Pensions Act 2011

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Pensions Act 2011

2011 CHAPTER 19

Commentary on Sections

Part 2: Automatic enrolment

Section 11: Test scheme standard for schemes that produce sum of money for provision of benefits

86.Section 11 amends section 22 of the PA 2008 and substitutes a new section 23. These sections provide for the “test scheme standard”. This is the quality requirement for defined benefit schemes with members in employments that are not contracted out of the State Second Pension Scheme. The test scheme standard uses a benchmark known as the “test scheme”.

87.This section enables provision to be made in regulations for the detail of the Test Scheme. This is to accommodate a type of defined benefits scheme in which a member accrues a sum of money which is to be used to purchase an annuity from a provider or to secure a pension within the scheme.

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