-101">this section</ref> comes into force, been determined by the court in qualifying legal proceedings,</content></level><level class="para1" eId="section-101-9-b"><num>(b)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings, but has been settled by agreement between the parties at any time before <ref href="#section-101">this section</ref> comes into force, or</content></level><level class="para1" eId="section-101-9-c"><num>(c)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings and remains in issue in those proceedings when <ref href="#section-101">this section</ref> comes into force.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-10"><num>(10)</num><intro>In subsection <ref href="#section-101-9">(9)</ref> “<term refersTo="#term-legal-proceedings" eId="term-legal-proceedings">legal proceedings</term>” means proceedings for the determination of a dispute that have been brought before a court in the United Kingdom; and such proceedings are “qualifying legal proceedings” if —</intro><level class="para1" eId="section-101-10-a"><num>(a)</num><content>they will determine a dispute as to the rules of the scheme, and</content></level><level class="para1" eId="section-101-10-b"><num>(b)</num><intro>the parties are (or include)—</intro><level class="para2" eId="section-101-10-b-i"><num>(i)</num><content>the trustees or managers of the scheme, and</content></level><level class="para2" eId="section-101-10-b-ii"><num>(ii)</num><content>one or more members or other beneficiaries of the scheme (or a person acting on behalf of one or more members or other beneficiaries).</content></level></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102"><num>102</num><heading>Validity of certain alterations to GB salary-related contracted-out pension schemes: subsisting schemes</heading><subsection eId="section-102-1"><num>(1)</num><content>This section applies to any potentially remediable alteration purportedly made to a GB scheme other than a potentially remediable alteration to which section <ref href="#section-103">103</ref> applies.</content></subsection><subsection eId="section-102-2"><num>(2)</num><content>If the conditions mentioned in subsection <ref href="#section-102-3">(3)</ref> are met in relation to it, the alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made, and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection><subsection eId="section-102-3"><num>(3)</num><intro>The conditions are—</intro><level class="para1" eId="section-102-3-a"><num>(a)</num><content>that the trustees or managers of the scheme have made a request in writing to the scheme actuary for the actuary to consider whether or not, on the assumption that it was validly made, the alteration would have prevented the scheme from continuing to satisfy the statutory standard, and</content></level><level class="para1" eId="section-102-3-b"><num>(b)</num><content>that the scheme actuary has confirmed to the trustees or managers in writing that in the actuary’s opinion it is reasonable to conclude that, on the assumption that it was validly made, the alteration would not have prevented the scheme from continuing to satisfy the statutory standard.</content></level><wrapUp>In this subsection “<term refersTo="#term-the-statutory-standard" eId="term-the-statutory-standard">the statutory standard</term>” means the statutory standard for a contracted-out scheme under section 12A of the Pension Schemes Act 1993 as it had effect at the time the alteration was purportedly made.</wrapUp></subsection><subsection eId="section-102-4"><num>(4)</num><intro>A scheme actuary who has received a request as mentioned in subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-a">(a)</ref> in relation to a potentially remediable alteration to a scheme—</intro><level class="para1" eId="section-102-4-a"><num>(a)</num><content>may act on the basis of the information available to the actuary, as long as the actuary considers it sufficient for the purpose of forming an opinion on the subject-matter of the request;</content></level><level class="para1" eId="section-102-4-b"><num>(b)</num><content>may take any professional approach (including making assumptions or relying on presumptions) that is open to the actuary in all the circumstances of the case.</content></level></subsection><subsection eId="section-102-5"><num>(5)</num><content>A condition mentioned in subsection <ref href="#section-102-3">(3)</ref> may be met by action taken before (as well as action taken after) this section comes into force.</content></subsection><subsection eId="section-102-6"><num>(6)</num><intro>Subsection <ref href="#section-102-7">(7)</ref> applies to a scheme if —</intro><level class="para1" eId="section-102-6-a"><num>(a)</num><content>there is an assessment period in relation to the scheme within the meaning of Part 2 of the Pensions Act 2004, or</content></level><level class="para1" eId="section-102-6-b"><num>(b)</num><content>the scheme is operating as a closed scheme under section 153 of that Act.</content></level></subsection><subsection eId="section-102-7"><num>(7)</num><intro>The powers of the Board of the Pension Protection Fund under section 134 and section 155 of the Pensions Act 2004 to give directions includes power to give a direction to the trustees or managers of the scheme requiring them—</intro><level class="para1" eId="section-102-7-a"><num>(a)</num><content>to make a request under subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-a">(a)</ref> above in relation to a potentially remediable alteration to the scheme, and</content></level><level class="para1" eId="section-102-7-b"><num>(b)</num><content>to take any necessary action to enable or facilitate the making of a decision by the scheme actuary as to whether to give the confirmation described in subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-b">(b)</ref> above in relation to that alteration.</content></level></subsection><subsection eId="section-102-8"><num>(8)</num><content>This section has effect, in relation to a potentially remediable alteration purportedly made to a public service scheme, as if the references in subsections <ref href="#section-102-3">(3)</ref> and <ref href="#section-102-7">(7)</ref> to the trustees or managers of the scheme were references to the responsible authority.</content></subsection><subsection eId="section-102-9"><num>(9)</num><intro>In subsection <ref href="#section-102-8">(8)</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-public-service-scheme" eId="term-public-service-scheme">public service scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>a pension scheme established under section 1 of the Public Service Pensions Act 2013, or</content></level><level class="para1"><num>(b)</num><content>a statutory pension scheme which is connected with a scheme referred to in paragraph (a) (and for this purpose “statutory pension scheme” and “connected” have the meanings given in that Act);</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-responsible-authority" eId="term-responsible-authority">responsible authority</term>”, in relation to a public service scheme, means the authority that is the responsible authority for the scheme by virtue of section 2 of, and Schedule 2 to, that Act.</content></hcontainer></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-1"><num>(1)</num><content>This section applies to any potentially remediable alteration purportedly made to a GB scheme other than a potentially remediable alteration to which section <ref href="#section-103">103</ref> applies.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-2"><num>(2)</num><content>If the conditions mentioned in subsection <ref href="#section-102-3">(3)</ref> are met in relation to it, the alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made, and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-3"><num>(3)</num><intro>The conditions are—</intro><level class="para1" eId="section-102-3-a"><num>(a)</num><content>that the trustees or managers of the scheme have made a request in writing to the scheme actuary for the actuary to consider whether or not, on the assumption that it was validly made, the alteration would have prevented the scheme from continuing to satisfy the statutory standard, and</content></level><level class="para1" eId="section-102-3-b"><num>(b)</num><content>that the scheme actuary has confirmed to the trustees or managers in writing that in the actuary’s opinion it is reasonable to conclude that, on the assumption that it was validly made, the alteration would not have prevented the scheme from continuing to satisfy the statutory standard.</content></level><wrapUp>In this subsection “<term refersTo="#term-the-statutory-standard" eId="term-the-statutory-standard">the statutory standard</term>” means the statutory standard for a contracted-out scheme under section 12A of the Pension Schemes Act 1993 as it had effect at the time the alteration was purportedly made.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-4"><num>(4)</num><intro>A scheme actuary who has received a request as mentioned in subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-a">(a)</ref> in relation to a potentially remediable alteration to a scheme—</intro><level class="para1" eId="section-102-4-a"><num>(a)</num><content>may act on the basis of the information available to the actuary, as long as the actuary considers it sufficient for the purpose of forming an opinion on the subject-matter of the request;</content></level><level class="para1" eId="section-102-4-b"><num>(b)</num><content>may take any professional approach (including making assumptions or relying on presumptions) that is open to the actuary in all the circumstances of the case.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-5"><num>(5)</num><content>A condition mentioned in subsection <ref href="#section-102-3">(3)</ref> may be met by action taken before (as well as action taken after) this section comes into force.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-6"><num>(6)</num><intro>Subsection <ref href="#section-102-7">(7)</ref> applies to a scheme if —</intro><level class="para1" eId="section-102-6-a"><num>(a)</num><content>there is an assessment period in relation to the scheme within the meaning of Part 2 of the Pensions Act 2004, or</content></level><level class="para1" eId="section-102-6-b"><num>(b)</num><content>the scheme is operating as a closed scheme under section 153 of that Act.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-7"><num>(7)</num><intro>The powers of the Board of the Pension Protection Fund under section 134 and section 155 of the Pensions Act 2004 to give directions includes power to give a direction to the trustees or managers of the scheme requiring them—</intro><level class="para1" eId="section-102-7-a"><num>(a)</num><content>to make a request under subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-a">(a)</ref> above in relation to a potentially remediable alteration to the scheme, and</content></level><level class="para1" eId="section-102-7-b"><num>(b)</num><content>to take any necessary action to enable or facilitate the making of a decision by the scheme actuary as to whether to give the confirmation described in subsection <ref href="#section-102-3">(3)</ref><ref href="#section-102-3-b">(b)</ref> above in relation to that alteration.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-8"><num>(8)</num><content>This section has effect, in relation to a potentially remediable alteration purportedly made to a public service scheme, as if the references in subsections <ref href="#section-102-3">(3)</ref> and <ref href="#section-102-7">(7)</ref> to the trustees or managers of the scheme were references to the responsible authority.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-9"><num>(9)</num><intro>In subsection <ref href="#section-102-8">(8)</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-public-service-scheme" eId="term-public-service-scheme">public service scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>a pension scheme established under section 1 of the Public Service Pensions Act 2013, or</content></level><level class="para1"><num>(b)</num><content>a statutory pension scheme which is connected with a scheme referred to in paragraph (a) (and for this purpose “statutory pension scheme” and “connected” have the meanings given in that Act);</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-responsible-authority" eId="term-responsible-authority">responsible authority</term>”, in relation to a public service scheme, means the authority that is the responsible authority for the scheme by virtue of section 2 of, and Schedule 2 to, that Act.</content></hcontainer></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103"><num>103</num><heading>Validity of certain alterations to GB salary-related contracted-out pension schemes: wound up schemes and other special cases</heading><subsection eId="section-103-1"><num>(1)</num><intro>This section applies to any potentially remediable alteration purportedly made to the rules of—</intro><level class="para1" eId="section-103-1-a"><num>(a)</num><content>a GB scheme, or a part of a GB scheme, which has been wound up before this section comes into force,</content></level><level class="para1" eId="section-103-1-b"><num>(b)</num><content>a GB scheme, or a part of a GB scheme, for which the Board of the Pension Protection Fund has, before this section comes into force, assumed responsibility in accordance with Chapter 3 of Part 2 of the Pensions Act 2004 (see section 161 of that Act), or</content></level><level class="para1" eId="section-103-1-c"><num>(c)</num><content>a GB scheme which is a qualifying pension scheme for the purposes of regulation 9 of the Financial Assistance Scheme Regulations 2005 (<ref eId="c00135" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) and in respect of which payments are required to be made under section 286 of the Pensions Act 2004.</content></level></subsection><subsection eId="section-103-2"><num>(2)</num><content>The alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-1"><num>(1)</num><intro>This section applies to any potentially remediable alteration purportedly made to the rules of—</intro><level class="para1" eId="section-103-1-a"><num>(a)</num><content>a GB scheme, or a part of a GB scheme, which has been wound up before this section comes into force,</content></level><level class="para1" eId="section-103-1-b"><num>(b)</num><content>a GB scheme, or a part of a GB scheme, for which the Board of the Pension Protection Fund has, before this section comes into force, assumed responsibility in accordance with Chapter 3 of Part 2 of the Pensions Act 2004 (see section 161 of that Act), or</content></level><level class="para1" eId="section-103-1-c"><num>(c)</num><content>a GB scheme which is a qualifying pension scheme for the purposes of regulation 9 of the Financial Assistance Scheme Regulations 2005 (<ref eId="c00135" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) and in respect of which payments are required to be made under section 286 of the Pensions Act 2004.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-2"><num>(2)</num><content>The alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104"><num>104</num><heading>Powers to amend provisions of Chapter 1 etc: Great Britain</heading><subsection eId="section-104-1"><num>(1)</num><content>The Secretary of State may by regulations amend any of sections <ref href="#section-101">101</ref>, <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref> for the purpose of providing for purported alterations of any specified description to be outside the scope of remediation under either or both of sections <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref>.</content></subsection><subsection eId="section-104-2"><num>(2)</num><content>In <ref href="#section-104-1">subsection (1)</ref> “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the regulations; and a specified description of purported alterations may be framed by reference to features of the alterations or of the schemes purportedly altered by them (or a combination of both).</content></subsection><subsection eId="section-104-3"><num>(3)</num><content>Regulations under <ref href="#section-104-1">subsection (1)</ref> are subject to the negative procedure.</content></subsection><subsection eId="section-104-4"><num>(4)</num><content>The Secretary of State may by regulations make incidental, supplementary, consequential or transitional provision in connection with any provision of this Chapter (other than this section and section <ref href="#section-108">108</ref>).</content></subsection><subsection eId="section-104-5"><num>(5)</num><content>Regulations under <ref href="#section-104-4">subsection (4)</ref> may amend any Act passed before or in the same Session as this Act.</content></subsection><subsection eId="section-104-6"><num>(6)</num><content>Regulations under <ref href="#section-104-4">subsection (4)</ref> are subject to the affirmative procedure if they contain provision made under subsection (5); otherwise they are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-1"><num>(1)</num><content>The Secretary of State may by regulations amend any of sections <ref href="#section-101">101</ref>, <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref> for the purpose of providing for purported alterations of any specified description to be outside the scope of remediation under either or both of sections <ref href="#section-102">102</ref> and <ref href="#section-103">103</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-2"><num>(2)</num><content>In <ref href="#section-104-1">subsection (1)</ref> “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the regulations; and a specified description of purported alterations may be framed by reference to features of the alterations or of the schemes purportedly altered by them (or a combination of both).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-3"><num>(3)</num><content>Regulations under <ref href="#section-104-1">subsection (1)</ref> are subject to the negative procedure.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-4"><num>(4)</num><content>The Secretary of State may by regulations make incidental, supplementary, consequential or transitional provision in connection with any provision of this Chapter (other than this section and section <ref href="#section-108">108</ref>).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-5"><num>(5)</num><content>Regulations under <ref href="#section-104-4">subsection (4)</ref> may amend any Act passed before or in the same Session as this Act.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-6"><num>(6)</num><content>Regulations under <ref href="#section-104-4">subsection (4)</ref> are subject to the affirmative procedure if they contain provision made under subsection (5); otherwise they are subject to the negative procedure.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-4-chapter-1-crossheading-schemes-in-northern-ireland"><heading>Schemes in Northern Ireland</heading><section eId="section-105"><num>105</num><heading>Sections <ref href="#section-105">105</ref> to <ref href="#section-108">108</ref>: interpretation and scope</heading><subsection eId="section-105-1"><num>(1)</num><content>The provisions of this section have effect for the purposes of this section and sections <ref href="#section-106">106</ref> to <ref href="#section-108">108</ref>.</content></subsection><subsection eId="section-105-2"><num>(2)</num><content>“<term refersTo="#term-ni-scheme" eId="term-ni-scheme">NI scheme</term>” means an occupational pension scheme that was a salary-related contracted-out scheme in Northern Ireland; and for this purpose an occupational pension scheme was a salary-related contracted-out scheme in Northern Ireland at any time if the scheme was contracted-out at that time by virtue of satisfying section 5(2) of the Pension Schemes (Northern Ireland) Act 1993 (as it then had effect).</content></subsection><subsection eId="section-105-3"><num>(3)</num><intro>“<term refersTo="#term-scheme-actuary" eId="term-scheme-actuary">Scheme actuary</term>”, in relation to an NI scheme, means—</intro><level class="para1" eId="section-105-3-a"><num>(a)</num><content>the person for the time being appointed as actuary for the scheme under Article 47 of the Pensions (Northern Ireland) Order 1995 (<ref eId="c00136" href="http://www.legislation.gov.uk/id/nisi/1995/3213">S.I. 1995/3213 (N.I. 22)</ref>) (professional advisers), or</content></level><level class="para1" eId="section-105-3-b"><num>(b)</num><content>if there is no person so appointed, a Fellow of the Institute and Faculty of Actuaries appointed by the trustees or managers of the scheme to carry out the functions of the scheme actuary under section <ref href="#section-106">106</ref>.</content></level></subsection><subsection eId="section-105-4"><num>(4)</num><content>“<term refersTo="#term-section-331" eId="term-section-331">Section 33(1)</term>” refers to section 33(1) of the Pension Schemes (Northern Ireland) Act 1993 (prohibition of alterations to rules of contracted-out schemes in certain circumstances).</content></subsection><subsection eId="section-105-5"><num>(5)</num><content>“<term refersTo="#term-regulation-42" eId="term-regulation-42">Regulation 42</term>” refers to regulation 42 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 (<ref eId="c00137" href="http://www.legislation.gov.uk/id/nisr/1996/493">S.R. (N.I.) 1996 No. 493</ref>).</content></subsection><subsection eId="section-105-6"><num>(6)</num><content>References to non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42 include non-compliance with the requirement in either paragraph (2)(a) or (2)(b) (as well as with both requirements).</content></subsection><subsection eId="section-105-7"><num>(7)</num><intro>An alteration purporting to have been made to the rules of an NI scheme is a “potentially remediable alteration” if—</intro><level class="para1" eId="section-105-7-a"><num>(a)</num><content>by virtue of section 33(1) and paragraphs (1) and (2) of regulation 42 (as they had effect at the time), the alteration could not be made unless the requirements of paragraph (2)(a), (b) and (c) of regulation 42 (as they then had effect) had been met,</content></level><level class="para1" eId="section-105-7-b"><num>(b)</num><content>it was treated by the trustees or managers of the scheme, after it was purportedly made, as a valid alteration,</content></level><level class="para1" eId="section-105-7-c"><num>(c)</num><content>no positive action has been taken by the trustees or managers of the scheme on the basis that they consider the alteration to be void (and so of no legal effect) by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42, and</content></level><level class="para1" eId="section-105-7-d"><num>(d)</num><content>it is not excluded from the scope of remediation under <ref href="#section-106">sections 106</ref> and <ref href="#section-107">107</ref> (see subsection (9)).</content></level></subsection><subsection eId="section-105-8"><num>(8)</num><intro>In <ref href="#section-105-7">subsection (7)</ref><ref href="#section-105-7-c">(c)</ref> “<term refersTo="#term-positive-action" eId="term-positive-action">positive action</term>”, in relation to the purported alteration, means—</intro><level class="para1" eId="section-105-8-a"><num>(a)</num><content>notifying any members of the scheme in writing to the effect that the trustees or managers consider the alteration to be void (by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42) and that the scheme will be administered on the basis that it has no legal effect, or</content></level><level class="para1" eId="section-105-8-b"><num>(b)</num><content>notifying any members of the scheme in writing (in consequence of the trustees or managers being of the view mentioned in <ref href="#section-105-7">subsection (7)</ref><ref href="#section-105-7-c">(c)</ref>) to the effect that the trustees or managers are taking (or have taken) any other step in relation to the administration of the scheme which has (or will have) the effect of altering payments to or in respect of members of the scheme.</content></level></subsection><subsection eId="section-105-9"><num>(9)</num><intro>An alteration purporting to have been made to the rules of an NI scheme is excluded from the scope of remediation under sections <ref href="#section-106">106</ref> and <ref href="#section-107">107</ref> if any question relating to the validity of the alteration, so far as relating to the requirements of paragraph (2)(a) and (b) of regulation 42—</intro><level class="para1" eId="section-105-9-a"><num>(a)</num><content>has, before this section comes into force, been determined by the court in qualifying legal proceedings,</content></level><level class="para1" eId="section-105-9-b"><num>(b)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings, but has been settled by agreement between the parties at any time before this section comes into force, or</content></level><level class="para1" eId="section-105-9-c"><num>(c)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings and remains in issue in those proceedings when this section comes into force.</content></level></subsection><subsection eId="section-105-10"><num>(10)</num><intro>In subsection <ref href="#section-105-9">(9)</ref> “<term refersTo="#term-legal-proceedings" eId="term-legal-proceedings">legal proceedings</term>” means proceedings for the determination of a dispute that have been brought before a court in the United Kingdom; and such proceedings are “qualifying legal proceedings” if—</intro><level class="para1" eId="section-105-10-a"><num>(a)</num><content>they will determine a dispute as to the rules of the scheme, and</content></level><level class="para1" eId="section-105-10-b"><num>(b)</num><intro>the parties are (or include)—</intro><level class="para2" eId="section-105-10-b-i"><num>(i)</num><content>the trustees or managers of the scheme, and</content></level><level class="para2" eId="section-105-10-b-ii"><num>(ii)</num><content>one or more members or other beneficiaries of the scheme (or a person acting on behalf of one or more members or other beneficiaries).</content></level></level></subsection></section><section eId="section-106"><num>106</num><heading>Validity of certain alterations to NI salary-related contracted-out pension schemes: subsisting schemes</heading><subsection eId="section-106-1"><num>(1)</num><content>This section applies to any potentially remediable alteration purportedly made to an NI scheme other than a potentially remediable alteration to which section <ref href="#section-107">107</ref> applies.</content></subsection><subsection eId="section-106-2"><num>(2)</num><content>If the conditions mentioned in subsection <ref href="#section-106-3">(3)</ref> are met in relation to it, the alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made, and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection><subsection eId="section-106-3"><num>(3)</num><intro>The conditions are—</intro><level class="para1" eId="section-106-3-a"><num>(a)</num><content>that the trustees or managers of the scheme have made a request in writing to the scheme actuary for the actuary to consider whether or not, on the assumption that it was validly made, the alteration would have prevented the scheme from continuing to satisfy the statutory standard, and</content></level><level class="para1" eId="section-106-3-b"><num>(b)</num><content>that the scheme actuary has confirmed to the trustees or managers in writing that in the actuary’s opinion it is reasonable to conclude that, on the assumption that it was validly made, the alteration would not have prevented the scheme from continuing to satisfy the statutory standard.</content></level><wrapUp>In this subsection “<term refersTo="#term-the-statutory-standard" eId="term-the-statutory-standard">the statutory standard</term>” means the statutory standard for a contracted-out scheme under section 8A of the Pension Schemes (Northern Ireland) Act 1993 as it had effect at the time the alteration was purportedly made.</wrapUp></subsection><subsection eId="section-106-4"><num>(4)</num><intro>A scheme actuary who has received a request as mentioned in subsection (3)(a) in relation to a potentially remediable alteration to a scheme—</intro><level class="para1" eId="section-106-4-a"><num>(a)</num><content>may act on the basis of the information available to the actuary, as long as the actuary considers it sufficient for the purpose of forming an opinion on the subject-matter of the request;</content></level><level class="para1" eId="section-106-4-b"><num>(b)</num><content>may take any professional approach (including making assumptions or relying on presumptions) that is open to the actuary in all the circumstances of the case.</content></level></subsection><subsection eId="section-106-5"><num>(5)</num><content>A condition mentioned in <ref href="#section-106-3">subsection (3)</ref> may be met by action taken before (as well as action taken after) this section comes into force.</content></subsection><subsection eId="section-106-6"><num>(6)</num><intro>Subsection <ref href="#section-106-7">(7)</ref> applies to an NI scheme if —</intro><level class="para1" eId="section-106-6-a"><num>(a)</num><content>there is an assessment period in relation to the scheme within the meaning of Part 3 of the Pensions (Northern Ireland) Order 2005 (<ref eId="c00138" href="http://www.legislation.gov.uk/id/nisi/2005/255">S.I. 2005/255 (N.I. 1)</ref>), or</content></level><level class="para1" eId="section-106-6-b"><num>(b)</num><content>the scheme is operating as a closed scheme under Article 137 of that Order.</content></level></subsection><subsection eId="section-106-7"><num>(7)</num><intro>The powers of the Board of the Pension Protection Fund under Article 118 and 139 of the Pensions (Northern Ireland) Order 2005 to give directions include power to give a direction to the trustees or managers of the scheme requiring them—</intro><level class="para1" eId="section-106-7-a"><num>(a)</num><content>to make a request under subsection (3)(a) in relation to a potentially remediable alteration to the scheme, and</content></level><level class="para1" eId="section-106-7-b"><num>(b)</num><content>to take any necessary action to enable or facilitate the making of a decision by the actuary as to whether to give the confirmation described in subsection (3)(b) in relation to that alteration.</content></level></subsection><subsection eId="section-106-8"><num>(8)</num><content>This section has effect, in relation to a potentially remediable alteration purportedly made to a public service scheme, as if the references in subsections <ref href="#section-106-3">(3)</ref> and <ref href="#section-106-7">(7)</ref> to the trustees or managers of the scheme were references to the responsible authority.</content></subsection><subsection eId="section-106-9"><num>(9)</num><intro>In <ref href="#section-106-8">subsection (8)</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-public-service-scheme" eId="term-public-service-scheme">public service scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>a pension scheme established under section 1 of the Public Service Pensions (Northern Ireland) Act 2014 (<ref eId="c00139" href="http://www.legislation.gov.uk/id/ukpga/2014/2">2014 c. 2)</ref>, or</content></level><level class="para1"><num>(b)</num><content>a statutory pension scheme which is connected with a scheme referred to in paragraph (a) (and for this purpose “statutory pension scheme” and “connected” have the meanings given in that Act);</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-responsible-authority" eId="term-responsible-authority">responsible authority</term>”, in relation to a public service scheme, means the authority that is the responsible authority for the scheme by virtue of section 2 of and Schedule 2 to that Act.</content></hcontainer></subsection></section><section eId="section-107"><num>107</num><heading>Validity of certain alterations to NI salary-related contracted-out pension schemes: wound up schemes and other special cases</heading><subsection eId="section-107-1"><num>(1)</num><intro>This section applies to any potentially remediable alteration purportedly made to the rules of—</intro><level class="para1" eId="section-107-1-a"><num>(a)</num><content>an NI scheme, or a part of an NI scheme, which has been wound up before this section comes into force,</content></level><level class="para1" eId="section-107-1-b"><num>(b)</num><content>an NI scheme, or a part of an NI scheme, for which the Board of the Pension Protection Fund has, before this section comes into force, assumed responsibility in accordance with Chapter 3 of Part 3 of the Pensions (Northern Ireland) Order 2005 (see Article 145 of that Order), or</content></level><level class="para1" eId="section-107-1-c"><num>(c)</num><content>an NI scheme which is a qualifying pension scheme for the purposes of regulation 9 of the Financial Assistance Scheme Regulations 2005 (<ref eId="c00140" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) and in respect of which payments are required to be made under section 286 of the Pensions Act 2004.</content></level></subsection><subsection eId="section-107-2"><num>(2)</num><content>The alteration is be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection></section><section eId="section-108"><num>108</num><heading>Powers to amend Chapter 1 etc: Northern Ireland</heading><subsection eId="section-108-1"><num>(1)</num><content>The Department for Communities in Northern Ireland may by regulations amend any of <ref href="#section-105">sections 105</ref>, <ref href="#section-106">106</ref> and <ref href="#section-107">107</ref> for the purpose of providing for purported alterations of any specified description to be outside the scope of remediation under either or both of <ref href="#section-106">sections 106</ref> and <ref href="#section-107">107</ref>.</content></subsection><subsection eId="section-108-2"><num>(2)</num><content>In <ref href="#section-108-1">subsection (1)</ref> “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the regulations; and a specified description of purported alterations may be framed by reference to features of the alterations or of the schemes purportedly altered by them (or a combination of both).</content></subsection><subsection eId="section-108-3"><num>(3)</num><content>Regulations under <ref href="#section-108-1">subsection (1)</ref> are subject to negative resolution.</content></subsection><subsection eId="section-108-4"><num>(4)</num><content>The Department for Communities in Northern Ireland may by regulations make incidental, supplementary, consequential or transitional provision in connection with any provision of <ref href="#part-4-chapter-1">this Chapter</ref> (other than section <ref href="#section-104">104</ref> and this section).</content></subsection><subsection eId="section-108-5"><num>(5)</num><content>Regulations under <ref href="#section-108-4">subsection (4)</ref> may amend Northern Ireland legislation, or an Act of Parliament, passed or made before or in the same Session as this Act.</content></subsection><subsection eId="section-108-6"><num>(6)</num><intro>Regulations under <ref href="#section-108-4">subsection (4)</ref> which contain provision made under <ref href="#section-108-5">subsection (5)</ref>—</intro><level class="para1" eId="section-108-6-a"><num>(a)</num><content>must be laid before the Northern Ireland Assembly after being made,</content></level><level class="para1" eId="section-108-6-b"><num>(b)</num><content>take effect on such date as may be specified in the regulations, and</content></level><level class="para1" eId="section-108-6-c"><num>(c)</num><content>cease to have effect on the expiry of the period of six months beginning with the day on which they take effect, unless the regulations have been approved during that period by resolution of the Assembly.</content></level><wrapUp><ref href="#section-108-6-c">Paragraph (c)</ref> is without prejudice to the validity of anything done under the regulations or to the making of new regulations.</wrapUp></subsection><subsection eId="section-108-7"><num>(7)</num><content>Regulations under <ref href="#section-108-4">subsection (4)</ref> which do not contain provision made under <ref href="#section-108-5">subsection (5)</ref> are subject to negative resolution.</content></subsection><subsection eId="section-108-8"><num>(8)</num><content>In <ref href="#section-108">this section</ref> “<term refersTo="#term-subject-to-negative-resolution" eId="term-subject-to-negative-resolution">subject to negative resolution</term>” has the meaning given by <ref eId="c00141" href="https://www.legislation.gov.uk/apni/1954/33/section/41">section 41</ref><ref eId="c00142" href="https://www.legislation.gov.uk/apni/1954/33/section/41">(6)</ref> of the <ref eId="c00143" href="https://www.legislation.gov.uk/apni/1954/33/contents">Interpretation Act (Northern Ireland) 1954</ref>.</content></subsection><subsection eId="section-108-9"><num>(9)</num><content>The power of the Department for Communities in Northern Ireland to make regulations under <ref href="#section-108">this section</ref> is exercisable by statutory rule for the purposes of the <ref eId="c00144" href="https://www.legislation.gov.uk/nisi/1979/1573/contents">Statutory Rules (Northern Ireland) Order 1979</ref> (<ref eId="c00145" href="http://www.legislation.gov.uk/id/nisi/1979/1573">S.I. 1979/1573 (N.I. 12)</ref>).</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105"><num>105</num><heading>Sections <ref href="#section-105">105</ref> to <ref href="#section-108">108</ref>: interpretation and scope</heading><subsection eId="section-105-1"><num>(1)</num><content>The provisions of this section have effect for the purposes of this section and sections <ref href="#section-106">106</ref> to <ref href="#section-108">108</ref>.</content></subsection><subsection eId="section-105-2"><num>(2)</num><content>“<term refersTo="#term-ni-scheme" eId="term-ni-scheme">NI scheme</term>” means an occupational pension scheme that was a salary-related contracted-out scheme in Northern Ireland; and for this purpose an occupational pension scheme was a salary-related contracted-out scheme in Northern Ireland at any time if the scheme was contracted-out at that time by virtue of satisfying section 5(2) of the Pension Schemes (Northern Ireland) Act 1993 (as it then had effect).</content></subsection><subsection eId="section-105-3"><num>(3)</num><intro>“<term refersTo="#term-scheme-actuary" eId="term-scheme-actuary">Scheme actuary</term>”, in relation to an NI scheme, means—</intro><level class="para1" eId="section-105-3-a"><num>(a)</num><content>the person for the time being appointed as actuary for the scheme under Article 47 of the Pensions (Northern Ireland) Order 1995 (<ref eId="c00136" href="http://www.legislation.gov.uk/id/nisi/1995/3213">S.I. 1995/3213 (N.I. 22)</ref>) (professional advisers), or</content></level><level class="para1" eId="section-105-3-b"><num>(b)</num><content>if there is no person so appointed, a Fellow of the Institute and Faculty of Actuaries appointed by the trustees or managers of the scheme to carry out the functions of the scheme actuary under section <ref href="#section-106">106</ref>.</content></level></subsection><subsection eId="section-105-4"><num>(4)</num><content>“<term refersTo="#term-section-331" eId="term-section-331">Section 33(1)</term>” refers to section 33(1) of the Pension Schemes (Northern Ireland) Act 1993 (prohibition of alterations to rules of contracted-out schemes in certain circumstances).</content></subsection><subsection eId="section-105-5"><num>(5)</num><content>“<term refersTo="#term-regulation-42" eId="term-regulation-42">Regulation 42</term>” refers to regulation 42 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 (<ref eId="c00137" href="http://www.legislation.gov.uk/id/nisr/1996/493">S.R. (N.I.) 1996 No. 493</ref>).</content></subsection><subsection eId="section-105-6"><num>(6)</num><content>References to non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42 include non-compliance with the requirement in either paragraph (2)(a) or (2)(b) (as well as with both requirements).</content></subsection><subsection eId="section-105-7"><num>(7)</num><intro>An alteration purporting to have been made to the rules of an NI scheme is a “potentially remediable alteration” if—</intro><level class="para1" eId="section-105-7-a"><num>(a)</num><content>by virtue of section 33(1) and paragraphs (1) and (2) of regulation 42 (as they had effect at the time), the alteration could not be made unless the requirements of paragraph (2)(a), (b) and (c) of regulation 42 (as they then had effect) had been met,</content></level><level class="para1" eId="section-105-7-b"><num>(b)</num><content>it was treated by the trustees or managers of the scheme, after it was purportedly made, as a valid alteration,</content></level><level class="para1" eId="section-105-7-c"><num>(c)</num><content>no positive action has been taken by the trustees or managers of the scheme on the basis that they consider the alteration to be void (and so of no legal effect) by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42, and</content></level><level class="para1" eId="section-105-7-d"><num>(d)</num><content>it is not excluded from the scope of remediation under <ref href="#section-106">sections 106</ref> and <ref href="#section-107">107</ref> (see subsection (9)).</content></level></subsection><subsection eId="section-105-8"><num>(8)</num><intro>In <ref href="#section-105-7">subsection (7)</ref><ref href="#section-105-7-c">(c)</ref> “<term refersTo="#term-positive-action" eId="term-positive-action">positive action</term>”, in relation to the purported alteration, means—</intro><level class="para1" eId="section-105-8-a"><num>(a)</num><content>notifying any members of the scheme in writing to the effect that the trustees or managers consider the alteration to be void (by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42) and that the scheme will be administered on the basis that it has no legal effect, or</content></level><level class="para1" eId="section-105-8-b"><num>(b)</num><content>notifying any members of the scheme in writing (in consequence of the trustees or managers being of the view mentioned in <ref href="#section-105-7">subsection (7)</ref><ref href="#section-105-7-c">(c)</ref>) to the effect that the trustees or managers are taking (or have taken) any other step in relation to the administration of the scheme which has (or will have) the effect of altering payments to or in respect of members of the scheme.</content></level></subsection><subsection eId="section-105-9"><num>(9)</num><intro>An alteration purporting to have been made to the rules of an NI scheme is excluded from the scope of remediation under sections <ref href="#section-106">106</ref> and <ref href="#section-107">107</ref> if any question relating to the validity of the alteration, so far as relating to the requirements of paragraph (2)(a) and (b) of regulation 42—</intro><level class="para1" eId="section-105-9-a"><num>(a)</num><content>has, before this section comes into force, been determined by the court in qualifying legal proceedings,</content></level><level class="para1" eId="section-105-9-b"><num>(b)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings, but has been settled by agreement between the parties at any time before this section comes into force, or</content></level><level class="para1" eId="section-105-9-c"><num>(c)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings and remains in issue in those proceedings when this section comes into force.</content></level></subsection><subsection eId="section-105-10"><num>(10)</num><intro>In subsection <ref href="#section-105-9">(9)</ref> “<term refersTo="#term-legal-proceedings" eId="term-legal-proceedings">legal proceedings</term>” means proceedings for the determination of a dispute that have been brought before a court in the United Kingdom; and such proceedings are “qualifying legal proceedings” if—</intro><level class="para1" eId="section-105-10-a"><num>(a)</num><content>they will determine a dispute as to the rules of the scheme, and</content></level><level class="para1" eId="section-105-10-b"><num>(b)</num><intro>the parties are (or include)—</intro><level class="para2" eId="section-105-10-b-i"><num>(i)</num><content>the trustees or managers of the scheme, and</content></level><level class="para2" eId="section-105-10-b-ii"><num>(ii)</num><content>one or more members or other beneficiaries of the scheme (or a person acting on behalf of one or more members or other beneficiaries).</content></level></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-1"><num>(1)</num><content>The provisions of this section have effect for the purposes of this section and sections <ref href="#section-106">106</ref> to <ref href="#section-108">108</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-2"><num>(2)</num><content>“<term refersTo="#term-ni-scheme" eId="term-ni-scheme">NI scheme</term>” means an occupational pension scheme that was a salary-related contracted-out scheme in Northern Ireland; and for this purpose an occupational pension scheme was a salary-related contracted-out scheme in Northern Ireland at any time if the scheme was contracted-out at that time by virtue of satisfying section 5(2) of the Pension Schemes (Northern Ireland) Act 1993 (as it then had effect).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-3"><num>(3)</num><intro>“<term refersTo="#term-scheme-actuary" eId="term-scheme-actuary">Scheme actuary</term>”, in relation to an NI scheme, means—</intro><level class="para1" eId="section-105-3-a"><num>(a)</num><content>the person for the time being appointed as actuary for the scheme under Article 47 of the Pensions (Northern Ireland) Order 1995 (<ref eId="c00136" href="http://www.legislation.gov.uk/id/nisi/1995/3213">S.I. 1995/3213 (N.I. 22)</ref>) (professional advisers), or</content></level><level class="para1" eId="section-105-3-b"><num>(b)</num><content>if there is no person so appointed, a Fellow of the Institute and Faculty of Actuaries appointed by the trustees or managers of the scheme to carry out the functions of the scheme actuary under section <ref href="#section-106">106</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-4"><num>(4)</num><content>“<term refersTo="#term-section-331" eId="term-section-331">Section 33(1)</term>” refers to section 33(1) of the Pension Schemes (Northern Ireland) Act 1993 (prohibition of alterations to rules of contracted-out schemes in certain circumstances).