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The Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2022, ISBN 9780348231182

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

This draft Statutory Instrument supersedes the draft of the same title which was laid before Parliament and published on 16th December 2021 (ISBN 978-0-348-23050-5). It is being issued free of charge to all known recipients of that draft Statutory Instrument.

Draft Regulations laid before Parliament under section 143(4) and (5)(a) of the Pensions Act 2008, section 54(2) (e) and (g) of the Pensions Act 2014 and section 51(5) of the Pension Schemes Act 2021, for approval by resolution of each House of Parliament.

Pensions

Made ***

Coming into force 1st August 2022

The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by sections 28 and 144(2) and (4) of the Pensions Act 2008f1, sections 43 and 54(5) and (6) of, and paragraphs 1 and 2 of Schedule 18 to, the Pensions Act 2014f2 and sections 3(8), 5(2), 8(4)(a) and (b), 11(2)(e) and (3)(a), 12(2)(b), 13(3), 14(3), 15(4)(a), 16(2), 17(4), (5) and (8), 18(4), 19(2), 20(5), 22(3)(b), 23(3)(c), 27(2), 28(3) and (4), 29(7)(a) and (10)(a) and (b), 33(4)(b) and (10), 36(1)(c), (2)(b) and (c), (5), (6) and (10), 37(3)(b), 38(3), 39(1)(b), 40(4) and (6), 41(2), 43(2) and (4)(b) and (c), 45(3) and (6), 49(2)(b) and (4) and 51(2) and (3) of, and paragraph 1(6) of Schedule 2 to, the Pension Schemes Act 2021f3.

The Secretary of State has consulted such persons as the Secretary of State considers appropriate, in accordance with paragraph 8 of Schedule 18 to the Pensions Act 2014.

A draft of these Regulations has been laid before and approved by a resolution of each House of Parliament in accordance with section 143(4) and (5)(a) of the Pensions Act 2008f4, section 54(2)(e) and (g) of the Pensions Act 2014f5 and section 51(5) of the Pension Schemes Act 2021f6.

The Secretary of State has exercised her discretion under section 51(6) of the Pension Schemes Act 2021 to make regulations subject to affirmative resolution procedure which would otherwise be subject to negative resolution procedure.

Annotations to the whole text

Footnotes

f1

2008 c. 30. Section 28 was amended by sections 12 and 13 of the Pensions Act 2011 (c. 19), section 39 of the Pensions Act 2014 (c. 19) and section 46 of, and paragraphs 39 and 45 of Schedule 2 to, the Pension Schemes Act 2015 (c. 8). See section 99 of the Pensions Act 2008 for the definitions of “prescribed” and “regulations”.

f2

2014 c. 19. Paragraph 1 of Schedule 18 to the Pensions Act 2014 (“the 2014 Act”) is amended by section 127 of, and paragraphs 23 and 25(1) and (2) of Schedule 3 to, the Pension Schemes Act 2021 (c. 1) (“the 2021 Act”). See paragraph 15 of Schedule 17 to the 2014 Act for the definition of “prescribed”.

f3

2021 c. 1.

f4

A statutory instrument containing regulations under section 28 of the Pensions Act 2008 is stated to be made subject to affirmative resolution procedure.

f5

The first regulations under paragraph 1 of Schedule 18 to the 2014 Act that make provision in relation to collective money purchase schemes (within the meaning of the 2021 Act) and regulations under paragraph 2 of Schedule 18 to that Act are stated to be made subject to affirmative resolution procedure.

f6

Regulations made under sections 5(2), 11(3)(a), 12(2)(b), 13(3), 14(3), 15(4)(a), 16(2), 17, 18(4), 36(2), 36(6), 45(3)(a), 45(6), 49(2) and 49(4), and the first regulations made under sections 19(2), 20(5), 28(3) and 45(3)(b), of the 2021 Act are stated to be made subject to affirmative resolution procedure.

