OpenLegislation

Section 11 Powers to wind up schemes.C1I1

England, Wales and Scotland

(1)

Subject to the following provisions of this section, the Authority may by order direct or authorise an occupational pension scheme to be wound up if they are satisfied that—

(a)

the scheme, or any part of it, ought to be replaced by a different scheme,

(b)

the scheme is no longer required, F1...

(c)

it is necessary in order to protect the interests of the generality of the members of the scheme that it be wound up.

(d)

F2the scheme is a regulated VFM scheme and—

(i)

the rating most recently assigned to the scheme under section 15(1) of the Pension Schemes Act 2026 is “not delivering”, and

(ii)

the Authority are satisfied that the scheme is not capable of providing value for money, or

(e)

the following conditions are met in relation to a regulated VFM arrangement (“A”) under the scheme—

(i)

that the rating most recently assigned to A under section 15(1) of the Pension Schemes Act 2026 is “not delivering”, and

(ii)

the Authority are satisfied that A is not capable of providing value for money.

(2)

The Authority may not make an order under this section on either of the grounds referred to in subsection (1)(a) or (b) unless they are satisfied that the winding up of the scheme—

(a)

cannot be achieved otherwise than by means of such an order, or

(b)

can only be achieved in accordance with a procedure which—

(i)

is liable to be unduly complex or protracted, or

(ii)

involves the obtaining of consents which cannot be obtained, or can only be obtained with undue delay or difficulty,

and that it is reasonable in all the circumstances to make the order.

(3)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3A)

F4The Authority may, during an assessment period (within the meaning of section 132 of the Pensions Act 2004 (meaning of “assessment period” for the purposes of Part 2 of that Act)) in relation to an occupational pension scheme, by order direct the scheme to be wound up if they are satisfied that it is necessary to do so in order—

(a)

to ensure that the scheme’s protected liabilities do not exceed its assets, or

(b)

if those liabilities do exceed its assets, to keep the excess to a minimum.

(3B)

In subsection (3A)—

(a)

“protected liabilities” has the meaning given by section 131 of the Pensions Act 2004, and

(b)

references to the assets of the scheme are references to those assets excluding any assets representing the value of any rights in respect of money purchase benefits (within the meaning of that Act) under the scheme.

(4)

An order under this section authorising a scheme to be wound up must include such directions with respect to the manner and timing of the winding up as the Authority think appropriate having regard to the purposes of the order.

F5This subsection is subject to sections 28, 135 and 219 of the Pensions Act 2004 (winding up order made when freezing order has effect in relation to scheme, during assessment period under Part 2 of that Act etc).

(5)

The winding up of a scheme in pursuance of an order of the Authority under this section is as effective in law as if it had been made under powers conferred by or under the scheme.

(6)

An order under this section may be made and complied with in relation to a scheme—

(a)

in spite of any enactment or rule of law, or any rule of the scheme, which would otherwise operate to prevent the winding up, or

(b)

except for the purpose of the Authority determining whether or not they are satisfied as mentioned in subsection (2), without regard to any such enactment, rule of law or rule of the scheme as would otherwise require, or might otherwise be taken to require, the implementation of any procedure or the obtaining of any consent, with a view to the winding up.

(6A)

F6Subsection (6) does not have effect to authorise the Authority to make an order as mentioned in paragraph (a) or (b) of that subsection, if their doing so would be unlawful as a result of section 6(1) of the Human Rights Act 1998 (unlawful for public authority to act in contravention of a Convention right).

(7)

In the case of a public service pension scheme—

(a)

an order under subsection (1) directing or authorising the scheme to be wound up may only be made on the grounds referred to in paragraph (c), and

(b)

such an order may, as the Authority think appropriate, adapt, amend or repeal any enactment F7(including the Scottish Parliamentary Pensions Act 2009 (asp 1)) in which the scheme is contained or under which it is made.

(8)

F8In subsection (1)—

(a)

“regulated VFM arrangement” and “regulated VFM scheme” have the same meaning as in Chapter 1 of Part 2 of the Pension Schemes Act 2026 (see section 21 of that Act);

(b)

the reference to the provision of value for money is to be interpreted in accordance with that Chapter.

Annotations

Textual amendments

F1

Word in s. 11(1) omitted (29.4.2026 for specified purposes) by virtue of Pension Schemes Act 2026 (c. 22), ss. 18(12)(a), 133(1)(4)(a) (with s. 20)

F2

S. 11(1)(d)(e) inserted (29.4.2026 for specified purposes) by Pension Schemes Act 2026 (c. 22), ss. 18(12)(b), 133(1)(4)(a) (with s. 20)

F3

S. 11(3) repealed (6.4.2005) by Pensions Act 2004 (c. 35), ss. 22(a), 322(1), Sch. 13 (with s. 313); S.I. 2005/275, art. 2(7), Sch. Pt. 7 (with S.I. 2005/695, arts. 5(8), 6, Schs. 2, 3)

F4

S. 11(3A)(3B) inserted (6.4.2005) by Pensions Act 2004 (c. 35), ss. 22(b), 322(1) (with s. 313); S.I. 2005/275, art. 2(7), Sch. Pt. 7 (with S.I. 2005/695, arts. 5(8), 6, Schs. 2, 3)

F5

Words in s. 11(4) inserted (6.4.2005) by Pensions Act 2004 (c. 35), ss. 22(c), 322(1) (with s. 313); S.I. 2005/275, art. 2(7), Sch. Pt. 7 (with S.I. 2005/695, arts. 5(8), 6, Schs. 2, 3)

F6

S. 11(6A) inserted (6.4.2005) by Pensions Act 2004 (c. 35), ss. 22(d), 322(1) (with s. 313); S.I. 2005/275, art. 2(7), Sch. Pt. 7 (with S.I. 2005/695, arts. 5(8), 6, Schs. 2, 3)

F7

Words in s. 11(7)(b) inserted (1.9.2009) by The Scottish Parliamentary Pensions Act 2009 (Consequential Modifications) Order 2009 (S.I. 2009/1682), art. 1(1), Sch. para. 1

F8

S. 11(8) inserted (29.4.2026 for specified purposes) by Pension Schemes Act 2026 (c. 22), ss. 18(12)(c), 133(1)(4)(a) (with s. 20)

Modifications

C1

Ss. 3-11 modified in part (11.11.1999 for specified purposes; 1.10.2000 in so far as not already in force) by the Welfare Reform and Pensions Act 1999 (c. 30), s. 89(5)(a), Sch. 1 para. 1(1)(2)(b)(i); S.I. 2000/1047, art. 2(2)(c), Sch. Pt. III (as amended (6.4.2005) by Pensions Act 2004 (c. 35), s. 322(1), Sch. 12 para. 76(2)(a))

Commencement

I1

S. 11 in force at 6.4.1997 by S.I. 1997/664, art. 2(3), Sch. Pt. 3