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-5"><num>(5)</num><content>“<term refersTo="#term-regulation-42" eId="term-regulation-42">Regulation 42</term>” refers to regulation 42 of the Occupational Pension Schemes (Contracting-out) Regulations (Northern Ireland) 1996 (<ref eId="c00137" href="http://www.legislation.gov.uk/id/nisr/1996/493">S.R. (N.I.) 1996 No. 493</ref>).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-6"><num>(6)</num><content>References to non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42 include non-compliance with the requirement in either paragraph (2)(a) or (2)(b) (as well as with both requirements).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-7"><num>(7)</num><intro>An alteration purporting to have been made to the rules of an NI scheme is a “potentially remediable alteration” if—</intro><level class="para1" eId="section-105-7-a"><num>(a)</num><content>by virtue of section 33(1) and paragraphs (1) and (2) of regulation 42 (as they had effect at the time), the alteration could not be made unless the requirements of paragraph (2)(a), (b) and (c) of regulation 42 (as they then had effect) had been met,</content></level><level class="para1" eId="section-105-7-b"><num>(b)</num><content>it was treated by the trustees or managers of the scheme, after it was purportedly made, as a valid alteration,</content></level><level class="para1" eId="section-105-7-c"><num>(c)</num><content>no positive action has been taken by the trustees or managers of the scheme on the basis that they consider the alteration to be void (and so of no legal effect) by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42, and</content></level><level class="para1" eId="section-105-7-d"><num>(d)</num><content>it is not excluded from the scope of remediation under <ref href="#section-106">sections 106</ref> and <ref href="#section-107">107</ref> (see subsection (9)).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-8"><num>(8)</num><intro>In <ref href="#section-105-7">subsection (7)</ref><ref href="#section-105-7-c">(c)</ref> “<term refersTo="#term-positive-action" eId="term-positive-action">positive action</term>”, in relation to the purported alteration, means—</intro><level class="para1" eId="section-105-8-a"><num>(a)</num><content>notifying any members of the scheme in writing to the effect that the trustees or managers consider the alteration to be void (by reason of non-compliance with the requirements of paragraph (2)(a) and (b) of regulation 42) and that the scheme will be administered on the basis that it has no legal effect, or</content></level><level class="para1" eId="section-105-8-b"><num>(b)</num><content>notifying any members of the scheme in writing (in consequence of the trustees or managers being of the view mentioned in <ref href="#section-105-7">subsection (7)</ref><ref href="#section-105-7-c">(c)</ref>) to the effect that the trustees or managers are taking (or have taken) any other step in relation to the administration of the scheme which has (or will have) the effect of altering payments to or in respect of members of the scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-9"><num>(9)</num><intro>An alteration purporting to have been made to the rules of an NI scheme is excluded from the scope of remediation under sections <ref href="#section-106">106</ref> and <ref href="#section-107">107</ref> if any question relating to the validity of the alteration, so far as relating to the requirements of paragraph (2)(a) and (b) of regulation 42—</intro><level class="para1" eId="section-105-9-a"><num>(a)</num><content>has, before this section comes into force, been determined by the court in qualifying legal proceedings,</content></level><level class="para1" eId="section-105-9-b"><num>(b)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings, but has been settled by agreement between the parties at any time before this section comes into force, or</content></level><level class="para1" eId="section-105-9-c"><num>(c)</num><content>was in issue on or before 5 June 2025 in qualifying legal proceedings and remains in issue in those proceedings when this section comes into force.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105-10"><num>(10)</num><intro>In subsection <ref href="#section-105-9">(9)</ref> “<term refersTo="#term-legal-proceedings" eId="term-legal-proceedings">legal proceedings</term>” means proceedings for the determination of a dispute that have been brought before a court in the United Kingdom; and such proceedings are “qualifying legal proceedings” if—</intro><level class="para1" eId="section-105-10-a"><num>(a)</num><content>they will determine a dispute as to the rules of the scheme, and</content></level><level class="para1" eId="section-105-10-b"><num>(b)</num><intro>the parties are (or include)—</intro><level class="para2" eId="section-105-10-b-i"><num>(i)</num><content>the trustees or managers of the scheme, and</content></level><level class="para2" eId="section-105-10-b-ii"><num>(ii)</num><content>one or more members or other beneficiaries of the scheme (or a person acting on behalf of one or more members or other beneficiaries).</content></level></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106"><num>106</num><heading>Validity of certain alterations to NI salary-related contracted-out pension schemes: subsisting schemes</heading><subsection eId="section-106-1"><num>(1)</num><content>This section applies to any potentially remediable alteration purportedly made to an NI scheme other than a potentially remediable alteration to which section <ref href="#section-107">107</ref> applies.</content></subsection><subsection eId="section-106-2"><num>(2)</num><content>If the conditions mentioned in subsection <ref href="#section-106-3">(3)</ref> are met in relation to it, the alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made, and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection><subsection eId="section-106-3"><num>(3)</num><intro>The conditions are—</intro><level class="para1" eId="section-106-3-a"><num>(a)</num><content>that the trustees or managers of the scheme have made a request in writing to the scheme actuary for the actuary to consider whether or not, on the assumption that it was validly made, the alteration would have prevented the scheme from continuing to satisfy the statutory standard, and</content></level><level class="para1" eId="section-106-3-b"><num>(b)</num><content>that the scheme actuary has confirmed to the trustees or managers in writing that in the actuary’s opinion it is reasonable to conclude that, on the assumption that it was validly made, the alteration would not have prevented the scheme from continuing to satisfy the statutory standard.</content></level><wrapUp>In this subsection “<term refersTo="#term-the-statutory-standard" eId="term-the-statutory-standard">the statutory standard</term>” means the statutory standard for a contracted-out scheme under section 8A of the Pension Schemes (Northern Ireland) Act 1993 as it had effect at the time the alteration was purportedly made.</wrapUp></subsection><subsection eId="section-106-4"><num>(4)</num><intro>A scheme actuary who has received a request as mentioned in subsection (3)(a) in relation to a potentially remediable alteration to a scheme—</intro><level class="para1" eId="section-106-4-a"><num>(a)</num><content>may act on the basis of the information available to the actuary, as long as the actuary considers it sufficient for the purpose of forming an opinion on the subject-matter of the request;</content></level><level class="para1" eId="section-106-4-b"><num>(b)</num><content>may take any professional approach (including making assumptions or relying on presumptions) that is open to the actuary in all the circumstances of the case.</content></level></subsection><subsection eId="section-106-5"><num>(5)</num><content>A condition mentioned in <ref href="#section-106-3">subsection (3)</ref> may be met by action taken before (as well as action taken after) this section comes into force.</content></subsection><subsection eId="section-106-6"><num>(6)</num><intro>Subsection <ref href="#section-106-7">(7)</ref> applies to an NI scheme if —</intro><level class="para1" eId="section-106-6-a"><num>(a)</num><content>there is an assessment period in relation to the scheme within the meaning of Part 3 of the Pensions (Northern Ireland) Order 2005 (<ref eId="c00138" href="http://www.legislation.gov.uk/id/nisi/2005/255">S.I. 2005/255 (N.I. 1)</ref>), or</content></level><level class="para1" eId="section-106-6-b"><num>(b)</num><content>the scheme is operating as a closed scheme under Article 137 of that Order.</content></level></subsection><subsection eId="section-106-7"><num>(7)</num><intro>The powers of the Board of the Pension Protection Fund under Article 118 and 139 of the Pensions (Northern Ireland) Order 2005 to give directions include power to give a direction to the trustees or managers of the scheme requiring them—</intro><level class="para1" eId="section-106-7-a"><num>(a)</num><content>to make a request under subsection (3)(a) in relation to a potentially remediable alteration to the scheme, and</content></level><level class="para1" eId="section-106-7-b"><num>(b)</num><content>to take any necessary action to enable or facilitate the making of a decision by the actuary as to whether to give the confirmation described in subsection (3)(b) in relation to that alteration.</content></level></subsection><subsection eId="section-106-8"><num>(8)</num><content>This section has effect, in relation to a potentially remediable alteration purportedly made to a public service scheme, as if the references in subsections <ref href="#section-106-3">(3)</ref> and <ref href="#section-106-7">(7)</ref> to the trustees or managers of the scheme were references to the responsible authority.</content></subsection><subsection eId="section-106-9"><num>(9)</num><intro>In <ref href="#section-106-8">subsection (8)</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-public-service-scheme" eId="term-public-service-scheme">public service scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>a pension scheme established under section 1 of the Public Service Pensions (Northern Ireland) Act 2014 (<ref eId="c00139" href="http://www.legislation.gov.uk/id/ukpga/2014/2">2014 c. 2)</ref>, or</content></level><level class="para1"><num>(b)</num><content>a statutory pension scheme which is connected with a scheme referred to in paragraph (a) (and for this purpose “statutory pension scheme” and “connected” have the meanings given in that Act);</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-responsible-authority" eId="term-responsible-authority">responsible authority</term>”, in relation to a public service scheme, means the authority that is the responsible authority for the scheme by virtue of section 2 of and Schedule 2 to that Act.</content></hcontainer></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-1"><num>(1)</num><content>This section applies to any potentially remediable alteration purportedly made to an NI scheme other than a potentially remediable alteration to which section <ref href="#section-107">107</ref> applies.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-2"><num>(2)</num><content>If the conditions mentioned in subsection <ref href="#section-106-3">(3)</ref> are met in relation to it, the alteration is to be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made, and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-3"><num>(3)</num><intro>The conditions are—</intro><level class="para1" eId="section-106-3-a"><num>(a)</num><content>that the trustees or managers of the scheme have made a request in writing to the scheme actuary for the actuary to consider whether or not, on the assumption that it was validly made, the alteration would have prevented the scheme from continuing to satisfy the statutory standard, and</content></level><level class="para1" eId="section-106-3-b"><num>(b)</num><content>that the scheme actuary has confirmed to the trustees or managers in writing that in the actuary’s opinion it is reasonable to conclude that, on the assumption that it was validly made, the alteration would not have prevented the scheme from continuing to satisfy the statutory standard.</content></level><wrapUp>In this subsection “<term refersTo="#term-the-statutory-standard" eId="term-the-statutory-standard">the statutory standard</term>” means the statutory standard for a contracted-out scheme under section 8A of the Pension Schemes (Northern Ireland) Act 1993 as it had effect at the time the alteration was purportedly made.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-4"><num>(4)</num><intro>A scheme actuary who has received a request as mentioned in subsection (3)(a) in relation to a potentially remediable alteration to a scheme—</intro><level class="para1" eId="section-106-4-a"><num>(a)</num><content>may act on the basis of the information available to the actuary, as long as the actuary considers it sufficient for the purpose of forming an opinion on the subject-matter of the request;</content></level><level class="para1" eId="section-106-4-b"><num>(b)</num><content>may take any professional approach (including making assumptions or relying on presumptions) that is open to the actuary in all the circumstances of the case.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-5"><num>(5)</num><content>A condition mentioned in <ref href="#section-106-3">subsection (3)</ref> may be met by action taken before (as well as action taken after) this section comes into force.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-6"><num>(6)</num><intro>Subsection <ref href="#section-106-7">(7)</ref> applies to an NI scheme if —</intro><level class="para1" eId="section-106-6-a"><num>(a)</num><content>there is an assessment period in relation to the scheme within the meaning of Part 3 of the Pensions (Northern Ireland) Order 2005 (<ref eId="c00138" href="http://www.legislation.gov.uk/id/nisi/2005/255">S.I. 2005/255 (N.I. 1)</ref>), or</content></level><level class="para1" eId="section-106-6-b"><num>(b)</num><content>the scheme is operating as a closed scheme under Article 137 of that Order.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-7"><num>(7)</num><intro>The powers of the Board of the Pension Protection Fund under Article 118 and 139 of the Pensions (Northern Ireland) Order 2005 to give directions include power to give a direction to the trustees or managers of the scheme requiring them—</intro><level class="para1" eId="section-106-7-a"><num>(a)</num><content>to make a request under subsection (3)(a) in relation to a potentially remediable alteration to the scheme, and</content></level><level class="para1" eId="section-106-7-b"><num>(b)</num><content>to take any necessary action to enable or facilitate the making of a decision by the actuary as to whether to give the confirmation described in subsection (3)(b) in relation to that alteration.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-8"><num>(8)</num><content>This section has effect, in relation to a potentially remediable alteration purportedly made to a public service scheme, as if the references in subsections <ref href="#section-106-3">(3)</ref> and <ref href="#section-106-7">(7)</ref> to the trustees or managers of the scheme were references to the responsible authority.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-9"><num>(9)</num><intro>In <ref href="#section-106-8">subsection (8)</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-public-service-scheme" eId="term-public-service-scheme">public service scheme</term>” means—</intro><level class="para1"><num>(a)</num><content>a pension scheme established under section 1 of the Public Service Pensions (Northern Ireland) Act 2014 (<ref eId="c00139" href="http://www.legislation.gov.uk/id/ukpga/2014/2">2014 c. 2)</ref>, or</content></level><level class="para1"><num>(b)</num><content>a statutory pension scheme which is connected with a scheme referred to in paragraph (a) (and for this purpose “statutory pension scheme” and “connected” have the meanings given in that Act);</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-responsible-authority" eId="term-responsible-authority">responsible authority</term>”, in relation to a public service scheme, means the authority that is the responsible authority for the scheme by virtue of section 2 of and Schedule 2 to that Act.</content></hcontainer></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-107"><num>107</num><heading>Validity of certain alterations to NI salary-related contracted-out pension schemes: wound up schemes and other special cases</heading><subsection eId="section-107-1"><num>(1)</num><intro>This section applies to any potentially remediable alteration purportedly made to the rules of—</intro><level class="para1" eId="section-107-1-a"><num>(a)</num><content>an NI scheme, or a part of an NI scheme, which has been wound up before this section comes into force,</content></level><level class="para1" eId="section-107-1-b"><num>(b)</num><content>an NI scheme, or a part of an NI scheme, for which the Board of the Pension Protection Fund has, before this section comes into force, assumed responsibility in accordance with Chapter 3 of Part 3 of the Pensions (Northern Ireland) Order 2005 (see Article 145 of that Order), or</content></level><level class="para1" eId="section-107-1-c"><num>(c)</num><content>an NI scheme which is a qualifying pension scheme for the purposes of regulation 9 of the Financial Assistance Scheme Regulations 2005 (<ref eId="c00140" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) and in respect of which payments are required to be made under section 286 of the Pensions Act 2004.</content></level></subsection><subsection eId="section-107-2"><num>(2)</num><content>The alteration is be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-107-1"><num>(1)</num><intro>This section applies to any potentially remediable alteration purportedly made to the rules of—</intro><level class="para1" eId="section-107-1-a"><num>(a)</num><content>an NI scheme, or a part of an NI scheme, which has been wound up before this section comes into force,</content></level><level class="para1" eId="section-107-1-b"><num>(b)</num><content>an NI scheme, or a part of an NI scheme, for which the Board of the Pension Protection Fund has, before this section comes into force, assumed responsibility in accordance with Chapter 3 of Part 3 of the Pensions (Northern Ireland) Order 2005 (see Article 145 of that Order), or</content></level><level class="para1" eId="section-107-1-c"><num>(c)</num><content>an NI scheme which is a qualifying pension scheme for the purposes of regulation 9 of the Financial Assistance Scheme Regulations 2005 (<ref eId="c00140" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) and in respect of which payments are required to be made under section 286 of the Pensions Act 2004.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-107-2"><num>(2)</num><content>The alteration is be treated for all purposes as having met the requirements of paragraph (2)(a) and (b) of regulation 42 before it was purportedly made and so as having always been a valid alteration so far as those requirements are concerned.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-108"><num>108</num><heading>Powers to amend Chapter 1 etc: Northern Ireland</heading><subsection eId="section-108-1"><num>(1)</num><content>The Department for Communities in Northern Ireland may by regulations amend any of <ref href="#section-105">sections 105</ref>, <ref href="#section-106">106</ref> and <ref href="#section-107">107</ref> for the purpose of providing for purported alterations of any specified description to be outside the scope of remediation under either or both of <ref href="#section-106">sections 106</ref> and <ref href="#section-107">107</ref>.</content></subsection><subsection eId="section-108-2"><num>(2)</num><content>In <ref href="#section-108-1">subsection (1)</ref> “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the regulations; and a specified description of purported alterations may be framed by reference to features of the alterations or of the schemes purportedly altered by them (or a combination of both).</content></subsection><subsection eId="section-108-3"><num>(3)</num><content>Regulations under <ref href="#section-108-1">subsection (1)</ref> are subject to negative resolution.</content></subsection><subsection eId="section-108-4"><num>(4)</num><content>The Department for Communities in Northern Ireland may by regulations make incidental, supplementary, consequential or transitional provision in connection with any provision of <ref href="#part-4-chapter-1">this Chapter</ref> (other than section <ref href="#section-104">104</ref> and this section).</content></subsection><subsection eId="section-108-5"><num>(5)</num><content>Regulations under <ref href="#section-108-4">subsection (4)</ref> may amend Northern Ireland legislation, or an Act of Parliament, passed or made before or in the same Session as this Act.</content></subsection><subsection eId="section-108-6"><num>(6)</num><intro>Regulations under <ref href="#section-108-4">subsection (4)</ref> which contain provision made under <ref href="#section-108-5">subsection (5)</ref>—</intro><level class="para1" eId="section-108-6-a"><num>(a)</num><content>must be laid before the Northern Ireland Assembly after being made,</content></level><level class="para1" eId="section-108-6-b"><num>(b)</num><content>take effect on such date as may be specified in the regulations, and</content></level><level class="para1" eId="section-108-6-c"><num>(c)</num><content>cease to have effect on the expiry of the period of six months beginning with the day on which they take effect, unless the regulations have been approved during that period by resolution of the Assembly.</content></level><wrapUp><ref href="#section-108-6-c">Paragraph (c)</ref> is without prejudice to the validity of anything done under the regulations or to the making of new regulations.</wrapUp></subsection><subsection eId="section-108-7"><num>(7)</num><content>Regulations under <ref href="#section-108-4">subsection (4)</ref> which do not contain provision made under <ref href="#section-108-5">subsection (5)</ref> are subject to negative resolution.</content></subsection><subsection eId="section-108-8"><num>(8)</num><content>In <ref href="#section-108">this section</ref> “<term refersTo="#term-subject-to-negative-resolution" eId="term-subject-to-negative-resolution">subject to negative resolution</term>” has the meaning given by <ref eId="c00141" href="https://www.legislation.gov.uk/apni/1954/33/section/41">section 41</ref><ref eId="c00142" href="https://www.legislation.gov.uk/apni/1954/33/section/41">(6)</ref> of the <ref eId="c00143" href="https://www.legislation.gov.uk/apni/1954/33/contents">Interpretation Act (Northern Ireland) 1954</ref>.</content></subsection><subsection eId="section-108-9"><num>(9)</num><content>The power of the Department for Communities in Northern Ireland to make regulations under <ref href="#section-108">this section</ref> is exercisable by statutory rule for the purposes of the <ref eId="c00144" href="https://www.legislation.gov.uk/nisi/1979/1573/contents">Statutory Rules (Northern Ireland) Order 1979</ref> (<ref eId="c00145" href="http://www.legislation.gov.uk/id/nisi/1979/1573">S.I. 1979/1573 (N.I. 12)</ref>).</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-108-1"><num>(1)</num><content>The Department for Communities in Northern Ireland may by regulations amend any of <ref href="#section-105">sections 105</ref>, <ref href="#section-106">106</ref> and <ref href="#section-107">107</ref> for the purpose of providing for purported alterations of any specified description to be outside the scope of remediation under either or both of <ref href="#section-106">sections 106</ref> and <ref href="#section-107">107</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-108-2"><num>(2)</num><content>In <ref href="#section-108-1">subsection (1)</ref> “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified in the regulations; and a specified description of purported alterations may be framed by reference to features of the alterations or of the schemes purportedly altered by them (or a combination of both).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-108-3"><num>(3)</num><content>Regulations under <ref href="#section-108-1">subsection (1)</ref> are subject to negative resolution.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-108-4"><num>(4)</num><content>The Department for Communities in Northern Ireland may by regulations make incidental, supplementary, consequential or transitional provision in connection with any provision of <ref href="#part-4-chapter-1">this Chapter</ref> (other than section <ref href="#section-104">104</ref> and this section).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-108-5"><num>(5)</num><content>Regulations under <ref href="#section-108-4">subsection (4)</ref> may amend Northern Ireland legislation, or an Act of Parliament, passed or made before or in the same Session as this Act.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-108-6"><num>(6)</num><intro>Regulations under <ref href="#section-108-4">subsection (4)</ref> which contain provision made under <ref href="#section-108-5">subsection (5)</ref>—</intro><level class="para1" eId="section-108-6-a"><num>(a)</num><content>must be laid before the Northern Ireland Assembly after being made,</content></level><level class="para1" eId="section-108-6-b"><num>(b)</num><content>take effect on such date as may be specified in the regulations, and</content></level><level class="para1" eId="section-108-6-c"><num>(c)</num><content>cease to have effect on the expiry of the period of six months beginning with the day on which they take effect, unless the regulations have been approved during that period by resolution of the Assembly.</content></level><wrapUp><ref href="#section-108-6-c">Paragraph (c)</ref> is without prejudice to the validity of anything done under the regulations or to the making of new regulations.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-108-7"><num>(7)</num><content>Regulations under <ref href="#section-108-4">subsection (4)</ref> which do not contain provision made under <ref href="#section-108-5">subsection (5)</ref> are subject to negative resolution.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-108-8"><num>(8)</num><content>In <ref href="#section-108">this section</ref> “<term refersTo="#term-subject-to-negative-resolution" eId="term-subject-to-negative-resolution">subject to negative resolution</term>” has the meaning given by <ref eId="c00141" href="https://www.legislation.gov.uk/apni/1954/33/section/41">section 41</ref><ref eId="c00142" href="https://www.legislation.gov.uk/apni/1954/33/section/41">(6)</ref> of the <ref eId="c00143" href="https://www.legislation.gov.uk/apni/1954/33/contents">Interpretation Act (Northern Ireland) 1954</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-108-9"><num>(9)</num><content>The power of the Department for Communities in Northern Ireland to make regulations under <ref href="#section-108">this section</ref> is exercisable by statutory rule for the purposes of the <ref eId="c00144" href="https://www.legislation.gov.uk/nisi/1979/1573/contents">Statutory Rules (Northern Ireland) Order 1979</ref> (<ref eId="c00145" href="http://www.legislation.gov.uk/id/nisi/1979/1573">S.I. 1979/1573 (N.I. 12)</ref>).</content></subsection>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-4-chapter-2"><num>Chapter 2</num><heading>Pension compensation: indexation</heading><section eId="section-109"><num>109</num><heading>Indexation of periodic compensation for pre-1997 service: Great Britain</heading><subsection eId="section-109-1"><num>(1)</num><content>Schedule 7 to the Pensions Act 2004 (pension compensation provisions) is amended in accordance with subsections <ref href="#section-109-2">(2)</ref> and <ref href="#section-109-3">(3)</ref>.</content></subsection><subsection eId="section-109-2"><num>(2)</num><intro>In paragraph 28—</intro><level class="para1" eId="section-109-2-a"><num>(a)</num><content><mod>for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e18268"><num>(2)</num><intro>Where a person is entitled to periodic compensation under any of those paragraphs, the person is entitled, on the indexation date, to an increase under this paragraph of—</intro><level class="para1"><num>(a)</num><content>where sub-paragraph <ref href="#d25e18313">(2A)</ref> applies, the aggregate of the amount mentioned in sub-paragraph <ref href="#d25e18364">(2C)</ref> and the amount mentioned in sub-paragraph <ref href="#d25e18400">(2E)</ref>;</content></level><level class="para1"><num>(b)</num><content>where sub-paragraph <ref href="#d25e18337">(2B)</ref> applies, the aggregate of the amount mentioned in sub-paragraph <ref href="#d25e18382">(2D)</ref> and the amount mentioned in sub-paragraph <ref href="#d25e18400">(2E)</ref>;</content></level><level class="para1"><num>(c)</num><content>in any other case, the amount mentioned in sub-paragraph <ref href="#d25e18400">(2E)</ref>.</content></level></subparagraph><subparagraph eId="d25e18313"><num>(2A)</num><intro>This sub-paragraph applies where, immediately before the assessment date—</intro><level class="para1" eId="d25e18319"><num>(a)</num><content>the admissible rules of the scheme included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para1"><num>(b)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para1"><num>(c)</num><content>that requirement applied in relation to pre-1997 service in respect of which the compensation is payable.</content></level></subparagraph><subparagraph eId="d25e18337"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(b)</num><content>that accrual was in relation to GMP indexed service in respect of which the compensation is payable, and</content></level><level class="para1"><num>(c)</num><content>sub-paragraph <ref href="#d25e18313">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e18364"><num>(2C)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the pre-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e18382"><num>(2D)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the notional pre-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e18400"><num>(2E)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the post-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e18418"><num>(2F)</num><content>In any case where it is unclear to the Board whether, immediately before the assessment date, the admissible rules of the scheme included a requirement of the kind mentioned in <ref href="#d25e18313">sub-paragraph (2A)</ref><ref href="#d25e18319">(a)</ref>, this paragraph has effect as if the scheme included such a requirement.</content></subparagraph><subparagraph><num>(2G)</num><content>In any case where it is unclear to the Board whether, immediately before the assessment date, a requirement of the scheme of a kind mentioned in <ref href="#d25e18313">sub-paragraph (2A)</ref><ref href="#d25e18319">(a)</ref> (including such a requirement included by virtue of sub-paragraph <ref href="#d25e18418">(2F)</ref>) applied in relation to particular pre-1997 service, this paragraph has effect as if the requirement applied in relation to such service.</content></subparagraph><subparagraph eId="d25e18443"><num>(2H)</num><content>In any case where it is unclear to the Board whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, this paragraph has effect as if the scheme so provided.</content></subparagraph><subparagraph><num>(2I)</num><content>In any case where it is unclear to the Board whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of <ref href="#d25e18443">sub-paragraph (2H)</ref>) was in relation to particular GMP indexed service, this paragraph has effect as if the accrual was in relation to such service.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-109-2-b"><num>(b)</num><intro>in sub-paragraph (3)—</intro><level class="para2" eId="section-109-2-b-i"><num>(i)</num><content><mod>in the opening words for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs <ref href="#d25e18268">(2)</ref> to <ref href="#d25e18400">(2E)</ref>”</quotedText>;</mod></content></level><level class="para2" eId="section-109-2-b-ii"><num>(ii)</num><content><mod>for both definitions of “underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e18497">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e18516">(a)</ref> and <ref href="#d25e18520">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e18542">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e18561">(a)</ref> and <ref href="#d25e18565">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e18587">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e18606">(a)</ref> and <ref href="#d25e18610">(b)</ref> of this definition immediately before the indexation date.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level></level><level class="para1" eId="section-109-2-c"><num>(c)</num><intro>in sub-paragraph (5)—</intro><level class="para2" eId="section-109-2-c-i"><num>(i)</num><content><mod>in paragraph (a), for “sub-paragraph (2), each definition of “underlying rate”” substitute <quotedText>“sub-paragraphs <ref href="#d25e18364">(2C)</ref> to <ref href="#d25e18400">(2E)</ref>, each definition of “notional pre-1997 underlying rate”, “post-1997 underlying rate” and “pre-1997 underlying rate””</quotedText>;</mod></content></level><level class="para2" eId="section-109-2-c-ii"><num>(ii)</num><content><mod>in paragraph (c), for “sub-paragraph (2), the definition of “underlying rate”” substitute <quotedText>“sub-paragraphs <ref href="#d25e18364">(2C)</ref> to <ref href="#d25e18400">(2E)</ref>, the definition of “notional pre-1997 underlying rate”, the definition of “post-1997 underlying rate” and the definition of “pre-1997 underlying rate””</quotedText>;</mod></content></level></level><level class="para1" eId="section-109-2-d"><num>(d)</num><content><mod>in sub-paragraph (6), before the definition of “post-1997 service” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-gmp-equalisation-obligation">GMP equalisation obligation</term>” means any obligation under an enactment, a rule of law or the scheme rules which relates to the removal of inequalities as between men and women in respect of the provision of a guaranteed minimum pension;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-gmp-indexation-period">GMP indexation period</term>” means the period beginning with 6 April 1988 and ending with 5 April 1997;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-gmp-indexed-service">GMP indexed service</term>” means—</intro><level class="para1"><num>(a)</num><content>pensionable service which is within paragraph 36(4)(a) and occurs during the GMP indexation period, or</content></level><level class="para1"><num>(b)</num><content>pensionable service which is within paragraph 36(4)(b) and meets such requirements as may be prescribed;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-guaranteed-minimum-pension">guaranteed minimum pension</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 8(2) of that Act);</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-109-2-e"><num>(e)</num><content><mod>in sub-paragraph (7), for “and “pre-1997 service”” substitute <quotedText>“, “pre-1997 service” and “GMP indexed service””</quotedText>.</mod></content></level></subsection><subsection eId="section-109-3"><num>(3)</num><content><mod>In paragraph 29, for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><intro>The Board may also determine the percentage that is to be—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage for the purposes of sub-paragraphs <ref href="#d25e18364">(2C)</ref> and <ref href="#d25e18382">(2D)</ref> of paragraph 28;</content></level><level class="para1"><num>(b)</num><content>the appropriate percentage for the purposes of sub-paragraph <ref href="#d25e18400">(2E)</ref> of that paragraph,</content></level><wrapUp>(and where it does so, the definition of “appropriate percentage” in paragraph 28(3) does not apply in relation to the sub-paragraph in question).</wrapUp></subparagraph></quotedStructure></mod></content></subsection><subsection eId="section-109-4"><num>(4)</num><content>Schedule 5 to the Pensions Act 2008 (pension compensation payable on discharge of pension compensation credit) is amended in accordance with subsections <ref href="#section-109-5">(5)</ref> and <ref href="#section-109-6">(6)</ref>.</content></subsection><subsection eId="section-109-5"><num>(5)</num><intro>In paragraph 17—</intro><level class="para1" eId="section-109-5-a"><num>(a)</num><content><mod>for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><intro>Subject to sub-paragraph (3), the transferee is entitled, on each indexation date, to an increase of—</intro><level class="para1"><num>(a)</num><content>where <ref href="#d25e18833">sub-paragraph (2A)</ref> applies, the amount mentioned in <ref href="#d25e18935">sub-paragraph (2E)</ref>;</content></level><level class="para1"><num>(b)</num><content>where <ref href="#d25e18872">sub-paragraph (2B)</ref> applies, the amount mentioned in <ref href="#d25e18941">sub-paragraph (2F)</ref>;</content></level><level class="para1"><num>(c)</num><content>where <ref href="#d25e18905">sub-paragraph (2C)</ref> applies, the amount mentioned in <ref href="#d25e18947">sub-paragraph (2G)</ref>;</content></level><level class="para1"><num>(d)</num><content>where <ref href="#d25e18929">sub-paragraph (2D)</ref> applies, the amount mentioned in <ref href="#d25e18953">sub-paragraph (2H)</ref>.</content></level></subparagraph><subparagraph eId="d25e18833"><num>(2A)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with paragraph 3, 5, 8, 11, 15 or 22 of Schedule 7 to the Pensions Act 2004 (“<term refersTo="#term-the-relevant-schedule-7-provisions">the relevant Schedule 7 provisions</term>”), and</content></level><level class="para1" eId="d25e18848"><num>(b)</num><intro>immediately before the assessment date—</intro><level class="para2" eId="d25e18854"><num>(i)</num><content>the admissible rules of the scheme in respect of which that compensation is payable included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para2"><num>(ii)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para2"><num>(iii)</num><content>that requirement applied in relation to pre-1997 service in respect of which that compensation is payable.</content></level></level></subparagraph><subparagraph eId="d25e18872"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with the relevant Schedule 7 provisions,</content></level><level class="para1"><num>(b)</num><content>the scheme in respect of which that compensation is payable provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(c)</num><content>that accrual was in relation to GMP indexed service in respect of which that compensation is payable, and</content></level><level class="para1"><num>(d)</num><content>sub-paragraph <ref href="#d25e18833">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e18905"><num>(2C)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with the relevant Schedule 7 provisions, and</content></level><level class="para1"><num>(b)</num><content>neither sub-paragraph <ref href="#d25e18833">(2A)</ref> nor sub-paragraph <ref href="#d25e18872">(2B)</ref> applies.</content></level></subparagraph><subparagraph eId="d25e18929"><num>(2D)</num><content>This sub-paragraph applies where the transferor's PPF compensation is payable otherwise than in accordance with the relevant Schedule 7 provisions.</content></subparagraph><subparagraph eId="d25e18935"><num>(2E)</num><content>The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e18941"><num>(2F)</num><content>The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the notional pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e18947"><num>(2G)</num><content>The amount mentioned in this sub-paragraph is the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e18953"><num>(2H)</num><content>The amount mentioned in this sub-paragraph is the appropriate percentage of the general underlying rate.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-109-5-b"><num>(b)</num><content><mod>in sub-paragraph (3), for “(2)” substitute <quotedText>“<ref href="#d25e18935">(2E)</ref>, <ref href="#d25e18941">(2F)</ref>, <ref href="#d25e18947">(2G)</ref> or <ref href="#d25e18953">(2H)</ref> (as the case may be)”</quotedText>;</mod></content></level><level class="para1" eId="section-109-5-c"><num>(c)</num><content><mod>after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(3A)</num><intro>For the purposes of sub-paragraphs <ref href="#d25e18833">(2A)</ref> to <ref href="#d25e18905">(2C)</ref>—</intro><level class="para1" eId="d25e19001"><num>(a)</num><content>in any case where it is unclear to the Board whether, immediately before the assessment date, the admissible rules of the scheme included a requirement of the kind mentioned in <ref href="#d25e18833">sub-paragraph (2A)</ref><ref href="#d25e18848">(b)</ref><ref href="#d25e18854">(i)</ref>, those sub-paragraphs have effect as if the scheme included such a requirement;</content></level><level class="para1"><num>(b)</num><content>in any case where it is unclear to the Board whether, immediately before the assessment date, a requirement of the scheme of a kind mentioned in <ref href="#d25e18833">sub-paragraph (2A)</ref><ref href="#d25e18848">(b)</ref><ref href="#d25e18854">(i)</ref> (including such a requirement included by virtue of paragraph <ref href="#d25e19001">(a)</ref>) applied in relation to particular pre-1997 service, those sub-paragraphs have effect as if the requirement applied in relation to such service;</content></level><level class="para1" eId="d25e19030"><num>(c)</num><content>in any case where it is unclear to the Board whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, those sub-paragraphs have effect as if the scheme so provided;</content></level><level class="para1"><num>(d)</num><content>in any case where it is unclear to the Board whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of paragraph <ref href="#d25e19030">(c)</ref>) was in relation to particular GMP indexed service, those sub-paragraphs have effect as if the accrual was in relation to such service.</content></level></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-109-5-d"><num>(d)</num><intro>in sub-paragraph (4)—</intro><level class="para2" eId="section-109-5-d-i"><num>(i)</num><content><mod>in the opening words, for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs (2) to <ref href="#d25e18953">(2H)</ref>”</quotedText>;</mod></content></level><level class="para2" eId="section-109-5-d-ii"><num>(ii)</num><content><mod>for the definition of “the underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-the-general-underlying-rate">the general underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the general indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e19081">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e19081">(a)</ref> and <ref href="#d25e19085">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-notional-pre-1997-underlying-rate">the notional pre-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the notional pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e19110">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e19110">(a)</ref> and <ref href="#d25e19114">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-post-1997-underlying-rate">the post-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the post-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e19139">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e19139">(a)</ref> and <ref href="#d25e19143">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-pre-1997-underlying-rate">the pre-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e19168">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e19168">(a)</ref> and <ref href="#d25e19172">(b)</ref>.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level></level><level class="para1" eId="section-109-5-e"><num>(e)</num><content>omit sub-paragraphs (5) and (6);</content></level><level class="para1" eId="section-109-5-f"><num>(f)</num><content><mod>before sub-paragraph (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(6A)</num><content>For the purposes of paragraph (a) of the definition of “the general underlying rate”, “the general indexed proportion” is such proportion as is determined in accordance with regulations made by the Secretary of State.</content></subparagraph><subparagraph><num>(6B)</num><content>For the purposes of paragraph (a) of the definition of “the notional pre-1997 underlying rate”, “the notional pre-1997 indexed proportion” is such proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of Schedule 7 to the Pensions Act 2004 under which the transferor’s PPF compensation is payable that is attributable to pre-1997 service as may be prescribed.</content></subparagraph><subparagraph><num>(6C)</num><content>For the purposes of paragraph (a) of the definition of “the post-1997 underlying rate”, “the post-1997 indexed proportion” is the proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of that Schedule under which the transferor’s PPF compensation is payable that is attributable to post-1997 service.</content></subparagraph><subparagraph><num>(6D)</num><content>For the purposes of paragraph (a) of the definition of “the pre-1997 underlying rate”, “the pre-1997 indexed proportion” is the proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of that Schedule under which the transferor’s PPF compensation is payable that is attributable to pre-1997 service.