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Pension Schemes Act 2021

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. Part 2: Collective money purchase benefits: Northern Ireland
  71. Definitions
  72. 52Collective money purchase benefits and schemes
  73. 53Qualifying benefits
  74. 54Qualifying schemes
  75. 55Qualifying schemes: supplementary
  76. 56Schemes divided into sections
  77. 57Amendment of definitions of “money purchase benefits” etc
  78. Authorisation
  79. 58Authorisation of collective money purchase schemes
  80. 59Application for authorisation
  81. 60Decision on application
  82. 60AFailure of unconnected multiple employer schemes to commence operation
  83. 61Reference to Tribunal of refusal to grant authorisation
  84. Authorisation criteria
  85. 62Fit and proper persons requirement
  86. 63Scheme design requirement
  87. 64Viability report
  88. 65Financial sustainability requirement
  89. 65AUnconnected multiple employer schemes: business plan
  90. 65BUnconnected multiple employer schemes: single scheme proprietor
  91. 65CUnconnected multiple employer schemes: scheme proprietor requirements
  92. 65DUnconnected multiple employer schemes: promotion or marketing requirement
  93. 66Communication requirement
  94. 67Systems and processes requirements
  95. 68Continuity strategy requirement
  96. 68AUnconnected multiple employer schemes: ability to pursue continuity option 3
  97. Valuation and benefit adjustment
  98. 69Calculation of benefits
  99. 70Advice of scheme actuary
  100. 71Actuarial valuations
  101. 72Certificate that actuarial valuation prepared in accordance with scheme rules
  102. 73Benefits adjustments
  103. 74Powers of the Pensions Regulator
  104. Members' rights
  105. 75Rules about modifying schemes
  106. 76Transfer rights
  107. Ongoing supervision
  108. 77List of authorised schemes
  109. 77AUnconnected multiple employer schemes: annual accounts
  110. 78Requirement to submit supervisory return
  111. 79Duty to notify the Pensions Regulator of significant events
  112. 80Risk notices
  113. 81Withdrawal of authorisation
  114. Triggering events and continuity options
  115. 82Triggering events
  116. 83Triggering event periods
  117. 84Notification of triggering events
  118. 85Continuity options
  119. 86When a decision to withdraw authorisation becomes final
  120. 87Continuity option 1: discharge of liabilities and winding up
  121. 88Continuity option 2: resolving triggering event
  122. 89Continuity option 3: conversion to closed scheme
  123. 90Implementation strategy
  124. 91Approval of implementation strategy
  125. 92Trustees' duties once implementation strategy approved
  126. 93Prohibition on winding up except in accordance with continuity option 1
  127. 94Periodic reporting requirements
  128. 95Pause orders
  129. 96Prohibition on increasing charges etc during triggering event period
  130. Publication of information
  131. 97Publication of information
  132. Powers to make further provision
  133. 98Powers to extend definition of qualifying schemes
  134. Supplementary
  135. 99Minor and consequential amendments
  136. 100Interpretation of Part 2
  137. 101Index of defined expressions
  138. 102Regulations
  139. Part 3: The Pensions Regulator
  140. Contribution notices where avoidance of employer debt etc
  141. 103Grounds for issuing a section 38 contribution notice
  142. 104Reasonableness of issuing a contribution notice
  143. 105Determination of sum specified in a contribution notice
  144. 106Sanctions for failure to comply with a contribution notice
  145. Sanctions for avoidance of employer debt etc
  146. 107Sanctions for avoidance of employer debt etc
  147. Collecting information
  148. 108Duty to notify the Regulator of certain events
  149. 109Duty to give notices and statements to the Regulator in respect of certain events
  150. Gathering information
  151. 110Interviews
  152. 111Inspection of premises
  153. 112Fixed penalty notices and escalating penalty notices
  154. Provision of false or misleading information
  155. 113Provision of false or misleading information to Regulator
  156. 114Provision of false or misleading information to trustees or managers
  157. Financial penalties
  158. 115Financial penalties
  159. Supplementary
  160. 116Minor and consequential amendments
  161. Northern Ireland
  162. 117The Pensions Regulator: Northern Ireland
  163. Part 4: Pensions dashboards
  164. 118Qualifying pensions dashboard service
  165. 119Information from occupational pension schemes
  166. 120Pensions dashboards: Northern Ireland
  167. 121Information from personal and stakeholder pension schemes