Contents

  1. Part 1: Preliminary provisions
  2. 1Citation, extent and commencement
  3. 2Interpretation and notices
  4. 3Connected employers
  5. Part 2: Schemes divided into sections
  6. 4Qualifying schemes
  7. 5Schemes divided into sections
  8. Part 3: Authorisation
  9. 6Authorisation: contents
  10. 7Application for authorisation: fee
  11. 8Fit and proper persons requirement
  12. 9Scheme design requirement
  13. 10Viability report
  14. 11Viability certificate
  15. 12Financial sustainability requirement
  16. 13Communication requirement
  17. 14Systems and processes requirement
  18. 15Continuity strategy: contents
  19. 16Continuity strategy: administration charges
  20. Part 4: Valuation and benefit adjustment
  21. 17Calculation of benefits
  22. 18Advice of scheme actuary
  23. 19Actuarial valuations
  24. 20Reporting requirements relating to benefit adjustments
  25. 21Powers of the Regulator
  26. Part 5: Ongoing supervision
  27. 22Supervisory return: contents
  28. 23Significant events
  29. 24Risk notices
  30. Part 6: Triggering events and continuity options
  31. 25Triggering events: notification requirements
  32. 26Implementation strategy: approval
  33. 27Implementation strategy: charges
  34. 28Implementation strategy: content
  35. 29Continuity option 1: discharge of liabilities and winding up
  36. 30Continuity option 2: resolving the triggering event
  37. 31Continuity option 3: conversion to closed scheme
  38. 32Periodic reporting requirement
  39. 33Pause orders
  40. 34Administration charges during a triggering event period
  41. Part 7: Collective money purchase benefits – amendments to secondary legislation
  42. 35Collective money purchase benefits – amendments to secondary legislation
  43. Signature
  44. Schedule 1: Fit and proper persons requirement
  45. 1Paragraph 1
  46. 2Paragraph 2
  47. 3Paragraph 3
  48. Schedule 2: Scheme design requirement
  49. Part 1: Matters that the Regulator must take into account
  50. 1Paragraph 1
  51. Part 2: Viability report
  52. Preliminary
  53. 2Paragraph 2
  54. General
  55. 3Paragraph 3
  56. 4Paragraph 4
  57. 5Paragraph 5
  58. 6Paragraph 6
  59. 7Paragraph 7
  60. Information about the design of the scheme
  61. 8Paragraph 8
  62. 9Paragraph 9
  63. Part 3: Viability certificate
  64. 10Paragraph 10
  65. 11Paragraph 11
  66. 12Paragraph 12
  67. 13Paragraph 13
  68. 14Paragraph 14
  69. Schedule 3: Financial sustainability requirement
  70. Part 1: Information required on application for authorisation
  71. 1Paragraph 1
  72. Part 2: Matters which the Regulator must take into account
  73. 2Paragraph 2
  74. 3Paragraph 3
  75. Part 3: Requirements to be met by the collective money purchase scheme
  76. 4Paragraph 4
  77. Schedule 4: Communication requirement
  78. Interpretation
  79. 1Paragraph 1
  80. Preliminary
  81. 2Paragraph 2
  82. Functionality, quality and maintenance of IT systems
  83. 3Paragraph 3
  84. Resource planning
  85. 4Paragraph 4
  86. Quality assurance
  87. 5Paragraph 5
  88. Member engagement
  89. 6Paragraph 6
  90. Schedule 5: Systems and processes requirement
  91. Preliminary
  92. 1Paragraph 1
  93. Features and functionality of IT systems
  94. 2Paragraph 2
  95. Standards required of IT systems
  96. 3Paragraph 3
  97. Maintenance of IT systems
  98. 4Paragraph 4
  99. Member records
  100. 5Paragraph 5
  101. Trustees and others
  102. 6Paragraph 6
  103. Contracts and service providers
  104. 7Paragraph 7
  105. Governance
  106. 8Paragraph 8
  107. Risk management
  108. 9Paragraph 9
  109. Security
  110. 10Paragraph 10
  111. Resource planning
  112. 11Paragraph 11
  113. Investments
  114. 12Paragraph 12
  115. Valuation and benefit adjustment
  116. 13Paragraph 13
  117. Member engagement
  118. 14Paragraph 14
  119. Schedule 6: Continuity Option 1: transfer out and winding up
  120. Definitions
  121. 1Paragraph 1
  122. Alternative ways of discharging the scheme’s liability
  123. 2Paragraph 2
  124. Requirements of rules of scheme
  125. 3Paragraph 3
  126. Winding-up commencement time
  127. 4Paragraph 4
  128. Quantification of the value of beneficiaries’ accrued rights to benefits
  129. 5Paragraph 5
  130. Winding-up period
  131. 6Paragraph 6
  132. Periodic income
  133. 7Paragraph 7
  134. Information about periodic income
  135. 8Paragraph 8
  136. Scheme to continue to be a CMPS during winding-up
  137. 9Paragraph 9
  138. Trustees’ notice to employers
  139. 10Paragraph 10
  140. Notification to receiving scheme
  141. 11Paragraph 11
  142. Trustees’ first notice to beneficiaries in respect of discharge options
  143. 12Paragraph 12
  144. Trustees’ second notice to beneficiaries in respect of discharge options
  145. 13Paragraph 13
  146. Beneficiaries’ response to trustees
  147. 14Paragraph 14
  148. Notice of expected discharge time
  149. 15Paragraph 15
  150. Trustees’ powers
  151. 16Paragraph 16
  152. Trustees’ duty to transfer
  153. 17Paragraph 17
  154. Administration charges
  155. 18Paragraph 18
  156. Trustee discharge
  157. 19Paragraph 19
  158. Winding up
  159. 20Paragraph 20
  160. Regulator’s power to direct
  161. 21Paragraph 21
  162. Civil penalties
  163. 22Paragraph 22
  164. Schedule 7: Collective money purchase benefits: amendments to secondary legislation
  165. 1Amendments to the Occupational Pension Schemes (Scheme Administration) Regulations 1996
  166. 2Amendment of the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010
  167. 3Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  168. 4Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  169. 5Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  170. 6Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  171. 7Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  172. 8Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  173. 9Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  174. 10Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  175. 11Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  176. 12Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  177. 13Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  178. 14Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  179. 15Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  180. 16Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  181. 17Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  182. 18Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  183. 19Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  184. 20Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  185. 21Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  186. 22Amendments to the Occupational Pension Schemes (Charges and Governance) Regulations 2015
  187. Explanatory note