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-109-5-g"><num>(g)</num><content><mod>in sub-paragraph (7), for ““the underlying rate”” substitute <quotedText>““the general underlying rate”, the definition of “the notional pre-1997 underlying rate”, the definition of “the post-1997 underlying rate” and the definition of “the pre-1997 underlying rate””</quotedText>;</mod></content></level><level class="para1" eId="section-109-5-h"><num>(h)</num><content><mod>in sub-paragraph (9), for the definition of “post-1997 service” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-gmp-equalisation-obligation">GMP equalisation obligation</term>” has the same meaning as in paragraph 28 of Schedule 7 to the Pensions Act 2004 (annual increase in periodic pension compensation);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-gmp-indexation-period">GMP indexation period</term>” means the period beginning with 6 April 1988 and ending with 5 April 1997;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-guaranteed-minimum-pension">guaranteed minimum pension</term>” has the same meaning as in the Pension Schemes Act 1993 (see section 8(2) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-post-1997-service">post-1997 service</term>”, “<term refersTo="#term-pre-1997-service">pre-1997 service</term>” and “<term refersTo="#term-gmp-indexed-service">GMP indexed service</term>” have the same meaning as in paragraph 28 of Schedule 7 to the Pensions Act 2004;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-assessment-date">the assessment date</term>” and “<term refersTo="#term-admissible-rules">admissible rules</term>”, in relation to a pension scheme, have the same meaning as in that Schedule (see paragraphs 2 and 35 of that Schedule);</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></level></subsection><subsection eId="section-109-6"><num>(6)</num><content><mod>In paragraph 20, in sub-paragraph (1)(b), for “for the purposes of paragraph 17(2)” substitute <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para2"><num>(i)</num><content>of the pre-1997 underlying rate and of the notional pre-1997 underlying rate for the purposes of sub-paragraphs <ref href="#d25e18935">(2E)</ref> and <ref href="#d25e18941">(2F)</ref> of paragraph 17;</content></level><level class="para2"><num>(ii)</num><content>of the post-1997 underlying rate for the purposes of sub-paragraphs <ref href="#d25e18935">(2E)</ref>, <ref href="#d25e18941">(2F)</ref> and <ref href="#d25e18947">(2G)</ref> of that paragraph;</content></level><level class="para2"><num>(iii)</num><content>of the general underlying rate for the purposes of sub-paragraph <ref href="#d25e18953">(2H)</ref> of that paragraph.</content></level></quotedStructure></mod></content></subsection></section><section eId="section-110"><num>110</num><heading>Indexation of periodic compensation for pre-1997 service: Northern Ireland</heading><subsection eId="section-110-1"><num>(1)</num><content>Schedule 6 to the Pensions (Northern Ireland) Order 2005 (<ref eId="c00146" href="http://www.legislation.gov.uk/id/nisi/2005/255">S.I. 2005/255 (N.I. 1)</ref>) (pension compensation provisions) is amended in accordance with subsections <ref href="#section-110-2">(2)</ref> and <ref href="#section-110-3">(3)</ref>.</content></subsection><subsection eId="section-110-2"><num>(2)</num><intro>In paragraph 28—</intro><level class="para1" eId="section-110-2-a"><num>(a)</num><content><mod>for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e19374"><num>(2)</num><intro>Where a person is entitled to periodic compensation under any of those paragraphs, the person is entitled, on the indexation date, to an increase under this paragraph of—</intro><level class="para1"><num>(a)</num><content>where sub-paragraph <ref href="#d25e19419">(2A)</ref> applies, the aggregate of the amount mentioned in sub-paragraph <ref href="#d25e19470">(2C)</ref> and the amount mentioned in sub-paragraph <ref href="#d25e19506">(2E)</ref>;</content></level><level class="para1"><num>(b)</num><content>where sub-paragraph <ref href="#d25e19443">(2B)</ref> applies, the aggregate of the amount mentioned in sub-paragraph <ref href="#d25e19488">(2D)</ref> and the amount mentioned in sub-paragraph <ref href="#d25e19506">(2E)</ref>;</content></level><level class="para1"><num>(c)</num><content>in any other case, the amount mentioned in sub-paragraph <ref href="#d25e19506">(2E)</ref>.</content></level></subparagraph><subparagraph eId="d25e19419"><num>(2A)</num><intro>This sub-paragraph applies where, immediately before the assessment date—</intro><level class="para1" eId="d25e19425"><num>(a)</num><content>the admissible rules of the scheme included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para1"><num>(b)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para1"><num>(c)</num><content>that requirement applied in relation to pre-1997 service in respect of which the compensation is payable.</content></level></subparagraph><subparagraph eId="d25e19443"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(b)</num><content>that accrual was in relation to GMP indexed service in respect of which the compensation is payable, and</content></level><level class="para1"><num>(c)</num><content>sub-paragraph <ref href="#d25e19419">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e19470"><num>(2C)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the pre-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e19488"><num>(2D)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the notional pre-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e19506"><num>(2E)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the post-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e19524"><num>(2F)</num><content>In any case where it is unclear to the Board whether, immediately before the assessment date, the admissible rules of the scheme included a requirement of the kind mentioned in <ref href="#d25e19419">sub-paragraph (2A)</ref><ref href="#d25e19425">(a)</ref>, this paragraph has effect as if the scheme included such a requirement.</content></subparagraph><subparagraph><num>(2G)</num><content>In any case where it is unclear to the Board whether, immediately before the assessment date, a requirement of the scheme of a kind mentioned in <ref href="#d25e19419">sub-paragraph (2A)</ref><ref href="#d25e19425">(a)</ref> (including such a requirement included by virtue of sub-paragraph <ref href="#d25e19524">(2F)</ref>) applied in relation to particular pre-1997 service, this paragraph has effect as if the requirement applied in relation to such service.</content></subparagraph><subparagraph eId="d25e19549"><num>(2H)</num><content>In any case where it is unclear to the Board whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, this paragraph has effect as if the scheme so provided.</content></subparagraph><subparagraph><num>(2I)</num><content>In any case where it is unclear to the Board whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of sub-paragraph <ref href="#d25e19549">(2H)</ref>) was in relation to particular GMP indexed service, this paragraph has effect as if the accrual was in relation to such service.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-110-2-b"><num>(b)</num><intro>in sub-paragraph (3)—</intro><level class="para2" eId="section-110-2-b-i"><num>(i)</num><content><mod>in the opening words for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs <ref href="#d25e19374">(2)</ref> to <ref href="#d25e19506">(2E)</ref>”</quotedText>;</mod></content></level><level class="para2" eId="section-110-2-b-ii"><num>(ii)</num><content><mod>for both definitions of “underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e19603">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e19622">(a)</ref> and <ref href="#d25e19626">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e19648">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e19667">(a)</ref> and <ref href="#d25e19671">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e19693">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e19712">(a)</ref> and <ref href="#d25e19716">(b)</ref> of this definition immediately before the indexation date.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level></level><level class="para1" eId="section-110-2-c"><num>(c)</num><intro>in sub-paragraph (5)—</intro><level class="para2" eId="section-110-2-c-i"><num>(i)</num><content><mod>in paragraph (a), for “sub-paragraph (2), each definition of “underlying rate”” substitute <quotedText>“sub-paragraphs <ref href="#d25e19470">(2C)</ref> to <ref href="#d25e19506">(2E)</ref>, each definition of “notional pre-1997 underlying rate”, “post-1997 underlying rate” and “pre-1997 underlying rate””</quotedText>;</mod></content></level><level class="para2" eId="section-110-2-c-ii"><num>(ii)</num><content><mod>in paragraph (c), for “sub-paragraph (2), the definition of “underlying rate”” substitute <quotedText>“sub-paragraphs <ref href="#d25e19470">(2C)</ref> to <ref href="#d25e19506">(2E)</ref>, the definition of “notional pre-1997 underlying rate”, the definition of “post-1997 underlying rate” and the definition of “pre-1997 underlying rate””</quotedText>;</mod></content></level></level><level class="para1" eId="section-110-2-d"><num>(d)</num><content><mod>in sub-paragraph (6), before the definition of “post-1997 service” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-gmp-equalisation-obligation">GMP equalisation obligation</term>” means any obligation under an enactment, a rule of law or the scheme rules which relates to the removal of inequalities as between men and women in respect of the provision of a guaranteed minimum pension;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-gmp-indexation-period">GMP indexation period</term>” means the period beginning with 6 April 1988 and ending with 5 April 1997;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-gmp-indexed-service">GMP indexed service</term>” means—</intro><level class="para1"><num>(a)</num><content>pensionable service which is within paragraph 36(4)(a) and occurs during the GMP indexation period, or</content></level><level class="para1"><num>(b)</num><content>pensionable service which is within paragraph 36(4)(b) and meets such requirements as may be prescribed;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-guaranteed-minimum-pension">guaranteed minimum pension</term>” has the same meaning as in the Pension Schemes Act (see section 4(2) of that Act);</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-110-2-e"><num>(e)</num><content><mod>in sub-paragraph (7), for “and “pre-1997 service”” substitute <quotedText>“, “pre-1997 service” and “GMP indexed service””</quotedText>.</mod></content></level></subsection><subsection eId="section-110-3"><num>(3)</num><content><mod>In paragraph 29, for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><intro>The Board may also determine the percentage that is to be—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage for the purposes of sub-paragraphs <ref href="#d25e19470">(2C)</ref> and <ref href="#d25e19488">(2D)</ref> of paragraph 28;</content></level><level class="para1"><num>(b)</num><content>the appropriate percentage for the purposes of sub-paragraph <ref href="#d25e19506">(2E)</ref> of that paragraph,</content></level><wrapUp>(and where it does so, the definition of “appropriate percentage” in paragraph 28(3) does not apply in relation to the sub-paragraph in question).</wrapUp></subparagraph></quotedStructure></mod></content></subsection><subsection eId="section-110-4"><num>(4)</num><content>Schedule 4 to the Pensions (No.2) Act (Northern Ireland) 2008 (pension compensation payable on discharge of pension compensation credit) is amended in accordance with subsections <ref href="#section-110-5">(5)</ref> and <ref href="#section-110-6">(6)</ref>.</content></subsection><subsection eId="section-110-5"><num>(5)</num><intro>In paragraph 17—</intro><level class="para1" eId="section-110-5-a"><num>(a)</num><content><mod>for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><intro>Subject to sub-paragraph (3), the transferee is entitled, on each indexation date, to an increase of—</intro><level class="para1"><num>(a)</num><content>where <ref href="#d25e19939">sub-paragraph (2A)</ref> applies, the amount mentioned in <ref href="#d25e20041">sub-paragraph (2E)</ref>;</content></level><level class="para1"><num>(b)</num><content>where <ref href="#d25e19978">sub-paragraph (2B)</ref> applies, the amount mentioned in <ref href="#d25e20047">sub-paragraph (2F)</ref>;</content></level><level class="para1"><num>(c)</num><content>where <ref href="#d25e20011">sub-paragraph (2C)</ref> applies, the amount mentioned in <ref href="#d25e20053">sub-paragraph (2G)</ref>;</content></level><level class="para1"><num>(d)</num><content>where <ref href="#d25e20035">sub-paragraph (2D)</ref> applies, the amount mentioned in <ref href="#d25e20059">sub-paragraph (2H)</ref>.</content></level></subparagraph><subparagraph eId="d25e19939"><num>(2A)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with paragraph 3, 5, 8, 11, 15 or 22 of Schedule 6 to the 2005 Order (“<term refersTo="#term-the-relevant-schedule-6-provisions">the relevant Schedule 6 provisions</term>”), and</content></level><level class="para1" eId="d25e19954"><num>(b)</num><intro>immediately before the assessment date —</intro><level class="para2" eId="d25e19960"><num>(i)</num><content>the admissible rules of the scheme in respect of which that compensation is payable included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para2"><num>(ii)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para2"><num>(iii)</num><content>that requirement applied in relation to pre-1997 service in respect of which that compensation is payable.</content></level></level></subparagraph><subparagraph eId="d25e19978"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with the relevant Schedule 6 provisions,</content></level><level class="para1"><num>(b)</num><content>the scheme in respect of which that compensation is payable provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(c)</num><content>that accrual was in relation to GMP indexed service in respect of which that compensation is payable, and</content></level><level class="para1"><num>(d)</num><content>sub-paragraph <ref href="#d25e19939">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e20011"><num>(2C)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with the relevant Schedule 6 provisions, and</content></level><level class="para1"><num>(b)</num><content>neither sub-paragraph <ref href="#d25e19939">(2A)</ref> nor sub-paragraph <ref href="#d25e19978">(2B)</ref> applies.</content></level></subparagraph><subparagraph eId="d25e20035"><num>(2D)</num><content>This sub-paragraph applies where the transferor's PPF compensation is payable otherwise than in accordance with the relevant Schedule 6 provisions.</content></subparagraph><subparagraph eId="d25e20041"><num>(2E)</num><content>The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e20047"><num>(2F)</num><content>The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the notional pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e20053"><num>(2G)</num><content>The amount mentioned in this sub-paragraph is the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e20059"><num>(2H)</num><content>The amount mentioned in this sub-paragraph is the appropriate percentage of the general underlying rate.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-110-5-b"><num>(b)</num><content><mod>in sub-paragraph (3), for “(2)” substitute <quotedText>“<ref href="#d25e20041">(2E)</ref>, <ref href="#d25e20047">(2F)</ref>, <ref href="#d25e20053">(2G)</ref> or <ref href="#d25e20059">(2H)</ref> (as the case may be)”</quotedText>;</mod></content></level><level class="para1" eId="section-110-5-c"><num>(c)</num><content><mod>after sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(3A)</num><intro>For the purposes of sub-paragraphs <ref href="#d25e19939">(2A)</ref> to <ref href="#d25e20011">(2C)</ref>—</intro><level class="para1" eId="d25e20107"><num>(a)</num><content>in any case where it is unclear to the Board whether, immediately before the assessment date, the admissible rules of the scheme included a requirement of the kind mentioned in <ref href="#d25e19939">sub-paragraph (2A)</ref><ref href="#d25e19954">(b)</ref><ref href="#d25e19960">(i)</ref>, those sub-paragraphs have effect as if the scheme included such a requirement;</content></level><level class="para1"><num>(b)</num><content>in any case where it is unclear to the Board whether, immediately before the assessment date, a requirement of the scheme of a kind mentioned in <ref href="#d25e19939">sub-paragraph (2A)</ref><ref href="#d25e19954">(b)</ref><ref href="#d25e19960">(i)</ref> (including such a requirement included by virtue of paragraph <ref href="#d25e20107">(a)</ref>) applied in relation to particular pre-1997 service, those sub-paragraphs have effect as if the requirement applied in relation to such service;</content></level><level class="para1" eId="d25e20136"><num>(c)</num><content>in any case where it is unclear to the Board whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, those sub-paragraphs have effect as if the scheme so provided;</content></level><level class="para1"><num>(d)</num><content>in any case where it is unclear to the Board whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of paragraph <ref href="#d25e20136">(c)</ref>) was in relation to particular GMP indexed service, those sub-paragraphs have effect as if the accrual was in relation to such service.</content></level></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-110-5-d"><num>(d)</num><intro>in sub-paragraph (4)—</intro><level class="para2" eId="section-110-5-d-i"><num>(i)</num><content><mod>in the opening words, for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs (2) to <ref href="#d25e20059">(2H)</ref>”</quotedText>;</mod></content></level><level class="para2" eId="section-110-5-d-ii"><num>(ii)</num><content><mod>for the definition of “the underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-the-general-underlying-rate">the general underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the general indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e20187">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e20187">(a)</ref> and <ref href="#d25e20191">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-notional-pre-1997-underlying-rate">the notional pre-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the notional pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e20216">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e20216">(a)</ref> and <ref href="#d25e20220">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-post-1997-underlying-rate">the post-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the post-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e20245">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e20245">(a)</ref> and <ref href="#d25e20249">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-pre-1997-underlying-rate">the pre-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e20274">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e20274">(a)</ref> and <ref href="#d25e20278">(b)</ref>.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level></level><level class="para1" eId="section-110-5-e"><num>(e)</num><content>omit sub-paragraphs (5) and (6);</content></level><level class="para1" eId="section-110-5-f"><num>(f)</num><content><mod>before sub-paragraph (7) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(6A)</num><content>For the purposes of paragraph (a) of the definition of “the general underlying rate”, “the general indexed proportion” is such proportion as is determined in accordance with regulations made by the Department.</content></subparagraph><subparagraph><num>(6B)</num><content>For the purposes of paragraph (a) of the definition of “the notional pre-1997 underlying rate”, “the notional pre-1997 indexed proportion” is such proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of Schedule 6 to the 2005 Order under which the transferor’s PPF compensation is payable that is attributable to pre-1997 service as may be prescribed.</content></subparagraph><subparagraph><num>(6C)</num><content>For the purposes of paragraph (a) of the definition of “the post-1997 underlying rate”, “the post-1997 indexed proportion” is the proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of that Schedule under which the transferor’s PPF compensation is payable that is attributable to post-1997 service.</content></subparagraph><subparagraph><num>(6D)</num><content>For the purposes of paragraph (a) of the definition of “the pre-1997 underlying rate”, “the pre-1997 indexed proportion” is the proportion of the amount mentioned in sub-paragraph (3)(a) of the paragraph of that Schedule under which the transferor’s PPF compensation is payable that is attributable to pre-1997 service.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-110-5-g"><num>(g)</num><content><mod>in sub-paragraph (7), for ““the underlying rate”” substitute <quotedText>““the general underlying rate”, the definition of “the notional pre-1997 underlying rate”, the definition of “the post-1997 underlying rate” and the definition of “the pre-1997 underlying rate””</quotedText>;</mod></content></level><level class="para1" eId="section-110-5-h"><num>(h)</num><content><mod>for sub-paragraph (9) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(9)</num><intro>In this paragraph—</intro><hcontainer name="definition"><content>“<term refersTo="#term-gmp-equalisation-obligation">GMP equalisation obligation</term>” has the same meaning as in paragraph 28 of Schedule 6 to the 2005 Order (annual increase in periodic pension compensation);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-gmp-indexation-period">GMP indexation period</term>” means the period beginning with 6 April 1988 and ending with 5 April 1997;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-guaranteed-minimum-pension">guaranteed minimum pension</term>” has the same meaning as in the Pension Schemes Act (see section 4(2) of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-post-1997-service">post-1997 service</term>”, “<term refersTo="#term-pre-1997-service">pre-1997 service</term>” and “<term refersTo="#term-gmp-indexed-service">GMP indexed service</term>” have the same meaning as in paragraph 28 of Schedule 6 to the 2005 Order;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-assessment-date">the assessment date</term>” and “<term refersTo="#term-admissible-rules">admissible rules</term>”, in relation to a pension scheme, have the same meaning as in that Schedule (see paragraphs 2 and 35 of that Schedule).</content></hcontainer></subparagraph></quotedStructure></mod></content></level></subsection><subsection eId="section-110-6"><num>(6)</num><content><mod>In paragraph 20, in sub-paragraph (1)(b), for “for the purposes of paragraph 17(2)” substitute <quotedText startQuote="“">—</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para2"><num>(i)</num><content>of the pre-1997 underlying rate and of the notional pre-1997 underlying rate for the purposes of sub-paragraphs <ref href="#d25e20041">(2E)</ref> and <ref href="#d25e20047">(2F)</ref> of paragraph 17;</content></level><level class="para2"><num>(ii)</num><content>of the post-1997 underlying rate for the purposes of sub-paragraphs <ref href="#d25e20041">(2E)</ref>, <ref href="#d25e20047">(2F)</ref> and <ref href="#d25e20053">(2G)</ref> of that paragraph;</content></level><level class="para2"><num>(iii)</num><content>of the general underlying rate for the purposes of sub-paragraph <ref href="#d25e20059">(2H)</ref> of that paragraph.</content></level></quotedStructure></mod></content></subsection></section><section eId="section-111"><num>111</num><heading>Financial Assistance Scheme: indexation of payments for pre-1997 service</heading><subsection eId="section-111-1"><num>(1)</num><content>The Financial Assistance Scheme Regulations 2005 (<ref eId="c00147" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) are amended as follows.</content></subsection><subsection eId="section-111-2"><num>(2)</num><content><mod>In paragraph 7(1)(b) of Schedule 2 (determination of annual and initial payments), after “(b)(i)” insert <quotedText>“, <ref href="#d25e20544">(ia)</ref> and <ref href="#d25e20553">(ib)</ref>”</quotedText>.</mod></content></subsection><subsection eId="section-111-3"><num>(3)</num><content>Paragraph 9 of that Schedule is amended in accordance with subsections <ref href="#section-111-4">(4)</ref> to <ref href="#section-111-6">(6)</ref>.</content></subsection><subsection eId="section-111-4"><num>(4)</num><intro>In sub-paragraph (2)—</intro><level class="para1" eId="section-111-4-a"><num>(a)</num><content><mod>in paragraph (a) of the definition of “underlying rate”, after sub-paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(ia)</num><content>where <ref href="#d25e20604">sub-paragraph (2A)</ref> applies, the product of X multiplied by so much of the expected pension as is attributable to pre-1997 service;</content></level><level class="para2"><num>(ib)</num><content>where <ref href="#d25e20628">sub-paragraph (2B)</ref> applies, the product of X multiplied by the relevant percentage of so much of the expected pension as is attributable to pre-1997 service;</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-111-4-b"><num>(b)</num><intro>in paragraph (b) of the definition of “underlying rate”—</intro><level class="para2" eId="section-111-4-b-i"><num>(i)</num><content>omit the “and” at the end of sub-paragraph (i);</content></level><level class="para2" eId="section-111-4-b-ii"><num>(ii)</num><content><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2" eId="d25e20544"><num>(ia)</num><content>where <ref href="#d25e20604">sub-paragraph (2A)</ref> applies, so much of the expected pension as is, proportionally, attributable to pre-1997 service;</content></level><level class="para2" eId="d25e20553"><num>(ib)</num><content>where <ref href="#d25e20628">sub-paragraph (2B)</ref> applies, the relevant percentage of so much of the expected pension as is, proportionally, attributable to pre-1997 service; and</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level></level><level class="para1" eId="section-111-4-c"><num>(c)</num><content><mod>after the definition of “post-1997 service” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-service">pre-1997 service</term>” means—</intro><level class="para1"><num>(a)</num><content>pensionable service (whether actual or notional) which occurs before 6th April 1997; or</content></level><level class="para1"><num>(b)</num><content>where the annual payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred before 6th April 1997;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-percentage">relevant percentage</term>” means such percentage as may be determined by the Secretary of State;</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></level></subsection><subsection eId="section-111-5"><num>(5)</num><content><mod>After sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e20604"><num>(2A)</num><intro>This sub-paragraph applies where, immediately before the qualifying pension scheme began to wind up—</intro><level class="para1" eId="d25e20610"><num>(a)</num><content>the scheme rules included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para1"><num>(b)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para1"><num>(c)</num><content>that requirement applied in relation to pre-1997 service in respect of which the annual payment is payable.</content></level></subparagraph><subparagraph eId="d25e20628"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the qualifying pension scheme provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(b)</num><content>that accrual was in relation to GMP indexed service in respect of which the annual payment is payable, and</content></level><level class="para1"><num>(c)</num><content>sub-paragraph <ref href="#d25e20604">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e20655"><num>(2C)</num><intro>For the purposes of sub-paragraphs <ref href="#d25e20604">(2A)</ref> and <ref href="#d25e20628">(2B)</ref>—</intro><level class="para1" eId="d25e20667"><num>(a)</num><content>in any case where it is unclear to the scheme manager whether, immediately before the scheme began to wind up, the scheme rules included a requirement of the kind mentioned in <ref href="#d25e20604">sub-paragraph (2A)</ref><ref href="#d25e20610">(a)</ref>, those sub-paragraphs have effect as if the scheme included such a requirement;</content></level><level class="para1"><num>(b)</num><content>in any case where it is unclear to the scheme manager whether, immediately before the scheme began to wind up, a requirement of the scheme of a kind mentioned in <ref href="#d25e20604">sub-paragraph (2A)</ref><ref href="#d25e20610">(a)</ref> (including such a requirement included by virtue of paragraph <ref href="#d25e20667">(a)</ref>) applied in relation to particular pre-1997 service, those sub-paragraphs have effect as if the requirement applied in relation to such service;</content></level><level class="para1" eId="d25e20692"><num>(c)</num><content>in any case where it is unclear to the scheme manager whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, those sub-paragraphs have effect as if the scheme so provided;</content></level><level class="para1"><num>(d)</num><content>in any case where it is unclear to the scheme manager whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of paragraph <ref href="#d25e20692">(c)</ref>) was in relation to particular GMP indexed service, those sub-paragraphs have effect as if the accrual was in relation to such service.</content></level></subparagraph><subparagraph><num>(2D)</num><intro>In sub-paragraphs <ref href="#d25e20604">(2A)</ref> to <ref href="#d25e20655">(2C)</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-gmp-equalisation-obligation">GMP equalisation obligation</term>” means any obligation under an enactment, a rule of law or the scheme rules which relates to the removal of inequalities as between men and women in respect of the provision of a guaranteed minimum pension;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-gmp-indexation-period">GMP indexation period</term>” means the period beginning with 6 April 1988 and ending with 5 April 1997;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-gmp-indexed-service">GMP indexed service</term>” means—</intro><level class="para1"><num>(a)</num><content>pensionable service (whether actual or notional) which occurs during the GMP indexation period; or</content></level><level class="para1"><num>(b)</num><content>where the annual payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred during the GMP indexation period.</content></level></hcontainer></subparagraph></quotedStructure></mod></content></subsection><subsection eId="section-111-6"><num>(6)</num><intro>In sub-paragraph (3)—</intro><level class="para1" eId="section-111-6-a"><num>(a)</num><content><mod>after “attributable to” insert <quotedText>“pre-1997 service or”</quotedText>;</mod></content></level><level class="para1" eId="section-111-6-b"><num>(b)</num><content><mod>for “that amount” substitute <quotedText>“the amount in question”</quotedText>.</mod></content></level></subsection><subsection eId="section-111-7"><num>(7)</num><content><mod>In paragraph 7(1)(b) of Schedule 2A (determination of ill health and interim ill health payments), after “(b)(i)” insert <quotedText>“, <ref href="#d25e20544">(ia)</ref> and <ref href="#d25e20553">(ib)</ref>”</quotedText>.</mod></content></subsection><subsection eId="section-111-8"><num>(8)</num><content>Paragraph 9 of that Schedule is amended in accordance with subsections <ref href="#section-111-9">(9)</ref> to <ref href="#section-111-11">(11)</ref>.</content></subsection><subsection eId="section-111-9"><num>(9)</num><intro>In sub-paragraph (2)—</intro><level class="para1" eId="section-111-9-a"><num>(a)</num><content><mod>after the definition of “E” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-ea">EA</term>” means so much of the expected pension as is attributable to pre-1997 service;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-eb">EB</term>” means the relevant percentage of so much of the expected pension as is attributable to pre-1997 service;</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-111-9-b"><num>(b)</num><content><mod>after the definition of “post-1997 service” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-service">pre-1997 service</term>” means—</intro><level class="para1"><num>(a)</num><content>pensionable service (whether actual or notional) which occurs before 6th April 1997; or</content></level><level class="para1"><num>(b)</num><content>where the ill health payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred before 6th April 1997;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-percentage">relevant percentage</term>” means such percentage as may be determined by the Secretary of State;</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-111-9-c"><num>(c)</num><content><mod>in paragraph (a) of the definition of “underlying rate”, after sub-paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(ia)</num><content>where sub-paragraph <ref href="#d25e20943">(2A)</ref> applies, the product of X multiplied by (C x EA);</content></level><level class="para2"><num>(ib)</num><content>where sub-paragraph <ref href="#d25e20967">(2B)</ref> applies, the product of X multiplied by (C x EB);</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="section-111-9-d"><num>(d)</num><intro>in paragraph (b) of the definition of “underlying rate”—</intro><level class="para2" eId="section-111-9-d-i"><num>(i)</num><content>omit the “and” at the end of sub-paragraph (i);</content></level><level class="para2" eId="section-111-9-d-ii"><num>(ii)</num><content><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(ia)</num><content>where sub-paragraph <ref href="#d25e20943">(2A)</ref> applies, so much of the amount “<term refersTo="#term-a">A</term>” for the purposes of paragraph 2 as is, proportionately, attributable to pre-1997 service;</content></level><level class="para2"><num>(ib)</num><content>where sub-paragraph <ref href="#d25e20967">(2B)</ref> applies, the relevant percentage of so much of the amount “<term refersTo="#term-a">A</term>” for the purposes of paragraph 2 as is, proportionately, attributable to pre-1997 service; and</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></level></level></subsection><subsection eId="section-111-10"><num>(10)</num><content><mod>After sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e20943"><num>(2A)</num><intro>This sub-paragraph applies where immediately before the qualifying pension scheme began to wind up—</intro><level class="para1" eId="d25e20949"><num>(a)</num><content>the scheme rules included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para1"><num>(b)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para1"><num>(c)</num><content>that requirement applied in relation to pre-1997 service in respect of which the ill health payment is payable.</content></level></subparagraph><subparagraph eId="d25e20967"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the qualifying pension scheme provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(b)</num><content>that accrual was in relation to GMP indexed service in respect of which the ill health payment is payable, and</content></level><level class="para1"><num>(c)</num><content>sub-paragraph <ref href="#d25e20943">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e20994"><num>(2C)</num><intro>For the purposes of sub-paragraphs <ref href="#d25e20943">(2A)</ref> and <ref href="#d25e20967">(2B)</ref>—</intro><level class="para1" eId="d25e21006"><num>(a)</num><content>in any case where it is unclear to the scheme manager whether, immediately before the scheme began to wind up, the scheme rules included a requirement of the kind mentioned in <ref href="#d25e20943">sub-paragraph (2A)</ref><ref href="#d25e20949">(a)</ref>, those sub-paragraphs have effect as if the scheme included such a requirement;</content></level><level class="para1"><num>(b)</num><content>in any case where it is unclear to the scheme manager whether, immediately before the scheme began to wind up, a requirement of the scheme of a kind mentioned in <ref href="#d25e20943">sub-paragraph (2A)</ref><ref href="#d25e20949">(a)</ref> (including such a requirement included by virtue of paragraph <ref href="#d25e21006">(a)</ref>) applied in relation to particular pre-1997 service, those sub-paragraphs have effect as if the requirement applied in relation to such service;</content></level><level class="para1" eId="d25e21031"><num>(c)</num><content>in any case where it is unclear to the scheme manager whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, those sub-paragraphs have effect as if the scheme so provided;</content></level><level class="para1"><num>(d)</num><content>in any case where it is unclear to the scheme manager whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of paragraph <ref href="#d25e21031">(c)</ref>) was in relation to particular GMP indexed service, those sub-paragraphs have effect as if the accrual was in relation to such service.</content></level></subparagraph><subparagraph><num>(2D)</num><intro>In sub-paragraphs <ref href="#d25e20943">(2A)</ref> to <ref href="#d25e20994">(2C)</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-gmp-equalisation-obligation">GMP equalisation obligation</term>” means any obligation under an enactment, a rule of law or the scheme rules which relates to the removal of inequalities as between men and women in respect of the provision of a guaranteed minimum pension;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-gmp-indexation-period">GMP indexation period</term>” means the period beginning with 6 April 1988 and ending with 5 April 1997;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-gmp-indexed-service">GMP indexed service</term>” means—</intro><level class="para1"><num>(a)</num><content>pensionable service (whether actual or notional) which occurs during the GMP indexation period; or</content></level><level class="para1"><num>(b)</num><content>where the ill health payment is payable to, or in respect of, a qualifying member who is, or was, a pension credit member of the scheme, pension credit rights deriving from rights attributable to service (whether actual or notional) which occurred during the GMP indexation period;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-guaranteed-minimum-pension">guaranteed minimum pension</term>” has the meaning given in section 8(2) of the 1993 Act.</content></hcontainer></subparagraph></quotedStructure></mod></content></subsection><subsection eId="section-111-11"><num>(11)</num><intro>In sub-paragraph (3)—</intro><level class="para1" eId="section-111-11-a"><num>(a)</num><content><mod>after “attributable to” insert <quotedText>“pre-1997 service or”</quotedText>;</mod></content></level><level class="para1" eId="section-111-11-b"><num>(b)</num><content><mod>for “that amount” substitute <quotedText>“the amount in question”</quotedText>.</mod></content></level></subsection></section></chapter>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-109-1"><num>(1)</num><content>Schedule 7 to the Pensions Act 2004 (pension compensation provisions) is amended in accordance with subsections <ref href="#section-109-2">(2)</ref> and <ref href="#section-109-3">(3)</ref>.</content></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-109-2-a"><num>(a)</num><content><mod>for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e18268"><num>(2)</num><intro>Where a person is entitled to periodic compensation under any of those paragraphs, the person is entitled, on the indexation date, to an increase under this paragraph of—</intro><level class="para1"><num>(a)</num><content>where sub-paragraph <ref href="#d25e18313">(2A)</ref> applies, the aggregate of the amount mentioned in sub-paragraph <ref href="#d25e18364">(2C)</ref> and the amount mentioned in sub-paragraph <ref href="#d25e18400">(2E)</ref>;</content></level><level class="para1"><num>(b)</num><content>where sub-paragraph <ref href="#d25e18337">(2B)</ref> applies, the aggregate of the amount mentioned in sub-paragraph <ref href="#d25e18382">(2D)</ref> and the amount mentioned in sub-paragraph <ref href="#d25e18400">(2E)</ref>;</content></level><level class="para1"><num>(c)</num><content>in any other case, the amount mentioned in sub-paragraph <ref href="#d25e18400">(2E)</ref>.</content></level></subparagraph><subparagraph eId="d25e18313"><num>(2A)</num><intro>This sub-paragraph applies where, immediately before the assessment date—</intro><level class="para1" eId="d25e18319"><num>(a)</num><content>the admissible rules of the scheme included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para1"><num>(b)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para1"><num>(c)</num><content>that requirement applied in relation to pre-1997 service in respect of which the compensation is payable.</content></level></subparagraph><subparagraph eId="d25e18337"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(b)</num><content>that accrual was in relation to GMP indexed service in respect of which the compensation is payable, and</content></level><level class="para1"><num>(c)</num><content>sub-paragraph <ref href="#d25e18313">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e18364"><num>(2C)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the pre-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e18382"><num>(2D)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the notional pre-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e18400"><num>(2E)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the post-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e18418"><num>(2F)</num><content>In any case where it is unclear to the Board whether, immediately before the assessment date, the admissible rules of the scheme included a requirement of the kind mentioned in <ref href="#d25e18313">sub-paragraph (2A)</ref><ref href="#d25e18319">(a)</ref>, this paragraph has effect as if the scheme included such a requirement.</content></subparagraph><subparagraph><num>(2G)</num><content>In any case where it is unclear to the Board whether, immediately before the assessment date, a requirement of the scheme of a kind mentioned in <ref href="#d25e18313">sub-paragraph (2A)</ref><ref href="#d25e18319">(a)</ref> (including such a requirement included by virtue of sub-paragraph <ref href="#d25e18418">(2F)</ref>) applied in relation to particular pre-1997 service, this paragraph has effect as if the requirement applied in relation to such service.</content></subparagraph><subparagraph eId="d25e18443"><num>(2H)</num><content>In any case where it is unclear to the Board whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, this paragraph has effect as if the scheme so provided.</content></subparagraph><subparagraph><num>(2I)</num><content>In any case where it is unclear to the Board whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of <ref href="#d25e18443">sub-paragraph (2H)</ref>) was in relation to particular GMP indexed service, this paragraph has effect as if the accrual was in relation to such service.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-109-2-b"><num>(b)</num><intro>in sub-paragraph (3)—</intro><level class="para2" eId="section-109-2-b-i"><num>(i)</num><content><mod>in the opening words for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs <ref href="#d25e18268">(2)</ref> to <ref href="#d25e18400">(2E)</ref>”</quotedText>;</mod></content></level><level class="para2" eId="section-109-2-b-ii"><num>(ii)</num><content><mod>for both definitions of “underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e18497">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e18516">(a)</ref> and <ref href="#d25e18520">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e18542">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e18561">(a)</ref> and <ref href="#d25e18565">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e18587">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e18606">(a)</ref> and <ref href="#d25e18610">(b)</ref> of this definition immediately before the indexation date.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-109-2-b-i"><num>(i)</num><content><mod>in the opening words for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs <ref href="#d25e18268">(2)</ref> to <ref href="#d25e18400">(2E)</ref>”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-109-2-b-ii"><num>(ii)</num><content><mod>for both definitions of “underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e18497">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e18516">(a)</ref> and <ref href="#d25e18520">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e18542">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e18561">(a)</ref> and <ref href="#d25e18565">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e18587">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e18606">(a)</ref> and <ref href="#d25e18610">(b)</ref> of this definition immediately before the indexation date.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-109-2-c"><num>(c)</num><intro>in sub-paragraph (5)—</intro><level class="para2" eId="section-109-2-c-i"><num>(i)</num><content><mod>in paragraph (a), for “sub-paragraph (2), each definition of “underlying rate”” substitute <quotedText>“sub-paragraphs <ref href="#d25e18364">(2C)</ref> to <ref href="#d25e18400">(2E)</ref>, each definition of “notional pre-1997 underlying rate”, “post-1997 underlying rate” and “pre-1997 underlying rate””</quotedText>;</mod></content></level><level class="para2" eId="section-109-2-c-ii"><num>(ii)</num><content><mod>in paragraph (c), for “sub-paragraph (2), the definition of “underlying rate”” substitute <quotedText>“sub-paragraphs <ref href="#d25e18364">(2C)</ref> to <ref href="#d25e18400">(2E)</ref>, the definition of “notional pre-1997 underlying rate”, the definition of “post-1997 underlying rate” and the definition of “pre-1997 underlying rate””</quotedText>;</mod></content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-109-2-e"><num>(e)</num><content><mod>in sub-paragraph (7), for “and “pre-1997 service”” substitute <quotedText>“, “pre-1997 service” and “GMP indexed service””</quotedText>.