A bill to Make provision about pension schemes; and for connected purposes.
Be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Part 1 — Defined benefit pensions¶
Chapter 1 — Local government pension schemes¶
1 Asset pool companies¶
2 Asset management¶
3 Exemption from public procurement rules¶
4 Scheme manager governance reviews¶
5 Mergers of funds¶
In Schedule 3 to PSPA 2013 (scope of scheme regulations: supplementary matters), in paragraph 11 (pension funds) at the end insert—In the case of a scheme for local government workers this also includes merger (including compulsory merger) of two or more separate pension funds.
6 Amendments of 2013 Act relating to scheme regulations¶
(d) consequential, supplementary, incidental or transitional provision in relation to any provision of Chapter 1 of Part 1 of the Pension Schemes Act 2025.”
(5) Subsection (1) may be satisfied, in relation to provision contained in scheme regulations— (a) made under any provision of Chapter 1 of Part 1 of the Pension Schemes Act 2025, or (b) made under section 3(2)(d) above, by consultation carried out before, as well as after, the coming into force of the provision mentioned in paragraph (a) or of section 6(2)(b) of the Pension Schemes Act 2025 (as the case may be).
7 Interpretation of Chapter 1¶
Chapter 2 — Powers to pay surplus to employer¶
8 Power to modify scheme to allow for payment of surplus to employer¶
36B Power to modify scheme in relation to payment of surplus to employer
(1) The trustees of a trust scheme may by resolution modify the scheme in accordance with subsection (2) or (3). (2) Where no power is conferred on any person to make payments to the employer out of funds held for the purposes of the scheme, the resolution may confer a power to do so on the trustees, subject to any restrictions specified in the resolution. (3) Where a power is exercisable by the trustees (whether or not by virtue of subsection (2)) to make payments to the employer out of funds held for the purposes of the scheme, the resolution may remove or relax any restriction imposed by the scheme on the exercise of the power. (4) This section does not apply— (a) to a scheme that is being wound up, or (b) to a scheme of a prescribed description. (5) The reference in subsection (3) to a restriction imposed by the scheme includes a restriction imposed by virtue of a resolution under section 251 of the Pensions Act 2004 (which was repealed by section 8(2) of the Pension Schemes Act 2025) or this section. (6) See also section 37 (which limits the circumstances in which a power to make payments of surplus may be exercised).
9 Restrictions on exercise of power to pay surplus¶
(2A) The power referred to in subsection (1)(a) may be exercised only so far as permitted by, and only in accordance with, regulations. (2B) Regulations must be made under subsection (2A)— (a) prohibiting the making of a payment unless an actuary of a prescribed description (“the relevant actuary”) is satisfied that prescribed conditions are met in relation to the value of the scheme’s assets and the amount of its liabilities, (b) making provision about the basis (or bases) on which the value of the scheme’s assets and the amount of its liabilities are to be determined for that purpose, (c) requiring the relevant actuary to give a certificate before a payment is made, and (d) requiring members of the scheme to be notified in relation to a payment before it is made. (2C) The provision that may be made by regulations under subsection (2A) includes provision— (a) about other conditions that must be met in order for the making of a payment to be permitted; (b) about the giving of certificates by the relevant actuary, including about the form and content of a certificate; (c) prohibiting the making of a payment without the employer’s consent; (d) in relation to a superfund scheme (within the meaning of Part 3 of the Pension Schemes Act 2025)— (i) prohibiting the making of a payment in all circumstances; (ii) prohibiting the making of a payment without the Authority’s consent. (2D) The power referred to in subsection (1)(a) may not be exercised if there is a freezing order in force in relation to the scheme under section 23 of the Pensions Act 2004.
(8) Regulations may provide that this section does not apply, or applies with prescribed modifications, in prescribed circumstances or to schemes of a prescribed description.
(2B) Any provision that may be made by regulations or an order under this Act subject to the procedure described in subsection (1) may instead be made by regulations subject to the procedure described in subsection (2).
Part 2 — Defined contribution pensions¶
Chapter 1 — Value for money¶
10 Relevant schemes: value for money¶
11 Publication etc of metric data¶
12 VFM assessments¶
13 Member satisfaction surveys¶
14 VFM ratings¶
15 Consequences of an intermediate rating¶
16 Consequences of a “not delivering” rating¶
17 Compliance and oversight¶
(aa) 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;
(3A) This subsection applies where— (a) the trust scheme is a regulated VFM scheme (as defined in section 10(1)(a)) of the Pension Schemes Act 2025), and (b) the most recent rating assigned to the scheme under section 14(1) of that Act was an intermediate or “not delivering” rating. (3B) This subsection applies where— (a) an arrangement under the trust scheme is a regulated VFM arrangement, and (b) the most recent rating assigned to the arrangement under section 14(1) of that Act was an intermediate or “not delivering” rating.
(7) In this section “regulated VFM arrangement” and “regulated VFM scheme” are to be interpreted in accordance with section 19 of the Pension Schemes Act 2025.
;(d) the scheme is a regulated VFM scheme and— (i) the rating most recently assigned to the scheme under section 14(1) of the Pension Schemes Act 2025 is “not delivering”, and (ii) the Authority are satisfied that the scheme is not capable of providing value for money, or (e) the following conditions are met in relation to a regulated VFM arrangement (“A”) under the scheme— (i) that the rating most recently assigned to A under section 14(1) of the Pension Schemes Act 2025 is “not delivering”, and (ii) the Authority are satisfied that A is not capable of providing value for money.
(8) In subsection (1)— (a) “regulated VFM arrangement” and “regulated VFM scheme” have the same meaning as in Chapter 2 of Part 2 of the Pension Schemes Act 2025 (see section 19 of that Act); (b) the reference to the provision of value for money is to be interpreted in accordance with that Chapter.
