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Pension Schemes Act 2021 in Scotland

2021 c. 1 · Enacted 11 February 2021 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 31 July 2026.

An Act to make provision about pension schemes.

[11th February 2021]

Be it enacted by the Queen'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:—

Contents

  1. Part 1: Collective money purchase benefits
  2. Definitions
  3. 1Collective money purchase benefits and schemes
  4. 2Qualifying benefits
  5. 3Qualifying schemes
  6. 4Qualifying schemes: supplementary
  7. 5Schemes divided into sections
  8. 6Amendment of definitions of “money purchase benefits” etc
  9. Authorisation
  10. 7Authorisation of collective money purchase schemes
  11. 8Application for authorisation
  12. 9Decision on application
  13. 9ACommencement of operation of an unconnected multiple employer scheme
  14. 10Reference to Tribunal of refusal to grant authorisation
  15. Authorisation criteria
  16. 11Fit and proper persons requirement
  17. 12Scheme design requirement
  18. 13Viability report
  19. 14Financial sustainability requirement
  20. 14AUnconnected multiple employer schemes: financial sustainability requirement - business plan
  21. 14BUnconnected multiple employer schemes: scheme proprietor
  22. 14CUnconnected multiple employer schemes: scheme proprietor requirements
  23. 14DUnconnected multiple employer schemes: promotion or marketing requirement
  24. 15Communication requirement
  25. 16Systems and processes requirements
  26. 17Continuity strategy requirement
  27. 17AUnconnected multiple employer schemes: ability to pursue continuity option 3
  28. Valuation and benefit adjustment
  29. 18Calculation of benefits
  30. 19Advice of scheme actuary
  31. 20Actuarial valuations
  32. 21Certificate that actuarial valuation prepared in accordance with scheme rules
  33. 22Benefits adjustments
  34. 23Powers of the Pensions Regulator
  35. Members' rights
  36. 24Rules about modifying schemes
  37. 25Transfer rights
  38. Ongoing supervision
  39. 26List of authorised schemes
  40. 26AUnconnected multiple employer schemes: requirement to submit annual accounts
  41. 27Requirement to submit supervisory return
  42. 28Duty to notify the Pensions Regulator of significant events
  43. 29Risk notices
  44. 30Withdrawal of authorisation
  45. Triggering events and continuity options
  46. 31Triggering events
  47. 32Triggering event periods
  48. 33Notification of triggering events
  49. 34Continuity options
  50. 35When a decision to withdraw authorisation becomes final
  51. 36Continuity option 1: discharge of liabilities and winding up
  52. 37Continuity option 2: resolving triggering event
  53. 38Continuity option 3: conversion to closed scheme
  54. 39Implementation strategy
  55. 40Approval of implementation strategy
  56. 41Trustees' duties once implementation strategy approved
  57. 42Prohibition on winding up except in accordance with continuity option 1
  58. 43Periodic reporting requirements
  59. 44Pause orders
  60. 45Prohibition on increasing charges etc during triggering event period
  61. Publication of information
  62. 46Publication of information
  63. Powers to make further provision
  64. 47Powers to extend definition of qualifying schemes
  65. Supplementary
  66. 48Minor and consequential amendments
  67. 49Interpretation of Part 1
  68. 50Index of defined expressions
  69. 51Regulations
  70. Definitions
  71. 52Collective money purchase benefits and schemes
  72. 53Qualifying benefits
  73. 54Qualifying schemes
  74. 55Qualifying schemes: supplementary
  75. 56Schemes divided into sections
  76. 57Amendment of definitions of “money purchase benefits” etc
  77. Authorisation
  78. 58Authorisation of collective money purchase schemes
  79. 59Application for authorisation
  80. 60Decision on application
  81. 60AFailure of unconnected multiple employer schemes to commence operation
  82. 61Reference to Tribunal of refusal to grant authorisation
  83. Authorisation criteria
  84. 62Fit and proper persons requirement