</mod></content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-109-4"><num>(4)</num><content>Schedule 5 to the Pensions Act 2008 (pension compensation payable on discharge of pension compensation credit) is amended in accordance with subsections <ref href="#section-109-5">(5)</ref> and <ref href="#section-109-6">(6)</ref>.</content></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-109-5-a"><num>(a)</num><content><mod>for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><intro>Subject to sub-paragraph (3), the transferee is entitled, on each indexation date, to an increase of—</intro><level class="para1"><num>(a)</num><content>where <ref href="#d25e18833">sub-paragraph (2A)</ref> applies, the amount mentioned in <ref href="#d25e18935">sub-paragraph (2E)</ref>;</content></level><level class="para1"><num>(b)</num><content>where <ref href="#d25e18872">sub-paragraph (2B)</ref> applies, the amount mentioned in <ref href="#d25e18941">sub-paragraph (2F)</ref>;</content></level><level class="para1"><num>(c)</num><content>where <ref href="#d25e18905">sub-paragraph (2C)</ref> applies, the amount mentioned in <ref href="#d25e18947">sub-paragraph (2G)</ref>;</content></level><level class="para1"><num>(d)</num><content>where <ref href="#d25e18929">sub-paragraph (2D)</ref> applies, the amount mentioned in <ref href="#d25e18953">sub-paragraph (2H)</ref>.</content></level></subparagraph><subparagraph eId="d25e18833"><num>(2A)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with paragraph 3, 5, 8, 11, 15 or 22 of Schedule 7 to the Pensions Act 2004 (“<term refersTo="#term-the-relevant-schedule-7-provisions">the relevant Schedule 7 provisions</term>”), and</content></level><level class="para1" eId="d25e18848"><num>(b)</num><intro>immediately before the assessment date—</intro><level class="para2" eId="d25e18854"><num>(i)</num><content>the admissible rules of the scheme in respect of which that compensation is payable included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para2"><num>(ii)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para2"><num>(iii)</num><content>that requirement applied in relation to pre-1997 service in respect of which that compensation is payable.</content></level></level></subparagraph><subparagraph eId="d25e18872"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with the relevant Schedule 7 provisions,</content></level><level class="para1"><num>(b)</num><content>the scheme in respect of which that compensation is payable provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(c)</num><content>that accrual was in relation to GMP indexed service in respect of which that compensation is payable, and</content></level><level class="para1"><num>(d)</num><content>sub-paragraph <ref href="#d25e18833">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e18905"><num>(2C)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with the relevant Schedule 7 provisions, and</content></level><level class="para1"><num>(b)</num><content>neither sub-paragraph <ref href="#d25e18833">(2A)</ref> nor sub-paragraph <ref href="#d25e18872">(2B)</ref> applies.</content></level></subparagraph><subparagraph eId="d25e18929"><num>(2D)</num><content>This sub-paragraph applies where the transferor's PPF compensation is payable otherwise than in accordance with the relevant Schedule 7 provisions.</content></subparagraph><subparagraph eId="d25e18935"><num>(2E)</num><content>The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e18941"><num>(2F)</num><content>The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the notional pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e18947"><num>(2G)</num><content>The amount mentioned in this sub-paragraph is the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e18953"><num>(2H)</num><content>The amount mentioned in this sub-paragraph is the appropriate percentage of the general underlying rate.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-109-5-b"><num>(b)</num><content><mod>in sub-paragraph (3), for “(2)” substitute <quotedText>“<ref href="#d25e18935">(2E)</ref>, <ref href="#d25e18941">(2F)</ref>, <ref href="#d25e18947">(2G)</ref> or <ref href="#d25e18953">(2H)</ref> (as the case may be)”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-109-5-d"><num>(d)</num><intro>in sub-paragraph (4)—</intro><level class="para2" eId="section-109-5-d-i"><num>(i)</num><content><mod>in the opening words, for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs (2) to <ref href="#d25e18953">(2H)</ref>”</quotedText>;</mod></content></level><level class="para2" eId="section-109-5-d-ii"><num>(ii)</num><content><mod>for the definition of “the underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-the-general-underlying-rate">the general underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the general indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e19081">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e19081">(a)</ref> and <ref href="#d25e19085">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-notional-pre-1997-underlying-rate">the notional pre-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the notional pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e19110">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e19110">(a)</ref> and <ref href="#d25e19114">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-post-1997-underlying-rate">the post-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the post-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e19139">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e19139">(a)</ref> and <ref href="#d25e19143">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-pre-1997-underlying-rate">the pre-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e19168">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e19168">(a)</ref> and <ref href="#d25e19172">(b)</ref>.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-109-5-d-i"><num>(i)</num><content><mod>in the opening words, for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs (2) to <ref href="#d25e18953">(2H)</ref>”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-109-5-e"><num>(e)</num><content>omit sub-paragraphs (5) and (6);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-109-5-g"><num>(g)</num><content><mod>in sub-paragraph (7), for ““the underlying rate”” substitute <quotedText>““the general underlying rate”, the definition of “the notional pre-1997 underlying rate”, the definition of “the post-1997 underlying rate” and the definition of “the pre-1997 underlying rate””</quotedText>;</mod></content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-110-1"><num>(1)</num><content>Schedule 6 to the Pensions (Northern Ireland) Order 2005 (<ref eId="c00146" href="http://www.legislation.gov.uk/id/nisi/2005/255">S.I. 2005/255 (N.I. 1)</ref>) (pension compensation provisions) is amended in accordance with subsections <ref href="#section-110-2">(2)</ref> and <ref href="#section-110-3">(3)</ref>.</content></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-110-2-a"><num>(a)</num><content><mod>for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e19374"><num>(2)</num><intro>Where a person is entitled to periodic compensation under any of those paragraphs, the person is entitled, on the indexation date, to an increase under this paragraph of—</intro><level class="para1"><num>(a)</num><content>where sub-paragraph <ref href="#d25e19419">(2A)</ref> applies, the aggregate of the amount mentioned in sub-paragraph <ref href="#d25e19470">(2C)</ref> and the amount mentioned in sub-paragraph <ref href="#d25e19506">(2E)</ref>;</content></level><level class="para1"><num>(b)</num><content>where sub-paragraph <ref href="#d25e19443">(2B)</ref> applies, the aggregate of the amount mentioned in sub-paragraph <ref href="#d25e19488">(2D)</ref> and the amount mentioned in sub-paragraph <ref href="#d25e19506">(2E)</ref>;</content></level><level class="para1"><num>(c)</num><content>in any other case, the amount mentioned in sub-paragraph <ref href="#d25e19506">(2E)</ref>.</content></level></subparagraph><subparagraph eId="d25e19419"><num>(2A)</num><intro>This sub-paragraph applies where, immediately before the assessment date—</intro><level class="para1" eId="d25e19425"><num>(a)</num><content>the admissible rules of the scheme included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para1"><num>(b)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para1"><num>(c)</num><content>that requirement applied in relation to pre-1997 service in respect of which the compensation is payable.</content></level></subparagraph><subparagraph eId="d25e19443"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(b)</num><content>that accrual was in relation to GMP indexed service in respect of which the compensation is payable, and</content></level><level class="para1"><num>(c)</num><content>sub-paragraph <ref href="#d25e19419">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e19470"><num>(2C)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the pre-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e19488"><num>(2D)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the notional pre-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e19506"><num>(2E)</num><intro>The amount mentioned in this sub-paragraph is—</intro><level class="para1"><num>(a)</num><content>the appropriate percentage of the amount of the post-1997 underlying rate immediately before the indexation date, or</content></level><level class="para1"><num>(b)</num><content>where the person first became entitled to the periodic compensation during the period of 12 months ending immediately before that date, 1/12th of that amount for each full month for which the person was so entitled.</content></level></subparagraph><subparagraph eId="d25e19524"><num>(2F)</num><content>In any case where it is unclear to the Board whether, immediately before the assessment date, the admissible rules of the scheme included a requirement of the kind mentioned in <ref href="#d25e19419">sub-paragraph (2A)</ref><ref href="#d25e19425">(a)</ref>, this paragraph has effect as if the scheme included such a requirement.</content></subparagraph><subparagraph><num>(2G)</num><content>In any case where it is unclear to the Board whether, immediately before the assessment date, a requirement of the scheme of a kind mentioned in <ref href="#d25e19419">sub-paragraph (2A)</ref><ref href="#d25e19425">(a)</ref> (including such a requirement included by virtue of sub-paragraph <ref href="#d25e19524">(2F)</ref>) applied in relation to particular pre-1997 service, this paragraph has effect as if the requirement applied in relation to such service.</content></subparagraph><subparagraph eId="d25e19549"><num>(2H)</num><content>In any case where it is unclear to the Board whether the scheme provided a guaranteed minimum pension that accrued during the GMP indexation period, this paragraph has effect as if the scheme so provided.</content></subparagraph><subparagraph><num>(2I)</num><content>In any case where it is unclear to the Board whether the accrual of a guaranteed minimum pension provided by the scheme (including by virtue of sub-paragraph <ref href="#d25e19549">(2H)</ref>) was in relation to particular GMP indexed service, this paragraph has effect as if the accrual was in relation to such service.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-110-2-b"><num>(b)</num><intro>in sub-paragraph (3)—</intro><level class="para2" eId="section-110-2-b-i"><num>(i)</num><content><mod>in the opening words for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs <ref href="#d25e19374">(2)</ref> to <ref href="#d25e19506">(2E)</ref>”</quotedText>;</mod></content></level><level class="para2" eId="section-110-2-b-ii"><num>(ii)</num><content><mod>for both definitions of “underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e19603">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e19622">(a)</ref> and <ref href="#d25e19626">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e19648">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e19667">(a)</ref> and <ref href="#d25e19671">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e19693">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e19712">(a)</ref> and <ref href="#d25e19716">(b)</ref> of this definition immediately before the indexation date.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-110-2-b-i"><num>(i)</num><content><mod>in the opening words for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs <ref href="#d25e19374">(2)</ref> to <ref href="#d25e19506">(2E)</ref>”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para2" eId="section-110-2-b-ii"><num>(ii)</num><content><mod>for both definitions of “underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e19603">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-notional-pre-1997-underlying-rate">notional pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>a prescribed percentage of so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e19622">(a)</ref> and <ref href="#d25e19626">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e19648">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-post-1997-underlying-rate">post-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to post-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to post-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e19667">(a)</ref> and <ref href="#d25e19671">(b)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 3 or 22, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(b)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amount within paragraph <ref href="#d25e19693">(a)</ref> of this definition immediately before the indexation date;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-pre-1997-underlying-rate">pre-1997 underlying rate</term>” means, in the case of periodic compensation under paragraph 5, 8, 11 or 15, the aggregate of—</intro><level class="para1"><num>(a)</num><content>so much of the amount mentioned in sub-paragraph (3)(a) of the paragraph in question as is attributable to pre-1997 service,</content></level><level class="para1"><num>(b)</num><content>so much of the amount mentioned in sub-paragraph (3)(aa) of the paragraph in question as is attributable to pre-1997 service, and</content></level><level class="para1"><num>(c)</num><content>so much of the amount within sub-paragraph (3)(b) of that paragraph as is referable to the amounts within paragraphs <ref href="#d25e19712">(a)</ref> and <ref href="#d25e19716">(b)</ref> of this definition immediately before the indexation date.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-110-2-c"><num>(c)</num><intro>in sub-paragraph (5)—</intro><level class="para2" eId="section-110-2-c-i"><num>(i)</num><content><mod>in paragraph (a), for “sub-paragraph (2), each definition of “underlying rate”” substitute <quotedText>“sub-paragraphs <ref href="#d25e19470">(2C)</ref> to <ref href="#d25e19506">(2E)</ref>, each definition of “notional pre-1997 underlying rate”, “post-1997 underlying rate” and “pre-1997 underlying rate””</quotedText>;</mod></content></level><level class="para2" eId="section-110-2-c-ii"><num>(ii)</num><content><mod>in paragraph (c), for “sub-paragraph (2), the definition of “underlying rate”” substitute <quotedText>“sub-paragraphs <ref href="#d25e19470">(2C)</ref> to <ref href="#d25e19506">(2E)</ref>, the definition of “notional pre-1997 underlying rate”, the definition of “post-1997 underlying rate” and the definition of “pre-1997 underlying rate””</quotedText>;</mod></content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-110-2-e"><num>(e)</num><content><mod>in sub-paragraph (7), for “and “pre-1997 service”” substitute <quotedText>“, “pre-1997 service” and “GMP indexed service””</quotedText>.</mod></content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-110-4"><num>(4)</num><content>Schedule 4 to the Pensions (No.2) Act (Northern Ireland) 2008 (pension compensation payable on discharge of pension compensation credit) is amended in accordance with subsections <ref href="#section-110-5">(5)</ref> and <ref href="#section-110-6">(6)</ref>.</content></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-110-5-a"><num>(a)</num><content><mod>for sub-paragraph (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph><num>(2)</num><intro>Subject to sub-paragraph (3), the transferee is entitled, on each indexation date, to an increase of—</intro><level class="para1"><num>(a)</num><content>where <ref href="#d25e19939">sub-paragraph (2A)</ref> applies, the amount mentioned in <ref href="#d25e20041">sub-paragraph (2E)</ref>;</content></level><level class="para1"><num>(b)</num><content>where <ref href="#d25e19978">sub-paragraph (2B)</ref> applies, the amount mentioned in <ref href="#d25e20047">sub-paragraph (2F)</ref>;</content></level><level class="para1"><num>(c)</num><content>where <ref href="#d25e20011">sub-paragraph (2C)</ref> applies, the amount mentioned in <ref href="#d25e20053">sub-paragraph (2G)</ref>;</content></level><level class="para1"><num>(d)</num><content>where <ref href="#d25e20035">sub-paragraph (2D)</ref> applies, the amount mentioned in <ref href="#d25e20059">sub-paragraph (2H)</ref>.</content></level></subparagraph><subparagraph eId="d25e19939"><num>(2A)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with paragraph 3, 5, 8, 11, 15 or 22 of Schedule 6 to the 2005 Order (“<term refersTo="#term-the-relevant-schedule-6-provisions">the relevant Schedule 6 provisions</term>”), and</content></level><level class="para1" eId="d25e19954"><num>(b)</num><intro>immediately before the assessment date —</intro><level class="para2" eId="d25e19960"><num>(i)</num><content>the admissible rules of the scheme in respect of which that compensation is payable included a requirement for all or any part of so much of the annual rate of a pension in payment under the scheme as is attributable to a person’s pre-1997 service to be increased annually,</content></level><level class="para2"><num>(ii)</num><content>that requirement did not apply only in relation to a guaranteed minimum pension provided by the scheme or for the purposes of complying with a GMP equalisation obligation, and</content></level><level class="para2"><num>(iii)</num><content>that requirement applied in relation to pre-1997 service in respect of which that compensation is payable.</content></level></level></subparagraph><subparagraph eId="d25e19978"><num>(2B)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with the relevant Schedule 6 provisions,</content></level><level class="para1"><num>(b)</num><content>the scheme in respect of which that compensation is payable provided a guaranteed minimum pension that accrued during the GMP indexation period,</content></level><level class="para1"><num>(c)</num><content>that accrual was in relation to GMP indexed service in respect of which that compensation is payable, and</content></level><level class="para1"><num>(d)</num><content>sub-paragraph <ref href="#d25e19939">(2A)</ref> does not apply.</content></level></subparagraph><subparagraph eId="d25e20011"><num>(2C)</num><intro>This sub-paragraph applies where—</intro><level class="para1"><num>(a)</num><content>the transferor's PPF compensation is payable in accordance with the relevant Schedule 6 provisions, and</content></level><level class="para1"><num>(b)</num><content>neither sub-paragraph <ref href="#d25e19939">(2A)</ref> nor sub-paragraph <ref href="#d25e19978">(2B)</ref> applies.</content></level></subparagraph><subparagraph eId="d25e20035"><num>(2D)</num><content>This sub-paragraph applies where the transferor's PPF compensation is payable otherwise than in accordance with the relevant Schedule 6 provisions.</content></subparagraph><subparagraph eId="d25e20041"><num>(2E)</num><content>The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e20047"><num>(2F)</num><content>The amount mentioned in this sub-paragraph is the aggregate of the appropriate percentage of the notional pre-1997 underlying rate and the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e20053"><num>(2G)</num><content>The amount mentioned in this sub-paragraph is the appropriate percentage of the post-1997 underlying rate.</content></subparagraph><subparagraph eId="d25e20059"><num>(2H)</num><content>The amount mentioned in this sub-paragraph is the appropriate percentage of the general underlying rate.</content></subparagraph></quotedStructure><inline name="appendText">;</inline></mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-110-5-b"><num>(b)</num><content><mod>in sub-paragraph (3), for “(2)” substitute <quotedText>“<ref href="#d25e20041">(2E)</ref>, <ref href="#d25e20047">(2F)</ref>, <ref href="#d25e20053">(2G)</ref> or <ref href="#d25e20059">(2H)</ref> (as the case may be)”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-110-5-d"><num>(d)</num><intro>in sub-paragraph (4)—</intro><level class="para2" eId="section-110-5-d-i"><num>(i)</num><content><mod>in the opening words, for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs (2) to <ref href="#d25e20059">(2H)</ref>”</quotedText>;</mod></content></level><level class="para2" eId="section-110-5-d-ii"><num>(ii)</num><content><mod>for the definition of “the underlying rate” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="definition"><intro>“<term refersTo="#term-the-general-underlying-rate">the general underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the general indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e20187">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e20187">(a)</ref> and <ref href="#d25e20191">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-notional-pre-1997-underlying-rate">the notional pre-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the notional pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e20216">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e20216">(a)</ref> and <ref href="#d25e20220">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-post-1997-underlying-rate">the post-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the post-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e20245">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e20245">(a)</ref> and <ref href="#d25e20249">(b)</ref>;</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-the-pre-1997-underlying-rate">the pre-1997 underlying rate</term>”, as at an indexation date, is the aggregate of—</intro><level class="para1"><num>(a)</num><content>the pre-1997 indexed proportion of the aggregate of the initial annual rate of compensation and (in the case of compensation payable under paragraph 6), the revaluation amount,</content></level><level class="para1"><num>(b)</num><content>so much of any actuarial increase under paragraph 16A as relates to the amount in paragraph <ref href="#d25e20274">(a)</ref>, and</content></level><level class="para1"><num>(c)</num><content>so much of any annual increase to which the transferee is entitled under this paragraph in respect of earlier indexation dates as relates to the amounts in paragraphs <ref href="#d25e20274">(a)</ref> and <ref href="#d25e20278">(b)</ref>.</content></level></hcontainer></quotedStructure><inline name="appendText">;</inline></mod></content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-110-5-d-i"><num>(i)</num><content><mod>in the opening words, for “sub-paragraph (2)” substitute <quotedText>“sub-paragraphs (2) to <ref href="#d25e20059">(2H)</ref>”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-110-5-e"><num>(e)</num><content>omit sub-paragraphs (5) and (6);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-110-5-g"><num>(g)</num><content><mod>in sub-paragraph (7), for ““the underlying rate”” substitute <quotedText>““the general underlying rate”, the definition of “the notional pre-1997 underlying rate”, the definition of “the post-1997 underlying rate” and the definition of “the pre-1997 underlying rate””</quotedText>;</mod></content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-1"><num>(1)</num><content>The Financial Assistance Scheme Regulations 2005 (<ref eId="c00147" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>) are amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-2"><num>(2)</num><content><mod>In paragraph 7(1)(b) of Schedule 2 (determination of annual and initial payments), after “(b)(i)” insert <quotedText>“, <ref href="#d25e20544">(ia)</ref> and <ref href="#d25e20553">(ib)</ref>”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-3"><num>(3)</num><content>Paragraph 9 of that Schedule is amended in accordance with subsections <ref href="#section-111-4">(4)</ref> to <ref href="#section-111-6">(6)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-6"><num>(6)</num><intro>In sub-paragraph (3)—</intro><level class="para1" eId="section-111-6-a"><num>(a)</num><content><mod>after “attributable to” insert <quotedText>“pre-1997 service or”</quotedText>;</mod></content></level><level class="para1" eId="section-111-6-b"><num>(b)</num><content><mod>for “that amount” substitute <quotedText>“the amount in question”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-7"><num>(7)</num><content><mod>In paragraph 7(1)(b) of Schedule 2A (determination of ill health and interim ill health payments), after “(b)(i)” insert <quotedText>“, <ref href="#d25e20544">(ia)</ref> and <ref href="#d25e20553">(ib)</ref>”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-8"><num>(8)</num><content>Paragraph 9 of that Schedule is amended in accordance with subsections <ref href="#section-111-9">(9)</ref> to <ref href="#section-111-11">(11)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-11"><num>(11)</num><intro>In sub-paragraph (3)—</intro><level class="para1" eId="section-111-11-a"><num>(a)</num><content><mod>after “attributable to” insert <quotedText>“pre-1997 service or”</quotedText>;</mod></content></level><level class="para1" eId="section-111-11-b"><num>(b)</num><content><mod>for “that amount” substitute <quotedText>“the amount in question”</quotedText>.</mod></content></level></subsection>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-4-chapter-3"><num>Chapter 3</num><heading>AWE Pension Scheme</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-chapter-3-crossheading-new-public-pension-schemes"><heading>New public pension schemes</heading><section eId="section-112"><num>112</num><heading>Establishment of new public schemes and transfer of rights</heading><subsection eId="section-112-1"><num>(1)</num><content>The Secretary of State may by regulations establish one or more schemes (“new public schemes”) which provide for pensions or other benefits to be payable to or in respect of persons who are or have been members of the AWE Pension Scheme (“qualifying persons”).</content></subsection><subsection eId="section-112-2"><num>(2)</num><content>The Secretary of State may by regulations make provision for the transfer of qualifying accrued rights to a new public scheme (without the need for any approval or consent of the trustee company or AWE PLC, or any other person, to the transfer).</content></subsection><subsection eId="section-112-3"><num>(3)</num><content>Regulations under <ref href="#section-112-2">subsection (2)</ref> may include provision for the discharge of liabilities in respect of qualifying accrued rights that are transferred.</content></subsection><subsection eId="section-112-4"><num>(4)</num><intro>In this Chapter—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-qualifying-accrued-rights" eId="term-qualifying-accrued-rights">qualifying accrued rights</term>” means—</intro><level class="para1"><num>(a)</num><content>any right to future benefits under the AWE Pension Scheme which, at the qualifying time, has accrued to or in respect of a qualifying person,</content></level><level class="para1"><num>(b)</num><content>any entitlement under the AWE Pension Scheme to the present payment of a pension or other benefit which a qualifying person has at the qualifying time, or</content></level><level class="para1"><num>(c)</num><content>any entitlement to benefits, or right to future benefits, under the AWE Pension Scheme which a survivor of a qualifying person has at the qualifying time in respect of the qualifying person;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-qualifying-time" eId="term-the-qualifying-time">the qualifying time</term>” means the time immediately before the date specified or described in regulations.</content></hcontainer></subsection><subsection eId="section-112-5"><num>(5)</num><intro>For the purposes of the definition of “qualifying accrued rights”—</intro><level class="para1" eId="section-112-5-a"><num>(a)</num><content>references to pensions or other benefits (including future benefits) includes money purchase benefits, and</content></level><level class="para1" eId="section-112-5-b"><num>(b)</num><content>references to a right include a pension credit right.</content></level></subsection><subsection eId="section-112-6"><num>(6)</num><content>Regulations under <ref href="#section-112-4">subsection (4)</ref> specifying or describing a date for the purposes of the definition of “the qualifying time” may make provision for the purposes of transfers of qualifying accrued rights generally, transfers of a particular description or a particular transfer.</content></subsection></section><section eId="section-113"><num>113</num><heading>New public schemes: further provision</heading><subsection eId="section-113-1"><num>(1)</num><intro>A new public scheme may include provision—</intro><level class="para1" eId="section-113-1-a"><num>(a)</num><content>for pensions or other benefits to be payable to or in respect of some or all persons described in <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></level><level class="para1" eId="section-113-1-b"><num>(b)</num><content>for the provision of money purchase benefits or benefits that are not money purchase benefits (or both);</content></level><level class="para1" eId="section-113-1-c"><num>(c)</num><content>for increasing in particular circumstances the amounts payable in respect of qualifying accrued rights;</content></level><level class="para1" eId="section-113-1-d"><num>(d)</num><content>for the payment or receipt of transfer values or other lump sum payments for the purpose of creating rights to benefits under a new public scheme or otherwise;</content></level><level class="para1" eId="section-113-1-e"><num>(e)</num><content>in relation to any persons who are active members of the AWE Pension Scheme which differs from the provision made in relation to persons who are deferred members of the AWE Pension Scheme, other than provision in relation to qualifying accrued rights.</content></level></subsection><subsection eId="section-113-2"><num>(2)</num><intro>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> may—</intro><level class="para1" eId="section-113-2-a"><num>(a)</num><content>provide for a new public scheme to be treated as an occupational pension scheme, a previously contracted-out scheme or another type of occupational pension scheme for the purposes of an enactment specified or described in the regulations;</content></level><level class="para1" eId="section-113-2-b"><num>(b)</num><content>provide for the enactment to apply in relation to a new public scheme subject to modifications specified in the regulations.</content></level></subsection><subsection eId="section-113-3"><num>(3)</num><content>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> amending a new public scheme may make retrospective provision.</content></subsection><subsection eId="section-113-4"><num>(4)</num><intro>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> may—</intro><level class="para1" eId="section-113-4-a"><num>(a)</num><content>confer functions on the Secretary of State or another person;</content></level><level class="para1" eId="section-113-4-b"><num>(b)</num><content>provide for a person to exercise a discretion in dealing with a matter.</content></level></subsection><subsection eId="section-113-5"><num>(5)</num><intro>The Secretary of State may—</intro><level class="para1" eId="section-113-5-a"><num>(a)</num><content>make arrangements for a new public scheme to be administered by any person;</content></level><level class="para1" eId="section-113-5-b"><num>(b)</num><content>delegate to any person a function exercisable by the Secretary of State under a new public scheme.</content></level></subsection><subsection eId="section-113-6"><num>(6)</num><content>In <ref href="#section-113">this section</ref>, a “<term refersTo="#term-previously-contracted-out-scheme" eId="term-previously-contracted-out-scheme">previously contracted-out scheme</term>” means a scheme that before 6 April 2016 was a salary related contracted-out scheme within the meaning of <ref eId="c00148" href="https://www.legislation.gov.uk/ukpga/1993/48/part/3">Part 3</ref> of the <ref eId="c00149" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>.</content></subsection></section><section eId="section-114"><num>114</num><heading>Protection against adverse treatment: transfer of rights</heading><subsection eId="section-114-1"><num>(1)</num><intro>When making regulations under <ref href="#section-112">section 112</ref> which transfer qualifying accrued rights to a new public scheme, the Secretary of State must ensure that the following requirements are met in respect of each person whose qualifying accrued rights are transferred—</intro><level class="para1" eId="section-114-1-a"><num>(a)</num><content>the general scheme requirement (see <ref href="#section-114-2">subsection (2)</ref>), and</content></level><level class="para1" eId="section-114-1-b"><num>(b)</num><content>where the qualifying accrued rights transferred are a person’s rights or entitlements to money purchase benefits other than pensions in payment, the money purchase requirement (see <ref href="#section-114-3">subsection (3)</ref>).</content></level></subsection><subsection eId="section-114-2"><num>(2)</num><content>The general scheme requirement is that, so far as relevant to the qualifying accrued rights transferred by the regulations, the provision in the new public scheme immediately after the regulations are made is in all material respects at least as good as the provision in the AWE Pension Scheme immediately before that time.</content></subsection><subsection eId="section-114-3"><num>(3)</num><content>The money purchase requirement is that the value of the rights or entitlements to money purchase benefits, other than pensions in payment, that a person has under the new public scheme immediately after, and as a result of, the transfer is at least equivalent to the value of the qualifying accrued rights of the person that are transferred.</content></subsection><subsection eId="section-114-4"><num>(4)</num><content>The Secretary of State may by regulations make provision about the determination of the value of rights or entitlements for the purposes of <ref href="#section-114-3">subsection (3)</ref>.</content></subsection><subsection eId="section-114-5"><num>(5)</num><intro>Regulations under <ref href="#section-114-4">subsection (4)</ref> may, among other things—</intro><level class="para1" eId="section-114-5-a"><num>(a)</num><content>make provision about the person by whom, and the manner in which, the value of rights or entitlements is to be determined,</content></level><level class="para1" eId="section-114-5-b"><num>(b)</num><content>make provision about the date or period by reference to which the value of the qualifying accrued rights transferred is to be determined (subject to <ref href="#section-114-6">subsection (6)</ref>), and</content></level><level class="para1" eId="section-114-5-c"><num>(c)</num><content>make provision that applies generally or only for a specific purpose (for example, in relation to a particular transfer).</content></level></subsection><subsection eId="section-114-6"><num>(6)</num><content>Regulations under <ref href="#section-114-4">subsection (4)</ref> may not make provision for the value of the qualifying accrued rights transferred to be determined by reference to a date which falls, or a period which ends, more than three months before the transfer.</content></subsection><subsection eId="section-114-7"><num>(7)</num><content><ref href="#section-114-1">Subsection (1)</ref> does not require provision to be included in a new public scheme if the Secretary of State is of the opinion that the provision would be incompatible with an enactment (including an enactment applying as a result of any provision made by or under this Chapter).</content></subsection><subsection eId="section-114-8"><num>(8)</num><intro>Nothing in <ref href="#section-114-1">subsections (1)</ref> to <ref href="#section-114-3">(3)</ref> is to be read as—</intro><level class="para1" eId="section-114-8-a"><num>(a)</num><content>requiring particular provisions of a new public scheme to take a particular form,</content></level><level class="para1" eId="section-114-8-b"><num>(b)</num><content>requiring a new public scheme to be established in a particular way,</content></level><level class="para1" eId="section-114-8-c"><num>(c)</num><content>requiring any power or duty conferred or imposed by a new public scheme to be exercised or performed in a particular way, or</content></level><level class="para1" eId="section-114-8-d"><num>(d)</num><content>affecting any power of any person to amend a new public scheme.</content></level></subsection></section><section eId="section-115"><num>115</num><heading>Protection against adverse treatment: amendment of new public schemes</heading><subsection eId="section-115-1"><num>(1)</num><intro>The Secretary of State may not make regulations under <ref href="#section-112">section 112</ref> amending a new public scheme unless—</intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content>in a case where the amendment, on coming into force, would or might adversely affect subsisting rights at that time, the consent requirements or the procedure requirements are satisfied in relation to the amendment, or</content></level><level class="para1" eId="section-115-1-b"><num>(b)</num><content>in any other case, the consultation requirements are satisfied in relation to the amendment.</content></level></subsection><subsection eId="section-115-2"><num>(2)</num><content>The consent requirements are requirements specified or described in regulations made by the Secretary of State for the purpose of obtaining the consent of interested persons, or their representatives, to amendment of a new public scheme.</content></subsection><subsection eId="section-115-3"><num>(3)</num><content>The consultation requirements are requirements specified or described in regulations made by the Secretary of State for the purpose of consulting interested persons, or their representatives, about amendment of a new public scheme.</content></subsection><subsection eId="section-115-4"><num>(4)</num><intro>The procedure requirements are requirements which—</intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content>are specified or described in regulations made by the Secretary of State for steps to be taken before amending a new public scheme, and</content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content>are not requirements for the purpose of obtaining the consent of, or consulting, interested persons or their representatives.</content></level></subsection><subsection eId="section-115-5"><num>(5)</num><intro>In <ref href="#section-115">this section</ref>, “<term refersTo="#term-subsisting-rights" eId="term-subsisting-rights">subsisting rights</term>”, in relation to any time, means—</intro><level class="para1" eId="section-115-5-a"><num>(a)</num><content>any right to future benefits under a new public scheme which, at that time, has accrued to or in respect of a member of the scheme,</content></level><level class="para1" eId="section-115-5-b"><num>(b)</num><content>any entitlement under a new public scheme to the present payment of a pension or other benefit which a member of the scheme has at that time, or</content></level><level class="para1" eId="section-115-5-c"><num>(c)</num><content>any entitlement to benefits, or rights to future benefits, under a new public scheme which a survivor of a member of the scheme has at that time in respect of the member.</content></level></subsection><subsection eId="section-115-6"><num>(6)</num><intro>For the purposes of the definition of “subsisting rights”—</intro><level class="para1" eId="section-115-6-a"><num>(a)</num><content>references to pensions or other benefits (including future benefits) include money purchase benefits, and</content></level><level class="para1" eId="section-115-6-b"><num>(b)</num><content>references to a right include a pension credit right.</content></level></subsection><subsection eId="section-115-7"><num>(7)</num><content>In <ref href="#section-115">this section</ref>, “<term refersTo="#term-interested-persons" eId="term-interested-persons">interested persons</term>”, in relation to an amendment of a scheme, means persons who appear to the Secretary of State to be likely to be affected by the amendment.</content></subsection></section><section eId="section-116"><num>116</num><heading>Transfer of assets and liabilities</heading><subsection eId="section-116-1"><num>(1)</num><intro>The Secretary of State may by regulations provide for the transfer of assets or liabilities of the AWE Pension Scheme (without the need for any approval or consent of the trustee company or AWE PLC, or any other person, to the transfer) to—</intro><level class="para1" eId="section-116-1-a"><num>(a)</num><content>the Secretary of State,</content></level><level class="para1" eId="section-116-1-b"><num>(b)</num><content>a nominee of the Secretary of State or the Treasury, or</content></level><level class="para1" eId="section-116-1-c"><num>(c)</num><content>a company established by the Secretary of State or the Treasury for the purpose of holding the assets or the liabilities pending their disposal or discharge.</content></level></subsection><subsection eId="section-116-2"><num>(2)</num><intro>Where any assets of the AWE Pension Scheme are transferred before regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-2">(2)</ref> are made, regulations under this section must make provision for the purposes of—</intro><level class="para1" eId="section-116-2-a"><num>(a)</num><content>securing the ability of the trustee company to meet any liability it has, or may have, or</content></level><level class="para1" eId="section-116-2-b"><num>(b)</num><content>securing that any such liability is to be met by the Secretary of State or the Treasury.</content></level></subsection><subsection eId="section-116-3"><num>(3)</num><intro>The regulations may in connection with those purposes, or otherwise in connection with a transfer of assets or liabilities under the regulations—</intro><level class="para1" eId="section-116-3-a"><num>(a)</num><content>make provision for the Secretary of State or the Treasury to give directions to the trustee company or AWE PLC;</content></level><level class="para1" eId="section-116-3-b"><num>(b)</num><content>exempt the trustee company, or AWE PLC, from liability in connection with acts or omissions pursuant to any such directions;</content></level><level class="para1" eId="section-116-3-c"><num>(c)</num><content>disapply (to such extent as is specified) any specified statutory provision or rule of law;</content></level><level class="para1" eId="section-116-3-d"><num>(d)</num><content>provide for any specified statutory provision to apply (whether or not it would otherwise apply) with specified modifications;</content></level><level class="para1" eId="section-116-3-e"><num>(e)</num><content>impose a moratorium on the commencement or continuation of proceedings or other legal processes of any specified description.</content></level></subsection><subsection eId="section-116-4"><num>(4)</num><content>“<term refersTo="#term-specified" eId="term-specified">Specified</term>” means specified in the regulations.</content></subsection><subsection eId="section-116-5"><num>(5)</num><content>Regulations under <ref href="#section-116">this section</ref> may include provision for the making of payments into the Consolidated Fund.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-4-chapter-3-crossheading-supplementary"><heading>Supplementary</heading><section eId="section-117"><num>117</num><heading>Taxation</heading><subsection eId="section-117-1"><num>(1)</num><intro>The Treasury may by regulations make provision for varying the way in which any relevant tax would, apart from the regulations, have effect in relation to—</intro><level class="para1" eId="section-117-1-a"><num>(a)</num><content>a new public scheme;</content></level><level class="para1" eId="section-117-1-b"><num>(b)</num><content>members of a new public scheme;</content></level><level class="para1" eId="section-117-1-c"><num>(c)</num><content>persons who have survived a member of a new public scheme and who have an entitlement to benefits, or a right to future benefits, under the scheme in respect of the member;</content></level><level class="para1" eId="section-117-1-d"><num>(d)</num><content>a person within <ref href="#section-116">section 116</ref><ref href="#section-116-1">(1)</ref><ref href="#section-116-1-a">(a)</ref>, <ref href="#section-116-1-b">(b)</ref> or <ref href="#section-116-1-c">(c)</ref>.</content></level></subsection><subsection eId="section-117-2"><num>(2)</num><content>Regulations under <ref href="#section-117-1">subsection (1)</ref> may include provision for treating a new public scheme as a registered pension scheme.