18 Crown application¶
19 Interpretation of Chapter¶
In this Chapter—Chapter 2 — Consolidation of small dormant pension pots¶
Power to make small pots regulations¶
20 Small pots regulations¶
Transfers¶
21 Small pots data platform¶
22 Transfer notices¶
23 Exempt pots¶
24 Transfer etc of small dormant pension pots¶
25 Effect of transfer on membership of scheme etc¶
26 Timing of transfers¶
Authorisation¶
27 Authorisation of consolidator schemes etc by the Pensions Regulator¶
28 Consolidator schemes and consolidator arrangements¶
Supplementary¶
29 Further provision about contents of small pots regulations¶
30 Enforcement by the Pensions Regulator¶
31 Enforcement by the FCA¶
Interpretation etc¶
32 Power to alter definition of “small”¶
33 Crown application¶
34 Interpretation of Chapter¶
35 Meaning of “pension pot”¶
Amendments of other Acts¶
36 Amendments of the Financial Services and Markets Act 2000¶
.(czd) Chapter 2 of Part 2 of the Pension Schemes Act 2025 (consolidation of small dormant pension pots);
137FBC FCA general rules: regulation of consolidator pension schemes
(1) 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 Chapter 2 of Part 2 of the Pension Schemes Act 2025. (2) If the FCA makes rules under subsection (1) it must— (a) make general rules regulating pension schemes that have given (and not withdrawn) a notice of the kind mentioned in subsection (1), and (b) publish and maintain a list of FCA-regulated pension schemes, and arrangements under such schemes, in accordance with subsections (3) and (4). (3) 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 subsection (1). (4) The list must not include a scheme or arrangement if— (a) the notice in relation to it has been withdrawn by the provider of the scheme, or (b) the FCA has determined that it is unlikely that rules made under subsection (1) or (2)(a) will be complied with in relation to the scheme or arrangement within such period as the FCA considers reasonable. (5) In determining what provision to include in rules under subsection (2)(a), the FCA must have regard to any provision contained in small pots regulations by virtue of section 27 of the Pension Schemes Act 2025 (authorisation of consolidator schemes etc by the Pensions Regulator). (6) In this section— FCA-regulated, in relation to a pension scheme, has the meaning given by subsection (7); pension scheme has the meaning given by section 1(5) of the Pension Schemes Act 1993; provider, in relation to an FCA-regulated pension scheme, means the person referred to in subsection (7)(b). (7) A pension scheme is “FCA-regulated” if the operation of the scheme— (a) is a regulated activity, and (b) is carried on in the United Kingdom by an authorised person.
(ac) by small pots regulations within the meaning of Chapter 2 of Part 2 of the Pension Schemes Act 2025,
.(ac) by small pots regulations within the meaning of Chapter 2 of Part 2 of the Pension Schemes Act 2025;
37 Repeal of existing powers¶
(1) The definitions in paragraph 15(1) of Schedule 17 apply for the purposes of this Schedule.
Chapter 3 — Scale and asset allocation¶
38 Certain schemes providing money purchase benefits: scale and asset allocation¶
(1A) 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 Conditions 1 and 2 of this subsection are met. This Condition is that the relevant Master Trust— (a) is approved under section 28A in respect of a main scale default arrangement of that scheme, (b) is exempted by regulations from the requirement for approval, (c) qualifies under section 28D for transition pathway relief, or (d) qualifies under section 28E for new entrant pathway relief. This Condition is that the relevant Master Trust— (a) is approved under section 28C in respect of the asset allocation requirement, or (b) is exempted by regulations from the requirement for approval. (1B) Regulations under Condition 1(b) or 2(b) of subsection (1A) may exempt any description of relevant Master Trust, for example those that are— (a) designed to meet the needs of persons with a protected characteristic within the meaning of the Equality Act 2010, or (b) hybrid schemes. (1C) Regulations may— (a) permit the Regulatory Authority to determine, on an application by a relevant Master Trust, that the Master Trust is to be treated for a period (“the protected period”) as meeting Condition 1 of subsection (1A) for a period specified by the Regulatory Authority (regardless of whether or not the Master Trust has previously met the Condition); (b) 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 section 28A(10).
(4) In this section— main scale default arrangement is to be interpreted in accordance with section 28A(1); Master Trust scheme has the same meaning as in the Pension Schemes Act 2017 (see section 1(1) of that Act); Regulatory Authority is to be interpreted in accordance with regulations; relevant Master Trust means a money purchase scheme that has its main administration in the United Kingdom and is an authorised Master Trust scheme.
(7A) The fifth condition is that if the scheme is a group personal pension scheme of a prescribed description it must, unless subsection (7C) applies, hold an approval under section 28B in respect of a main scale default arrangement. (7B) The sixth condition is that if the scheme is a group personal pension scheme of a prescribed description it must hold an approval under section 28C in respect of the asset allocation requirement. (7C) This subsection applies if the group personal pension scheme— (a) is exempted by regulations from the requirement for approval, (b) qualifies under section 28D for transition pathway relief, or (c) qualifies under section 28E for new entrant pathway relief. (7D) Regulations under subsection (7C)(a) 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. (7E) Regulations may— (a) authorise the Regulatory Authority to determine, on an application by the scheme concerned, that a group personal pension scheme is to be treated as meeting the fifth and sixth conditions for a period (the “protected period”) specified by the Regulatory Authority; (b) specify circumstances in which a group personal pension scheme which is treated as mentioned in paragraph (a) 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 section 28A(10).
(10) In this section— main scale default arrangement is to be interpreted in accordance with section 28A(1); Regulatory Authority is to be interpreted in accordance with regulations.