  85. 63Scheme design requirement
  86. 64Viability report
  87. 65Financial sustainability requirement
  88. 65AUnconnected multiple employer schemes: business plan
  89. 65BUnconnected multiple employer schemes: single scheme proprietor
  90. 65CUnconnected multiple employer schemes: scheme proprietor requirements
  91. 65DUnconnected multiple employer schemes: promotion or marketing requirement
  92. 66Communication requirement
  93. 67Systems and processes requirements
  94. 68Continuity strategy requirement
  95. 68AUnconnected multiple employer schemes: ability to pursue continuity option 3
  96. Valuation and benefit adjustment
  97. 69Calculation of benefits
  98. 70Advice of scheme actuary
  99. 71Actuarial valuations
  100. 72Certificate that actuarial valuation prepared in accordance with scheme rules
  101. 73Benefits adjustments
  102. 74Powers of the Pensions Regulator
  103. Members' rights
  104. 75Rules about modifying schemes
  105. 76Transfer rights
  106. Ongoing supervision
  107. 77List of authorised schemes
  108. 77AUnconnected multiple employer schemes: annual accounts
  109. 78Requirement to submit supervisory return
  110. 79Duty to notify the Pensions Regulator of significant events
  111. 80Risk notices
  112. 81Withdrawal of authorisation
  113. Triggering events and continuity options
  114. 83Triggering event periods
  115. 85Continuity options
  116. 86When a decision to withdraw authorisation becomes final
  117. 87Continuity option 1: discharge of liabilities and winding up
  118. 88Continuity option 2: resolving triggering event
  119. 89Continuity option 3: conversion to closed scheme
  120. 90Implementation strategy
  121. 91Approval of implementation strategy
  122. 92Trustees' duties once implementation strategy approved
  123. 93Prohibition on winding up except in accordance with continuity option 1
  124. 94Periodic reporting requirements
  125. 95Pause orders
  126. 96Prohibition on increasing charges etc during triggering event period
  127. Publication of information
  128. 97Publication of information
  129. Powers to make further provision
  130. 98Powers to extend definition of qualifying schemes
  131. Supplementary
  132. 99Minor and consequential amendments
  133. 100Interpretation of Part 2
  134. 102Regulations
  135. Part 3: The Pensions Regulator
  136. Contribution notices where avoidance of employer debt etc
  137. 103Grounds for issuing a section 38 contribution notice
  138. 104Reasonableness of issuing a contribution notice
  139. 105Determination of sum specified in a contribution notice
  140. 106Sanctions for failure to comply with a contribution notice
  141. Sanctions for avoidance of employer debt etc
  142. 107Sanctions for avoidance of employer debt etc
  143. Collecting information
  144. 108Duty to notify the Regulator of certain events
  145. 109Duty to give notices and statements to the Regulator in respect of certain events
  146. Gathering information
  147. 110Interviews
  148. 111Inspection of premises
  149. 112Fixed penalty notices and escalating penalty notices
  150. Provision of false or misleading information
  151. 113Provision of false or misleading information to Regulator
  152. 114Provision of false or misleading information to trustees or managers
  153. Financial penalties
  154. 115Financial penalties
  155. Supplementary
  156. 116Minor and consequential amendments
  157. Part 4: Pensions dashboards
  158. 118Qualifying pensions dashboard service
  159. 119Information from occupational pension schemes
  160. 121Information from personal and stakeholder pension schemes
  161. 122The Money and Pensions Service: the pensions guidance function
  162. Part 5: Further provision relating to pension schemes
  163. Scheme funding
  164. 123Funding of defined benefit schemes
  165. Climate change risk
  166. 124Climate change risk
  167. Transfer rights
  168. 125Exercise of right to cash equivalent
  169. The Pension Protection Fund
  170. 126Modification of provisions relating to pensionable service
  171. Administration charges
