Explanatory note

Chapter 3 (AWE Pension Scheme) of the Pension Schemes Act 2026 (“the 2026 Act”) establishes a legislative framework to create a new public pension scheme for members of the AWE Pension Scheme, and to transfer the assets of the pension scheme to government. These Regulations are made under section 116 of the 2026 Act and enable the Secretary of State to issue directions that will require the transfer of pension scheme assets to central government.

Regulation 3 makes provision for the Secretary of State to issue binding directions to the trustee company for the purposes of realising and transferring pension scheme assets.  It also makes provision for the procedure to be followed where the trustee company wishes to raise certain concerns about the directions with the Secretary of State.

Regulation 4 makes provision for the Secretary of State to issue binding directions to AWE PLC.

Regulation 5 makes general provisions in relation to directions and other notices issued under regulations 3 and 4.

Regulation 6 provides that the Secretary of State is under a duty to ensure that the trustee company can meet all relevant liabilities once the sale of the scheme assets commences.

Regulation 7 ensures that various statutory provisions will no longer apply to the AWE Pension Scheme once the realisation of assets begins.

Regulation 8 ensures that acts or omissions in connection with a direction will not breach any rule of law, including common law fiduciary duties.

Regulation 9 modifies various statutory provisions in relation to acts or omissions in connection with a direction under these Regulations.

Regulation 10 exempts the trustee company and AWE PLC from liability in relation to any act or omission in connection with a direction.

Regulation 11 provides that certain proceedings cannot be brought without the consent of the Secretary of State.

A full impact assessment has not been produced for this instrument as no, or no significant impact on the private, voluntary or public sector is foreseen.