28A MSDA approval: relevant Master Trusts
(1) For the purposes of Condition 1 of section 20(1A), the Regulatory Authority (“the Authority”) may approve a relevant Master Trust in respect of a main scale default arrangement if the Authority determines that— (a) the relevant Master Trust meets the scale requirement, and (b) any other prescribed conditions are met. (2) A relevant Master Trust meets the scale requirement if the sum of the values mentioned in paragraphs (a) and (b) of subsection (4) is equal to or greater than the minimum amount. (3) In this section “the minimum amount” means £25 billion. (4) Subject to subsection (6), those values are— (a) the total value of assets held in funds of the relevant Master Trust which— (i) represent accrued rights of members of that scheme, and (ii) are managed under a common investment strategy; (b) the total value of any assets held in funds of one or more qualifying group personal pension schemes that— (i) represent accrued rights of members of those schemes, and (ii) are managed under the investment strategy mentioned in paragraph (a)(ii). (5) For the purposes of subsection (4) a group personal pension scheme is “qualifying” in relation to a relevant Master Trust if the group personal pension scheme and the relevant Master Trust are provided by the same service provider. (6) Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under subsection (4)(a) or (b). (7) Regulations may make provision about— (a) how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced; (b) the meaning of “common investment strategy” in subsection (4)(a)(ii). (8) Regulations may make provision about how the value of assets is to be determined for the purposes of subsections (2) and (4). (9) Regulations may make provision— (a) as to a time limit within which the Authority must decide an application for approval; (b) as to procedures in connection with approvals or where an approval has been give; (c) about the withdrawal of approvals including conditions for, and procedures in connection with, withdrawals; (d) for the Authority’s decision on the application, or on a decision to withdraw approval, to be referred to the Upper Tribunal; (e) for the Authority to maintain and publish a list of relevant Master Trusts that are approved under this section. (10) Regulations under subsection (9)(c) may in particular make provision— (a) about steps, including communications with the relevant Master Trust, that the Authority must take before deciding to withdraw an approval; (b) setting a minimum period that must elapse between a notification that approval is to be withdrawn and the withdrawal of the approval; (c) where the Regulator 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— (i) act in relation to the scheme as if its approval has been withdrawn, and (ii) 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; (d) authorising the Authority to issue, to a person considered by the Authority to have failed to comply with a requirement under paragraph (c), a fixed penalty notice requiring the person to pay a penalty that— (i) is to be determined in accordance with the regulations, and (ii) must not exceed £100,000; (e) 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. (11) Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate. (12) In this section— applicable has the meaning given by regulations; Regulatory Authority has the same meaning as in section 20; relevant Master Trust has the same meaning as in section 20. 28B MSDA approval: group personal pension scheme
(1) The Regulatory Authority (“the Authority”) may, for the purposes of the Condition in section 26(7A), approve a relevant group personal pension scheme (“the GPP”) in respect of a main scale default arrangement if the Authority determines that— (a) the GPP meets the scale requirement, and (b) any other prescribed conditions are met. (2) The GPP meets the scale requirement if the sum of the values mentioned in paragraphs (a) to (c) of subsection (4) is equal to or greater than the minimum amount. (3) In this section “the minimum amount” means £25 billion. (4) Subject to subsection (6), those values are— (a) the total value of assets held in funds of the GPP which— (i) represent accrued rights of members of the GPP, and (ii) are managed under a common investment strategy; (b) the total value of any assets held in funds of one or more qualifying group personal pension schemes (other than the GPP) that— (i) represent accrued rights of members of those schemes, and (ii) are managed under the investment strategy mentioned in paragraph (a)(ii); (c) the total value of any assets held in funds of one (and only one) relevant Master Trust that— (i) represent accrued rights of members of that scheme, and (ii) are managed under the investment strategy mentioned in paragraph (a)(ii). (5) Regulations may make provision about amounts that are to be excluded or adjusted in calculating the total value under subsection (4)(a) to (c). (6) Regulations may make provision about— (a) how the satisfaction of criteria relevant to the meeting of the scale requirement is to be evidenced; (b) the meaning of “common investment strategy” in subsection (4)(a)(ii). (7) Regulations may make provision about how the value of assets is to be determined for the purposes of subsections (2) and (4). (8) For the purposes of subsection (4) a relevant Master Trust is “qualifying” in relation to a group personal pension scheme if the relevant Master Trust and the group personal pension scheme are provided by the same service provider. (9) Regulations may make provision— (a) as to a time limit within which the Authority must decide an application for approval; (b) as to procedures in connection with approvals or where an approval has been given; (c) about the withdrawal of an approval, including conditions for and procedures in connection with withdrawals; (d) for the Authority’s decision on the application, or on a decision to withdraw approval,to be referred to the Upper Tribunal; (e) for the Authority to maintain and publish a list of group personal pension schemes that are approved under this section. (10) Regulations under subsection (9)(c) may in particular make provision— (a) 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; (b) setting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval; (c) where the Authority has given notice to the managers of the GPP that their approval is likely to be withdrawn and any other prescribed conditions are met, requiring the managers to— (i) act in relation to the scheme as if its approval has been withdrawn, and (ii) 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. (d) permitting the Authority to impose, on a person considered by the Authority to have failed to comply with a requirement under paragraph (c), a penalty determined in accordance with the regulations that does not exceed £100,000. (11) Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate. (12) In this section— Regulatory Authority has the same meaning as in section 20; relevant group personal pension scheme means a group personal pension scheme to which section 26 applies; relevant Master Trust has the same meaning as in section 20. 28C Approvals in respect of asset allocation
(1) The Regulatory Authority (“the Authority”) 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 totality of the assets held in funds of the scheme are qualifying assets. (2) Regulations may also provide that the Authority may not approve a relevant Master Trust or group personal pension scheme unless at least the prescribed percentage (by value) of the totality of assets of a particular description held in funds of the scheme are qualifying assets. (3) Regulations under subsection (1) or (2) made after 31 December 2035 may not increase the prescribed percentage. (4) In this section “qualifying asset” means an asset of a prescribed description that is held in a default fund of a relevant Master Trust or group personal pension scheme. (5) A description of asset prescribed under subsection (4) may for example be— (a) private equity, (b) private debt, (c) venture capital, or (d) interests in land, but (unless within any of the above paragraphs) may not be securities listed on a recognised investment exchange within the meaning of the Income Tax Acts (see section 1005 of the Income Tax Act 2007) excluding those registered by the Financial Conduct Authority as an SME growth market in accordance with the Market Conduct sourcebook.