  172. 127Administration charges
  173. Categories of pension schemes
  174. 128Pension Schemes Act 2015: repeals
  175. Part 6: Final
  176. 130Extent
  177. 131Commencement
  178. 132Short title
  179. Schedule 1: Money purchase benefits
  180. Building Societies Act 1986 (c. 53)
  181. 1Paragraph 1
  182. Pension Schemes Act 1993 (c. 48)
  183. 2Paragraph 2
  184. 3Paragraph 3
  185. 4Paragraph 4
  186. Pensions Act 2008 (c. 30)
  187. 5Paragraph 5
  188. 6Paragraph 6
  189. 7Paragraph 7
  190. Schedule 1A: Unconnected Multiple Employer Schemes: Business Strategy
  191. Part 1: Information which must be taken into account
  192. 1Paragraph 1
  193. 2Paragraph 2
  194. 3Paragraph 3
  195. 4Paragraph 4
  196. Part 2: Matters which must be taken into account
  197. 5Paragraph 5
  198. 6Paragraph 6
  199. 7Paragraph 7
  200. 8Paragraph 8
  201. 9Paragraph 9
  202. 10Paragraph 10
  203. 11Paragraph 11
  204. 12Paragraph 12
  205. Part 3: Information which may be taken into account
  206. 13Paragraph 13
  207. 14Paragraph 14
  208. Schedule 1B: Unconnected Multiple Employer Schemes: Business Plan - Information and Requirements
  209. Part 1: Information which must be included in a business plan
  210. 1General
  211. 2General
  212. 3General
  213. 4General
  214. 5General
  215. 6Information about the scheme
  216. 7Information about the scheme
  217. 8Information about the scheme
  218. 9Information about the scheme
  219. 10Information about the scheme
  220. 11Information about the scheme
  221. 12Information about the scheme
  222. 13Information about the scheme
  223. 14Information about the scheme
  224. 15Information about the scheme
  225. 16Information about the scheme
  226. 17Information about the scheme
  227. 18Information about the scheme
  228. 19Information about the scheme proprietor
  229. 20Information about the scheme proprietor
  230. 21Information about the scheme proprietor
  231. 22Information about the scheme proprietor
  232. 23Information about the scheme proprietor
  233. 24Information following a triggering event
  234. Part 2: Requirements relating to a business plan
  235. 25Paragraph 25
  236. 26Paragraph 26
  237. 27Paragraph 27
  238. 28Paragraph 28
  239. 29Paragraph 29
  240. Schedule 1C: Unconnected Multiple Employer Schemes: Promotion or Marketing Requirement
  241. Part 1: No promotion or marketing that is unclear or misleading without rectification
  242. 1Consistency
  243. 2Transparency
  244. Part 2: Promotion or marketing: systems and processes
  245. 3Quality assurance
  246. 4Resource planning
  247. 5Feedback and complaints
  248. 6Functionality of IT systems
  249. 7Risk management
  250. 8Governance
  251. 9Interpretation of Part 2
  252. Schedule 2: Pause orders
  253. Consequences of a pause order
  254. 1Paragraph 1
  255. Period of effect etc of pause order
  256. 2Paragraph 2
  257. Validation of action in contravention of pause order
  258. 3Paragraph 3
  259. Notification of trustees, employers and members
  260. 4Paragraph 4
  261. Supplementary
  262. 5Paragraph 5
  263. Schedule 3: Collective money purchase benefits: minor and consequential amendments
  264. Pension Schemes Act 1993 (c. 48)
  265. 1Paragraph 1
  266. 2Paragraph 2
  267. 3Paragraph 3
  268. 4Paragraph 4
  269. 5Paragraph 5
  270. Pensions Act 1995 (c. 26)
  271. 6Paragraph 6
  272. 7Paragraph 7
  273. 8Paragraph 8
  274. 9Paragraph 9
  275. 10Paragraph 10
  276. Pensions Act 2004 (c. 35)
  277. 11Paragraph 11
  278. 12Paragraph 12
  279. 13Paragraph 13
  280. 14Paragraph 14
  281. 15Paragraph 15
  282. 16Paragraph 16
  283. 17Paragraph 17
  284. 18Paragraph 18
  285. 19Paragraph 19
  286. 20Paragraph 20
  287. 21Paragraph 21
  288. Pensions Act 2008 (c. 30)
  289. 22Paragraph 22
  290. Pensions Act 2014 (c. 19)
  291. 23Paragraph 23
  292. 24Paragraph 24
  293. 25Paragraph 25
  294. Building Societies Act 1986 (c. 53)
  295. 1Paragraph 1
  296. Pension Schemes (Northern Ireland) Act 1993 (c. 49)
  297. 2Paragraph 2
  298. 3Paragraph 3
  299. 4Paragraph 4
  300. Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.))