  168. 122The Money and Pensions Service: the pensions guidance function
  169. Part 5: Further provision relating to pension schemes
  170. Scheme funding
  171. 123Funding of defined benefit schemes
  172. Climate change risk
  173. 124Climate change risk
  174. Transfer rights
  175. 125Exercise of right to cash equivalent
  176. The Pension Protection Fund
  177. 126Modification of provisions relating to pensionable service
  178. Administration charges
  179. 127Administration charges
  180. Categories of pension schemes
  181. 128Pension Schemes Act 2015: repeals
  182. Northern Ireland
  183. 129Further provision relating to pension schemes: Northern Ireland
  184. Part 6: Final
  185. 130Extent
  186. 131Commencement
  187. 132Short title
  188. Schedule 1: Money purchase benefits
  189. Building Societies Act 1986 (c. 53)
  190. 1Paragraph 1
  191. Pension Schemes Act 1993 (c. 48)
  192. 2Paragraph 2
  193. 3Paragraph 3
  194. 4Paragraph 4
  195. Pensions Act 2008 (c. 30)
  196. 5Paragraph 5
  197. 6Paragraph 6
  198. 7Paragraph 7
  199. Schedule 1A: Unconnected Multiple Employer Schemes: Business Strategy
  200. Part 1: Information which must be taken into account
  201. 1Paragraph 1
  202. 2Paragraph 2
  203. 3Paragraph 3
  204. 4Paragraph 4
  205. Part 2: Matters which must be taken into account
  206. 5Paragraph 5
  207. 6Paragraph 6
  208. 7Paragraph 7
  209. 8Paragraph 8
  210. 9Paragraph 9
  211. 10Paragraph 10
  212. 11Paragraph 11
  213. 12Paragraph 12
  214. Part 3: Information which may be taken into account
  215. 13Paragraph 13
  216. 14Paragraph 14
  217. Schedule 1B: Unconnected Multiple Employer Schemes: Business Plan - Information and Requirements
  218. Part 1: Information which must be included in a business plan
  219. 1General
  220. 2General
  221. 3General
  222. 4General
  223. 5General
  224. 6Information about the scheme
  225. 7Information about the scheme
  226. 8Information about the scheme
  227. 9Information about the scheme
  228. 10Information about the scheme
  229. 11Information about the scheme
  230. 12Information about the scheme
  231. 13Information about the scheme
  232. 14Information about the scheme
  233. 15Information about the scheme
  234. 16Information about the scheme
  235. 17Information about the scheme
  236. 18Information about the scheme
  237. 19Information about the scheme proprietor
  238. 20Information about the scheme proprietor
  239. 21Information about the scheme proprietor
  240. 22Information about the scheme proprietor
  241. 23Information about the scheme proprietor
  242. 24Information following a triggering event
  243. Part 2: Requirements relating to a business plan
  244. 25Paragraph 25
  245. 26Paragraph 26
  246. 27Paragraph 27
  247. 28Paragraph 28
  248. 29Paragraph 29
  249. Schedule 1C: Unconnected Multiple Employer Schemes: Promotion or Marketing Requirement
  250. Part 1: No promotion or marketing that is unclear or misleading without rectification
  251. 1Consistency
  252. 2Transparency
  253. Part 2: Promotion or marketing: systems and processes
  254. 3Quality assurance
  255. 4Resource planning
  256. 5Feedback and complaints
  257. 6Functionality of IT systems
  258. 7Risk management
  259. 8Governance
  260. 9Interpretation of Part 2
  261. Schedule 2: Pause orders
  262. Consequences of a pause order
  263. 1Paragraph 1
  264. Period of effect etc of pause order
  265. 2Paragraph 2
  266. Validation of action in contravention of pause order
  267. 3Paragraph 3
  268. Notification of trustees, employers and members
  269. 4Paragraph 4
  270. Supplementary
  271. 5Paragraph 5
  272. Schedule 3: Collective money purchase benefits: minor and consequential amendments
  273. Pension Schemes Act 1993 (c. 48)
  274. 1Paragraph 1
  275. 2Paragraph 2
  276. 3Paragraph 3
  277. 4Paragraph 4
  278. 5Paragraph 5
  279. Pensions Act 1995 (c. 26)
  280. 6Paragraph 6
  281. 7Paragraph 7
  282. 8Paragraph 8
  283. 9Paragraph 9
  284. 10Paragraph 10
  285. Pensions Act 2004 (c. 35)
  286. 11Paragraph 11
  287. 12Paragraph 12
  288. 13Paragraph 13
  289. 14Paragraph 14
  290. 15Paragraph 15
  291. 16Paragraph 16
  292. 17Paragraph 17
  293. 18Paragraph 18
  294. 19Paragraph 19
  295. 20Paragraph 20
  296. 21Paragraph 21
  297. Pensions Act 2008 (c. 30)
  298. 22Paragraph 22
  299. Pensions Act 2014 (c. 19)
  300. 23Paragraph 23
  301. 24Paragraph 24
  302. 25Paragraph 25
  303. Schedule 4: Money purchase benefits: Northern Ireland
  304. Building Societies Act 1986 (c. 53)
  305. 1Paragraph 1
  306. Pension Schemes (Northern Ireland) Act 1993 (c. 49)
  307. 2Paragraph 2
  308. 3Paragraph 3
  309. 4Paragraph 4
  310. Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.))