(6) A description prescribed under subsection (4) may for example relate to— (a) whether an asset is located in the United Kingdom or elsewhere; (b) the presence or absence of other prescribed factors linking an asset to economic activity in the United Kingdom. (7) For the purposes of this section assets of a relevant Master Trust or group personal pension scheme are held in “default funds” if— (a) the assets are managed under a common investment strategy, (b) 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 (c) the arrangements under which the assets are held meet any other conditions that may be prescribed. (8) Regulations may assign different descriptions of asset to different fractions of the percentage prescribed under subsection (1). (9) Regulations may make provision— (a) about how the meeting of the asset allocation requirement is to be evidenced; (b) requiring relevant Master Trusts or 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. (10) Regulations may make provision— (a) as to a time limit within which the Authority must decide an application; (b) as to procedures in connection with approvals or where an approval has been given; (c) 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); (d) 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; (e) for the Authority’s decision on the application to be referred to the Upper Tribunal; (f) for the Authority to maintain— (i) a list of relevant Master Trusts that are approved under this section, and (ii) a list of group personal pension schemes that are approved under this section, (or a single list of the pension schemes mentioned in sub-paragraphs (i) and (ii)).(11) Before making the first set of regulations under this section the Secretary of State must prepare and publish a report regarding— (a) how the financial interests of members of relevant Master Trusts and group personal pension schemes are or would be affected by the proposed regulations; (b) what effects the proposed measures could be expected to have on economic growth in the United Kingdom; (c) any other matters the Secretary of State considers appropriate. (12) Before making regulations under this section, the Secretary of State must consult the Treasury. (13) The Secretary of State must consult such persons as the Secretary of State considers appropriate before publishing a report under subsection (11). (14) 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. (15) In this section “Regulatory Authority” and “relevant Master Trust” have the same meaning as in section 20. 28D Transition pathway relief
(1) The Regulatory Authority (“the Authority”) may approve a relevant Master Trust as qualifying for transition pathway relief if the Authority determines that— (a) the condition in subsection (2) is met, and (b) any other prescribed conditions are met. (2) The condition mentioned in subsection (1)(a) is that the Authority determines that the relevant Master Trust would qualify for approval under section 28A (MSDA approval) if the amount specified in section 28A(3) were £10 billion. (3) The Authority may approve a group personal pension scheme as qualifying for transition pathway relief if the Authority determines that— (a) the condition in subsection (4) is met, and (b) any other prescribed conditions are met. (4) The condition mentioned in subsection (3)(a) is that the Authority determines that the group personal pension scheme would qualify for approval under section 28B (MSDA approval: group personal pension schemes) if the amount specified in section 28B(3) were £10 billion. (5) Regulations may require trustees or managers of schemes that are authorised under this section to take prescribed steps, for example— (a) to produce plans for increasing the scale of their schemes’ holdings or to take other actions that may facilitate progress towards authorisation under section 28A or 28B, or (b) in connection with governance and investment capability. (6) Regulations must make provision about the criteria for making any determinations under subsection (1) or (3). (7) Regulations may make provision— (a) as to a time limit within which the Authority must decide an application; (b) as to procedures in connection with approvals or where an approval has been given; (c) for the Authority’s decision on the application to be referred to the Upper Tribunal; (d) for the Authority to maintain and publish a list of schemes that are approved under this section. (8) Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate. (9) In this section “relevant Master Trust” have the same meaning as in section 20. 28E New entrant pathway relief
(1) A relevant Master Trust or group personal pension scheme qualifies for new entrant pathway relief for the purposes of Condition 1(d) of section 20(1A) if the relevant Master Trust or group personal pension scheme is approved by the Regulatory Authority (“the Authority”) under this section. (2) The Authority may approve a relevant Master Trust or a group personal pension scheme under this section only if the Authority determines that— (a) the scheme in question demonstrates strong potential for growth and an ability to innovate, and (b) any other prescribed conditions are met. (3) Regulations may make provision— (a) as to a time limit within which the Authority must decide an application; (b) as to procedures in connection with approvals or where an approval has been given; (c) for the Authority’s decision on the application to be referred to the Upper Tribunal; (d) for the Authority to maintain a list of relevant Master Trusts or group personal pension schemes that are approved under this section. (4) Regulations may make provision about the meaning of “ability to innovate” and “strong potential for growth” (including how it can be demonstrated that a scheme has the ability to innovate or strong potential for growth). (5) Before making regulations under this section the Secretary of State must consult such persons as the Secretary of State considers appropriate. (6) In this section “Regulatory Authority” and “relevant Master Trust” have the same meaning as in section 20. 28F Suspension of asset allocation requirement: savers’ interest test
(1) Regulations may make provision for authorising the Regulatory Authority (“the Authority”), 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 section 28C. (2) Regulations under subsection (1)— (a) must provide that the Authority may not determine that the applicant is to be treated as mentioned in subsection (1) unless the Authority is of the view that meeting the asset allocation requirement would cause material financial detriment to the scheme or members of the scheme (and for this purpose the regulations may make provision as to the evidence by reference to which the Authority forms that view); (b) may make provision as to the process for making a determination, including as to— (i) the level of detail of enquiry required in different cases; (ii) a time limit within which the Authority must decide an application; (iii) procedures in connection with applications. (3) Regulations under subsection (1) may make provision about , including as to the use of evidence and the detail of review that may be required in different cases. (4) Regulations under subsection (1) may make provision about what is, or is not, to be regarded as financial detriment for the purposes of this section. (5) In this section “Regulatory Authority” and “relevant Master Trust” have the same meaning as in section 20.
30A Review of exercise of powers under section 28C
(1) The Secretary of State must— (a) review the effects of any regulations under section 28C (approvals in respect of asset allocation), and (b) prepare, publish and lay before Parliament, a report of the review. (2) A review under subsection (1) 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. (3) In carrying out the review the Secretary of State must take the following into account— (a) 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; (b) the effects (if any) of the measures on economic growth in the United Kingdom; (c) any other matters the Secretary of State considers appropriate.
.group personal pension scheme means a personal pension scheme which is available to employees of the same employer or of employers within a group, but does not include— (a) a stakeholder pension scheme (as defined in section 1 of the Welfare Reform and Pensions Act 1999), or (b) any pension scheme that gives a member the power to direct how some or all of the member's contributions are invested); relevant Master Trust has the meaning given by section 28E(6);
39 Amendments related to section 38¶
.(aa) the Pensions Act 2008,
.(aza) by or under Part 1 of the Pensions Act 2008,
.(aza) by or under Part 1 of the Pensions Act 2008,
(f) that it has sufficient investment capability (see section 12A), and (g) (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) (quality requirement) of the Pensions Act 2008.”