</content></subsection><subsection eId="section-117-3"><num>(3)</num><intro>The Treasury may by regulations make provision for varying the way in which any relevant tax would, apart from the regulations, have effect in relation to, or in connection with, anything done by or under, or in consequence of, regulations made under this Chapter in relation to—</intro><level class="para1" eId="section-117-3-a"><num>(a)</num><content>the AWE Pension Scheme;</content></level><level class="para1" eId="section-117-3-b"><num>(b)</num><content>the trustee company;</content></level><level class="para1" eId="section-117-3-c"><num>(c)</num><content>AWE PLC;</content></level><level class="para1" eId="section-117-3-d"><num>(d)</num><content>the Secretary of State;</content></level><level class="para1" eId="section-117-3-e"><num>(e)</num><content>a qualifying person;</content></level><level class="para1" eId="section-117-3-f"><num>(f)</num><content>a person who has survived a qualifying person and who has an entitlement to benefits, or a right to future benefits, under the scheme in respect of the qualifying person.</content></level></subsection><subsection eId="section-117-4"><num>(4)</num><intro>Regulations under <ref href="#section-117-1">subsection (1)</ref> or <ref href="#section-117-3">(3)</ref> may include provision for any of the following—</intro><level class="para1" eId="section-117-4-a"><num>(a)</num><content>a tax provision not to apply or to apply with modifications;</content></level><level class="para1" eId="section-117-4-b"><num>(b)</num><content>anything done to have or not to have a specified consequence for the purposes of a tax provision;</content></level><level class="para1" eId="section-117-4-c"><num>(c)</num><content>the withdrawal of relief and the charging of a relevant tax.</content></level></subsection><subsection eId="section-117-5"><num>(5)</num><content>Provision made by regulations under <ref href="#section-117-1">subsection (1)</ref> or <ref href="#section-117-3">(3)</ref>, other than provision withdrawing a relief or charging a relevant tax, may make retrospective provision.</content></subsection><subsection eId="section-117-6"><num>(6)</num><intro>In <ref href="#section-117">this section</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-tax" eId="term-relevant-tax">relevant tax</term>” means—</intro><level class="para1"><num>(a)</num><content>income tax;</content></level><level class="para1"><num>(b)</num><content>capital gains tax;</content></level><level class="para1"><num>(c)</num><content>corporation tax;</content></level><level class="para1"><num>(d)</num><content>inheritance tax;</content></level><level class="para1"><num>(e)</num><content>stamp duty and stamp duty reserve tax;</content></level><level class="para1"><num>(f)</num><content>stamp duty land tax;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-registered-pension-scheme" eId="term-registered-pension-scheme">registered pension scheme</term>” has the meaning given in <ref eId="c00150" href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</ref> of the <ref eId="c00151" href="https://www.legislation.gov.uk/ukpga/2004/12/contents">Finance Act 2004</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tax-provision" eId="term-tax-provision">tax provision</term>” means any provision made by or under an enactment relating to a relevant tax.</content></hcontainer></subsection></section><section eId="section-118"><num>118</num><heading>Information</heading><subsection eId="section-118-1"><num>(1)</num><content>The Secretary of State may by regulations make provision requiring a person specified or described in the regulations to give the Secretary of State a document or other information specified or described in the regulations.</content></subsection><subsection eId="section-118-2"><num>(2)</num><intro>Regulations under <ref href="#section-118-1">subsection (1)</ref> may only make provision in respect of documents or other information which the Secretary of State reasonably requires for the purposes of—</intro><level class="para1" eId="section-118-2-a"><num>(a)</num><content>making regulations under this Chapter, or</content></level><level class="para1" eId="section-118-2-b"><num>(b)</num><content>establishing or administering a new public scheme, including transferring qualifying accrued rights to such a scheme.</content></level></subsection><subsection eId="section-118-3"><num>(3)</num><intro>Regulations under <ref href="#section-118-1">subsection (1)</ref> may, among other things, include—</intro><level class="para1" eId="section-118-3-a"><num>(a)</num><content>provision about the time when the document or other information must be given;</content></level><level class="para1" eId="section-118-3-b"><num>(b)</num><content>provision about the form and manner in which it must be given;</content></level><level class="para1" eId="section-118-3-c"><num>(c)</num><content>provision for the imposition of a financial penalty on a person who, without reasonable excuse, fails to comply with a requirement imposed by the regulations (including provision for appeals to a court or tribunal).</content></level></subsection><subsection eId="section-118-4"><num>(4)</num><intro>For the purposes of facilitating the establishment or administration of a new public scheme, including the transfer of qualifying accrued rights to such a scheme, information described in <ref href="#section-118-5">subsection (5)</ref> may be shared among the following persons—</intro><level class="para1" eId="section-118-4-a"><num>(a)</num><content>the Secretary of State;</content></level><level class="para1" eId="section-118-4-b"><num>(b)</num><content>the Treasury;</content></level><level class="para1" eId="section-118-4-c"><num>(c)</num><content>a trustee company of the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-4-d"><num>(d)</num><content>a person who exercises functions under the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-4-e"><num>(e)</num><content>AWE PLC;</content></level><level class="para1" eId="section-118-4-f"><num>(f)</num><content>a person who administers, or exercises functions under, a new public scheme.</content></level></subsection><subsection eId="section-118-5"><num>(5)</num><intro>The information is information relating to—</intro><level class="para1" eId="section-118-5-a"><num>(a)</num><content>rights or entitlements to pensions or other benefits under the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-5-b"><num>(b)</num><content>the administration of the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-5-c"><num>(c)</num><content>rights or entitlements to pensions or other benefits under a new public scheme, so far as they are rights or entitlements of, or in respect of, qualifying persons;</content></level><level class="para1" eId="section-118-5-d"><num>(d)</num><content>the administration of a new public scheme.</content></level></subsection><subsection eId="section-118-6"><num>(6)</num><intro>The disclosure of information in accordance with <ref href="#section-118">this section</ref>, or regulations made under <ref href="#section-118">this section</ref>, does not breach—</intro><level class="para1" eId="section-118-6-a"><num>(a)</num><content>any obligation of confidence owed by a person in relation to that information, or</content></level><level class="para1" eId="section-118-6-b"><num>(b)</num><content>any other restriction on the disclosure of information (however imposed).</content></level></subsection></section><section eId="section-119"><num>119</num><heading>Regulations</heading><subsection eId="section-119-1"><num>(1)</num><intro>The Secretary of State must consult the trustee company before making—</intro><level class="para1" eId="section-119-1-a"><num>(a)</num><content>regulations under <ref href="#section-112">section 112</ref> which establish a new public scheme or transfer qualifying accrued rights to a new public scheme, or</content></level><level class="para1" eId="section-119-1-b"><num>(b)</num><content>regulations under <ref href="#section-116">section 116</ref> which make provision for the transfer of assets or liabilities.</content></level></subsection><subsection eId="section-119-2"><num>(2)</num><content>The Secretary of State may not make regulations under any provision of this Chapter, other than under <ref href="#section-118">section 118</ref><ref href="#section-118-1">(1)</ref>, unless the Treasury have consented to the making of the regulations.</content></subsection><subsection eId="section-119-3"><num>(3)</num><intro>Regulations under <ref href="#section-112">section 112</ref> are subject to the affirmative procedure if—</intro><level class="para1" eId="section-119-3-a"><num>(a)</num><content>the making of the regulations is subject to the consent requirements (see <ref href="#section-115">section 115</ref>), or</content></level><level class="para1" eId="section-119-3-b"><num>(b)</num><content>the regulations make provision which has retrospective effect.</content></level></subsection><subsection eId="section-119-4"><num>(4)</num><content>Regulations under <ref href="#section-116">section 116</ref> are subject to the affirmative procedure if they make provision falling with subsection <ref href="#section-116-3">(3)</ref><ref href="#section-116-3-c">(c)</ref>, <ref href="#section-116-3-d">(d)</ref> or <ref href="#section-116-3-e">(e)</ref> of that section.</content></subsection><subsection eId="section-119-5"><num>(5)</num><content>Regulations under <ref href="#section-118">section 118</ref><ref href="#section-118-1">(1)</ref> are subject to the affirmative procedure if they make provision about the amount of a financial penalty.</content></subsection><subsection eId="section-119-6"><num>(6)</num><content>A statutory instrument containing regulations under <ref href="#section-117">section 117</ref> is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection><subsection eId="section-119-7"><num>(7)</num><content>Any other regulations under this Chapter are subject to the negative procedure.</content></subsection></section><section eId="section-120"><num>120</num><heading>Interpretation</heading><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-active-member" eId="term-active-member">active member</term>” has the meaning given by section 124(1) of the Pensions Act 1995;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-deferred-member" eId="term-deferred-member">deferred member</term>” has the meaning given by section 124(1) of the Pensions Act 1995;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-enactment" eId="term-enactment">enactment</term>” includes—</intro><level class="para1"><num>(a)</num><content>an enactment comprised in subordinate legislation (within the meaning given by <ref eId="c00152" href="https://www.legislation.gov.uk/ukpga/1978/30/section/21">section 21</ref> of the <ref eId="c00153" href="https://www.legislation.gov.uk/ukpga/1978/30/contents">Interpretation Act 1978</ref>),</content></level><level class="para1"><num>(b)</num><content>an enactment comprised in, or in an instrument made under, a Measure or Act of Senedd Cymru,</content></level><level class="para1"><num>(c)</num><content>an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament,</content></level><level class="para1"><num>(d)</num><content>an enactment comprised in, or in an instrument made under, Northern Ireland legislation;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-member" eId="term-member">member</term>” has the meaning given by <ref eId="c00154" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">section 124</ref><ref eId="c00155" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">(1)</ref> of the <ref eId="c00156" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the meaning given by <ref eId="c00157" href="https://www.legislation.gov.uk/ukpga/1993/48/section/181">section 181</ref> of the <ref eId="c00158" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-new-public-scheme" eId="term-new-public-scheme">new public scheme</term>” has the meaning given by <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-occupational-pension-scheme" eId="term-occupational-pension-scheme">occupational pension scheme</term>” has the meaning given by <ref eId="c00159" href="https://www.legislation.gov.uk/ukpga/1993/48/section/1">section 1</ref> of the <ref eId="c00160" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-credit-right" eId="term-pension-credit-right">pension credit right</term>” has the meaning given by <ref eId="c00161" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">section 124</ref><ref eId="c00162" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">(1)</ref> of the <ref eId="c00163" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-qualifying-person" eId="term-qualifying-person">qualifying person</term>” has the meaning given by <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-trustee-company" eId="term-the-trustee-company">the trustee company</term>” means AWE Pension Trustees Ltd.</content></hcontainer></section></hcontainer></chapter>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-4-chapter-3-crossheading-new-public-pension-schemes"><heading>New public pension schemes</heading><section eId="section-112"><num>112</num><heading>Establishment of new public schemes and transfer of rights</heading><subsection eId="section-112-1"><num>(1)</num><content>The Secretary of State may by regulations establish one or more schemes (“new public schemes”) which provide for pensions or other benefits to be payable to or in respect of persons who are or have been members of the AWE Pension Scheme (“qualifying persons”).</content></subsection><subsection eId="section-112-2"><num>(2)</num><content>The Secretary of State may by regulations make provision for the transfer of qualifying accrued rights to a new public scheme (without the need for any approval or consent of the trustee company or AWE PLC, or any other person, to the transfer).</content></subsection><subsection eId="section-112-3"><num>(3)</num><content>Regulations under <ref href="#section-112-2">subsection (2)</ref> may include provision for the discharge of liabilities in respect of qualifying accrued rights that are transferred.</content></subsection><subsection eId="section-112-4"><num>(4)</num><intro>In this Chapter—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-qualifying-accrued-rights" eId="term-qualifying-accrued-rights">qualifying accrued rights</term>” means—</intro><level class="para1"><num>(a)</num><content>any right to future benefits under the AWE Pension Scheme which, at the qualifying time, has accrued to or in respect of a qualifying person,</content></level><level class="para1"><num>(b)</num><content>any entitlement under the AWE Pension Scheme to the present payment of a pension or other benefit which a qualifying person has at the qualifying time, or</content></level><level class="para1"><num>(c)</num><content>any entitlement to benefits, or right to future benefits, under the AWE Pension Scheme which a survivor of a qualifying person has at the qualifying time in respect of the qualifying person;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-qualifying-time" eId="term-the-qualifying-time">the qualifying time</term>” means the time immediately before the date specified or described in regulations.</content></hcontainer></subsection><subsection eId="section-112-5"><num>(5)</num><intro>For the purposes of the definition of “qualifying accrued rights”—</intro><level class="para1" eId="section-112-5-a"><num>(a)</num><content>references to pensions or other benefits (including future benefits) includes money purchase benefits, and</content></level><level class="para1" eId="section-112-5-b"><num>(b)</num><content>references to a right include a pension credit right.</content></level></subsection><subsection eId="section-112-6"><num>(6)</num><content>Regulations under <ref href="#section-112-4">subsection (4)</ref> specifying or describing a date for the purposes of the definition of “the qualifying time” may make provision for the purposes of transfers of qualifying accrued rights generally, transfers of a particular description or a particular transfer.</content></subsection></section><section eId="section-113"><num>113</num><heading>New public schemes: further provision</heading><subsection eId="section-113-1"><num>(1)</num><intro>A new public scheme may include provision—</intro><level class="para1" eId="section-113-1-a"><num>(a)</num><content>for pensions or other benefits to be payable to or in respect of some or all persons described in <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></level><level class="para1" eId="section-113-1-b"><num>(b)</num><content>for the provision of money purchase benefits or benefits that are not money purchase benefits (or both);</content></level><level class="para1" eId="section-113-1-c"><num>(c)</num><content>for increasing in particular circumstances the amounts payable in respect of qualifying accrued rights;</content></level><level class="para1" eId="section-113-1-d"><num>(d)</num><content>for the payment or receipt of transfer values or other lump sum payments for the purpose of creating rights to benefits under a new public scheme or otherwise;</content></level><level class="para1" eId="section-113-1-e"><num>(e)</num><content>in relation to any persons who are active members of the AWE Pension Scheme which differs from the provision made in relation to persons who are deferred members of the AWE Pension Scheme, other than provision in relation to qualifying accrued rights.</content></level></subsection><subsection eId="section-113-2"><num>(2)</num><intro>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> may—</intro><level class="para1" eId="section-113-2-a"><num>(a)</num><content>provide for a new public scheme to be treated as an occupational pension scheme, a previously contracted-out scheme or another type of occupational pension scheme for the purposes of an enactment specified or described in the regulations;</content></level><level class="para1" eId="section-113-2-b"><num>(b)</num><content>provide for the enactment to apply in relation to a new public scheme subject to modifications specified in the regulations.</content></level></subsection><subsection eId="section-113-3"><num>(3)</num><content>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> amending a new public scheme may make retrospective provision.</content></subsection><subsection eId="section-113-4"><num>(4)</num><intro>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> may—</intro><level class="para1" eId="section-113-4-a"><num>(a)</num><content>confer functions on the Secretary of State or another person;</content></level><level class="para1" eId="section-113-4-b"><num>(b)</num><content>provide for a person to exercise a discretion in dealing with a matter.</content></level></subsection><subsection eId="section-113-5"><num>(5)</num><intro>The Secretary of State may—</intro><level class="para1" eId="section-113-5-a"><num>(a)</num><content>make arrangements for a new public scheme to be administered by any person;</content></level><level class="para1" eId="section-113-5-b"><num>(b)</num><content>delegate to any person a function exercisable by the Secretary of State under a new public scheme.</content></level></subsection><subsection eId="section-113-6"><num>(6)</num><content>In <ref href="#section-113">this section</ref>, a “<term refersTo="#term-previously-contracted-out-scheme" eId="term-previously-contracted-out-scheme">previously contracted-out scheme</term>” means a scheme that before 6 April 2016 was a salary related contracted-out scheme within the meaning of <ref eId="c00148" href="https://www.legislation.gov.uk/ukpga/1993/48/part/3">Part 3</ref> of the <ref eId="c00149" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>.</content></subsection></section><section eId="section-114"><num>114</num><heading>Protection against adverse treatment: transfer of rights</heading><subsection eId="section-114-1"><num>(1)</num><intro>When making regulations under <ref href="#section-112">section 112</ref> which transfer qualifying accrued rights to a new public scheme, the Secretary of State must ensure that the following requirements are met in respect of each person whose qualifying accrued rights are transferred—</intro><level class="para1" eId="section-114-1-a"><num>(a)</num><content>the general scheme requirement (see <ref href="#section-114-2">subsection (2)</ref>), and</content></level><level class="para1" eId="section-114-1-b"><num>(b)</num><content>where the qualifying accrued rights transferred are a person’s rights or entitlements to money purchase benefits other than pensions in payment, the money purchase requirement (see <ref href="#section-114-3">subsection (3)</ref>).</content></level></subsection><subsection eId="section-114-2"><num>(2)</num><content>The general scheme requirement is that, so far as relevant to the qualifying accrued rights transferred by the regulations, the provision in the new public scheme immediately after the regulations are made is in all material respects at least as good as the provision in the AWE Pension Scheme immediately before that time.</content></subsection><subsection eId="section-114-3"><num>(3)</num><content>The money purchase requirement is that the value of the rights or entitlements to money purchase benefits, other than pensions in payment, that a person has under the new public scheme immediately after, and as a result of, the transfer is at least equivalent to the value of the qualifying accrued rights of the person that are transferred.</content></subsection><subsection eId="section-114-4"><num>(4)</num><content>The Secretary of State may by regulations make provision about the determination of the value of rights or entitlements for the purposes of <ref href="#section-114-3">subsection (3)</ref>.</content></subsection><subsection eId="section-114-5"><num>(5)</num><intro>Regulations under <ref href="#section-114-4">subsection (4)</ref> may, among other things—</intro><level class="para1" eId="section-114-5-a"><num>(a)</num><content>make provision about the person by whom, and the manner in which, the value of rights or entitlements is to be determined,</content></level><level class="para1" eId="section-114-5-b"><num>(b)</num><content>make provision about the date or period by reference to which the value of the qualifying accrued rights transferred is to be determined (subject to <ref href="#section-114-6">subsection (6)</ref>), and</content></level><level class="para1" eId="section-114-5-c"><num>(c)</num><content>make provision that applies generally or only for a specific purpose (for example, in relation to a particular transfer).</content></level></subsection><subsection eId="section-114-6"><num>(6)</num><content>Regulations under <ref href="#section-114-4">subsection (4)</ref> may not make provision for the value of the qualifying accrued rights transferred to be determined by reference to a date which falls, or a period which ends, more than three months before the transfer.</content></subsection><subsection eId="section-114-7"><num>(7)</num><content><ref href="#section-114-1">Subsection (1)</ref> does not require provision to be included in a new public scheme if the Secretary of State is of the opinion that the provision would be incompatible with an enactment (including an enactment applying as a result of any provision made by or under this Chapter).</content></subsection><subsection eId="section-114-8"><num>(8)</num><intro>Nothing in <ref href="#section-114-1">subsections (1)</ref> to <ref href="#section-114-3">(3)</ref> is to be read as—</intro><level class="para1" eId="section-114-8-a"><num>(a)</num><content>requiring particular provisions of a new public scheme to take a particular form,</content></level><level class="para1" eId="section-114-8-b"><num>(b)</num><content>requiring a new public scheme to be established in a particular way,</content></level><level class="para1" eId="section-114-8-c"><num>(c)</num><content>requiring any power or duty conferred or imposed by a new public scheme to be exercised or performed in a particular way, or</content></level><level class="para1" eId="section-114-8-d"><num>(d)</num><content>affecting any power of any person to amend a new public scheme.</content></level></subsection></section><section eId="section-115"><num>115</num><heading>Protection against adverse treatment: amendment of new public schemes</heading><subsection eId="section-115-1"><num>(1)</num><intro>The Secretary of State may not make regulations under <ref href="#section-112">section 112</ref> amending a new public scheme unless—</intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content>in a case where the amendment, on coming into force, would or might adversely affect subsisting rights at that time, the consent requirements or the procedure requirements are satisfied in relation to the amendment, or</content></level><level class="para1" eId="section-115-1-b"><num>(b)</num><content>in any other case, the consultation requirements are satisfied in relation to the amendment.</content></level></subsection><subsection eId="section-115-2"><num>(2)</num><content>The consent requirements are requirements specified or described in regulations made by the Secretary of State for the purpose of obtaining the consent of interested persons, or their representatives, to amendment of a new public scheme.</content></subsection><subsection eId="section-115-3"><num>(3)</num><content>The consultation requirements are requirements specified or described in regulations made by the Secretary of State for the purpose of consulting interested persons, or their representatives, about amendment of a new public scheme.</content></subsection><subsection eId="section-115-4"><num>(4)</num><intro>The procedure requirements are requirements which—</intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content>are specified or described in regulations made by the Secretary of State for steps to be taken before amending a new public scheme, and</content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content>are not requirements for the purpose of obtaining the consent of, or consulting, interested persons or their representatives.</content></level></subsection><subsection eId="section-115-5"><num>(5)</num><intro>In <ref href="#section-115">this section</ref>, “<term refersTo="#term-subsisting-rights" eId="term-subsisting-rights">subsisting rights</term>”, in relation to any time, means—</intro><level class="para1" eId="section-115-5-a"><num>(a)</num><content>any right to future benefits under a new public scheme which, at that time, has accrued to or in respect of a member of the scheme,</content></level><level class="para1" eId="section-115-5-b"><num>(b)</num><content>any entitlement under a new public scheme to the present payment of a pension or other benefit which a member of the scheme has at that time, or</content></level><level class="para1" eId="section-115-5-c"><num>(c)</num><content>any entitlement to benefits, or rights to future benefits, under a new public scheme which a survivor of a member of the scheme has at that time in respect of the member.</content></level></subsection><subsection eId="section-115-6"><num>(6)</num><intro>For the purposes of the definition of “subsisting rights”—</intro><level class="para1" eId="section-115-6-a"><num>(a)</num><content>references to pensions or other benefits (including future benefits) include money purchase benefits, and</content></level><level class="para1" eId="section-115-6-b"><num>(b)</num><content>references to a right include a pension credit right.</content></level></subsection><subsection eId="section-115-7"><num>(7)</num><content>In <ref href="#section-115">this section</ref>, “<term refersTo="#term-interested-persons" eId="term-interested-persons">interested persons</term>”, in relation to an amendment of a scheme, means persons who appear to the Secretary of State to be likely to be affected by the amendment.</content></subsection></section><section eId="section-116"><num>116</num><heading>Transfer of assets and liabilities</heading><subsection eId="section-116-1"><num>(1)</num><intro>The Secretary of State may by regulations provide for the transfer of assets or liabilities of the AWE Pension Scheme (without the need for any approval or consent of the trustee company or AWE PLC, or any other person, to the transfer) to—</intro><level class="para1" eId="section-116-1-a"><num>(a)</num><content>the Secretary of State,</content></level><level class="para1" eId="section-116-1-b"><num>(b)</num><content>a nominee of the Secretary of State or the Treasury, or</content></level><level class="para1" eId="section-116-1-c"><num>(c)</num><content>a company established by the Secretary of State or the Treasury for the purpose of holding the assets or the liabilities pending their disposal or discharge.</content></level></subsection><subsection eId="section-116-2"><num>(2)</num><intro>Where any assets of the AWE Pension Scheme are transferred before regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-2">(2)</ref> are made, regulations under this section must make provision for the purposes of—</intro><level class="para1" eId="section-116-2-a"><num>(a)</num><content>securing the ability of the trustee company to meet any liability it has, or may have, or</content></level><level class="para1" eId="section-116-2-b"><num>(b)</num><content>securing that any such liability is to be met by the Secretary of State or the Treasury.</content></level></subsection><subsection eId="section-116-3"><num>(3)</num><intro>The regulations may in connection with those purposes, or otherwise in connection with a transfer of assets or liabilities under the regulations—</intro><level class="para1" eId="section-116-3-a"><num>(a)</num><content>make provision for the Secretary of State or the Treasury to give directions to the trustee company or AWE PLC;</content></level><level class="para1" eId="section-116-3-b"><num>(b)</num><content>exempt the trustee company, or AWE PLC, from liability in connection with acts or omissions pursuant to any such directions;</content></level><level class="para1" eId="section-116-3-c"><num>(c)</num><content>disapply (to such extent as is specified) any specified statutory provision or rule of law;</content></level><level class="para1" eId="section-116-3-d"><num>(d)</num><content>provide for any specified statutory provision to apply (whether or not it would otherwise apply) with specified modifications;</content></level><level class="para1" eId="section-116-3-e"><num>(e)</num><content>impose a moratorium on the commencement or continuation of proceedings or other legal processes of any specified description.</content></level></subsection><subsection eId="section-116-4"><num>(4)</num><content>“<term refersTo="#term-specified" eId="term-specified">Specified</term>” means specified in the regulations.</content></subsection><subsection eId="section-116-5"><num>(5)</num><content>Regulations under <ref href="#section-116">this section</ref> may include provision for the making of payments into the Consolidated Fund.</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-112"><num>112</num><heading>Establishment of new public schemes and transfer of rights</heading><subsection eId="section-112-1"><num>(1)</num><content>The Secretary of State may by regulations establish one or more schemes (“new public schemes”) which provide for pensions or other benefits to be payable to or in respect of persons who are or have been members of the AWE Pension Scheme (“qualifying persons”).</content></subsection><subsection eId="section-112-2"><num>(2)</num><content>The Secretary of State may by regulations make provision for the transfer of qualifying accrued rights to a new public scheme (without the need for any approval or consent of the trustee company or AWE PLC, or any other person, to the transfer).</content></subsection><subsection eId="section-112-3"><num>(3)</num><content>Regulations under <ref href="#section-112-2">subsection (2)</ref> may include provision for the discharge of liabilities in respect of qualifying accrued rights that are transferred.</content></subsection><subsection eId="section-112-4"><num>(4)</num><intro>In this Chapter—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-qualifying-accrued-rights" eId="term-qualifying-accrued-rights">qualifying accrued rights</term>” means—</intro><level class="para1"><num>(a)</num><content>any right to future benefits under the AWE Pension Scheme which, at the qualifying time, has accrued to or in respect of a qualifying person,</content></level><level class="para1"><num>(b)</num><content>any entitlement under the AWE Pension Scheme to the present payment of a pension or other benefit which a qualifying person has at the qualifying time, or</content></level><level class="para1"><num>(c)</num><content>any entitlement to benefits, or right to future benefits, under the AWE Pension Scheme which a survivor of a qualifying person has at the qualifying time in respect of the qualifying person;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-qualifying-time" eId="term-the-qualifying-time">the qualifying time</term>” means the time immediately before the date specified or described in regulations.</content></hcontainer></subsection><subsection eId="section-112-5"><num>(5)</num><intro>For the purposes of the definition of “qualifying accrued rights”—</intro><level class="para1" eId="section-112-5-a"><num>(a)</num><content>references to pensions or other benefits (including future benefits) includes money purchase benefits, and</content></level><level class="para1" eId="section-112-5-b"><num>(b)</num><content>references to a right include a pension credit right.</content></level></subsection><subsection eId="section-112-6"><num>(6)</num><content>Regulations under <ref href="#section-112-4">subsection (4)</ref> specifying or describing a date for the purposes of the definition of “the qualifying time” may make provision for the purposes of transfers of qualifying accrued rights generally, transfers of a particular description or a particular transfer.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-112-1"><num>(1)</num><content>The Secretary of State may by regulations establish one or more schemes (“new public schemes”) which provide for pensions or other benefits to be payable to or in respect of persons who are or have been members of the AWE Pension Scheme (“qualifying persons”).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-112-2"><num>(2)</num><content>The Secretary of State may by regulations make provision for the transfer of qualifying accrued rights to a new public scheme (without the need for any approval or consent of the trustee company or AWE PLC, or any other person, to the transfer).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-112-3"><num>(3)</num><content>Regulations under <ref href="#section-112-2">subsection (2)</ref> may include provision for the discharge of liabilities in respect of qualifying accrued rights that are transferred.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-112-4"><num>(4)</num><intro>In this Chapter—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-qualifying-accrued-rights" eId="term-qualifying-accrued-rights">qualifying accrued rights</term>” means—</intro><level class="para1"><num>(a)</num><content>any right to future benefits under the AWE Pension Scheme which, at the qualifying time, has accrued to or in respect of a qualifying person,</content></level><level class="para1"><num>(b)</num><content>any entitlement under the AWE Pension Scheme to the present payment of a pension or other benefit which a qualifying person has at the qualifying time, or</content></level><level class="para1"><num>(c)</num><content>any entitlement to benefits, or right to future benefits, under the AWE Pension Scheme which a survivor of a qualifying person has at the qualifying time in respect of the qualifying person;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-qualifying-time" eId="term-the-qualifying-time">the qualifying time</term>” means the time immediately before the date specified or described in regulations.</content></hcontainer></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-112-5"><num>(5)</num><intro>For the purposes of the definition of “qualifying accrued rights”—</intro><level class="para1" eId="section-112-5-a"><num>(a)</num><content>references to pensions or other benefits (including future benefits) includes money purchase benefits, and</content></level><level class="para1" eId="section-112-5-b"><num>(b)</num><content>references to a right include a pension credit right.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-112-6"><num>(6)</num><content>Regulations under <ref href="#section-112-4">subsection (4)</ref> specifying or describing a date for the purposes of the definition of “the qualifying time” may make provision for the purposes of transfers of qualifying accrued rights generally, transfers of a particular description or a particular transfer.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-113"><num>113</num><heading>New public schemes: further provision</heading><subsection eId="section-113-1"><num>(1)</num><intro>A new public scheme may include provision—</intro><level class="para1" eId="section-113-1-a"><num>(a)</num><content>for pensions or other benefits to be payable to or in respect of some or all persons described in <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></level><level class="para1" eId="section-113-1-b"><num>(b)</num><content>for the provision of money purchase benefits or benefits that are not money purchase benefits (or both);</content></level><level class="para1" eId="section-113-1-c"><num>(c)</num><content>for increasing in particular circumstances the amounts payable in respect of qualifying accrued rights;</content></level><level class="para1" eId="section-113-1-d"><num>(d)</num><content>for the payment or receipt of transfer values or other lump sum payments for the purpose of creating rights to benefits under a new public scheme or otherwise;</content></level><level class="para1" eId="section-113-1-e"><num>(e)</num><content>in relation to any persons who are active members of the AWE Pension Scheme which differs from the provision made in relation to persons who are deferred members of the AWE Pension Scheme, other than provision in relation to qualifying accrued rights.</content></level></subsection><subsection eId="section-113-2"><num>(2)</num><intro>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> may—</intro><level class="para1" eId="section-113-2-a"><num>(a)</num><content>provide for a new public scheme to be treated as an occupational pension scheme, a previously contracted-out scheme or another type of occupational pension scheme for the purposes of an enactment specified or described in the regulations;</content></level><level class="para1" eId="section-113-2-b"><num>(b)</num><content>provide for the enactment to apply in relation to a new public scheme subject to modifications specified in the regulations.</content></level></subsection><subsection eId="section-113-3"><num>(3)</num><content>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> amending a new public scheme may make retrospective provision.</content></subsection><subsection eId="section-113-4"><num>(4)</num><intro>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> may—</intro><level class="para1" eId="section-113-4-a"><num>(a)</num><content>confer functions on the Secretary of State or another person;</content></level><level class="para1" eId="section-113-4-b"><num>(b)</num><content>provide for a person to exercise a discretion in dealing with a matter.</content></level></subsection><subsection eId="section-113-5"><num>(5)</num><intro>The Secretary of State may—</intro><level class="para1" eId="section-113-5-a"><num>(a)</num><content>make arrangements for a new public scheme to be administered by any person;</content></level><level class="para1" eId="section-113-5-b"><num>(b)</num><content>delegate to any person a function exercisable by the Secretary of State under a new public scheme.</content></level></subsection><subsection eId="section-113-6"><num>(6)</num><content>In <ref href="#section-113">this section</ref>, a “<term refersTo="#term-previously-contracted-out-scheme" eId="term-previously-contracted-out-scheme">previously contracted-out scheme</term>” means a scheme that before 6 April 2016 was a salary related contracted-out scheme within the meaning of <ref eId="c00148" href="https://www.legislation.gov.uk/ukpga/1993/48/part/3">Part 3</ref> of the <ref eId="c00149" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-113-1"><num>(1)</num><intro>A new public scheme may include provision—</intro><level class="para1" eId="section-113-1-a"><num>(a)</num><content>for pensions or other benefits to be payable to or in respect of some or all persons described in <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></level><level class="para1" eId="section-113-1-b"><num>(b)</num><content>for the provision of money purchase benefits or benefits that are not money purchase benefits (or both);</content></level><level class="para1" eId="section-113-1-c"><num>(c)</num><content>for increasing in particular circumstances the amounts payable in respect of qualifying accrued rights;</content></level><level class="para1" eId="section-113-1-d"><num>(d)</num><content>for the payment or receipt of transfer values or other lump sum payments for the purpose of creating rights to benefits under a new public scheme or otherwise;</content></level><level class="para1" eId="section-113-1-e"><num>(e)</num><content>in relation to any persons who are active members of the AWE Pension Scheme which differs from the provision made in relation to persons who are deferred members of the AWE Pension Scheme, other than provision in relation to qualifying accrued rights.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-113-1-a"><num>(a)</num><content>for pensions or other benefits to be payable to or in respect of some or all persons described in <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-113-1-b"><num>(b)</num><content>for the provision of money purchase benefits or benefits that are not money purchase benefits (or both);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-113-1-c"><num>(c)</num><content>for increasing in particular circumstances the amounts payable in respect of qualifying accrued rights;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-113-1-d"><num>(d)</num><content>for the payment or receipt of transfer values or other lump sum payments for the purpose of creating rights to benefits under a new public scheme or otherwise;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-113-1-e"><num>(e)</num><content>in relation to any persons who are active members of the AWE Pension Scheme which differs from the provision made in relation to persons who are deferred members of the AWE Pension Scheme, other than provision in relation to qualifying accrued rights.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-113-2"><num>(2)</num><intro>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> may—</intro><level class="para1" eId="section-113-2-a"><num>(a)</num><content>provide for a new public scheme to be treated as an occupational pension scheme, a previously contracted-out scheme or another type of occupational pension scheme for the purposes of an enactment specified or described in the regulations;</content></level><level class="para1" eId="section-113-2-b"><num>(b)</num><content>provide for the enactment to apply in relation to a new public scheme subject to modifications specified in the regulations.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-113-3"><num>(3)</num><content>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> amending a new public scheme may make retrospective provision.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-113-4"><num>(4)</num><intro>Regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref> may—</intro><level class="para1" eId="section-113-4-a"><num>(a)</num><content>confer functions on the Secretary of State or another person;</content></level><level class="para1" eId="section-113-4-b"><num>(b)</num><content>provide for a person to exercise a discretion in dealing with a matter.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-113-5"><num>(5)</num><intro>The Secretary of State may—</intro><level class="para1" eId="section-113-5-a"><num>(a)</num><content>make arrangements for a new public scheme to be administered by any person;</content></level><level class="para1" eId="section-113-5-b"><num>(b)</num><content>delegate to any person a function exercisable by the Secretary of State under a new public scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-113-6"><num>(6)</num><content>In <ref href="#section-113">this section</ref>, a “<term refersTo="#term-previously-contracted-out-scheme" eId="term-previously-contracted-out-scheme">previously contracted-out scheme</term>” means a scheme that before 6 April 2016 was a salary related contracted-out scheme within the meaning of <ref eId="c00148" href="https://www.legislation.gov.uk/ukpga/1993/48/part/3">Part 3</ref> of the <ref eId="c00149" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114"><num>114</num><heading>Protection against adverse treatment: transfer of rights</heading><subsection eId="section-114-1"><num>(1)</num><intro>When making regulations under <ref href="#section-112">section 112</ref> which transfer qualifying accrued rights to a new public scheme, the Secretary of State must ensure that the following requirements are met in respect of each person whose qualifying accrued rights are transferred—</intro><level class="para1" eId="section-114-1-a"><num>(a)</num><content>the general scheme requirement (see <ref href="#section-114-2">subsection (2)</ref>), and</content></level><level class="para1" eId="section-114-1-b"><num>(b)</num><content>where the qualifying accrued rights transferred are a person’s rights or entitlements to money purchase benefits other than pensions in payment, the money purchase requirement (see <ref href="#section-114-3">subsection (3)</ref>).</content></level></subsection><subsection eId="section-114-2"><num>(2)</num><content>The general scheme requirement is that, so far as relevant to the qualifying accrued rights transferred by the regulations, the provision in the new public scheme immediately after the regulations are made is in all material respects at least as good as the provision in the AWE Pension Scheme immediately before that time.