  311. 5Paragraph 5
  312. 6Paragraph 6
  313. 7Paragraph 7
  314. Schedule 4A: UNCONNECTED MULTIPLE EMPLOYER SCHEMES: BUSINESS STRATEGY
  315. 1Information which must be taken into account
  316. 2Matters which must be taken into account
  317. 3Information which may be taken into account
  318. Schedule 4B: UNCONNECTED MULTIPLE EMPLOYER SCHEMES: BUSINESS PLAN - INFORMATION AND REQUIREMENTS
  319. Part 1: Information which must be included in a business plan
  320. General
  321. Information about the scheme
  322. Information about the scheme proprietor
  323. Information following a triggering event
  324. 2Requirements relating to a business plan
  325. Schedule 4C: UNCONNECTED MULTIPLE EMPLOYER SCHEMES: PROMOTION OR MARKETING REQUIREMENT
  326. Part 1: No promotion or marketing that is unclear or misleading without rectification
  327. Consistency
  328. Transparency
  329. Part 2: Promotion or marketing: systems and processes
  330. Quality assurance
  331. Resource planning
  332. Feedback and complaints
  333. Functionality of IT systems
  334. Risk management
  335. Governance
  336. Interpretation of Part 2
  337. Schedule 5: Pause orders: Northern Ireland
  338. Consequences of a pause order
  339. 1Paragraph 1
  340. Period of effect etc of pause order
  341. 2Paragraph 2
  342. Validation of action in contravention of pause order
  343. 3Paragraph 3
  344. Notification of trustees, employers and members
  345. 4Paragraph 4
  346. Supplementary
  347. 5Paragraph 5
  348. Schedule 6: Collective money purchase benefits: minor and consequential amendments for Northern Ireland
  349. Pension Schemes (Northern Ireland) Act 1993 (c. 49)
  350. 1Paragraph 1
  351. 2Paragraph 2
  352. 3Paragraph 3
  353. 4Paragraph 4
  354. 5Paragraph 5
  355. Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))
  356. 6Paragraph 6
  357. 7Paragraph 7
  358. 8Paragraph 8
  359. 9Paragraph 9
  360. 10Paragraph 10
  361. Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1))
  362. 11Paragraph 11
  363. 12Paragraph 12
  364. 13Paragraph 13
  365. 14Paragraph 14
  366. 15Paragraph 15
  367. 16Paragraph 16
  368. 17Paragraph 17
  369. 18Paragraph 18
  370. 19Paragraph 19
  371. 20Paragraph 20
  372. 21Paragraph 21
  373. Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.))