12A Investment capability
(1) 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)). (2) In order to be satisfied that the Master Trust scheme has sufficient investment capability the Regulator must be satisfied — (a) that appropriate systems are in place for managing the investment strategy and monitoring outcomes, (b) that the scheme has appropriate systems for delivering effective governance, (c) that there are appropriate strategies for recruiting and retaining expert staff. (3) In deciding whether it is satisfied about the matters mentioned in subsection (1), the Pensions Regulator must take account of any factors specified in subsection (2) and any other factors specified in regulations made by the Secretary of State. (4) The first regulations that are made under subsection (3) are subject to affirmative resolution procedure. (5) Any subsequent regulations under that subsection are subject to negative resolution procedure.
40 Crown application¶
Chapter 4 — FCA-regulated pension schemes: contractual override¶
41 FCA-regulated pension schemes: contractual override¶
Part 7A — Unilateral changes to pension schemes
117A Pension schemes to which this Part applies
(1) This Part applies to a pension scheme— (a) that is FCA-regulated, and (b) in relation to which any of the following conditions is met. (2) The conditions are— (a) that the scheme is an auto-enrolment scheme; (b) that the scheme is a workplace personal pension scheme that is not an auto-enrolment scheme; (c) that the scheme is a pension scheme of a prescribed description. (3) For the purposes of subsection (2)(a) and (b) 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 section 3(2), 5(2) or 7(3) of the Pensions Act 2008 (arrangements for jobholder to become active member of automatic enrolment scheme). (4) In subsection (3) “active member” has the same meaning as in Part 1 of the Pensions Act 2008 (see section 99 of that Act). (5) For the purposes of subsection (2)(b) a pension scheme is a “workplace personal pension scheme” if— (a) the scheme is a personal pension scheme, (b) direct payment arrangements exist, or have at any time existed, in relation to the scheme, and (c) contributions have been paid under the arrangements in respect of, or on behalf of, two or more employees. (6) In subsection (5) “direct payment arrangements” has the same meaning as in section 111A of the Pension Schemes Act 1993. 117B Unilateral changes
(1) The provider of a pension scheme to which this Part applies may— (a) amend the terms of the scheme as regards a description of pension pot held by the scheme, (b) change the investments comprised in a description of pension pot held by the scheme, (c) transfer a description of pension pot held by the scheme to a different pension scheme operated by the same provider, or (d) transfer a description of pension pot held by the scheme to a pension scheme operated by a different provider. (2) A change or transfer within subsection (1)(b) to (d) 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. (3) Subsection (1) is subject to— (a) subsection (5), sections 117D to 117F and any regulations under section 117H(1)(c), and (b) any other provision of legislation (including any rule) which restricts or otherwise affects the provider’s power to do anything within subsection (1). (4) In subsection (1)(c) and (d), 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. (5) A transfer to a pension scheme operated by a different provider may not be effected under subsection (1)(d) without the consent of that provider. (6) A reference in this Part to the terms of a pension scheme is to the terms of any instrument or agreement— (a) in which the scheme is comprised, or (b) to which the provider of the scheme and any member are parties in connection with the scheme. (7) In this Part, “unilateral change” means an amendment, change or transfer within any of paragraphs (a) to (d) of subsection (1). 117C Effect of transfer of pension pot on membership of scheme etc
(1) This section applies where a pension pot is transferred under section 117B(1)(c) or (d) to a different pension scheme (“the receiving scheme”). (2) The individual— (a) becomes a member of the receiving scheme in relation to the pot, and (b) 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 section 117F(3)(b); and acquires the rights, and becomes subject to the obligations, of membership.(3) 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— (a) at the time at which the pension pot is transferred to the receiving scheme, and (b) on the terms communicated to the individual in the unilateral change notice under section 117F(3)(c). 117D Best interests test
(1) The provider of a pension scheme to which this Part applies may effect a unilateral change under section 117B(1) only if— (a) the provider concludes, before doing so, that the best interests test is met in relation to the unilateral change, and (b) it is reasonable for the provider to have reached that conclusion at that time. (2) “The best interests test”, in relation to a unilateral change, is that it is reasonably likely that effecting it will achieve— (a) a better outcome for the directly affected members of the scheme (taken as a whole), and (b) no worse an outcome for the other members of the scheme (taken as a whole), than the relevant alternative action or, where there is more than one alternative action, each of them.(3) 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. (4) The following are “relevant alternative actions” for the purposes of subsection (2) in relation to a unilateral change— (a) not effecting the unilateral change, and (b) 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. (5) In subsection (4) “internal change” means a unilateral change that results in a description of pension pot held by the scheme being held— (a) subject to a different arrangement under the same scheme, or (b) 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). (6) 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. 117E Certification by independent person
(1) The provider of a pension scheme to which this Part applies may effect a unilateral change under section 117B(1) only if, before effecting it— (a) the provider has appointed a person to review the proposed unilateral change, and (b) the person appointed has given the provider a certificate under this section in relation to the proposed unilateral change. (2) The person appointed must— (a) be independent of the provider, and (b) have such expertise as is specified in general rules made by the FCA. (3) The certificate must certify that, in the opinion of the independent person— (a) the pension scheme is a pension scheme to which this Part applies, (b) the proposed unilateral change is within section 117B(1)(a) to (d), (c) section 117B(1) is not disapplied in relation to the proposed unilateral change by regulations under section 117H(1)(a), (d) any conditions prescribed under section 117H(1)(c) are met, (e) the best interests test is met in relation to the proposed unilateral change, and (f) the provider has complied with such other requirements as may be specified in general rules made by the FCA. (4) The FCA must make general rules about appointments and certification under this section, including provision— (a) for determining for the purposes of this section whether a person is independent of the provider of a pension scheme; (b) specifying terms on which an appointment under this section must be made; (c) about the form of a certificate and when it must be given. (5) In this Part “the independent person”, in relation to a proposed unilateral change, means the person appointed under subsection (1)(a) to review it. 117F Unilateral change notice