</content></subsection><subsection eId="section-114-3"><num>(3)</num><content>The money purchase requirement is that the value of the rights or entitlements to money purchase benefits, other than pensions in payment, that a person has under the new public scheme immediately after, and as a result of, the transfer is at least equivalent to the value of the qualifying accrued rights of the person that are transferred.</content></subsection><subsection eId="section-114-4"><num>(4)</num><content>The Secretary of State may by regulations make provision about the determination of the value of rights or entitlements for the purposes of <ref href="#section-114-3">subsection (3)</ref>.</content></subsection><subsection eId="section-114-5"><num>(5)</num><intro>Regulations under <ref href="#section-114-4">subsection (4)</ref> may, among other things—</intro><level class="para1" eId="section-114-5-a"><num>(a)</num><content>make provision about the person by whom, and the manner in which, the value of rights or entitlements is to be determined,</content></level><level class="para1" eId="section-114-5-b"><num>(b)</num><content>make provision about the date or period by reference to which the value of the qualifying accrued rights transferred is to be determined (subject to <ref href="#section-114-6">subsection (6)</ref>), and</content></level><level class="para1" eId="section-114-5-c"><num>(c)</num><content>make provision that applies generally or only for a specific purpose (for example, in relation to a particular transfer).</content></level></subsection><subsection eId="section-114-6"><num>(6)</num><content>Regulations under <ref href="#section-114-4">subsection (4)</ref> may not make provision for the value of the qualifying accrued rights transferred to be determined by reference to a date which falls, or a period which ends, more than three months before the transfer.</content></subsection><subsection eId="section-114-7"><num>(7)</num><content><ref href="#section-114-1">Subsection (1)</ref> does not require provision to be included in a new public scheme if the Secretary of State is of the opinion that the provision would be incompatible with an enactment (including an enactment applying as a result of any provision made by or under this Chapter).</content></subsection><subsection eId="section-114-8"><num>(8)</num><intro>Nothing in <ref href="#section-114-1">subsections (1)</ref> to <ref href="#section-114-3">(3)</ref> is to be read as—</intro><level class="para1" eId="section-114-8-a"><num>(a)</num><content>requiring particular provisions of a new public scheme to take a particular form,</content></level><level class="para1" eId="section-114-8-b"><num>(b)</num><content>requiring a new public scheme to be established in a particular way,</content></level><level class="para1" eId="section-114-8-c"><num>(c)</num><content>requiring any power or duty conferred or imposed by a new public scheme to be exercised or performed in a particular way, or</content></level><level class="para1" eId="section-114-8-d"><num>(d)</num><content>affecting any power of any person to amend a new public scheme.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-1"><num>(1)</num><intro>When making regulations under <ref href="#section-112">section 112</ref> which transfer qualifying accrued rights to a new public scheme, the Secretary of State must ensure that the following requirements are met in respect of each person whose qualifying accrued rights are transferred—</intro><level class="para1" eId="section-114-1-a"><num>(a)</num><content>the general scheme requirement (see <ref href="#section-114-2">subsection (2)</ref>), and</content></level><level class="para1" eId="section-114-1-b"><num>(b)</num><content>where the qualifying accrued rights transferred are a person’s rights or entitlements to money purchase benefits other than pensions in payment, the money purchase requirement (see <ref href="#section-114-3">subsection (3)</ref>).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-2"><num>(2)</num><content>The general scheme requirement is that, so far as relevant to the qualifying accrued rights transferred by the regulations, the provision in the new public scheme immediately after the regulations are made is in all material respects at least as good as the provision in the AWE Pension Scheme immediately before that time.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-3"><num>(3)</num><content>The money purchase requirement is that the value of the rights or entitlements to money purchase benefits, other than pensions in payment, that a person has under the new public scheme immediately after, and as a result of, the transfer is at least equivalent to the value of the qualifying accrued rights of the person that are transferred.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-4"><num>(4)</num><content>The Secretary of State may by regulations make provision about the determination of the value of rights or entitlements for the purposes of <ref href="#section-114-3">subsection (3)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-5"><num>(5)</num><intro>Regulations under <ref href="#section-114-4">subsection (4)</ref> may, among other things—</intro><level class="para1" eId="section-114-5-a"><num>(a)</num><content>make provision about the person by whom, and the manner in which, the value of rights or entitlements is to be determined,</content></level><level class="para1" eId="section-114-5-b"><num>(b)</num><content>make provision about the date or period by reference to which the value of the qualifying accrued rights transferred is to be determined (subject to <ref href="#section-114-6">subsection (6)</ref>), and</content></level><level class="para1" eId="section-114-5-c"><num>(c)</num><content>make provision that applies generally or only for a specific purpose (for example, in relation to a particular transfer).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-6"><num>(6)</num><content>Regulations under <ref href="#section-114-4">subsection (4)</ref> may not make provision for the value of the qualifying accrued rights transferred to be determined by reference to a date which falls, or a period which ends, more than three months before the transfer.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-7"><num>(7)</num><content><ref href="#section-114-1">Subsection (1)</ref> does not require provision to be included in a new public scheme if the Secretary of State is of the opinion that the provision would be incompatible with an enactment (including an enactment applying as a result of any provision made by or under this Chapter).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114-8"><num>(8)</num><intro>Nothing in <ref href="#section-114-1">subsections (1)</ref> to <ref href="#section-114-3">(3)</ref> is to be read as—</intro><level class="para1" eId="section-114-8-a"><num>(a)</num><content>requiring particular provisions of a new public scheme to take a particular form,</content></level><level class="para1" eId="section-114-8-b"><num>(b)</num><content>requiring a new public scheme to be established in a particular way,</content></level><level class="para1" eId="section-114-8-c"><num>(c)</num><content>requiring any power or duty conferred or imposed by a new public scheme to be exercised or performed in a particular way, or</content></level><level class="para1" eId="section-114-8-d"><num>(d)</num><content>affecting any power of any person to amend a new public scheme.</content></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115"><num>115</num><heading>Protection against adverse treatment: amendment of new public schemes</heading><subsection eId="section-115-1"><num>(1)</num><intro>The Secretary of State may not make regulations under <ref href="#section-112">section 112</ref> amending a new public scheme unless—</intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content>in a case where the amendment, on coming into force, would or might adversely affect subsisting rights at that time, the consent requirements or the procedure requirements are satisfied in relation to the amendment, or</content></level><level class="para1" eId="section-115-1-b"><num>(b)</num><content>in any other case, the consultation requirements are satisfied in relation to the amendment.</content></level></subsection><subsection eId="section-115-2"><num>(2)</num><content>The consent requirements are requirements specified or described in regulations made by the Secretary of State for the purpose of obtaining the consent of interested persons, or their representatives, to amendment of a new public scheme.</content></subsection><subsection eId="section-115-3"><num>(3)</num><content>The consultation requirements are requirements specified or described in regulations made by the Secretary of State for the purpose of consulting interested persons, or their representatives, about amendment of a new public scheme.</content></subsection><subsection eId="section-115-4"><num>(4)</num><intro>The procedure requirements are requirements which—</intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content>are specified or described in regulations made by the Secretary of State for steps to be taken before amending a new public scheme, and</content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content>are not requirements for the purpose of obtaining the consent of, or consulting, interested persons or their representatives.</content></level></subsection><subsection eId="section-115-5"><num>(5)</num><intro>In <ref href="#section-115">this section</ref>, “<term refersTo="#term-subsisting-rights" eId="term-subsisting-rights">subsisting rights</term>”, in relation to any time, means—</intro><level class="para1" eId="section-115-5-a"><num>(a)</num><content>any right to future benefits under a new public scheme which, at that time, has accrued to or in respect of a member of the scheme,</content></level><level class="para1" eId="section-115-5-b"><num>(b)</num><content>any entitlement under a new public scheme to the present payment of a pension or other benefit which a member of the scheme has at that time, or</content></level><level class="para1" eId="section-115-5-c"><num>(c)</num><content>any entitlement to benefits, or rights to future benefits, under a new public scheme which a survivor of a member of the scheme has at that time in respect of the member.</content></level></subsection><subsection eId="section-115-6"><num>(6)</num><intro>For the purposes of the definition of “subsisting rights”—</intro><level class="para1" eId="section-115-6-a"><num>(a)</num><content>references to pensions or other benefits (including future benefits) include money purchase benefits, and</content></level><level class="para1" eId="section-115-6-b"><num>(b)</num><content>references to a right include a pension credit right.</content></level></subsection><subsection eId="section-115-7"><num>(7)</num><content>In <ref href="#section-115">this section</ref>, “<term refersTo="#term-interested-persons" eId="term-interested-persons">interested persons</term>”, in relation to an amendment of a scheme, means persons who appear to the Secretary of State to be likely to be affected by the amendment.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-1"><num>(1)</num><intro>The Secretary of State may not make regulations under <ref href="#section-112">section 112</ref> amending a new public scheme unless—</intro><level class="para1" eId="section-115-1-a"><num>(a)</num><content>in a case where the amendment, on coming into force, would or might adversely affect subsisting rights at that time, the consent requirements or the procedure requirements are satisfied in relation to the amendment, or</content></level><level class="para1" eId="section-115-1-b"><num>(b)</num><content>in any other case, the consultation requirements are satisfied in relation to the amendment.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-2"><num>(2)</num><content>The consent requirements are requirements specified or described in regulations made by the Secretary of State for the purpose of obtaining the consent of interested persons, or their representatives, to amendment of a new public scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-3"><num>(3)</num><content>The consultation requirements are requirements specified or described in regulations made by the Secretary of State for the purpose of consulting interested persons, or their representatives, about amendment of a new public scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-4"><num>(4)</num><intro>The procedure requirements are requirements which—</intro><level class="para1" eId="section-115-4-a"><num>(a)</num><content>are specified or described in regulations made by the Secretary of State for steps to be taken before amending a new public scheme, and</content></level><level class="para1" eId="section-115-4-b"><num>(b)</num><content>are not requirements for the purpose of obtaining the consent of, or consulting, interested persons or their representatives.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-5"><num>(5)</num><intro>In <ref href="#section-115">this section</ref>, “<term refersTo="#term-subsisting-rights" eId="term-subsisting-rights">subsisting rights</term>”, in relation to any time, means—</intro><level class="para1" eId="section-115-5-a"><num>(a)</num><content>any right to future benefits under a new public scheme which, at that time, has accrued to or in respect of a member of the scheme,</content></level><level class="para1" eId="section-115-5-b"><num>(b)</num><content>any entitlement under a new public scheme to the present payment of a pension or other benefit which a member of the scheme has at that time, or</content></level><level class="para1" eId="section-115-5-c"><num>(c)</num><content>any entitlement to benefits, or rights to future benefits, under a new public scheme which a survivor of a member of the scheme has at that time in respect of the member.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-6"><num>(6)</num><intro>For the purposes of the definition of “subsisting rights”—</intro><level class="para1" eId="section-115-6-a"><num>(a)</num><content>references to pensions or other benefits (including future benefits) include money purchase benefits, and</content></level><level class="para1" eId="section-115-6-b"><num>(b)</num><content>references to a right include a pension credit right.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-7"><num>(7)</num><content>In <ref href="#section-115">this section</ref>, “<term refersTo="#term-interested-persons" eId="term-interested-persons">interested persons</term>”, in relation to an amendment of a scheme, means persons who appear to the Secretary of State to be likely to be affected by the amendment.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116"><num>116</num><heading>Transfer of assets and liabilities</heading><subsection eId="section-116-1"><num>(1)</num><intro>The Secretary of State may by regulations provide for the transfer of assets or liabilities of the AWE Pension Scheme (without the need for any approval or consent of the trustee company or AWE PLC, or any other person, to the transfer) to—</intro><level class="para1" eId="section-116-1-a"><num>(a)</num><content>the Secretary of State,</content></level><level class="para1" eId="section-116-1-b"><num>(b)</num><content>a nominee of the Secretary of State or the Treasury, or</content></level><level class="para1" eId="section-116-1-c"><num>(c)</num><content>a company established by the Secretary of State or the Treasury for the purpose of holding the assets or the liabilities pending their disposal or discharge.</content></level></subsection><subsection eId="section-116-2"><num>(2)</num><intro>Where any assets of the AWE Pension Scheme are transferred before regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-2">(2)</ref> are made, regulations under this section must make provision for the purposes of—</intro><level class="para1" eId="section-116-2-a"><num>(a)</num><content>securing the ability of the trustee company to meet any liability it has, or may have, or</content></level><level class="para1" eId="section-116-2-b"><num>(b)</num><content>securing that any such liability is to be met by the Secretary of State or the Treasury.</content></level></subsection><subsection eId="section-116-3"><num>(3)</num><intro>The regulations may in connection with those purposes, or otherwise in connection with a transfer of assets or liabilities under the regulations—</intro><level class="para1" eId="section-116-3-a"><num>(a)</num><content>make provision for the Secretary of State or the Treasury to give directions to the trustee company or AWE PLC;</content></level><level class="para1" eId="section-116-3-b"><num>(b)</num><content>exempt the trustee company, or AWE PLC, from liability in connection with acts or omissions pursuant to any such directions;</content></level><level class="para1" eId="section-116-3-c"><num>(c)</num><content>disapply (to such extent as is specified) any specified statutory provision or rule of law;</content></level><level class="para1" eId="section-116-3-d"><num>(d)</num><content>provide for any specified statutory provision to apply (whether or not it would otherwise apply) with specified modifications;</content></level><level class="para1" eId="section-116-3-e"><num>(e)</num><content>impose a moratorium on the commencement or continuation of proceedings or other legal processes of any specified description.</content></level></subsection><subsection eId="section-116-4"><num>(4)</num><content>“<term refersTo="#term-specified" eId="term-specified">Specified</term>” means specified in the regulations.</content></subsection><subsection eId="section-116-5"><num>(5)</num><content>Regulations under <ref href="#section-116">this section</ref> may include provision for the making of payments into the Consolidated Fund.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116-1"><num>(1)</num><intro>The Secretary of State may by regulations provide for the transfer of assets or liabilities of the AWE Pension Scheme (without the need for any approval or consent of the trustee company or AWE PLC, or any other person, to the transfer) to—</intro><level class="para1" eId="section-116-1-a"><num>(a)</num><content>the Secretary of State,</content></level><level class="para1" eId="section-116-1-b"><num>(b)</num><content>a nominee of the Secretary of State or the Treasury, or</content></level><level class="para1" eId="section-116-1-c"><num>(c)</num><content>a company established by the Secretary of State or the Treasury for the purpose of holding the assets or the liabilities pending their disposal or discharge.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116-2"><num>(2)</num><intro>Where any assets of the AWE Pension Scheme are transferred before regulations under <ref href="#section-112">section 112</ref><ref href="#section-112-2">(2)</ref> are made, regulations under this section must make provision for the purposes of—</intro><level class="para1" eId="section-116-2-a"><num>(a)</num><content>securing the ability of the trustee company to meet any liability it has, or may have, or</content></level><level class="para1" eId="section-116-2-b"><num>(b)</num><content>securing that any such liability is to be met by the Secretary of State or the Treasury.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116-3"><num>(3)</num><intro>The regulations may in connection with those purposes, or otherwise in connection with a transfer of assets or liabilities under the regulations—</intro><level class="para1" eId="section-116-3-a"><num>(a)</num><content>make provision for the Secretary of State or the Treasury to give directions to the trustee company or AWE PLC;</content></level><level class="para1" eId="section-116-3-b"><num>(b)</num><content>exempt the trustee company, or AWE PLC, from liability in connection with acts or omissions pursuant to any such directions;</content></level><level class="para1" eId="section-116-3-c"><num>(c)</num><content>disapply (to such extent as is specified) any specified statutory provision or rule of law;</content></level><level class="para1" eId="section-116-3-d"><num>(d)</num><content>provide for any specified statutory provision to apply (whether or not it would otherwise apply) with specified modifications;</content></level><level class="para1" eId="section-116-3-e"><num>(e)</num><content>impose a moratorium on the commencement or continuation of proceedings or other legal processes of any specified description.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116-4"><num>(4)</num><content>“<term refersTo="#term-specified" eId="term-specified">Specified</term>” means specified in the regulations.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116-5"><num>(5)</num><content>Regulations under <ref href="#section-116">this section</ref> may include provision for the making of payments into the Consolidated Fund.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-4-chapter-3-crossheading-supplementary"><heading>Supplementary</heading><section eId="section-117"><num>117</num><heading>Taxation</heading><subsection eId="section-117-1"><num>(1)</num><intro>The Treasury may by regulations make provision for varying the way in which any relevant tax would, apart from the regulations, have effect in relation to—</intro><level class="para1" eId="section-117-1-a"><num>(a)</num><content>a new public scheme;</content></level><level class="para1" eId="section-117-1-b"><num>(b)</num><content>members of a new public scheme;</content></level><level class="para1" eId="section-117-1-c"><num>(c)</num><content>persons who have survived a member of a new public scheme and who have an entitlement to benefits, or a right to future benefits, under the scheme in respect of the member;</content></level><level class="para1" eId="section-117-1-d"><num>(d)</num><content>a person within <ref href="#section-116">section 116</ref><ref href="#section-116-1">(1)</ref><ref href="#section-116-1-a">(a)</ref>, <ref href="#section-116-1-b">(b)</ref> or <ref href="#section-116-1-c">(c)</ref>.</content></level></subsection><subsection eId="section-117-2"><num>(2)</num><content>Regulations under <ref href="#section-117-1">subsection (1)</ref> may include provision for treating a new public scheme as a registered pension scheme.</content></subsection><subsection eId="section-117-3"><num>(3)</num><intro>The Treasury may by regulations make provision for varying the way in which any relevant tax would, apart from the regulations, have effect in relation to, or in connection with, anything done by or under, or in consequence of, regulations made under this Chapter in relation to—</intro><level class="para1" eId="section-117-3-a"><num>(a)</num><content>the AWE Pension Scheme;</content></level><level class="para1" eId="section-117-3-b"><num>(b)</num><content>the trustee company;</content></level><level class="para1" eId="section-117-3-c"><num>(c)</num><content>AWE PLC;</content></level><level class="para1" eId="section-117-3-d"><num>(d)</num><content>the Secretary of State;</content></level><level class="para1" eId="section-117-3-e"><num>(e)</num><content>a qualifying person;</content></level><level class="para1" eId="section-117-3-f"><num>(f)</num><content>a person who has survived a qualifying person and who has an entitlement to benefits, or a right to future benefits, under the scheme in respect of the qualifying person.</content></level></subsection><subsection eId="section-117-4"><num>(4)</num><intro>Regulations under <ref href="#section-117-1">subsection (1)</ref> or <ref href="#section-117-3">(3)</ref> may include provision for any of the following—</intro><level class="para1" eId="section-117-4-a"><num>(a)</num><content>a tax provision not to apply or to apply with modifications;</content></level><level class="para1" eId="section-117-4-b"><num>(b)</num><content>anything done to have or not to have a specified consequence for the purposes of a tax provision;</content></level><level class="para1" eId="section-117-4-c"><num>(c)</num><content>the withdrawal of relief and the charging of a relevant tax.</content></level></subsection><subsection eId="section-117-5"><num>(5)</num><content>Provision made by regulations under <ref href="#section-117-1">subsection (1)</ref> or <ref href="#section-117-3">(3)</ref>, other than provision withdrawing a relief or charging a relevant tax, may make retrospective provision.</content></subsection><subsection eId="section-117-6"><num>(6)</num><intro>In <ref href="#section-117">this section</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-tax" eId="term-relevant-tax">relevant tax</term>” means—</intro><level class="para1"><num>(a)</num><content>income tax;</content></level><level class="para1"><num>(b)</num><content>capital gains tax;</content></level><level class="para1"><num>(c)</num><content>corporation tax;</content></level><level class="para1"><num>(d)</num><content>inheritance tax;</content></level><level class="para1"><num>(e)</num><content>stamp duty and stamp duty reserve tax;</content></level><level class="para1"><num>(f)</num><content>stamp duty land tax;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-registered-pension-scheme" eId="term-registered-pension-scheme">registered pension scheme</term>” has the meaning given in <ref eId="c00150" href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</ref> of the <ref eId="c00151" href="https://www.legislation.gov.uk/ukpga/2004/12/contents">Finance Act 2004</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tax-provision" eId="term-tax-provision">tax provision</term>” means any provision made by or under an enactment relating to a relevant tax.</content></hcontainer></subsection></section><section eId="section-118"><num>118</num><heading>Information</heading><subsection eId="section-118-1"><num>(1)</num><content>The Secretary of State may by regulations make provision requiring a person specified or described in the regulations to give the Secretary of State a document or other information specified or described in the regulations.</content></subsection><subsection eId="section-118-2"><num>(2)</num><intro>Regulations under <ref href="#section-118-1">subsection (1)</ref> may only make provision in respect of documents or other information which the Secretary of State reasonably requires for the purposes of—</intro><level class="para1" eId="section-118-2-a"><num>(a)</num><content>making regulations under this Chapter, or</content></level><level class="para1" eId="section-118-2-b"><num>(b)</num><content>establishing or administering a new public scheme, including transferring qualifying accrued rights to such a scheme.</content></level></subsection><subsection eId="section-118-3"><num>(3)</num><intro>Regulations under <ref href="#section-118-1">subsection (1)</ref> may, among other things, include—</intro><level class="para1" eId="section-118-3-a"><num>(a)</num><content>provision about the time when the document or other information must be given;</content></level><level class="para1" eId="section-118-3-b"><num>(b)</num><content>provision about the form and manner in which it must be given;</content></level><level class="para1" eId="section-118-3-c"><num>(c)</num><content>provision for the imposition of a financial penalty on a person who, without reasonable excuse, fails to comply with a requirement imposed by the regulations (including provision for appeals to a court or tribunal).</content></level></subsection><subsection eId="section-118-4"><num>(4)</num><intro>For the purposes of facilitating the establishment or administration of a new public scheme, including the transfer of qualifying accrued rights to such a scheme, information described in <ref href="#section-118-5">subsection (5)</ref> may be shared among the following persons—</intro><level class="para1" eId="section-118-4-a"><num>(a)</num><content>the Secretary of State;</content></level><level class="para1" eId="section-118-4-b"><num>(b)</num><content>the Treasury;</content></level><level class="para1" eId="section-118-4-c"><num>(c)</num><content>a trustee company of the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-4-d"><num>(d)</num><content>a person who exercises functions under the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-4-e"><num>(e)</num><content>AWE PLC;</content></level><level class="para1" eId="section-118-4-f"><num>(f)</num><content>a person who administers, or exercises functions under, a new public scheme.</content></level></subsection><subsection eId="section-118-5"><num>(5)</num><intro>The information is information relating to—</intro><level class="para1" eId="section-118-5-a"><num>(a)</num><content>rights or entitlements to pensions or other benefits under the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-5-b"><num>(b)</num><content>the administration of the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-5-c"><num>(c)</num><content>rights or entitlements to pensions or other benefits under a new public scheme, so far as they are rights or entitlements of, or in respect of, qualifying persons;</content></level><level class="para1" eId="section-118-5-d"><num>(d)</num><content>the administration of a new public scheme.</content></level></subsection><subsection eId="section-118-6"><num>(6)</num><intro>The disclosure of information in accordance with <ref href="#section-118">this section</ref>, or regulations made under <ref href="#section-118">this section</ref>, does not breach—</intro><level class="para1" eId="section-118-6-a"><num>(a)</num><content>any obligation of confidence owed by a person in relation to that information, or</content></level><level class="para1" eId="section-118-6-b"><num>(b)</num><content>any other restriction on the disclosure of information (however imposed).</content></level></subsection></section><section eId="section-119"><num>119</num><heading>Regulations</heading><subsection eId="section-119-1"><num>(1)</num><intro>The Secretary of State must consult the trustee company before making—</intro><level class="para1" eId="section-119-1-a"><num>(a)</num><content>regulations under <ref href="#section-112">section 112</ref> which establish a new public scheme or transfer qualifying accrued rights to a new public scheme, or</content></level><level class="para1" eId="section-119-1-b"><num>(b)</num><content>regulations under <ref href="#section-116">section 116</ref> which make provision for the transfer of assets or liabilities.</content></level></subsection><subsection eId="section-119-2"><num>(2)</num><content>The Secretary of State may not make regulations under any provision of this Chapter, other than under <ref href="#section-118">section 118</ref><ref href="#section-118-1">(1)</ref>, unless the Treasury have consented to the making of the regulations.</content></subsection><subsection eId="section-119-3"><num>(3)</num><intro>Regulations under <ref href="#section-112">section 112</ref> are subject to the affirmative procedure if—</intro><level class="para1" eId="section-119-3-a"><num>(a)</num><content>the making of the regulations is subject to the consent requirements (see <ref href="#section-115">section 115</ref>), or</content></level><level class="para1" eId="section-119-3-b"><num>(b)</num><content>the regulations make provision which has retrospective effect.</content></level></subsection><subsection eId="section-119-4"><num>(4)</num><content>Regulations under <ref href="#section-116">section 116</ref> are subject to the affirmative procedure if they make provision falling with subsection <ref href="#section-116-3">(3)</ref><ref href="#section-116-3-c">(c)</ref>, <ref href="#section-116-3-d">(d)</ref> or <ref href="#section-116-3-e">(e)</ref> of that section.</content></subsection><subsection eId="section-119-5"><num>(5)</num><content>Regulations under <ref href="#section-118">section 118</ref><ref href="#section-118-1">(1)</ref> are subject to the affirmative procedure if they make provision about the amount of a financial penalty.</content></subsection><subsection eId="section-119-6"><num>(6)</num><content>A statutory instrument containing regulations under <ref href="#section-117">section 117</ref> is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection><subsection eId="section-119-7"><num>(7)</num><content>Any other regulations under this Chapter are subject to the negative procedure.</content></subsection></section><section eId="section-120"><num>120</num><heading>Interpretation</heading><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-active-member" eId="term-active-member">active member</term>” has the meaning given by section 124(1) of the Pensions Act 1995;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-deferred-member" eId="term-deferred-member">deferred member</term>” has the meaning given by section 124(1) of the Pensions Act 1995;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-enactment" eId="term-enactment">enactment</term>” includes—</intro><level class="para1"><num>(a)</num><content>an enactment comprised in subordinate legislation (within the meaning given by <ref eId="c00152" href="https://www.legislation.gov.uk/ukpga/1978/30/section/21">section 21</ref> of the <ref eId="c00153" href="https://www.legislation.gov.uk/ukpga/1978/30/contents">Interpretation Act 1978</ref>),</content></level><level class="para1"><num>(b)</num><content>an enactment comprised in, or in an instrument made under, a Measure or Act of Senedd Cymru,</content></level><level class="para1"><num>(c)</num><content>an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament,</content></level><level class="para1"><num>(d)</num><content>an enactment comprised in, or in an instrument made under, Northern Ireland legislation;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-member" eId="term-member">member</term>” has the meaning given by <ref eId="c00154" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">section 124</ref><ref eId="c00155" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">(1)</ref> of the <ref eId="c00156" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the meaning given by <ref eId="c00157" href="https://www.legislation.gov.uk/ukpga/1993/48/section/181">section 181</ref> of the <ref eId="c00158" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-new-public-scheme" eId="term-new-public-scheme">new public scheme</term>” has the meaning given by <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-occupational-pension-scheme" eId="term-occupational-pension-scheme">occupational pension scheme</term>” has the meaning given by <ref eId="c00159" href="https://www.legislation.gov.uk/ukpga/1993/48/section/1">section 1</ref> of the <ref eId="c00160" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-credit-right" eId="term-pension-credit-right">pension credit right</term>” has the meaning given by <ref eId="c00161" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">section 124</ref><ref eId="c00162" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">(1)</ref> of the <ref eId="c00163" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-qualifying-person" eId="term-qualifying-person">qualifying person</term>” has the meaning given by <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-trustee-company" eId="term-the-trustee-company">the trustee company</term>” means AWE Pension Trustees Ltd.</content></hcontainer></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117"><num>117</num><heading>Taxation</heading><subsection eId="section-117-1"><num>(1)</num><intro>The Treasury may by regulations make provision for varying the way in which any relevant tax would, apart from the regulations, have effect in relation to—</intro><level class="para1" eId="section-117-1-a"><num>(a)</num><content>a new public scheme;</content></level><level class="para1" eId="section-117-1-b"><num>(b)</num><content>members of a new public scheme;</content></level><level class="para1" eId="section-117-1-c"><num>(c)</num><content>persons who have survived a member of a new public scheme and who have an entitlement to benefits, or a right to future benefits, under the scheme in respect of the member;</content></level><level class="para1" eId="section-117-1-d"><num>(d)</num><content>a person within <ref href="#section-116">section 116</ref><ref href="#section-116-1">(1)</ref><ref href="#section-116-1-a">(a)</ref>, <ref href="#section-116-1-b">(b)</ref> or <ref href="#section-116-1-c">(c)</ref>.</content></level></subsection><subsection eId="section-117-2"><num>(2)</num><content>Regulations under <ref href="#section-117-1">subsection (1)</ref> may include provision for treating a new public scheme as a registered pension scheme.</content></subsection><subsection eId="section-117-3"><num>(3)</num><intro>The Treasury may by regulations make provision for varying the way in which any relevant tax would, apart from the regulations, have effect in relation to, or in connection with, anything done by or under, or in consequence of, regulations made under this Chapter in relation to—</intro><level class="para1" eId="section-117-3-a"><num>(a)</num><content>the AWE Pension Scheme;</content></level><level class="para1" eId="section-117-3-b"><num>(b)</num><content>the trustee company;</content></level><level class="para1" eId="section-117-3-c"><num>(c)</num><content>AWE PLC;</content></level><level class="para1" eId="section-117-3-d"><num>(d)</num><content>the Secretary of State;</content></level><level class="para1" eId="section-117-3-e"><num>(e)</num><content>a qualifying person;</content></level><level class="para1" eId="section-117-3-f"><num>(f)</num><content>a person who has survived a qualifying person and who has an entitlement to benefits, or a right to future benefits, under the scheme in respect of the qualifying person.</content></level></subsection><subsection eId="section-117-4"><num>(4)</num><intro>Regulations under <ref href="#section-117-1">subsection (1)</ref> or <ref href="#section-117-3">(3)</ref> may include provision for any of the following—</intro><level class="para1" eId="section-117-4-a"><num>(a)</num><content>a tax provision not to apply or to apply with modifications;</content></level><level class="para1" eId="section-117-4-b"><num>(b)</num><content>anything done to have or not to have a specified consequence for the purposes of a tax provision;</content></level><level class="para1" eId="section-117-4-c"><num>(c)</num><content>the withdrawal of relief and the charging of a relevant tax.</content></level></subsection><subsection eId="section-117-5"><num>(5)</num><content>Provision made by regulations under <ref href="#section-117-1">subsection (1)</ref> or <ref href="#section-117-3">(3)</ref>, other than provision withdrawing a relief or charging a relevant tax, may make retrospective provision.</content></subsection><subsection eId="section-117-6"><num>(6)</num><intro>In <ref href="#section-117">this section</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-tax" eId="term-relevant-tax">relevant tax</term>” means—</intro><level class="para1"><num>(a)</num><content>income tax;</content></level><level class="para1"><num>(b)</num><content>capital gains tax;</content></level><level class="para1"><num>(c)</num><content>corporation tax;</content></level><level class="para1"><num>(d)</num><content>inheritance tax;</content></level><level class="para1"><num>(e)</num><content>stamp duty and stamp duty reserve tax;</content></level><level class="para1"><num>(f)</num><content>stamp duty land tax;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-registered-pension-scheme" eId="term-registered-pension-scheme">registered pension scheme</term>” has the meaning given in <ref eId="c00150" href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</ref> of the <ref eId="c00151" href="https://www.legislation.gov.uk/ukpga/2004/12/contents">Finance Act 2004</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tax-provision" eId="term-tax-provision">tax provision</term>” means any provision made by or under an enactment relating to a relevant tax.</content></hcontainer></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-1"><num>(1)</num><intro>The Treasury may by regulations make provision for varying the way in which any relevant tax would, apart from the regulations, have effect in relation to—</intro><level class="para1" eId="section-117-1-a"><num>(a)</num><content>a new public scheme;</content></level><level class="para1" eId="section-117-1-b"><num>(b)</num><content>members of a new public scheme;</content></level><level class="para1" eId="section-117-1-c"><num>(c)</num><content>persons who have survived a member of a new public scheme and who have an entitlement to benefits, or a right to future benefits, under the scheme in respect of the member;</content></level><level class="para1" eId="section-117-1-d"><num>(d)</num><content>a person within <ref href="#section-116">section 116</ref><ref href="#section-116-1">(1)</ref><ref href="#section-116-1-a">(a)</ref>, <ref href="#section-116-1-b">(b)</ref> or <ref href="#section-116-1-c">(c)</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-2"><num>(2)</num><content>Regulations under <ref href="#section-117-1">subsection (1)</ref> may include provision for treating a new public scheme as a registered pension scheme.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-3"><num>(3)</num><intro>The Treasury may by regulations make provision for varying the way in which any relevant tax would, apart from the regulations, have effect in relation to, or in connection with, anything done by or under, or in consequence of, regulations made under this Chapter in relation to—</intro><level class="para1" eId="section-117-3-a"><num>(a)</num><content>the AWE Pension Scheme;</content></level><level class="para1" eId="section-117-3-b"><num>(b)</num><content>the trustee company;</content></level><level class="para1" eId="section-117-3-c"><num>(c)</num><content>AWE PLC;</content></level><level class="para1" eId="section-117-3-d"><num>(d)</num><content>the Secretary of State;</content></level><level class="para1" eId="section-117-3-e"><num>(e)</num><content>a qualifying person;</content></level><level class="para1" eId="section-117-3-f"><num>(f)</num><content>a person who has survived a qualifying person and who has an entitlement to benefits, or a right to future benefits, under the scheme in respect of the qualifying person.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-4"><num>(4)</num><intro>Regulations under <ref href="#section-117-1">subsection (1)</ref> or <ref href="#section-117-3">(3)</ref> may include provision for any of the following—</intro><level class="para1" eId="section-117-4-a"><num>(a)</num><content>a tax provision not to apply or to apply with modifications;</content></level><level class="para1" eId="section-117-4-b"><num>(b)</num><content>anything done to have or not to have a specified consequence for the purposes of a tax provision;</content></level><level class="para1" eId="section-117-4-c"><num>(c)</num><content>the withdrawal of relief and the charging of a relevant tax.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-5"><num>(5)</num><content>Provision made by regulations under <ref href="#section-117-1">subsection (1)</ref> or <ref href="#section-117-3">(3)</ref>, other than provision withdrawing a relief or charging a relevant tax, may make retrospective provision.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-6"><num>(6)</num><intro>In <ref href="#section-117">this section</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-relevant-tax" eId="term-relevant-tax">relevant tax</term>” means—</intro><level class="para1"><num>(a)</num><content>income tax;</content></level><level class="para1"><num>(b)</num><content>capital gains tax;</content></level><level class="para1"><num>(c)</num><content>corporation tax;</content></level><level class="para1"><num>(d)</num><content>inheritance tax;</content></level><level class="para1"><num>(e)</num><content>stamp duty and stamp duty reserve tax;</content></level><level class="para1"><num>(f)</num><content>stamp duty land tax;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-registered-pension-scheme" eId="term-registered-pension-scheme">registered pension scheme</term>” has the meaning given in <ref eId="c00150" href="https://www.legislation.gov.uk/ukpga/2004/12/part/4">Part 4</ref> of the <ref eId="c00151" href="https://www.legislation.gov.uk/ukpga/2004/12/contents">Finance Act 2004</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tax-provision" eId="term-tax-provision">tax provision</term>” means any provision made by or under an enactment relating to a relevant tax.</content></hcontainer></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118"><num>118</num><heading>Information</heading><subsection eId="section-118-1"><num>(1)</num><content>The Secretary of State may by regulations make provision requiring a person specified or described in the regulations to give the Secretary of State a document or other information specified or described in the regulations.</content></subsection><subsection eId="section-118-2"><num>(2)</num><intro>Regulations under <ref href="#section-118-1">subsection (1)</ref> may only make provision in respect of documents or other information which the Secretary of State reasonably requires for the purposes of—</intro><level class="para1" eId="section-118-2-a"><num>(a)</num><content>making regulations under this Chapter, or</content></level><level class="para1" eId="section-118-2-b"><num>(b)</num><content>establishing or administering a new public scheme, including transferring qualifying accrued rights to such a scheme.</content></level></subsection><subsection eId="section-118-3"><num>(3)</num><intro>Regulations under <ref href="#section-118-1">subsection (1)</ref> may, among other things, include—</intro><level class="para1" eId="section-118-3-a"><num>(a)</num><content>provision about the time when the document or other information must be given;</content></level><level class="para1" eId="section-118-3-b"><num>(b)</num><content>provision about the form and manner in which it must be given;</content></level><level class="para1" eId="section-118-3-c"><num>(c)</num><content>provision for the imposition of a financial penalty on a person who, without reasonable excuse, fails to comply with a requirement imposed by the regulations (including provision for appeals to a court or tribunal).