Section 24 Transfer noticesI1

England, Wales and Scotland

(1)

Small pots regulations must require the trustees or managers of an auto-enrolment scheme to prepare a notice (“a transfer notice”) in respect of each small dormant pension pot held by the scheme that is not exempt and send it to the individual for whom the pot is held.

(2)

Small pots regulations must require a transfer notice in respect of a pension pot to comply with the following provisions of this section.

(3)

The notice must—

(a)

set out the default proposal in relation to the pot;

(b)

set out the alternative proposal or proposals in relation to the pot;

(c)

state that, if the individual does not respond to the notice, the pot will—

(i)

if the default proposal specifies that the pot be transferred to a consolidator scheme, be transferred to that scheme, and

(ii)

if there is more than one arrangement under the consolidator scheme specified in the default proposal, be held subject to the arrangement so specified;

(d)

invite the individual to consider whether they are content with the default proposal and, if not, to respond to the notice stating either—

(i)

that they want to adopt one of the alternative proposals and if so which, or

(ii)

that they do not want any action to be taken in relation to the pension pot.

(4)

Where membership of a consolidator scheme or a consolidator arrangement specified in a proposal set out in a transfer notice entails being a party to a contract with the trustees or managers of the scheme, the notice must set out, or otherwise communicate, the terms of such a contract.

(5)

The notice must include such details as may be prescribed relating to—

(a)

the pension pot,

(b)

the auto-enrolment scheme, and

(c)

the consolidator scheme or schemes, and any consolidator arrangements, specified in a proposal set out in the notice.

Annotations

Commencement

I1: S. 24 in force at Royal Assent, see s. 133(4)(b)