(1) The provider of a pension scheme to which this Part applies may effect a unilateral change under section 117B(1) only after— (a) the provider has sent a unilateral change notice to each of the required recipients, and (b) the required notice period has expired. (2) “A unilateral change notice” means a notice that includes such information relating to the unilateral change as is specified in general rules made by the FCA. (3) General rules made pursuant to subsection (2) must, in the case of a unilateral change under section 117B(1)(c) or (d), require the unilateral change notice to— (a) specify the pension scheme (“the receiving scheme”) to which it is proposed the pensions pots in question are to be transferred, (b) 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 (c) 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. (4) “The required recipients” means— (a) the members of the scheme directly affected by the change, and (b) such other persons as may be specified in general rules made by the FCA. (5) 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. (6) In subsection (1) “the required notice period” means such period as is specified in general rules made by the FCA. 117G Further duties to make FCA general rules
(1) The FCA must make general rules— (a) about the fees that may or may not be charged by providers of a pension schemes in relation to unilateral changes effected under section 117B(1); (b) imposing requirements on the provider of a pension scheme who proposes to effect, or effects, a unilateral change under section 117B(1) to provide information to the independent person; (c) imposing requirements on the provider of a pension scheme who proposes to effect, or effects, a unilateral change under section 117B(1), as to the records they must keep and retain for the purposes of this Part. (2) 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. 117H Powers to make regulations
(1) The Treasury may by regulations— (a) provide that section 117B(1) does not apply in relation to unilateral changes of a description specified in the regulations; (b) amend section 117D (best interests test); (c) prescribe further conditions (in addition to those in sections 117D to 117F) that must be met in relation to a unilateral change for it to be permitted under section 117B(1); (d) require the FCA to make general rules in compliance with section 117E(4)(b) 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; (e) disapply any legislation, or require the FCA to disapply any general rule, so far as it restricts or otherwise affects the power in section 117B(1); (f) make provision consequential on this Part. (2) The power to make regulations under subsection (1) is capable of being exercised so as to amend or repeal any provision of primary legislation. 117I Interpretation of Part
(1) In this Part— the best interests test has the meaning given by section 117D(2); directly affected, in relation to a unilateral change, has the meaning given by section 117D(3); FCA-regulated, in relation to a pension scheme, has the meaning given by subsection (2); the independent person, in relation to a proposed unilateral change, has the meaning given by section 117E(5); money purchase benefits has the same meaning as in the Pension Schemes Act 1993 (see section 181(1) of that Act); pension pot has the meaning given by subsection (3); pension scheme has the meaning given by section 1(5) of the Pension Schemes Act 1993; personal pension scheme has the same meaning as in the Pension Schemes Act 1993 (see section 1(1) of that Act); provider— (a) in relation to an FCA-regulated pension scheme, means the person referred to in subsection (2)(b); (b) in relation to any other pension scheme, means the trustees or managers of the scheme; terms , in relation to a pension scheme, has the meaning given by section 117B(6); transfer, in relation to a pension pot, includes a transfer of an amount representing its value; trustees or managers, in relation to a pension scheme, means— (a) in the case of a scheme established under a trust, the trustees of the scheme, and (b) in any other case, the persons responsible for the management of the scheme; unilateral change has the meaning given by section 117B(7); unilateral change notice has the meaning given by section 117F(2). (2) A pension scheme is “FCA-regulated” if the operation of the scheme— (a) is a regulated activity, and (b) is carried on in the United Kingdom by an authorised person. (3) “Pension pot” 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— (a) a reference to the pension scheme that holds a pension pot is to that pension scheme; (b) a reference to the individual for whom a pension pot is held is to that member.
Case 6
Where the scheme is effected under Part 7A (unilateral changes to pension schemes).
.(iza) a person has effected, or has purported to effect, a unilateral change under subsection (1) of section 117B (unilateral changes by providers of pension schemes), but any of the provisions mentioned in subsection (3) of that section may have been contravened in relation to it;
.(ac) provision made under section 117H which amends or repeals any provision of primary legislation;
Chapter 5 — Default pension benefit solutions¶
42 Default pension benefit solutions¶
43 Transferable members¶
44 Provision and gathering of information¶
45 Information etc in connection with selection of benefit solution¶
46 Pension benefits strategy¶
47 Enforcement and compliance¶
.(ca) to secure compliance with the duties of trustees under Chapter 5 of Part 2 of the Pension Schemes Act 2025, or
48 Crown application¶
49 Interpretation and general¶
In this Chapter—50 Corresponding provision in relation to FCA-regulated schemes¶
In the Financial Services and Markets Act 2000, before section 137FC insert—137FBD FCA general rules: default pension benefit solutions
(1) The FCA must exercise its power to make general rules so as to make provision, in relation to FCA-regulated pension schemes, corresponding to that made by Chapter 5 of Part 2 of the Pension Schemes Act 2025 in relation to relevant schemes (within the meaning of that Chapter), with or without modifications. (2) For the purposes of this section a pension scheme is “FCA-regulated” if the operation of the scheme— (a) is carried on in such a way as to be a regulated activity for the purposes of this Act, and (b) is carried on in the United Kingdom by a person who is in relation to that activity an authorised person. (3) Subsection (1) does not require the FCA to exercise the power in relation to every case to which the power extends. (4) In this section “pension scheme” has the meaning given by section 1(5) of the Pension Schemes Act 1993.