</content></level></subsection><subsection eId="section-118-4"><num>(4)</num><intro>For the purposes of facilitating the establishment or administration of a new public scheme, including the transfer of qualifying accrued rights to such a scheme, information described in <ref href="#section-118-5">subsection (5)</ref> may be shared among the following persons—</intro><level class="para1" eId="section-118-4-a"><num>(a)</num><content>the Secretary of State;</content></level><level class="para1" eId="section-118-4-b"><num>(b)</num><content>the Treasury;</content></level><level class="para1" eId="section-118-4-c"><num>(c)</num><content>a trustee company of the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-4-d"><num>(d)</num><content>a person who exercises functions under the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-4-e"><num>(e)</num><content>AWE PLC;</content></level><level class="para1" eId="section-118-4-f"><num>(f)</num><content>a person who administers, or exercises functions under, a new public scheme.</content></level></subsection><subsection eId="section-118-5"><num>(5)</num><intro>The information is information relating to—</intro><level class="para1" eId="section-118-5-a"><num>(a)</num><content>rights or entitlements to pensions or other benefits under the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-5-b"><num>(b)</num><content>the administration of the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-5-c"><num>(c)</num><content>rights or entitlements to pensions or other benefits under a new public scheme, so far as they are rights or entitlements of, or in respect of, qualifying persons;</content></level><level class="para1" eId="section-118-5-d"><num>(d)</num><content>the administration of a new public scheme.</content></level></subsection><subsection eId="section-118-6"><num>(6)</num><intro>The disclosure of information in accordance with <ref href="#section-118">this section</ref>, or regulations made under <ref href="#section-118">this section</ref>, does not breach—</intro><level class="para1" eId="section-118-6-a"><num>(a)</num><content>any obligation of confidence owed by a person in relation to that information, or</content></level><level class="para1" eId="section-118-6-b"><num>(b)</num><content>any other restriction on the disclosure of information (however imposed).</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-1"><num>(1)</num><content>The Secretary of State may by regulations make provision requiring a person specified or described in the regulations to give the Secretary of State a document or other information specified or described in the regulations.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-2"><num>(2)</num><intro>Regulations under <ref href="#section-118-1">subsection (1)</ref> may only make provision in respect of documents or other information which the Secretary of State reasonably requires for the purposes of—</intro><level class="para1" eId="section-118-2-a"><num>(a)</num><content>making regulations under this Chapter, or</content></level><level class="para1" eId="section-118-2-b"><num>(b)</num><content>establishing or administering a new public scheme, including transferring qualifying accrued rights to such a scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-3"><num>(3)</num><intro>Regulations under <ref href="#section-118-1">subsection (1)</ref> may, among other things, include—</intro><level class="para1" eId="section-118-3-a"><num>(a)</num><content>provision about the time when the document or other information must be given;</content></level><level class="para1" eId="section-118-3-b"><num>(b)</num><content>provision about the form and manner in which it must be given;</content></level><level class="para1" eId="section-118-3-c"><num>(c)</num><content>provision for the imposition of a financial penalty on a person who, without reasonable excuse, fails to comply with a requirement imposed by the regulations (including provision for appeals to a court or tribunal).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-4"><num>(4)</num><intro>For the purposes of facilitating the establishment or administration of a new public scheme, including the transfer of qualifying accrued rights to such a scheme, information described in <ref href="#section-118-5">subsection (5)</ref> may be shared among the following persons—</intro><level class="para1" eId="section-118-4-a"><num>(a)</num><content>the Secretary of State;</content></level><level class="para1" eId="section-118-4-b"><num>(b)</num><content>the Treasury;</content></level><level class="para1" eId="section-118-4-c"><num>(c)</num><content>a trustee company of the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-4-d"><num>(d)</num><content>a person who exercises functions under the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-4-e"><num>(e)</num><content>AWE PLC;</content></level><level class="para1" eId="section-118-4-f"><num>(f)</num><content>a person who administers, or exercises functions under, a new public scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-5"><num>(5)</num><intro>The information is information relating to—</intro><level class="para1" eId="section-118-5-a"><num>(a)</num><content>rights or entitlements to pensions or other benefits under the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-5-b"><num>(b)</num><content>the administration of the AWE Pension Scheme;</content></level><level class="para1" eId="section-118-5-c"><num>(c)</num><content>rights or entitlements to pensions or other benefits under a new public scheme, so far as they are rights or entitlements of, or in respect of, qualifying persons;</content></level><level class="para1" eId="section-118-5-d"><num>(d)</num><content>the administration of a new public scheme.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-6"><num>(6)</num><intro>The disclosure of information in accordance with <ref href="#section-118">this section</ref>, or regulations made under <ref href="#section-118">this section</ref>, does not breach—</intro><level class="para1" eId="section-118-6-a"><num>(a)</num><content>any obligation of confidence owed by a person in relation to that information, or</content></level><level class="para1" eId="section-118-6-b"><num>(b)</num><content>any other restriction on the disclosure of information (however imposed).</content></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119"><num>119</num><heading>Regulations</heading><subsection eId="section-119-1"><num>(1)</num><intro>The Secretary of State must consult the trustee company before making—</intro><level class="para1" eId="section-119-1-a"><num>(a)</num><content>regulations under <ref href="#section-112">section 112</ref> which establish a new public scheme or transfer qualifying accrued rights to a new public scheme, or</content></level><level class="para1" eId="section-119-1-b"><num>(b)</num><content>regulations under <ref href="#section-116">section 116</ref> which make provision for the transfer of assets or liabilities.</content></level></subsection><subsection eId="section-119-2"><num>(2)</num><content>The Secretary of State may not make regulations under any provision of this Chapter, other than under <ref href="#section-118">section 118</ref><ref href="#section-118-1">(1)</ref>, unless the Treasury have consented to the making of the regulations.</content></subsection><subsection eId="section-119-3"><num>(3)</num><intro>Regulations under <ref href="#section-112">section 112</ref> are subject to the affirmative procedure if—</intro><level class="para1" eId="section-119-3-a"><num>(a)</num><content>the making of the regulations is subject to the consent requirements (see <ref href="#section-115">section 115</ref>), or</content></level><level class="para1" eId="section-119-3-b"><num>(b)</num><content>the regulations make provision which has retrospective effect.</content></level></subsection><subsection eId="section-119-4"><num>(4)</num><content>Regulations under <ref href="#section-116">section 116</ref> are subject to the affirmative procedure if they make provision falling with subsection <ref href="#section-116-3">(3)</ref><ref href="#section-116-3-c">(c)</ref>, <ref href="#section-116-3-d">(d)</ref> or <ref href="#section-116-3-e">(e)</ref> of that section.</content></subsection><subsection eId="section-119-5"><num>(5)</num><content>Regulations under <ref href="#section-118">section 118</ref><ref href="#section-118-1">(1)</ref> are subject to the affirmative procedure if they make provision about the amount of a financial penalty.</content></subsection><subsection eId="section-119-6"><num>(6)</num><content>A statutory instrument containing regulations under <ref href="#section-117">section 117</ref> is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection><subsection eId="section-119-7"><num>(7)</num><content>Any other regulations under this Chapter are subject to the negative procedure.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-1"><num>(1)</num><intro>The Secretary of State must consult the trustee company before making—</intro><level class="para1" eId="section-119-1-a"><num>(a)</num><content>regulations under <ref href="#section-112">section 112</ref> which establish a new public scheme or transfer qualifying accrued rights to a new public scheme, or</content></level><level class="para1" eId="section-119-1-b"><num>(b)</num><content>regulations under <ref href="#section-116">section 116</ref> which make provision for the transfer of assets or liabilities.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-2"><num>(2)</num><content>The Secretary of State may not make regulations under any provision of this Chapter, other than under <ref href="#section-118">section 118</ref><ref href="#section-118-1">(1)</ref>, unless the Treasury have consented to the making of the regulations.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-3"><num>(3)</num><intro>Regulations under <ref href="#section-112">section 112</ref> are subject to the affirmative procedure if—</intro><level class="para1" eId="section-119-3-a"><num>(a)</num><content>the making of the regulations is subject to the consent requirements (see <ref href="#section-115">section 115</ref>), or</content></level><level class="para1" eId="section-119-3-b"><num>(b)</num><content>the regulations make provision which has retrospective effect.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-4"><num>(4)</num><content>Regulations under <ref href="#section-116">section 116</ref> are subject to the affirmative procedure if they make provision falling with subsection <ref href="#section-116-3">(3)</ref><ref href="#section-116-3-c">(c)</ref>, <ref href="#section-116-3-d">(d)</ref> or <ref href="#section-116-3-e">(e)</ref> of that section.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-5"><num>(5)</num><content>Regulations under <ref href="#section-118">section 118</ref><ref href="#section-118-1">(1)</ref> are subject to the affirmative procedure if they make provision about the amount of a financial penalty.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-6"><num>(6)</num><content>A statutory instrument containing regulations under <ref href="#section-117">section 117</ref> is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-7"><num>(7)</num><content>Any other regulations under this Chapter are subject to the negative procedure.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120"><num>120</num><heading>Interpretation</heading><intro>In this Chapter—</intro><hcontainer name="definition"><content>“<term refersTo="#term-active-member" eId="term-active-member">active member</term>” has the meaning given by section 124(1) of the Pensions Act 1995;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-deferred-member" eId="term-deferred-member">deferred member</term>” has the meaning given by section 124(1) of the Pensions Act 1995;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-enactment" eId="term-enactment">enactment</term>” includes—</intro><level class="para1"><num>(a)</num><content>an enactment comprised in subordinate legislation (within the meaning given by <ref eId="c00152" href="https://www.legislation.gov.uk/ukpga/1978/30/section/21">section 21</ref> of the <ref eId="c00153" href="https://www.legislation.gov.uk/ukpga/1978/30/contents">Interpretation Act 1978</ref>),</content></level><level class="para1"><num>(b)</num><content>an enactment comprised in, or in an instrument made under, a Measure or Act of Senedd Cymru,</content></level><level class="para1"><num>(c)</num><content>an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament,</content></level><level class="para1"><num>(d)</num><content>an enactment comprised in, or in an instrument made under, Northern Ireland legislation;</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-member" eId="term-member">member</term>” has the meaning given by <ref eId="c00154" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">section 124</ref><ref eId="c00155" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">(1)</ref> of the <ref eId="c00156" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-money-purchase-benefits" eId="term-money-purchase-benefits">money purchase benefits</term>” has the meaning given by <ref eId="c00157" href="https://www.legislation.gov.uk/ukpga/1993/48/section/181">section 181</ref> of the <ref eId="c00158" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-new-public-scheme" eId="term-new-public-scheme">new public scheme</term>” has the meaning given by <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-occupational-pension-scheme" eId="term-occupational-pension-scheme">occupational pension scheme</term>” has the meaning given by <ref eId="c00159" href="https://www.legislation.gov.uk/ukpga/1993/48/section/1">section 1</ref> of the <ref eId="c00160" href="https://www.legislation.gov.uk/ukpga/1993/48/contents">Pension Schemes Act 1993</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pension-credit-right" eId="term-pension-credit-right">pension credit right</term>” has the meaning given by <ref eId="c00161" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">section 124</ref><ref eId="c00162" href="https://www.legislation.gov.uk/ukpga/1995/26/section/124">(1)</ref> of the <ref eId="c00163" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-qualifying-person" eId="term-qualifying-person">qualifying person</term>” has the meaning given by <ref href="#section-112">section 112</ref><ref href="#section-112-1">(1)</ref>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-trustee-company" eId="term-the-trustee-company">the trustee company</term>” means AWE Pension Trustees Ltd.</content></hcontainer></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-1"><num>(1)</num><content>The <ref eId="c00164" href="https://www.legislation.gov.uk/ukpga/1995/26/contents">Pensions Act 1995</ref> is amended in accordance with <ref href="#section-121-2">subsections (2)</ref> and <ref href="#section-121-3">(3)</ref>.</content></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-121-2-a"><num>(a)</num><intro>in <ref eId="c00166" href="https://www.legislation.gov.uk/ukpga/1995/26/section/91">subsection (6)</ref>, in the words after <ref eId="c00167" href="https://www.legislation.gov.uk/ukpga/1995/26/section/91">paragraph (b)</ref>—</intro><level class="para2" eId="section-121-2-a-i"><num>(i)</num><content><mod>for “there is a dispute as to its amount” substitute <quotedText>“a dispute has arisen as to the amount of the monetary obligation in question”</quotedText>;</mod></content></level><level class="para2" eId="section-121-2-a-ii"><num>(ii)</num><content><mod>for the words from “the obligation in question” to the end substitute <quotedText>“one of the following conditions is met.”</quotedText>;</mod></content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-121-3-a"><num>(a)</num><content><mod>for “there is a dispute” substitute <quotedText>“a dispute has arisen”</quotedText>;</mod></content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-4"><num>(4)</num><content>The <ref eId="c00179" href="https://www.legislation.gov.uk/nisi/1995/3213/contents">Pensions (Northern Ireland) Order 1995</ref> is amended in accordance with <ref href="#section-121-5">subsections (5)</ref> and <ref href="#section-121-6">(6)</ref>.</content></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-121-5-a"><num>(a)</num><intro>in <ref eId="c00181" href="https://www.legislation.gov.uk/nisi/1995/3213/article/89">paragraph (6)</ref>, in the words after <ref eId="c00182" href="https://www.legislation.gov.uk/nisi/1995/3213/article/89">sub-paragraph (b)</ref>—</intro><level class="para2" eId="section-121-5-a-i"><num>(i)</num><content><mod>for “there is a dispute as to its amount” substitute <quotedText>“a dispute has arisen as to the amount of the monetary obligation in question”</quotedText>;</mod></content></level><level class="para2" eId="section-121-5-a-ii"><num>(ii)</num><content><mod>for the words from “the obligation in question” to the end substitute <quotedText>“one of the following conditions is met.”</quotedText>;</mod></content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-121-6-a"><num>(a)</num><content><mod>for “there is a dispute” substitute <quotedText>“a dispute has arisen”</quotedText>;</mod></content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122"><num>122</num><heading>Terminal illness</heading><intro><mod>In the following provisions (which relate to the life expectancy required for a person to be regarded as “terminally ill” for purposes relating to compensation or assistance from the Pension Protection Fund or Financial Assistance Scheme), for “6 months” or “six months” substitute <quotedText>“12 months”</quotedText>—</mod></intro><level class="para1" eId="section-122-a"><num>(a)</num><content>in the Pensions Act 2004, in Schedule 7, paragraph 25B(3);</content></level><level class="para1" eId="section-122-b"><num>(b)</num><content>in the Pensions (Northern Ireland) Order 2005 (<ref eId="c00194" href="http://www.legislation.gov.uk/id/nisi/2005/255">S.I. 2005/255 (N.I. 1)</ref>), in Schedule 6, paragraph 25B(3);</content></level><level class="para1" eId="section-122-c"><num>(c)</num><content>in the Pensions Act 2008, in Schedule 5, paragraph 12(3);</content></level><level class="para1" eId="section-122-d"><num>(d)</num><content>in the Pensions (No. 2) Act (Northern Ireland) <ref eId="c00195" href="http://www.legislation.gov.uk/id/nia/2008/13">2008 (c.13 (N.I.))</ref>, in Schedule 4, paragraph 12(3);</content></level><level class="para1" eId="section-122-e"><num>(e)</num><content>in the Financial Assistance Scheme Regulations 2005 (<ref eId="c00196" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>), regulations 2(9) and 17(3D)(b)(i).</content></level></section>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-a"><num>(a)</num><content>in the Pensions Act 2004, in Schedule 7, paragraph 25B(3);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-b"><num>(b)</num><content>in the Pensions (Northern Ireland) Order 2005 (<ref eId="c00194" href="http://www.legislation.gov.uk/id/nisi/2005/255">S.I. 2005/255 (N.I. 1)</ref>), in Schedule 6, paragraph 25B(3);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-c"><num>(c)</num><content>in the Pensions Act 2008, in Schedule 5, paragraph 12(3);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-d"><num>(d)</num><content>in the Pensions (No. 2) Act (Northern Ireland) <ref eId="c00195" href="http://www.legislation.gov.uk/id/nia/2008/13">2008 (c.13 (N.I.))</ref>, in Schedule 4, paragraph 12(3);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-e"><num>(e)</num><content>in the Financial Assistance Scheme Regulations 2005 (<ref eId="c00196" href="http://www.legislation.gov.uk/id/uksi/2005/1986">S.I. 2005/1986</ref>), regulations 2(9) and 17(3D)(b)(i).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-1"><num>(1)</num><content>The Pensions Act 2004 is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-2"><num>(2)</num><content>In section 113 (investment of funds), in subsection (2)(b), omit “174 or”.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-3"><num>(3)</num><content><mod>For the italic heading before section 174 substitute <quotedText>“Pension protection levies”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-4"><num>(4)</num><content>Omit section 174 (initial levy).</content></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-5-c"><num>(c)</num><content><mod>in subsection (5), in the words before paragraph (a), after “financial year” insert <quotedText>“for which it decides to impose the pension protection levies (or one of them)”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-5-d"><num>(d)</num><content>omit subsection (7);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-5-f"><num>(f)</num><content>in subsection (8), omit the definition of “initial period”;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-5-g"><num>(g)</num><intro>in subsection (10)—</intro><level class="para2" eId="section-123-5-g-i"><num>(i)</num><content><mod>in the words before paragraph (a), for “duty” substitute <quotedText>“power”</quotedText>;</mod></content></level><level class="para2" eId="section-123-5-g-ii"><num>(ii)</num><content>omit paragraph (b) and the “and” before it.</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-7-b"><num>(b)</num><content><mod>in each of subsections (1), (2) and (3), for “a financial year” substitute <quotedText>“the financial year”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-7-c"><num>(c)</num><content>omit subsection (4);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-7-e"><num>(e)</num><content><mod>in subsection (8), for the words from “Regulations” to “(6),” substitute <quotedText>“An order under subsection (6)”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-123-7-f"><num>(f)</num><content>in subsection (9), omit paragraph (b) and the “and” before it.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-8"><num>(8)</num><intro>In section 178 (levy ceiling)—</intro><level class="para1" eId="section-123-8-a"><num>(a)</num><content>in subsection (1), omit “for which levies are required to be imposed under section 175”;</content></level><level class="para1" eId="section-123-8-b"><num>(b)</num><content>omit subsection (2);</content></level><level class="para1" eId="section-123-8-c"><num>(c)</num><content>in subsection (3), in the words before paragraph (a), omit “after the first year for which levies are imposed under section 175”.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-9"><num>(9)</num><content>Omit section 180 (transitional provision now spent).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-10"><num>(10)</num><content>In section 181 (calculation, collection and recovery of levies), in subsection (1), omit paragraph (a) and the “and” after it.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-123-11"><num>(11)</num><content>In section 316 (parliamentary control of subordinate legislation), in subsection (2), omit paragraph (c).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-2"><num>(2)</num><content>The Pensions Act 2004 is amended as follows.</content></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-124-3-a"><num>(a)</num><content><mod>in subsection (1)(a), after “times” insert <quotedText>“or in prescribed circumstances”</quotedText>;</mod></content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-125-1"><num>(1)</num><content>Part 1 of the Pensions Act 2008 (pension scheme membership for jobholders) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-125-3"><num>(3)</num><content><mod>In section 34 (effect of failure to comply), in subsection (3), for “11” substitute <quotedText>“<ref href="#d25e23376">11A</ref>”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-1"><num>(1)</num><content>The Pensions Act 2004 is amended in accordance with subsections <ref href="#section-126-2">(2)</ref> to <ref href="#section-126-5">(5)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-2"><num>(2)</num><content>Omit section 116 (power of Secretary of State to pay grants to Board of Pension Protection Fund).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-3"><num>(3)</num><content>Omit section 117 (power of Secretary of State to impose administration levy on pension schemes).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-6"><num>(6)</num><content>No amount is payable to the Secretary of State by virtue of section 117 of the Pensions Act 2004 (administration levy) in respect of the financial years beginning with 1 April 2023 and 1 April 2024.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-7"><num>(7)</num><content>In the Pensions Act 2008, in Schedule 10 (interest on late payment of levies), omit paragraph 3 (which makes an amendment about interest for late payment of the administration levy that has not been brought into force).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-2"><num>(2)</num><content>In section 209 of the Pensions Act 2004 (ombudsman for the Board of the Pension Protection Fund), omit subsections (7) and (8).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128"><num>128</num><heading>Public service pension schemes</heading><subsection eId="section-128-1"><num>(1)</num><intro>The Government Actuary must, before the end of the period of 12 months beginning with the day on which this section comes into force—</intro><level class="para1" eId="section-128-1-a"><num>(a)</num><content>prepare and publish a document setting out cash flow projections for each of the next 50 years that cover the public service pension schemes within subsection <ref href="#section-128-4">(4)</ref>;</content></level><level class="para1" eId="section-128-1-b"><num>(b)</num><content>provide the document to the Treasury and the Office for Budget Responsibility.</content></level></subsection><subsection eId="section-128-2"><num>(2)</num><content>The Treasury must lay the document before Parliament.</content></subsection><subsection eId="section-128-3"><num>(3)</num><intro>For the purposes of this section “<term refersTo="#term-cash-flow" eId="term-cash-flow">cash flow</term>” means—</intro><level class="para1" eId="section-128-3-a"><num>(a)</num><content>expenditure on benefits, and</content></level><level class="para1" eId="section-128-3-b"><num>(b)</num><content>income from member contributions.</content></level></subsection><subsection eId="section-128-4"><num>(4)</num><intro>The following public service pension schemes are within this subsection—</intro><level class="para1" eId="section-128-4-a"><num>(a)</num><intro>any scheme under section 1 of the Public Service Pensions Act 2013 (schemes for persons in public service) which—</intro><level class="para2" eId="section-128-4-a-i"><num>(i)</num><content>is a defined benefits scheme (within the meaning of that Act), and</content></level><level class="para2" eId="section-128-4-a-ii"><num>(ii)</num><content>is not a scheme for local government workers (within the meaning of that Act);</content></level></level><level class="para1" eId="section-128-4-b"><num>(b)</num><intro>any scheme under section 1 of the Public Service Pensions Act (Northern Ireland) 2014 (schemes for persons in public service) which—</intro><level class="para2" eId="section-128-4-b-i"><num>(i)</num><content>is a defined benefits scheme (within the meaning of that Act), and</content></level><level class="para2" eId="section-128-4-b-ii"><num>(ii)</num><content>is not a scheme for local government workers (within the meaning of that Act).</content></level></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-1"><num>(1)</num><intro>The Government Actuary must, before the end of the period of 12 months beginning with the day on which this section comes into force—</intro><level class="para1" eId="section-128-1-a"><num>(a)</num><content>prepare and publish a document setting out cash flow projections for each of the next 50 years that cover the public service pension schemes within subsection <ref href="#section-128-4">(4)</ref>;</content></level><level class="para1" eId="section-128-1-b"><num>(b)</num><content>provide the document to the Treasury and the Office for Budget Responsibility.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-2"><num>(2)</num><content>The Treasury must lay the document before Parliament.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-3"><num>(3)</num><intro>For the purposes of this section “<term refersTo="#term-cash-flow" eId="term-cash-flow">cash flow</term>” means—</intro><level class="para1" eId="section-128-3-a"><num>(a)</num><content>expenditure on benefits, and</content></level><level class="para1" eId="section-128-3-b"><num>(b)</num><content>income from member contributions.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-4"><num>(4)</num><intro>The following public service pension schemes are within this subsection—</intro><level class="para1" eId="section-128-4-a"><num>(a)</num><intro>any scheme under section 1 of the Public Service Pensions Act 2013 (schemes for persons in public service) which—</intro><level class="para2" eId="section-128-4-a-i"><num>(i)</num><content>is a defined benefits scheme (within the meaning of that Act), and</content></level><level class="para2" eId="section-128-4-a-ii"><num>(ii)</num><content>is not a scheme for local government workers (within the meaning of that Act);</content></level></level><level class="para1" eId="section-128-4-b"><num>(b)</num><intro>any scheme under section 1 of the Public Service Pensions Act (Northern Ireland) 2014 (schemes for persons in public service) which—</intro><level class="para2" eId="section-128-4-b-i"><num>(i)</num><content>is a defined benefits scheme (within the meaning of that Act), and</content></level><level class="para2" eId="section-128-4-b-ii"><num>(ii)</num><content>is not a scheme for local government workers (within the meaning of that Act).</content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-4-a"><num>(a)</num><intro>any scheme under section 1 of the Public Service Pensions Act 2013 (schemes for persons in public service) which—</intro><level class="para2" eId="section-128-4-a-i"><num>(i)</num><content>is a defined benefits scheme (within the meaning of that Act), and</content></level><level class="para2" eId="section-128-4-a-ii"><num>(ii)</num><content>is not a scheme for local government workers (within the meaning of that Act);</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-4-b"><num>(b)</num><intro>any scheme under section 1 of the Public Service Pensions Act (Northern Ireland) 2014 (schemes for persons in public service) which—</intro><level class="para2" eId="section-128-4-b-i"><num>(i)</num><content>is a defined benefits scheme (within the meaning of that Act), and</content></level><level class="para2" eId="section-128-4-b-ii"><num>(ii)</num><content>is not a scheme for local government workers (within the meaning of that Act).</content></level></level>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="part-5"><num>Part 5</num><heading>General</heading><section eId="section-129"><num>129</num><heading>Amendments of Pensions Act 2004</heading><content>The Schedule amends the Pensions Act 2004 in consequence of or in connection with this Act.</content></section><section eId="section-130"><num>130</num><heading>Regulations: general</heading><subsection eId="section-130-1"><num>(1)</num><content>Regulations under this Act are to be made by statutory instrument.</content></subsection><subsection eId="section-130-2"><num>(2)</num><content>A power to make regulations under this Act includes power to make incidental, supplementary, consequential or transitional provision.</content></subsection><subsection eId="section-130-3"><num>(3)</num><intro>A power to make regulations under this Act may be exercised—</intro><level class="para1" eId="section-130-3-a"><num>(a)</num><content>either in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified cases or classes of case;</content></level><level class="para1" eId="section-130-3-b"><num>(b)</num><intro>so as to make, as respects the cases in relation to which it is exercised—</intro><level class="para2" eId="section-130-3-b-i"><num>(i)</num><content>the full provision to which the power extends or any less provision (whether by way of exception or otherwise),</content></level><level class="para2" eId="section-130-3-b-ii"><num>(ii)</num><content>the same provision for all cases in relation to which the power is exercised, or different provision for different cases or different classes of case or different provision as respects the same case or class of case for different purposes of this Act, or</content></level><level class="para2" eId="section-130-3-b-iii"><num>(iii)</num><content>any such provision either unconditionally or subject to any specified condition.</content></level></level></subsection><subsection eId="section-130-4"><num>(4)</num><content>A power to make regulations under any provision of this Act does not restrict the width of any power to make regulations under any other provision of this Act or under any other enactment.</content></subsection><subsection eId="section-130-5"><num>(5)</num><content>This section does not apply to regulations under <ref href="#section-133">section 133</ref>.</content></subsection></section><section eId="section-131"><num>131</num><heading>Regulations: procedure</heading><subsection eId="section-131-1"><num>(1)</num><content>Where regulations under this Act are subject to “the affirmative procedure”, the regulations may not be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.</content></subsection><subsection eId="section-131-2"><num>(2)</num><content>Where regulations under this Act are subject to “the negative procedure”, the statutory instrument containing them is subject to annulment in pursuance of a resolution of either House of Parliament.</content></subsection><subsection eId="section-131-3"><num>(3)</num><content>Any provision that may be made by regulations under this Act subject to the negative procedure may instead be made by regulations subject to the affirmative procedure.</content></subsection></section><section eId="section-132"><num>132</num><heading>Extent</heading><subsection eId="section-132-1"><num>(1)</num><content>Subject as follows, this Act extends to England and Wales and Scotland only.</content></subsection><subsection eId="section-132-2"><num>(2)</num><content>Sections <ref href="#section-105">105</ref> to <ref href="#section-108">108</ref> extend to Northern Ireland only.</content></subsection><subsection eId="section-132-3"><num>(3)</num><content><ref href="#part-4-chapter-3">Chapter 3</ref> of <ref href="#part-4">Part 4</ref> extends to England and Wales, Scotland and Northern Ireland.</content></subsection><subsection eId="section-132-4"><num>(4)</num><content>Section <ref href="#section-128">128</ref> extends to England and Wales, Scotland and Northern Ireland.</content></subsection><subsection eId="section-132-5"><num>(5)</num><content>Any amendment, repeal or revocation made by this Act has the same extent as the provision amended, repealed or revoked.</content></subsection></section><section eId="section-133"><num>133</num><heading>Commencement</heading><subsection eId="section-133-1"><num>(1)</num><content>Any provision of or amendment made by this Act, so far as it confers a power to make subordinate legislation, comes into force on the day on which this Act is passed.</content></subsection><subsection eId="section-133-2"><num>(2)</num><content>So far as not brought into force under <ref href="#section-133-1">subsection (1)</ref>, this Act comes into force as follows.</content></subsection><subsection eId="section-133-3"><num>(3)</num><content><ref href="#part-1">Part 1</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></subsection><subsection eId="section-133-4"><num>(4)</num><intro><ref href="#part-2">Part 2</ref> comes into force as follows—</intro><level class="para1" eId="section-133-4-a"><num>(a)</num><content>Chapter <ref href="#part-2-chapter-1">1</ref> comes into force on such day as the Secretary of State may by regulations appoint;</content></level><level class="para1" eId="section-133-4-b"><num>(b)</num><content>Chapter <ref href="#part-2-chapter-2">2</ref> comes into force on the day on which this Act is passed;</content></level><level class="para1" eId="section-133-4-c"><num>(c)</num><intro><ref href="#part-2-chapter-3">Chapter 3</ref> comes into force as follows—</intro><level class="para2" eId="section-133-4-c-i"><num>(i)</num><content>section 40, in respect of the insertion of section 28K of the Pensions Act 2008 (report about effects of pension scheme consolidation), comes into force on the day on which this Act is passed;</content></level><level class="para2" eId="section-133-4-c-ii"><num>(ii)</num><content>the remaining provisions of Chapter 3 come into force on such day as the Secretary of State may by regulations appoint;</content></level></level><level class="para1" eId="section-133-4-d"><num>(d)</num><content><ref href="#part-2-chapter-4">Chapter 4</ref> comes into force on such day as the Secretary of State and the Treasury jointly may by regulations appoint;</content></level><level class="para1" eId="section-133-4-e"><num>(e)</num><content><ref href="#part-2-chapter-5">Chapter 5</ref> comes into force on such day as the Treasury may by regulations appoint;</content></level><level class="para1" eId="section-133-4-f"><num>(f)</num><content><ref href="#part-2-chapter-6">Chapter 6</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></level></subsection><subsection eId="section-133-5"><num>(5)</num><intro>Regulations under <ref href="#section-133-4">subsection (4)</ref><ref href="#section-133-4-c">(c)</ref> may not provide for the following to come into force before 1 January 2030—</intro><level class="para1" eId="section-133-5-a"><num>(a)</num><content><ref href="#section-40">section 40</ref><ref href="#section-40-4">(4)</ref>, in respect of the insertion of Condition 1 in section 20<ref href="#d25e5826">(1A)</ref> of the Pensions Act 2008 (Master Trusts to be subject to scale requirement);</content></level><level class="para1" eId="section-133-5-b"><num>(b)</num><content><ref href="#section-40">section 40</ref><ref href="#section-40-8">(8)</ref>, in respect of the insertion of section 26<ref href="#d25e6027">(7A)</ref> of that Act (group personal pension schemes to be subject to scale requirement)</content></level><wrapUp>(but nothing in this subsection prevents section <ref href="#section-40">40</ref> from being brought into force before that date in respect of the insertion in that Act of other provision related to that mentioned in paragraph <ref href="#section-133-5-a">(a)</ref> or <ref href="#section-133-5-b">(b)</ref>).</wrapUp></subsection><subsection eId="section-133-6"><num>(6)</num><intro>If section <ref href="#section-40">40</ref> has not been brought into force before the end of 2032 in respect of the insertion of—</intro><level class="para1" eId="section-133-6-a"><num>(a)</num><content>Condition 2 in section 20<ref href="#d25e5826">(1A)</ref> of the Pensions Act 2008 (asset allocation requirement: Master Trusts), and</content></level><level class="para1" eId="section-133-6-b"><num>(b)</num><content>subsection <ref href="#d25e6039">(7B)</ref> in section 26 of the Pensions Act 2008 (asset allocation requirement: group personal pension schemes),</content></level><wrapUp>section <ref href="#section-40">40</ref> is repealed at the end of that year in respect of the insertion of those provisions.</wrapUp></subsection><subsection eId="section-133-7"><num>(7)</num><content><ref href="#part-3">Part 3</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></subsection><subsection eId="section-133-8"><num>(8)</num><content><ref href="#part-4-chapter-1">Chapter 1</ref> of <ref href="#part-4">Part 4</ref> comes into force on the day on which this Act is passed.</content></subsection><subsection eId="section-133-9"><num>(9)</num><content><ref href="#part-4-chapter-2">Chapter 2</ref> of <ref href="#part-4">Part 4</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></subsection><subsection eId="section-133-10"><num>(10)</num><content><ref href="#part-4-chapter-3">Chapter 3</ref> of <ref href="#part-4">Part 4</ref> comes into force on the day on which this Act is passed (to the extent this is not already the case as a result of <ref href="#section-133-1">subsection (1)</ref>).</content></subsection><subsection eId="section-133-11"><num>(11)</num><intro><ref href="#part-4-chapter-4">Chapter 4</ref> of Part 4 comes into force as follows—</intro><level class="para1" eId="section-133-11-a"><num>(a)</num><content>sections <ref href="#section-121">121</ref> and <ref href="#section-122">122</ref> come into force at the end of the period of two months beginning with the day on which this Act is passed;</content></level><level class="para1" eId="section-133-11-b"><num>(b)</num><content>section <ref href="#section-123">123</ref> comes into force on such day as the Secretary of State may by regulations appoint;</content></level><level class="para1" eId="section-133-11-c"><num>(c)</num><content>sections <ref href="#section-124">124</ref> and <ref href="#section-125">125</ref> come into force on the day on which this Act is passed;</content></level><level class="para1" eId="section-133-11-d"><num>(d)</num><intro>section <ref href="#section-126">126</ref>—</intro><level class="para2" eId="section-133-11-d-i"><num>(i)</num><content>comes into force on 1 April 2026, or,</content></level><level class="para2" eId="section-133-11-d-ii"><num>(ii)</num><content>if this Act is passed after that date, is treated as having come into force on that date;</content></level></level><level class="para1" eId="section-133-11-e"><num>(e)</num><content>section <ref href="#section-127">127</ref> is treated as having come into force on 1 April 2007;</content></level><level class="para1" eId="section-133-11-f"><num>(f)</num><content>section <ref href="#section-128">128</ref> comes into force on the day on which this Act is passed.</content></level></subsection><subsection eId="section-133-12"><num>(12)</num><intro><ref href="#part-5">This Part</ref> comes into force as follows—</intro><level class="para1" eId="section-133-12-a"><num>(a)</num><content>sections <ref href="#section-129">129</ref> to <ref href="#section-134">134</ref> come into force on the day on which this Act is passed;</content></level><level class="para1" eId="section-133-12-b"><num>(b)</num><content><ref href="#schedule">the Schedule</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></level></subsection><subsection eId="section-133-13"><num>(13)</num><intro>Transitional or saving provision may by regulations be made—</intro><level class="para1" eId="section-133-13-a"><num>(a)</num><content>by the Secretary of State in connection with the coming into force of any provision of this Act except <ref href="#part-2-chapter-5">Chapter 5</ref> of <ref href="#part-2">Part 2</ref>;</content></level><level class="para1" eId="section-133-13-b"><num>(b)</num><content>by the Treasury in connection with the coming into force of any provision of <ref href="#part-2-chapter-5">Chapter 5</ref> of <ref href="#part-2">Part 2</ref>.</content></level></subsection><subsection eId="section-133-14"><num>(14)</num><intro>Regulations under <ref href="#section-133">this section</ref>—</intro><level class="para1" eId="section-133-14-a"><num>(a)</num><content>may make different provision for different purposes;</content></level><level class="para1" eId="section-133-14-b"><num>(b)</num><content>are to be made by statutory instrument.</content></level></subsection></section><section eId="section-134"><num>134</num><heading>Short title</heading><content>This Act may be cited as the Pension Schemes Act 2026.</content></section></part>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-129"><num>129</num><heading>Amendments of Pensions Act 2004</heading><content>The Schedule amends the Pensions Act 2004 in consequence of or in connection with this Act.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130"><num>130</num><heading>Regulations: general</heading><subsection eId="section-130-1"><num>(1)</num><content>Regulations under this Act are to be made by statutory instrument.</content></subsection><subsection eId="section-130-2"><num>(2)</num><content>A power to make regulations under this Act includes power to make incidental, supplementary, consequential or transitional provision.</content></subsection><subsection eId="section-130-3"><num>(3)</num><intro>A power to make regulations under this Act may be exercised—</intro><level class="para1" eId="section-130-3-a"><num>(a)</num><content>either in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified cases or classes of case;</content></level><level class="para1" eId="section-130-3-b"><num>(b)</num><intro>so as to make, as respects the cases in relation to which it is exercised—</intro><level class="para2" eId="section-130-3-b-i"><num>(i)</num><content>the full provision to which the power extends or any less provision (whether by way of exception or otherwise),</content></level><level class="para2" eId="section-130-3-b-ii"><num>(ii)</num><content>the same provision for all cases in relation to which the power is exercised, or different provision for different cases or different classes of case or different provision as respects the same case or class of case for different purposes of this Act, or</content></level><level class="para2" eId="section-130-3-b-iii"><num>(iii)</num><content>any such provision either unconditionally or subject to any specified condition.</content></level></level></subsection><subsection eId="section-130-4"><num>(4)</num><content>A power to make regulations under any provision of this Act does not restrict the width of any power to make regulations under any other provision of this Act or under any other enactment.</content></subsection><subsection eId="section-130-5"><num>(5)</num><content>This section does not apply to regulations under <ref href="#section-133">section 133</ref>.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-1"><num>(1)</num><content>Regulations under this Act are to be made by statutory instrument.