  374. 22Paragraph 22
  375. Pensions Act (Northern Ireland) 2015 (c. 5 (N.I.))
  376. 23Paragraph 23
  377. 24Paragraph 24
  378. 25Paragraph 25
  379. Schedule 7: The Pensions Regulator: minor and consequential amendments
  380. Pensions Act 1995 (c. 26)
  381. 1Paragraph 1
  382. Pensions Act 2004 (c. 35)
  383. 2Paragraph 2
  384. 3Paragraph 3
  385. 4Paragraph 4
  386. 5Paragraph 5
  387. 6Paragraph 6
  388. 7Paragraph 7
  389. 8Paragraph 8
  390. 9Paragraph 9
  391. 10Paragraph 10
  392. 11Paragraph 11
  393. 12Paragraph 12
  394. 13Paragraph 13
  395. 14Paragraph 14
  396. Pensions Act 2008 (c. 30)
  397. 15Paragraph 15
  398. 16Paragraph 16
  399. 17Paragraph 17
  400. Pension Schemes Act 2017 (c. 17)
  401. 18Paragraph 18
  402. 19Paragraph 19
  403. 20Paragraph 20
  404. Schedule 8: The Pensions Regulator: Northern Ireland
  405. Part 1: Amendments of the Pensions (Northern Ireland) Order 2005
  406. Introductory
  407. 1Paragraph 1
  408. Grounds for issuing an Article 34 contribution notice
  409. 2Paragraph 2
  410. Reasonableness of issuing contribution notice
  411. 3Paragraph 3
  412. Determination of sum specified in a contribution notice
  413. 4Paragraph 4
  414. Sanctions for failure to comply with a contribution notice
  415. 5Paragraph 5
  416. Sanctions for avoidance of employer debt etc
  417. 6Paragraph 6
  418. Duty to notify the Regulator of certain events
  419. 7Paragraph 7
  420. Duty to give notices and statements to the Regulator in respect of certain events
  421. 8Paragraph 8
  422. Interviews
  423. 9Paragraph 9
  424. Inspection of premises
  425. 10Paragraph 10
  426. Fixed penalty notices and escalating penalty notices
  427. 11Paragraph 11
  428. Provision of false or misleading information to Regulator
  429. 12Paragraph 12
  430. Provision of false or misleading information to trustees or managers
  431. 13Paragraph 13
  432. Financial penalties
  433. 14Paragraph 14
  434. Part 2: Minor and consequential amendments
  435. Pensions (Northern Ireland) Order 1995 (S.I. 1995/3213 (N.I. 22))
  436. 15Paragraph 15
  437. Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1))
  438. 16Paragraph 16
  439. 17Paragraph 17
  440. 18Paragraph 18
  441. 19Paragraph 19
  442. 20Paragraph 20
  443. 21Paragraph 21
  444. 22Paragraph 22
  445. 23Paragraph 23
  446. 24Paragraph 24
  447. 25Paragraph 25
  448. 26Paragraph 26
  449. 27Paragraph 27
  450. 28Paragraph 28
  451. Pensions (No. 2) Act (Northern Ireland) 2008 (c. 13 (N.I.))
  452. 29Paragraph 29
  453. 30Paragraph 30
  454. 31Paragraph 31
  455. Schedule 9: Pensions dashboards: Northern Ireland
  456. Introductory
  457. 1Paragraph 1
  458. Qualifying pensions dashboard service
  459. 2Paragraph 2
  460. Information from occupational pension schemes
  461. 3Paragraph 3
  462. Admissibility of statements
  463. 4Paragraph 4
  464. Assembly control of regulations
  465. 5Paragraph 5
  466. The Pensions Regulator: delegation
  467. 6Paragraph 6
  468. Schedule 10: Funding of defined benefit schemes
  469. Part 1: Amendments of Part 3 of the Pensions Act 2004
  470. 1Paragraph 1
  471. 2Paragraph 2
  472. 3Paragraph 3
  473. 4Paragraph 4
  474. 5Paragraph 5
  475. 6Paragraph 6
  476. 7Paragraph 7
  477. Part 2: Minor and consequential amendments
  478. 8Paragraph 8
  479. 9Paragraph 9
  480. 10Paragraph 10
  481. 11Paragraph 11
  482. Schedule 11: Further provision relating to pension schemes: Northern Ireland
  483. Part 1: Funding of defined benefit schemes
  484. Amendments of Part 4 of the Pensions (Northern Ireland) Order 2005
  485. 1Paragraph 1
  486. 2Paragraph 2
  487. 3Paragraph 3
  488. 4Paragraph 4
  489. 5Paragraph 5
  490. 6Paragraph 6
  491. 7Paragraph 7
  492. Minor and consequential amendments
  493. 8Paragraph 8
  494. 9Paragraph 9
  495. 10Paragraph 10
  496. 11Paragraph 11
  497. Part 2: Other provision
  498. Climate change risk
  499. 12Paragraph 12
  500. Transfer rights: exercise of right to cash equivalent
  501. 13Paragraph 13
  502. The Pension Protection Fund: modification of provisions relating to pensionable service
  503. 14Paragraph 14
  504. Administration charges
  505. 15Paragraph 15
  506. Categories of pension schemes: repeal of provisions of Pension Schemes Act (Northern Ireland) 2016
  507. 16Paragraph 16