Part 3 — Superfunds¶
Chapter 1 — Introductory¶
51 Overview¶
52 Key concepts¶
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 “financial position” means its financial position ignoring—
53 Schemes divided into sections¶
Chapter 2 — Authorisation of superfunds¶
54 Prohibition of unauthorised superfund activity¶
55 Authorisation of superfunds¶
56 Timing of decisions about authorisation¶
Chapter 3 — Approval of superfund transfers¶
57 Prohibition of unapproved superfund transfers¶
58 Approval of superfund transfers¶
59 Special provision for certain schemes coming out of assessment period¶
Where in relation to a superfund transfer the ceding scheme is required to be wound up, or its winding up is required to continue, under section 154(1) of the Pensions Act 2004 (pension protection: requirement to wind up schemes with sufficient assets to meet protected liabilities), section 58(2) has effect as though—.(b) that the superfund transfer— (i) will increase the proportion of the transferred liabilities likely to be satisfied, and (ii) will not lead to any member of the ceding scheme being worse off than they would be if the superfund transfer were not made;
60 Applications for approval¶
Chapter 4 — Ongoing requirements of operating superfunds¶
Governance and organisation¶
61 Governance and structure¶
62 Management documents¶
Funding and investment¶
63 Duty to monitor financial thresholds¶
64 “Financial thresholds”¶
65 Capital buffer: compulsory release to trustees¶
66 Capital buffer: permitted release to other persons¶
67 Capital buffer: investment¶
68 Capital buffer: verification of valuations¶
Approval and certification of key personnel¶
69 Key functions¶
70 Approval of individuals responsible for key functions¶
71 Certification of staff supporting individuals responsible for key functions¶
72 Approval of superfund scheme trustees¶
Information and reporting¶
73 Events to be notified to the Regulator¶
74 Regular reporting¶
75 Returns¶
76 Reports in relation to alleged compliance breaches¶
77 Provision of information by responsible body to trustees¶
Chapter 5 — Events of concern¶
78 “Event of concern” and “period of concern”¶
79 Notification of Regulator in respect of events of concern¶
80 Responding to events of concern¶
81 Content of response plan¶
82 Regulator’s direction-making powers during period of concern¶
83 Directions to pause payments or transfers of liabilities: supplementary provision¶
84 Fixed penalty notices¶
85 Escalating penalty notices¶
86 Withdrawal of authorisation¶
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 Chapter 4 or this Chapter.87 Release of capital buffer treated as reducing employer debt¶
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 section 75 of the Pensions Act 1995, the debt due under that section is treated as reduced by the value of the assets released (as calculated in accordance with regulations under section 81(9)).Chapter 6 — General provision and interpretation¶
88 Power to extend superfunds legislation to similar structures¶
89 Construction of “occupational pension scheme” and “employer” in relation to superfund schemes¶
90 Consequential amendments¶
(1B) In relation to a superfund scheme, section 53(2) of the Pension Schemes Act 2025 (sections treated as separate schemes) applies for the purposes of this section as it applies for the purposes of Part 3 of that Act.
(1ZA) Where— (a) the transferring scheme is required to be wound up, or its winding up is required to continue, under section 154(1) of the Pensions Act 2004 (requirement to wind up schemes with sufficient assets to meet protected liabilities), and (b) the receiving scheme is a superfund scheme within the meaning of Part 3 of the Pension Schemes Act 2025 (see section 92 of that Act), paragraph (1) of this regulation has effect as though for “the conditions set out in paragraphs (2) and (3) of this regulation are” there were substituted “the condition set out in paragraph (2) of this regulation is”.
91 Transitional provision¶
92 Interpretation of Part¶
Part 4 — Miscellaneous¶
93 Alienation or forfeiture of occupational pension¶
(6A) The conditions mentioned in subsection (6) are— (a) that the dispute has been resolved by the parties to it; (b) that the Pensions Ombudsman has made a determination under Part 10 of the Pension Schemes Act 1993 or Part 10 of the Pension Schemes (Northern Ireland) Act 1993 (investigations) as to the amount of the monetary obligation in question; (c) that the monetary obligation in question has become enforceable— (i) under an order of a competent court, or (ii) in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.
(a) the dispute has been resolved by the parties to it, (b) the Pensions Ombudsman has made a determination under Part 10 of the Pension Schemes Act 1993 or Part 10 of the Pension Schemes (Northern Ireland) Act 1993 (investigations) as to the amount of the monetary obligation in question, or (c) the monetary obligation in question has become enforceable— (i) under an order of a competent court, or (ii) in consequence of an award of an arbitrator or, in Scotland, an arbiter to be appointed (failing agreement between the parties) by the sheriff.
(6A) The conditions mentioned in paragraph (6) are— (a) that the dispute has been resolved by the parties to it; (b) that the Pensions Ombudsman has made a determination under Part 10 of the Pension Schemes (Northern Ireland) Act 1993 or Part 10 of the Pension Schemes Act 1993 (investigations) as to the amount of the monetary obligation in question; (c) that the monetary obligation in question has become enforceable— (i) under an order of a competent court, or (ii) in consequence of an award of an arbitrator.
(a) the dispute has been resolved by the parties to it, (b) the Pensions Ombudsman has made a determination under Part 10 of the Pension Schemes (Northern Ireland) Act 1993 or Part 10 of the Pension Schemes Act 1993 (investigations) as to the amount of the monetary obligation in question, or (c) the monetary obligation in question has become enforceable— (i) under an order of a competent court, or (ii) in consequence of an award of an arbitrator.
94 Terminal illness¶
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 “12 months”—95 Pension protection levies¶
;(1) For each financial year, the Board— (a) may impose a risk-based pension protection levy in respect of a description of eligible scheme (or in respect of all eligible schemes), and (b) 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). In this Chapter “pension protection levy” means a levy imposed in accordance with this section.
;(aa) the risks associated with a description of scheme which the Board considers is not supported by a substantive employer covenant;
;(7A) For the purposes of subsection (3)(aa), 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 “financial position” means its financial position ignoring—
(a) any capital buffer (within the meaning of Part 3 of the Pension Schemes Act 2025), and (b) any financial support which it may obtain from another person but to which it is not entitled.
;(a) no pension protection levies were imposed in the previous financial year, or
(2) The Board must publish in the prescribed manner details of— (a) any decision to impose, or not to impose, the levies for a financial year in respect of a description of scheme; (b) any determination under section 175(5).
;(A1) Subsections (1) to (5) apply where the Board decides to impose one or both of the pension protection levies for a financial year.
;(5) 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— (a) the amount estimated under subsection (1) in respect of any pension protection levies imposed for the previous financial year, and (b) 25% of the levy ceiling for the previous financial year.
96 Pensions dashboards¶
;(d) the Pension Protection Fund, including information relating to an individual, and (e) the financial assistance scheme, including information relating to an individual.
.financial assistance scheme means the scheme provided for by regulations under section 286 of the Pensions Act 2004 (financial assistance scheme for members of certain pension schemes);
(1A) Regulations under subsection (1)(a) may make provision about how information is to be provided, including provision requiring— (a) the use of electronic communications; (b) the use of facilities or services specified or of a description specified in the regulations; (c) information to be provided in such a way that it can subsequently be provided by means of— (i) a qualifying pensions dashboard service, or (ii) the pensions dashboard service provided by the Money and Pensions Service. (1B) In subsection (1A)— pensions dashboard service means a pensions dashboard service within the meaning of section 238A(1); qualifying pensions dashboard service has the meaning given by section 238A(2).
