{
  "url": "https://openlegislation.uk/pension-schemes-act-2026/section-15",
  "json_url": "https://openlegislation.uk/pension-schemes-act-2026/section-15.json",
  "legislation": "ukpga/2026/22",
  "legislation_title": "Pension Schemes Act 2026",
  "legislation_url": "https://openlegislation.uk/pension-schemes-act-2026",
  "path": "section/15",
  "kind": "section",
  "number": "15",
  "heading": "VFM ratings",
  "text": "(1) Responsible trustees or managers who are required by virtue of section 11(4)(a)to assign a VFM rating to a scheme or arrangement in respect of a VFM period (the “relevant period”) must assign to the scheme or (as the case requires) arrangement—\n(a) a “fully delivering” rating if the responsible trustees or managers determine that the scheme or arrangement is delivering value for money;\n(b) a “not delivering” rating if—\n(i) the responsible trustees or managers determine that the scheme or arrangement is not delivering value for money, and\n(ii) Condition A, B or C of subsection (2) is met;\n(c) in any other case, an intermediate rating.\n(2) For the purposes of subsection (1)(b)(ii)—\n(a) Condition A is met if the responsible trustees or managers determine that there is no realistic prospect of the scheme or (as the case may be) arrangement delivering value for money within a reasonable period;\n(b) Condition B is met if the responsible trustees or managers have assigned an intermediate rating to the scheme or arrangement in each of a prescribed number of VFM periods immediately preceding the relevant period;\n(c) Condition C is met if the Pensions Regulator notifies the responsible trustees or managers that the Regulator—\n(i) considers that the responsible trustees or managers have failed to comply with an improvement plan or an action plan relating to the scheme or arrangement (and the VFM period), and\n(ii) does not consider the failures to be so minor that they should be ignored.\n(3) Value for money regulations must specify the number of grades of intermediate rating.\n(4) If value for money regulations provide that there are to be two or more intermediate ratings, the regulations—\n(a) may name each of those ratings;\n(b) must specify the conditions for assigning each of those ratings.\n(5) Where, apart from this subsection, a scheme or arrangement would be assigned a “not delivering” rating in respect of a VFM period by virtue of Condition B of subsection (2) being met, the Pensions Regulator may, if it considers that prescribed conditions are met, by notice to the scheme or arrangement authorise the responsible trustees or managers to assign to the scheme or arrangement (instead of a “not delivering” rating) any intermediate rating the Pensions Regulator considers appropriate.\n(6) In this Chapter “action plan”, in relation to a regulated VFM scheme or regulated VFM arrangement, means a plan under section 16(2)(c) or 17(1)(a) which—\n(a) sets out the responsible trustees’ or managers’ assessment as to whether or not transferring the benefits of the members (under the scheme or arrangement) to another scheme or arrangement could reasonably be expected to result in the generality of those members receiving improved long-term value for money, and\n(b) proposes measures (or options for measures) for improving the position (with regard to value for money) of members or subsets of members of the scheme or arrangement.\n(7) An action plan may not include a proposal to transfer the benefits (under the scheme or arrangement) of some or all of the members of that scheme or arrangement unless the responsible trustees or managers determine that the proposed transfer could reasonably be expected to result in the generality of those members receiving improved long-term value for money.\n(8) Value for money regulations may make further provision about what may or must be included in an action plan.",
  "extent": "E+W+S",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "I",
      "label": "I1",
      "text": "S. 15 in force at Royal Assent for specified purposes, see s. 133(1)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2026/22/section/15",
    "retrieved_at": "2026-10-29T08:41:23.531539+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}