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-2"><num>(2)</num><content>A power to make regulations under this Act includes power to make incidental, supplementary, consequential or transitional provision.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-3"><num>(3)</num><intro>A power to make regulations under this Act may be exercised—</intro><level class="para1" eId="section-130-3-a"><num>(a)</num><content>either in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified cases or classes of case;</content></level><level class="para1" eId="section-130-3-b"><num>(b)</num><intro>so as to make, as respects the cases in relation to which it is exercised—</intro><level class="para2" eId="section-130-3-b-i"><num>(i)</num><content>the full provision to which the power extends or any less provision (whether by way of exception or otherwise),</content></level><level class="para2" eId="section-130-3-b-ii"><num>(ii)</num><content>the same provision for all cases in relation to which the power is exercised, or different provision for different cases or different classes of case or different provision as respects the same case or class of case for different purposes of this Act, or</content></level><level class="para2" eId="section-130-3-b-iii"><num>(iii)</num><content>any such provision either unconditionally or subject to any specified condition.</content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-130-3-a"><num>(a)</num><content>either in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified cases or classes of case;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-130-3-b"><num>(b)</num><intro>so as to make, as respects the cases in relation to which it is exercised—</intro><level class="para2" eId="section-130-3-b-i"><num>(i)</num><content>the full provision to which the power extends or any less provision (whether by way of exception or otherwise),</content></level><level class="para2" eId="section-130-3-b-ii"><num>(ii)</num><content>the same provision for all cases in relation to which the power is exercised, or different provision for different cases or different classes of case or different provision as respects the same case or class of case for different purposes of this Act, or</content></level><level class="para2" eId="section-130-3-b-iii"><num>(iii)</num><content>any such provision either unconditionally or subject to any specified condition.</content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-4"><num>(4)</num><content>A power to make regulations under any provision of this Act does not restrict the width of any power to make regulations under any other provision of this Act or under any other enactment.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-5"><num>(5)</num><content>This section does not apply to regulations under <ref href="#section-133">section 133</ref>.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-131"><num>131</num><heading>Regulations: procedure</heading><subsection eId="section-131-1"><num>(1)</num><content>Where regulations under this Act are subject to “the affirmative procedure”, the regulations may not be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.</content></subsection><subsection eId="section-131-2"><num>(2)</num><content>Where regulations under this Act are subject to “the negative procedure”, the statutory instrument containing them is subject to annulment in pursuance of a resolution of either House of Parliament.</content></subsection><subsection eId="section-131-3"><num>(3)</num><content>Any provision that may be made by regulations under this Act subject to the negative procedure may instead be made by regulations subject to the affirmative procedure.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-132"><num>132</num><heading>Extent</heading><subsection eId="section-132-1"><num>(1)</num><content>Subject as follows, this Act extends to England and Wales and Scotland only.</content></subsection><subsection eId="section-132-2"><num>(2)</num><content>Sections <ref href="#section-105">105</ref> to <ref href="#section-108">108</ref> extend to Northern Ireland only.</content></subsection><subsection eId="section-132-3"><num>(3)</num><content><ref href="#part-4-chapter-3">Chapter 3</ref> of <ref href="#part-4">Part 4</ref> extends to England and Wales, Scotland and Northern Ireland.</content></subsection><subsection eId="section-132-4"><num>(4)</num><content>Section <ref href="#section-128">128</ref> extends to England and Wales, Scotland and Northern Ireland.</content></subsection><subsection eId="section-132-5"><num>(5)</num><content>Any amendment, repeal or revocation made by this Act has the same extent as the provision amended, repealed or revoked.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133"><num>133</num><heading>Commencement</heading><subsection eId="section-133-1"><num>(1)</num><content>Any provision of or amendment made by this Act, so far as it confers a power to make subordinate legislation, comes into force on the day on which this Act is passed.</content></subsection><subsection eId="section-133-2"><num>(2)</num><content>So far as not brought into force under <ref href="#section-133-1">subsection (1)</ref>, this Act comes into force as follows.</content></subsection><subsection eId="section-133-3"><num>(3)</num><content><ref href="#part-1">Part 1</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></subsection><subsection eId="section-133-4"><num>(4)</num><intro><ref href="#part-2">Part 2</ref> comes into force as follows—</intro><level class="para1" eId="section-133-4-a"><num>(a)</num><content>Chapter <ref href="#part-2-chapter-1">1</ref> comes into force on such day as the Secretary of State may by regulations appoint;</content></level><level class="para1" eId="section-133-4-b"><num>(b)</num><content>Chapter <ref href="#part-2-chapter-2">2</ref> comes into force on the day on which this Act is passed;</content></level><level class="para1" eId="section-133-4-c"><num>(c)</num><intro><ref href="#part-2-chapter-3">Chapter 3</ref> comes into force as follows—</intro><level class="para2" eId="section-133-4-c-i"><num>(i)</num><content>section 40, in respect of the insertion of section 28K of the Pensions Act 2008 (report about effects of pension scheme consolidation), comes into force on the day on which this Act is passed;</content></level><level class="para2" eId="section-133-4-c-ii"><num>(ii)</num><content>the remaining provisions of Chapter 3 come into force on such day as the Secretary of State may by regulations appoint;</content></level></level><level class="para1" eId="section-133-4-d"><num>(d)</num><content><ref href="#part-2-chapter-4">Chapter 4</ref> comes into force on such day as the Secretary of State and the Treasury jointly may by regulations appoint;</content></level><level class="para1" eId="section-133-4-e"><num>(e)</num><content><ref href="#part-2-chapter-5">Chapter 5</ref> comes into force on such day as the Treasury may by regulations appoint;</content></level><level class="para1" eId="section-133-4-f"><num>(f)</num><content><ref href="#part-2-chapter-6">Chapter 6</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></level></subsection><subsection eId="section-133-5"><num>(5)</num><intro>Regulations under <ref href="#section-133-4">subsection (4)</ref><ref href="#section-133-4-c">(c)</ref> may not provide for the following to come into force before 1 January 2030—</intro><level class="para1" eId="section-133-5-a"><num>(a)</num><content><ref href="#section-40">section 40</ref><ref href="#section-40-4">(4)</ref>, in respect of the insertion of Condition 1 in section 20<ref href="#d25e5826">(1A)</ref> of the Pensions Act 2008 (Master Trusts to be subject to scale requirement);</content></level><level class="para1" eId="section-133-5-b"><num>(b)</num><content><ref href="#section-40">section 40</ref><ref href="#section-40-8">(8)</ref>, in respect of the insertion of section 26<ref href="#d25e6027">(7A)</ref> of that Act (group personal pension schemes to be subject to scale requirement)</content></level><wrapUp>(but nothing in this subsection prevents section <ref href="#section-40">40</ref> from being brought into force before that date in respect of the insertion in that Act of other provision related to that mentioned in paragraph <ref href="#section-133-5-a">(a)</ref> or <ref href="#section-133-5-b">(b)</ref>).</wrapUp></subsection><subsection eId="section-133-6"><num>(6)</num><intro>If section <ref href="#section-40">40</ref> has not been brought into force before the end of 2032 in respect of the insertion of—</intro><level class="para1" eId="section-133-6-a"><num>(a)</num><content>Condition 2 in section 20<ref href="#d25e5826">(1A)</ref> of the Pensions Act 2008 (asset allocation requirement: Master Trusts), and</content></level><level class="para1" eId="section-133-6-b"><num>(b)</num><content>subsection <ref href="#d25e6039">(7B)</ref> in section 26 of the Pensions Act 2008 (asset allocation requirement: group personal pension schemes),</content></level><wrapUp>section <ref href="#section-40">40</ref> is repealed at the end of that year in respect of the insertion of those provisions.</wrapUp></subsection><subsection eId="section-133-7"><num>(7)</num><content><ref href="#part-3">Part 3</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></subsection><subsection eId="section-133-8"><num>(8)</num><content><ref href="#part-4-chapter-1">Chapter 1</ref> of <ref href="#part-4">Part 4</ref> comes into force on the day on which this Act is passed.</content></subsection><subsection eId="section-133-9"><num>(9)</num><content><ref href="#part-4-chapter-2">Chapter 2</ref> of <ref href="#part-4">Part 4</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></subsection><subsection eId="section-133-10"><num>(10)</num><content><ref href="#part-4-chapter-3">Chapter 3</ref> of <ref href="#part-4">Part 4</ref> comes into force on the day on which this Act is passed (to the extent this is not already the case as a result of <ref href="#section-133-1">subsection (1)</ref>).</content></subsection><subsection eId="section-133-11"><num>(11)</num><intro><ref href="#part-4-chapter-4">Chapter 4</ref> of Part 4 comes into force as follows—</intro><level class="para1" eId="section-133-11-a"><num>(a)</num><content>sections <ref href="#section-121">121</ref> and <ref href="#section-122">122</ref> come into force at the end of the period of two months beginning with the day on which this Act is passed;</content></level><level class="para1" eId="section-133-11-b"><num>(b)</num><content>section <ref href="#section-123">123</ref> comes into force on such day as the Secretary of State may by regulations appoint;</content></level><level class="para1" eId="section-133-11-c"><num>(c)</num><content>sections <ref href="#section-124">124</ref> and <ref href="#section-125">125</ref> come into force on the day on which this Act is passed;</content></level><level class="para1" eId="section-133-11-d"><num>(d)</num><intro>section <ref href="#section-126">126</ref>—</intro><level class="para2" eId="section-133-11-d-i"><num>(i)</num><content>comes into force on 1 April 2026, or,</content></level><level class="para2" eId="section-133-11-d-ii"><num>(ii)</num><content>if this Act is passed after that date, is treated as having come into force on that date;</content></level></level><level class="para1" eId="section-133-11-e"><num>(e)</num><content>section <ref href="#section-127">127</ref> is treated as having come into force on 1 April 2007;</content></level><level class="para1" eId="section-133-11-f"><num>(f)</num><content>section <ref href="#section-128">128</ref> comes into force on the day on which this Act is passed.</content></level></subsection><subsection eId="section-133-12"><num>(12)</num><intro><ref href="#part-5">This Part</ref> comes into force as follows—</intro><level class="para1" eId="section-133-12-a"><num>(a)</num><content>sections <ref href="#section-129">129</ref> to <ref href="#section-134">134</ref> come into force on the day on which this Act is passed;</content></level><level class="para1" eId="section-133-12-b"><num>(b)</num><content><ref href="#schedule">the Schedule</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></level></subsection><subsection eId="section-133-13"><num>(13)</num><intro>Transitional or saving provision may by regulations be made—</intro><level class="para1" eId="section-133-13-a"><num>(a)</num><content>by the Secretary of State in connection with the coming into force of any provision of this Act except <ref href="#part-2-chapter-5">Chapter 5</ref> of <ref href="#part-2">Part 2</ref>;</content></level><level class="para1" eId="section-133-13-b"><num>(b)</num><content>by the Treasury in connection with the coming into force of any provision of <ref href="#part-2-chapter-5">Chapter 5</ref> of <ref href="#part-2">Part 2</ref>.</content></level></subsection><subsection eId="section-133-14"><num>(14)</num><intro>Regulations under <ref href="#section-133">this section</ref>—</intro><level class="para1" eId="section-133-14-a"><num>(a)</num><content>may make different provision for different purposes;</content></level><level class="para1" eId="section-133-14-b"><num>(b)</num><content>are to be made by statutory instrument.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-1"><num>(1)</num><content>Any provision of or amendment made by this Act, so far as it confers a power to make subordinate legislation, comes into force on the day on which this Act is passed.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-2"><num>(2)</num><content>So far as not brought into force under <ref href="#section-133-1">subsection (1)</ref>, this Act comes into force as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-3"><num>(3)</num><content><ref href="#part-1">Part 1</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-4"><num>(4)</num><intro><ref href="#part-2">Part 2</ref> comes into force as follows—</intro><level class="para1" eId="section-133-4-a"><num>(a)</num><content>Chapter <ref href="#part-2-chapter-1">1</ref> comes into force on such day as the Secretary of State may by regulations appoint;</content></level><level class="para1" eId="section-133-4-b"><num>(b)</num><content>Chapter <ref href="#part-2-chapter-2">2</ref> comes into force on the day on which this Act is passed;</content></level><level class="para1" eId="section-133-4-c"><num>(c)</num><intro><ref href="#part-2-chapter-3">Chapter 3</ref> comes into force as follows—</intro><level class="para2" eId="section-133-4-c-i"><num>(i)</num><content>section 40, in respect of the insertion of section 28K of the Pensions Act 2008 (report about effects of pension scheme consolidation), comes into force on the day on which this Act is passed;</content></level><level class="para2" eId="section-133-4-c-ii"><num>(ii)</num><content>the remaining provisions of Chapter 3 come into force on such day as the Secretary of State may by regulations appoint;</content></level></level><level class="para1" eId="section-133-4-d"><num>(d)</num><content><ref href="#part-2-chapter-4">Chapter 4</ref> comes into force on such day as the Secretary of State and the Treasury jointly may by regulations appoint;</content></level><level class="para1" eId="section-133-4-e"><num>(e)</num><content><ref href="#part-2-chapter-5">Chapter 5</ref> comes into force on such day as the Treasury may by regulations appoint;</content></level><level class="para1" eId="section-133-4-f"><num>(f)</num><content><ref href="#part-2-chapter-6">Chapter 6</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-4-a"><num>(a)</num><content>Chapter <ref href="#part-2-chapter-1">1</ref> comes into force on such day as the Secretary of State may by regulations appoint;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-4-b"><num>(b)</num><content>Chapter <ref href="#part-2-chapter-2">2</ref> comes into force on the day on which this Act is passed;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-4-c"><num>(c)</num><intro><ref href="#part-2-chapter-3">Chapter 3</ref> comes into force as follows—</intro><level class="para2" eId="section-133-4-c-i"><num>(i)</num><content>section 40, in respect of the insertion of section 28K of the Pensions Act 2008 (report about effects of pension scheme consolidation), comes into force on the day on which this Act is passed;</content></level><level class="para2" eId="section-133-4-c-ii"><num>(ii)</num><content>the remaining provisions of Chapter 3 come into force on such day as the Secretary of State may by regulations appoint;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-4-d"><num>(d)</num><content><ref href="#part-2-chapter-4">Chapter 4</ref> comes into force on such day as the Secretary of State and the Treasury jointly may by regulations appoint;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-4-e"><num>(e)</num><content><ref href="#part-2-chapter-5">Chapter 5</ref> comes into force on such day as the Treasury may by regulations appoint;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-4-f"><num>(f)</num><content><ref href="#part-2-chapter-6">Chapter 6</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-5"><num>(5)</num><intro>Regulations under <ref href="#section-133-4">subsection (4)</ref><ref href="#section-133-4-c">(c)</ref> may not provide for the following to come into force before 1 January 2030—</intro><level class="para1" eId="section-133-5-a"><num>(a)</num><content><ref href="#section-40">section 40</ref><ref href="#section-40-4">(4)</ref>, in respect of the insertion of Condition 1 in section 20<ref href="#d25e5826">(1A)</ref> of the Pensions Act 2008 (Master Trusts to be subject to scale requirement);</content></level><level class="para1" eId="section-133-5-b"><num>(b)</num><content><ref href="#section-40">section 40</ref><ref href="#section-40-8">(8)</ref>, in respect of the insertion of section 26<ref href="#d25e6027">(7A)</ref> of that Act (group personal pension schemes to be subject to scale requirement)</content></level><wrapUp>(but nothing in this subsection prevents section <ref href="#section-40">40</ref> from being brought into force before that date in respect of the insertion in that Act of other provision related to that mentioned in paragraph <ref href="#section-133-5-a">(a)</ref> or <ref href="#section-133-5-b">(b)</ref>).</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-6"><num>(6)</num><intro>If section <ref href="#section-40">40</ref> has not been brought into force before the end of 2032 in respect of the insertion of—</intro><level class="para1" eId="section-133-6-a"><num>(a)</num><content>Condition 2 in section 20<ref href="#d25e5826">(1A)</ref> of the Pensions Act 2008 (asset allocation requirement: Master Trusts), and</content></level><level class="para1" eId="section-133-6-b"><num>(b)</num><content>subsection <ref href="#d25e6039">(7B)</ref> in section 26 of the Pensions Act 2008 (asset allocation requirement: group personal pension schemes),</content></level><wrapUp>section <ref href="#section-40">40</ref> is repealed at the end of that year in respect of the insertion of those provisions.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-7"><num>(7)</num><content><ref href="#part-3">Part 3</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-8"><num>(8)</num><content><ref href="#part-4-chapter-1">Chapter 1</ref> of <ref href="#part-4">Part 4</ref> comes into force on the day on which this Act is passed.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-9"><num>(9)</num><content><ref href="#part-4-chapter-2">Chapter 2</ref> of <ref href="#part-4">Part 4</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-10"><num>(10)</num><content><ref href="#part-4-chapter-3">Chapter 3</ref> of <ref href="#part-4">Part 4</ref> comes into force on the day on which this Act is passed (to the extent this is not already the case as a result of <ref href="#section-133-1">subsection (1)</ref>).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-11"><num>(11)</num><intro><ref href="#part-4-chapter-4">Chapter 4</ref> of Part 4 comes into force as follows—</intro><level class="para1" eId="section-133-11-a"><num>(a)</num><content>sections <ref href="#section-121">121</ref> and <ref href="#section-122">122</ref> come into force at the end of the period of two months beginning with the day on which this Act is passed;</content></level><level class="para1" eId="section-133-11-b"><num>(b)</num><content>section <ref href="#section-123">123</ref> comes into force on such day as the Secretary of State may by regulations appoint;</content></level><level class="para1" eId="section-133-11-c"><num>(c)</num><content>sections <ref href="#section-124">124</ref> and <ref href="#section-125">125</ref> come into force on the day on which this Act is passed;</content></level><level class="para1" eId="section-133-11-d"><num>(d)</num><intro>section <ref href="#section-126">126</ref>—</intro><level class="para2" eId="section-133-11-d-i"><num>(i)</num><content>comes into force on 1 April 2026, or,</content></level><level class="para2" eId="section-133-11-d-ii"><num>(ii)</num><content>if this Act is passed after that date, is treated as having come into force on that date;</content></level></level><level class="para1" eId="section-133-11-e"><num>(e)</num><content>section <ref href="#section-127">127</ref> is treated as having come into force on 1 April 2007;</content></level><level class="para1" eId="section-133-11-f"><num>(f)</num><content>section <ref href="#section-128">128</ref> comes into force on the day on which this Act is passed.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-11-a"><num>(a)</num><content>sections <ref href="#section-121">121</ref> and <ref href="#section-122">122</ref> come into force at the end of the period of two months beginning with the day on which this Act is passed;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-11-b"><num>(b)</num><content>section <ref href="#section-123">123</ref> comes into force on such day as the Secretary of State may by regulations appoint;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-11-c"><num>(c)</num><content>sections <ref href="#section-124">124</ref> and <ref href="#section-125">125</ref> come into force on the day on which this Act is passed;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-11-d"><num>(d)</num><intro>section <ref href="#section-126">126</ref>—</intro><level class="para2" eId="section-133-11-d-i"><num>(i)</num><content>comes into force on 1 April 2026, or,</content></level><level class="para2" eId="section-133-11-d-ii"><num>(ii)</num><content>if this Act is passed after that date, is treated as having come into force on that date;</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-11-e"><num>(e)</num><content>section <ref href="#section-127">127</ref> is treated as having come into force on 1 April 2007;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-11-f"><num>(f)</num><content>section <ref href="#section-128">128</ref> comes into force on the day on which this Act is passed.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-12"><num>(12)</num><intro><ref href="#part-5">This Part</ref> comes into force as follows—</intro><level class="para1" eId="section-133-12-a"><num>(a)</num><content>sections <ref href="#section-129">129</ref> to <ref href="#section-134">134</ref> come into force on the day on which this Act is passed;</content></level><level class="para1" eId="section-133-12-b"><num>(b)</num><content><ref href="#schedule">the Schedule</ref> comes into force on such day as the Secretary of State may by regulations appoint.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-13"><num>(13)</num><intro>Transitional or saving provision may by regulations be made—</intro><level class="para1" eId="section-133-13-a"><num>(a)</num><content>by the Secretary of State in connection with the coming into force of any provision of this Act except <ref href="#part-2-chapter-5">Chapter 5</ref> of <ref href="#part-2">Part 2</ref>;</content></level><level class="para1" eId="section-133-13-b"><num>(b)</num><content>by the Treasury in connection with the coming into force of any provision of <ref href="#part-2-chapter-5">Chapter 5</ref> of <ref href="#part-2">Part 2</ref>.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-14"><num>(14)</num><intro>Regulations under <ref href="#section-133">this section</ref>—</intro><level class="para1" eId="section-133-14-a"><num>(a)</num><content>may make different provision for different purposes;</content></level><level class="para1" eId="section-133-14-b"><num>(b)</num><content>are to be made by statutory instrument.</content></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134"><num>134</num><heading>Short title</heading><content>This Act may be cited as the Pension Schemes Act 2026.</content></section>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedules" eId="schedules"><hcontainer name="schedule" eId="schedule"><num>Schedule<authorialNote class="referenceNote">Section 129</authorialNote></num><heading>Amendments of Pensions Act 2004</heading><paragraph eId="schedule-paragraph-1" class="schProv1"><num>1</num><content>The Pensions Act 2004 is amended as follows.</content></paragraph><paragraph eId="schedule-paragraph-2" class="schProv1"><num>2</num><content><mod>In section 10 (functions exercisable by the Determinations Panel), in subsection (6), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(m)</num><content>section <ref href="#section-63">63</ref> of the Pension Schemes Act 2026 (application for authorisation of a superfund);</content></level><level class="para1"><num>(n)</num><content><ref href="#section-66">section 66</ref> of that Act (application for approval of a superfund transfer);</content></level><level class="para1"><num>(o)</num><content>section <ref href="#section-78">78</ref> of that Act (application for approval of individual to be responsible for key function in relation to superfund);</content></level><level class="para1"><num>(p)</num><content>section <ref href="#section-80">80</ref> of that Act (application to approve a person to be a trustee of a superfund scheme).</content></level></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-3" class="schProv1"><num>3</num><content><mod>In section 13 (improvement notices) in subsection (7), after paragraph (i) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(j)</num><content>Chapter <ref href="#part-2-chapter-1">1</ref>, <ref href="#part-2-chapter-2">2</ref>, <ref href="#schedule-paragraph-4">4</ref> or <ref href="#part-2-chapter-6">6</ref> of Part <ref href="#part-2">2</ref> of, or any provision of Part <ref href="#part-3">3</ref> of, the Pension Schemes Act 2026.</content></level></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-4" class="schProv1"><num>4</num><content><mod>In section 70 (duty to report breaches of the law), in subsection (1), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(g)</num><intro>in relation to an operating superfund—</intro><level class="para2"><num>(i)</num><content>a member of the superfund group;</content></level><level class="para2"><num>(ii)</num><content>a person who is responsible for a key function.</content></level></level></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-5" class="schProv1"><num>5</num><content><mod>In section 72 (provision of information) subsection (2), after paragraph (c) (but before the “and” that follows it) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(ca)</num><intro>in relation to an operating superfund—</intro><level class="para2"><num>(i)</num><content>a member of the superfund group, and</content></level><level class="para2"><num>(ii)</num><content>a person who is responsible for a key function,</content></level></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-paragraph-6-1"><num>(1)</num><content>In section 73 (inspection of premises), subsection (2) is amended as follows.</content></subparagraph><subparagraph eId="schedule-paragraph-6-2"><num>(2)</num><content><mod>Before paragraph (da) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e24389"><num>(dza)</num><content>sections <ref href="#d25e6214">28A</ref> to <ref href="#d25e7697">28G</ref> of the Pensions Act 2008 (scale and asset allocation);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-paragraph-6-3"><num>(3)</num><content><mod> After paragraph (dc) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(dd)</num><intro>any of the following provisions of the Pension Schemes Act 2026—</intro><level class="para2"><num>(i)</num><content>Chapters <ref href="#part-2-chapter-1">1</ref>, <ref href="#part-2-chapter-2">2</ref>, <ref href="#schedule-paragraph-4">4</ref> and <ref href="#part-2-chapter-6">6</ref> of <ref href="#part-2">Part 2</ref>;</content></level><level class="para2"><num>(ii)</num><content><ref href="#part-3">Part 3</ref>;</content></level></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-paragraph-6-4"><num>(4)</num><content><mod>In paragraph (e), for “(dc)” substitute <quotedText>“(dd)”</quotedText>.</mod></content></subparagraph></paragraph><paragraph eId="schedule-paragraph-7" class="schProv1"><num>7</num><content><mod>In section 76 (inspection of premises: supplementary), in subsection (3)(a), after “of this Act,” insert <quotedText>“section <ref href="#section-92">92</ref> or <ref href="#section-93">93</ref> of the Pension Schemes Act 2026,”</quotedText>.</mod></content></paragraph><paragraph eId="schedule-paragraph-8" class="schProv1"><num>8</num><content><mod>In section 77A (fixed penalty notices), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7)</num><intro>Where the recipient of the notice is—</intro><level class="para1"><num>(a)</num><content>a trustee of an operating superfund scheme,</content></level><level class="para1"><num>(b)</num><content>the responsible body of an operating superfund, or</content></level><level class="para1"><num>(c)</num><content>a person responsible for a key function in relation to an operating superfund,</content></level><wrapUp>subsection (3)(b) has effect as though the figure mentioned there were £100,000.</wrapUp></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-9" class="schProv1"><num>9</num><content><mod>In section 77B (escalating penalty notices), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(9)</num><intro>Where the recipient of the notice is—</intro><level class="para1"><num>(a)</num><content>a trustee of an operating superfund scheme,</content></level><level class="para1"><num>(b)</num><content>the responsible body of an operating superfund, or</content></level><level class="para1"><num>(c)</num><content>a person responsible for a key function in relation to an operating superfund,</content></level><wrapUp>subsection (5)(b) has effect as though the figure mentioned there were £20,000.</wrapUp></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-10" class="schProv1"><num>10</num><intro>In section 80 (offences of providing false or misleading information), in subsection (1)(c)—</intro><level class="para1" eId="schedule-paragraph-10-a"><num>(a)</num><content><mod>in the words before sub-paragraph (i), after “under” insert <quotedText>“or by virtue of any of the following”</quotedText>;</mod></content></level><level class="para1" eId="schedule-paragraph-10-b"><num>(b)</num><content>omit the “or” after sub-paragraph (v);</content></level><level class="para1" eId="schedule-paragraph-10-c"><num>(c)</num><content>each of sub-paragraphs (i) to (vi) becomes an unnumbered paragraph;</content></level><level class="para1" eId="schedule-paragraph-10-d"><num>(d)</num><content><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>Chapter <ref href="#part-2-chapter-1">1</ref>, <ref href="#part-2-chapter-2">2</ref>, <ref href="#part-2-chapter-4">4</ref> or <ref href="#part-2-chapter-6">6</ref> of Part <ref href="#part-2">2</ref> of, or any provision of Part <ref href="#part-3">3</ref> of, the Pension Schemes Act 2026</item></blockList></quotedStructure><inline name="appendText">.</inline></mod></content></level></paragraph><paragraph eId="schedule-paragraph-11" class="schProv1"><num>11</num><intro>In section 80A (financial penalty for providing false or misleading information to Regulator), in subsection (2)(c)—</intro><level class="para1" eId="schedule-paragraph-11-a"><num>(a)</num><content><mod>in the words before sub-paragraph (i), after “under” insert <quotedText>“or by virtue of any of the following”</quotedText>;</mod></content></level><level class="para1" eId="schedule-paragraph-11-b"><num>(b)</num><content>omit the “or” after sub-paragraph (v);</content></level><level class="para1" eId="schedule-paragraph-11-c"><num>(c)</num><content>each of sub-paragraphs (i) to (vi) becomes an unnumbered paragraph;</content></level><level class="para1" eId="schedule-paragraph-11-d"><num>(d)</num><content><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>Chapter <ref href="#part-2-chapter-1">1</ref>, <ref href="#part-2-chapter-2">2</ref>, <ref href="#schedule-paragraph-4">4</ref> or <ref href="#part-2-chapter-6">6</ref> of Part <ref href="#part-2">2</ref> of, or any provision of Part <ref href="#part-3">3</ref> of, the Pension Schemes Act 2026</item></blockList></quotedStructure><inline name="appendText">.</inline></mod></content></level></paragraph><paragraph eId="schedule-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-paragraph-12-1"><num>(1)</num><content>Section 90 (codes of practice issued by Regulator) is amended as follows.</content></subparagraph><subparagraph eId="schedule-paragraph-12-2"><num>(2)</num><content><mod>In subsection (2), after paragraph (jd) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(je)</num><intro>the process for making—</intro><level class="para2"><num>(i)</num><content>an application for authorisation of a superfund under <ref href="#part-3-chapter-2">Chapter 2</ref> of <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026;</content></level><level class="para2"><num>(ii)</num><content>an application for approval of a superfund transfer under <ref href="#part-3-chapter-3">Chapter 3</ref> of that Part of that Act;</content></level></level><level class="para1"><num>(jf)</num><intro>the matters that the Pensions Regulator expects to take into account in deciding—</intro><level class="para2"><num>(i)</num><content>whether it is satisfied as described in <ref href="#section-63">section 63</ref><ref href="#section-63-1">(1)</ref> of the Pension Schemes Act 2026 (condition for superfund to be authorised);</content></level><level class="para2"><num>(ii)</num><content>whether it is satisfied as described in <ref href="#section-66">section 66</ref><ref href="#section-66-1">(1)</ref><ref href="#section-66-1-c">(c)</ref> of that Act (“onboarding conditions” for superfund transfers);</content></level></level><level class="para1"><num>(jg)</num><content>the discharge of the duties imposed by Chapters 4 and 5 of <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (ongoing requirements for operating superfunds);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-paragraph-12-3"><num>(3)</num><intro>In subsection (6), in the definition of “the pensions legislation”—</intro><level class="para1" eId="schedule-paragraph-12-3-a"><num>(a)</num><content><mod>after paragraph (d) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e24762"><num>(da)</num><content>sections 20, 26 and <ref href="#d25e6214">28A</ref> to <ref href="#d25e8016">28I</ref> of the Pensions Act 2008 (scale and the asset allocation requirement),</content></level></quotedStructure><inline name="appendText">;</inline></mod></content></level><level class="para1" eId="schedule-paragraph-12-3-b"><num>(b)</num><content><mod>omit the “or” before paragraph (h) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2"><num>(i)</num><content>Chapter <ref href="#part-2-chapter-1">1</ref>, <ref href="#part-2-chapter-2">2</ref>, <ref href="#schedule-paragraph-4">4</ref> or <ref href="#part-2-chapter-6">6</ref> of Part <ref href="#part-2">2</ref> of, or any provision of Part <ref href="#part-3">3</ref> of, the Pension Schemes Act 2026.</content></level></quotedStructure></mod></content></level></subparagraph></paragraph><paragraph eId="schedule-paragraph-13" class="schProv1"><num>13</num><content><mod>In section 93 (Regulator’s procedure in relation to its regulatory functions), in subsection (2), after paragraph (pe) (but before the “and” that follows it) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(pf)</num><content>the power to issue a notice under <ref href="#section-86">section 86</ref><ref href="#section-86-1">(1)</ref><ref href="#section-86-1-k">(k)</ref> of the Pension Schemes Act 2026 (Regulator notice triggering event of concern for superfund);</content></level><level class="para1"><num>(pg)</num><content>the power to give a direction under section <ref href="#section-90">90</ref> of the Pension Schemes Act 2026 (directions in relation to superfund during period of concern);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-paragraph-14" class="schProv1"><num>14</num><content><mod>In section 97 (special procedure: applicable cases), in subsection (5), after paragraph (tk) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1"><num>(tl)</num><content>the power under <ref href="#section-63">section 63</ref> or <ref href="#section-94">94</ref> of the Pension Schemes Act 2026 to withdraw authorisation from a superfund;</content></level><level class="para1"><num>(tm)</num><content>the power under <ref href="#section-78">section 78</ref><ref href="#section-78-8">(8)</ref> or <ref href="#section-80">80</ref><ref href="#section-80-8">(8)</ref> of the Pension Schemes Act 2026 to suspend or revoke its approval for a person to be responsible for a key function in relation to a superfund or to be a trustee of a superfund scheme;</content></level><level class="para1"><num>(tn)</num><content>the power to issue a notice under <ref href="#section-86">section 86</ref><ref href="#section-86-1">(1)</ref><ref href="#section-86-1-k">(k)</ref> of the Pension Schemes Act 2026 (Regulator notice triggering event of concern for superfund);</content></level><level class="para1"><num>(to)</num><content>the power to give a direction under section <ref href="#section-90">90</ref> of the Pension Schemes Act 2026 (directions in relation to superfund during period of concern);</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-paragraph-15" class="schProv1"><num>15</num><content><mod>In section 126 (pension protection: eligible schemes), after subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(1B)</num><content>In relation to a superfund scheme, <ref href="#section-61">section 61</ref><ref href="#section-61-2">(2)</ref> of the Pension Schemes Act 2026 (sections treated as separate schemes) applies for the purposes of this Part as it applies for the purposes of <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026.</content></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-16" class="schProv1"><num>16</num><content><mod>In section 127 (pension protection: duty to assume responsibility for schemes following insolvency event), after subsection (4) insert— <quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e24930"><num>(4A)</num><intro>In relation to an eligible scheme that is a superfund scheme, if—</intro><level class="para1"><num>(a)</num><content>an event of concern takes place in relation to the scheme by virtue of the protected liabilities threshold ceasing to be met, and</content></level><level class="para1"><num>(b)</num><content>no qualifying insolvency event occurred in relation to the employer before the event of concern took place,</content></level><wrapUp>this Chapter applies as though a qualifying insolvency event had occurred in relation to the employer immediately after the event of concern took place.</wrapUp></subsection><subsection><num>(4B)</num><content>In subsection <ref href="#d25e24930">(4A)</ref>, “<term refersTo="#term-the-protected-liabilities-threshold">the protected liabilities threshold</term>” and “<term refersTo="#term-event-of-concern">event of concern</term>” have the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026.</content></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-17" class="schProv1"><num>17</num><content><mod>In section 222 (the statutory funding objective), after subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(4A)</num><intro>Regulations may, in relation to a superfund scheme—</intro><level class="para1"><num>(a)</num><content>provide that it is for the Regulator to determine which methods and assumptions are to be used in calculating a scheme’s technical provisions, and</content></level><level class="para1"><num>(b)</num><content>require the Regulator, in making its determination, to take into account prescribed matters and follow prescribed principles.</content></level></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-paragraph-18-1"><num>(1)</num><content>Section 224 (actuarial valuations and reports) is amended as follows.</content></subparagraph><subparagraph eId="schedule-paragraph-18-2"><num>(2)</num><content><mod>After subsection (7A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection><num>(7B)</num><content>Where the scheme in question is a superfund scheme, the trustees must, as soon as reasonably practicable after receiving an actuarial report, send a copy of it to the Regulator together with such other information as may be prescribed.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-paragraph-18-3"><num>(3)</num><content><mod>In subsection (8), for “or (7A)” substitute <quotedText>“, (7A) or (7B)”</quotedText>.</mod></content></subparagraph></paragraph><paragraph eId="schedule-paragraph-19" class="schProv1"><num>19</num><content><mod>In section 256 (no indemnification for fines or civil penalties), in subsection (1)(b), at the end insert <quotedText>“, or <ref href="#section-18">section 18</ref>, <ref href="#section-32">32</ref> or <ref href="#section-55">55</ref> of the Pension Schemes Act 2026.”</quotedText></mod></content></paragraph><paragraph eId="schedule-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-paragraph-20-1"><num>(1)</num><content><mod>In section 318 (general interpretation), in subsection (1), at the appropriate places insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-key-function">key function</term>”, in relation to a superfund, has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-operating-superfund">operating superfund</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-operating-superfund-scheme">operating superfund scheme</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-responsible-body">responsible body</term>”, in relation to a superfund, has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-superfund">superfund</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-superfund-group">superfund group</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-superfund-scheme">superfund scheme</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act)</content></hcontainer></quotedStructure><inline name="appendText">;</inline></mod><mod><quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“<term refersTo="#term-superfund-transfer">superfund transfer</term>” has the same meaning as in <ref href="#part-3">Part 3</ref> of the Pension Schemes Act 2026 (see section <ref href="#section-100">100</ref> of that Act);</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph></paragraph><paragraph eId="schedule-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-paragraph-21-1"><num>(1)</num><content>Schedule 2 (the reserved regulatory functions) is amended as follows.</content></subparagraph><subparagraph eId="schedule-paragraph-21-2"><num>(2)</num><content><mod>For the heading of Part 5 substitute <quotedText>“Functions under the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006 (<ref eId="c00197" href="http://www.legislation.gov.uk/id/uksi/2006/349">S.I. 2006/349</ref>)”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-paragraph-21-3"><num>(3)</num><content>Parts 4A and 4B are moved to after Part 5 and are renumbered as (respectively) Parts 6 and 7.</content></subparagraph><subparagraph eId="schedule-paragraph-21-4"><num>(4)</num><content>Accordingly, paragraphs 44A to 44O are renumbered as (respectively) paragraphs 46 to 60.</content></subparagraph><subparagraph eId="schedule-paragraph-21-5"><num>(5)</num><content><mod>After Part 7 (as moved and renumbered by sub-paragraph <ref href="#schedule-paragraph-21-3">(3)</ref> above) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><part><num>Part 8</num><heading>Functions under the Pension Schemes Act 2026</heading><paragraph class="schProv1"><num>61</num><content>The power under <ref href="#section-63">section 63</ref><ref href="#section-63-1">(1)</ref> to authorise a superfund.</content></paragraph><paragraph class="schProv1"><num>62</num><content>The power under <ref href="#section-63">section 63</ref><ref href="#section-63-6">(6)</ref> to withdraw authorisation from a superfund that has not yet received a superfund transfer.</content></paragraph><paragraph class="schProv1"><num>63</num><content>The power under <ref href="#section-66">section 66</ref> to approve a superfund transfer.</content></paragraph><paragraph class="schProv1"><num>64</num><content>The power under <ref href="#section-78">section 78</ref><ref href="#section-78-1">(1)</ref> to approve an individual to be responsible for a key function.</content></paragraph><paragraph class="schProv1"><num>65</num><content>The power under <ref href="#section-78">section 78</ref><ref href="#section-78-8">(8)</ref> to suspend or revoke an individual’s approval to be responsible for a key function.</content></paragraph><paragraph class="schProv1"><num>66</num><content>The power under <ref href="#section-80">section 80</ref><ref href="#section-80-1">(1)</ref> to approve a person to be a trustee of a superfund scheme.</content></paragraph><paragraph class="schProv1"><num>67</num><content>The power under <ref href="#section-80">section 80</ref><ref href="#section-80-8">(8)</ref> to suspend or revoke a person’s approval to be a trustee of a superfund scheme.</content></paragraph><paragraph class="schProv1"><num>68</num><content>The power under <ref href="#section-94">section 94</ref> to withdraw authorisation from an operating superfund.</content></paragraph></part></quotedStructure></mod></content></subparagraph></paragraph></hcontainer></hcontainer>