.(ba) information of a prescribed description about— (i) the Pension Protection Fund; (ii) the financial assistance scheme; (bb) Pension Protection Fund information relating to the individual in question of such description as may be prescribed; (bc) financial assistance scheme information relating to the individual in question of such description as may be prescribed;
.financial assistance scheme means the scheme provided for by regulations under section 286 (financial assistance scheme for members of certain pension schemes);
Part 5 — General¶
97 Amendments of Pensions Act 2004¶
The Schedule amends the Pensions Act 2004 in consequence of or in connection with this Act.98 Regulations: general¶
99 Regulations: procedure¶
100 Extent¶
101 Commencement¶
102 Short title¶
This Act may be cited as the Pension Schemes Act 2025.Schedule1 — Amendments of Pensions Act 2004¶
(m) section 55 of the Pension Schemes Act 2025 (application for authorisation of a superfund); (n) section 58 of that Act (application for approval of a superfund transfer); (o) section 70 of that Act (application for approval of individual to be responsible for key function in relation to superfund); (p) section 72 of that Act (application to approve a person to be a trustee of a superfund scheme).
(j) Part 2 or 3 of the Pension Schemes Act 2025.
(g) in relation to an operating superfund— (i) a member of the superfund group; (ii) a person who is responsible for a key function.
.(ca) in relation to an operating superfund— (i) a member of the superfund group, and (ii) a person who is responsible for a key function,
(dd) any of the following provisions of the Pension Schemes Act 2025— (i) Chapter 1 of Part 2 (value for money); (ii) Part 3 (superfunds);
(7) Where the recipient of the notice is— (a) a trustee of an operating superfund scheme, (b) the responsible body of an operating superfund, or (c) a person responsible for a key function in relation to an operating superfund, subsection (3)(b) has effect as though the figure mentioned there were £100,000.
(9) Where the recipient of the notice is— (a) a trustee of an operating superfund scheme, (b) the responsible body of an operating superfund, or (c) a person responsible for a key function in relation to an operating superfund, subsection (5)(b) has effect as though the figure mentioned there were £20,000.
Part 3 of the Pension Schemes Act 2025 (superfunds).
Part 3 of the Pension Schemes Act 2025 (superfunds).
(je) the process for making— (i) an application for authorisation of a superfund under Chapter 2 of Part 3 of the Pension Schemes Act 2025; (ii) an application for approval of a superfund transfer under Chapter 3 of that Part of that Act; (jf) the matters that the Pensions Regulator expects to take into account in deciding— (i) whether it is satisfied as described in section 55(1) of the Pension Schemes Act 2025 (condition for superfund to be authorised); (ii) whether it is satisfied as described in section 58(1)(c) of that Act (“onboarding conditions” for superfund transfers); (jg) the discharge of the duties imposed by Chapters 4 and 5 of Part 3 of the Pension Schemes Act 2025 (ongoing requirements for operating superfunds);
(i) Part 2 or 3 of the Pension Schemes Act 2025.
(pf) the power to issue a notice under section 78(1)(k) of the Pension Schemes Act 2025 (Regulator notice triggering event of concern for superfund); (pg) the power to give a direction under section 82 of the Pension Schemes Act 2025 (directions in relation to superfund during period of concern);
(tl) the power under section 55 or 86 of the Pension Schemes Act 2025 to withdraw authorisation from a superfund; (tm) the power under section 70(8) or 72(8) of the Pension Schemes Act 2025 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; (tn) the power to issue a notice under section 78(1)(k) of the Pension Schemes Act 2025 (Regulator notice triggering event of concern for superfund); (to) the power to give a direction under section 82 of the Pension Schemes Act 2025 (directions in relation to superfund during period of concern);
(1B) In relation to a superfund scheme, section 53(2) of the Pension Schemes Act 2025 (sections treated as separate schemes) applies for the purposes of this Part as it applies for the purposes of Part 3 of the Pension Schemes Act 2025.
(4A) In relation to an eligible scheme that is a superfund scheme, if— (a) an event of concern takes place in relation to the scheme by virtue of the protected liabilities threshold ceasing to be met, and (b) no qualifying insolvency event occurred in relation to the employer before the event of concern took place, this Chapter applies as though a qualifying insolvency event had occurred in relation to the employer immediately after the event of concern took place.(4B) In subsection (4A), "the protected liabilities threshold" and "event of concern" have the same meaning as in Part 3 of the Pension Schemes Act 2025.
(4A) Regulations may, in relation to a superfund scheme— (a) 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 (b) require the Regulator, in making its determination, to take into account prescribed matters and follow prescribed principles.
(7B) 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.
.key function, in relation to a superfund, has the same meaning as in Part 3 of the Pension Schemes Act 2025 (see section 92 of that Act)”; “operating superfund has the same meaning as in Part 3 of the Pension Schemes Act 2025 (see section 92 of that Act)”; “operating superfund scheme has the same meaning as in Part 3 of the Pension Schemes Act 2025 (see section 92 of that Act)”; “responsible body, in relation to a superfund, has the same meaning as in Part 3 of the Pension Schemes Act 2025 (see section 92 of that Act)”; “superfund has the same meaning as in Part 3 of the Pension Schemes Act 2025 (see section 92 of that Act)”; “superfund group has the same meaning as in Part 3 of the Pension Schemes Act 2025 (see section 92 of that Act)”; “superfund scheme has the same meaning as in Part 3 of the Pension Schemes Act 2025 (see section 92 of that Act)”; “superfund transfer has the same meaning as in Part 3 of the Pension Schemes Act 2025 (see section 92 of that Act);
Part 8 — Functions under the Pension Schemes Act 2025
61 The power under section 55(1) to authorise a superfund. 62 The power under section 55(6) to withdraw authorisation from a superfund that has not yet received a superfund transfer. 63 The power under section 58 to approve a superfund transfer. 64 The power under section 70(1) to approve an individual to be responsible for a key function. 65 The power under section 70(8) to suspend or revoke an individual’s approval to be responsible for a key function. 66 The power under section 72(1) to approve a person to be a trustee of a superfund scheme. 67 The power under section 72(8) to suspend or revoke a person’s approval to be a trustee of a superfund scheme. 68 The power under section 86 to withdraw authorisation from an operating superfund.
Footnotes
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Section 97