  301. 5Paragraph 5
  302. 6Paragraph 6
  303. 7Paragraph 7
  304. Schedule 4A: UNCONNECTED MULTIPLE EMPLOYER SCHEMES: BUSINESS STRATEGY
  305. 1Information which must be taken into account
  306. 2Matters which must be taken into account
  307. 3Information which may be taken into account
  308. Schedule 4B: UNCONNECTED MULTIPLE EMPLOYER SCHEMES: BUSINESS PLAN - INFORMATION AND REQUIREMENTS
  309. Part 1: Information which must be included in a business plan
  310. General
  311. Information about the scheme
  312. Information about the scheme proprietor
  313. Information following a triggering event
  314. 2Requirements relating to a business plan
  315. Schedule 4C: UNCONNECTED MULTIPLE EMPLOYER SCHEMES: PROMOTION OR MARKETING REQUIREMENT
  316. Part 1: No promotion or marketing that is unclear or misleading without rectification
  317. Consistency
  318. Transparency
  319. Part 2: Promotion or marketing: systems and processes
  320. Quality assurance
  321. Resource planning
  322. Feedback and complaints
  323. Functionality of IT systems
  324. Risk management
  325. Governance
  326. Interpretation of Part 2
  327. Consequences of a pause order
  328. 1Paragraph 1
  329. Period of effect etc of pause order
  330. 2Paragraph 2
  331. Validation of action in contravention of pause order
  332. 3Paragraph 3
  333. Notification of trustees, employers and members
  334. 4Paragraph 4
  335. Supplementary
  336. 5Paragraph 5
  337. Pension Schemes (Northern Ireland) Act 1993 (c. 49)
  338. 1Paragraph 1
  339. 2Paragraph 2
  340. 3Paragraph 3
  341. 4Paragraph 4
  342. 5Paragraph 5
  343. Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))
  344. 6Paragraph 6
  345. 7Paragraph 7
  346. 8Paragraph 8
  347. 9Paragraph 9
  348. 10Paragraph 10
  349. Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1))
  350. 11Paragraph 11
  351. 12Paragraph 12
  352. 13Paragraph 13
  353. 14Paragraph 14
  354. 15Paragraph 15
  355. 16Paragraph 16
  356. 17Paragraph 17
  357. 18Paragraph 18
  358. 19Paragraph 19
  359. 20Paragraph 20
  360. 21Paragraph 21
  361. Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.))
  362. 22Paragraph 22
  363. Pensions Act (Northern Ireland) 2015 (c. 5 (N.I.))
  364. 23Paragraph 23
  365. 24Paragraph 24
  366. 25Paragraph 25
  367. Schedule 7: The Pensions Regulator: minor and consequential amendments
  368. Pensions Act 1995 (c. 26)
  369. 1Paragraph 1
  370. Pensions Act 2004 (c. 35)
  371. 2Paragraph 2
  372. 3Paragraph 3
  373. 4Paragraph 4
  374. 5Paragraph 5
  375. 6Paragraph 6
  376. 7Paragraph 7
  377. 8Paragraph 8
  378. 9Paragraph 9
  379. 10Paragraph 10
  380. 11Paragraph 11
  381. 12Paragraph 12
  382. 13Paragraph 13
  383. 14Paragraph 14
  384. Pensions Act 2008 (c. 30)
  385. 15Paragraph 15
  386. 16Paragraph 16
  387. 17Paragraph 17
  388. Pension Schemes Act 2017 (c. 17)
  389. 18Paragraph 18
  390. 19Paragraph 19
  391. 20Paragraph 20
  392. Part 1: Amendments of the Pensions (Northern Ireland) Order 2005
  393. Introductory
  394. Grounds for issuing an Article 34 contribution notice
  395. Reasonableness of issuing contribution notice
  396. 3Paragraph 3
  397. Determination of sum specified in a contribution notice
  398. 4Paragraph 4
  399. Sanctions for failure to comply with a contribution notice
  400. 5Paragraph 5
  401. Sanctions for avoidance of employer debt etc
  402. 6Paragraph 6
  403. Duty to notify the Regulator of certain events
  404. 7Paragraph 7
  405. Duty to give notices and statements to the Regulator in respect of certain events
  406. 8Paragraph 8
  407. Interviews
  408. Inspection of premises
  409. 10Paragraph 10
  410. Fixed penalty notices and escalating penalty notices
  411. Provision of false or misleading information to Regulator
  412. 12Paragraph 12
  413. Provision of false or misleading information to trustees or managers
  414. 13Paragraph 13
  415. Financial penalties
  416. 14Paragraph 14
  417. Part 2: Minor and consequential amendments
  418. Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))
  419. 15Paragraph 15
  420. Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1))
  421. 17Paragraph 17
  422. 18Paragraph 18
  423. 19Paragraph 19
  424. 20Paragraph 20
  425. 21Paragraph 21
  426. 23Paragraph 23
  427. 24Paragraph 24
  428. 25Paragraph 25
  429. 27Paragraph 27
  430. 28Paragraph 28
  431. Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.))
  432. 29Paragraph 29
  433. 30Paragraph 30
  434. 31Paragraph 31
  435. Introductory
  436. 1Paragraph 1
  437. Qualifying pensions dashboard service
  438. 2Paragraph 2
  439. Information from occupational pension schemes
  440. 3Paragraph 3
  441. Admissibility of statements
  442. 4Paragraph 4
  443. Assembly control of regulations
  444. 5Paragraph 5
  445. The Pensions Regulator: delegation
  446. 6Paragraph 6
  447. Schedule 10: Funding of defined benefit schemes
  448. Part 1: Amendments of Part 3 of the Pensions Act 2004
  449. 1Paragraph 1
  450. 2Paragraph 2
  451. 3Paragraph 3
  452. 4Paragraph 4
  453. 5Paragraph 5
  454. 6Paragraph 6
  455. 7Paragraph 7
  456. Part 2: Minor and consequential amendments
  457. 8Paragraph 8
  458. 9Paragraph 9
  459. 10Paragraph 10
  460. 11Paragraph 11
  461. Part 1: Funding of defined benefit schemes
  462. Amendments of Part 4 of the Pensions (Northern Ireland) Order 2005
  463. 1Paragraph 1
  464. 2Paragraph 2
  465. 3Paragraph 3
  466. 4Paragraph 4
  467. 5Paragraph 5
  468. 6Paragraph 6
  469. 7Paragraph 7
  470. Minor and consequential amendments
  471. 8Paragraph 8
  472. 9Paragraph 9
  473. 10Paragraph 10
  474. 11Paragraph 11
  475. Part 2: Other provision
  476. Climate change risk
  477. 12Paragraph 12
  478. Transfer rights: exercise of right to cash equivalent
  479. 13Paragraph 13
  480. The Pension Protection Fund: modification of provisions relating to pensionable service
  481. 14Paragraph 14
  482. Administration charges
  483. Categories of pension schemes: repeal of provisions of Pension Schemes Act (Northern Ireland) 2016
  484. 16Paragraph 16