Pension Schemes Act 2021

34 Continuity options

(1) If a triggering event occurs in relation to a collective money purchase scheme, the trustees must pursue one of the continuity options.

(2) The continuity options are—

(a) continuity option 1 (discharge of liabilities and winding up) (see section 36);

(b) continuity option 2 (resolving triggering event) (see section 37);

(c) continuity option 3 (conversion to closed scheme) (see section 38).

(3) The trustees must pursue continuity option 1—

(a) if the triggering event is an item 1 or 2 triggering event and the decision to withdraw authorisation has become final (see section 35), or

(b) if the triggering event is an item 3 triggering event.

(4) In those cases, the trustees must pursue continuity option 1 even if—

(a) the item 1, 2 or 3 triggering event occurs within the triggering event period of an earlier triggering event, and

(b) the trustees have already decided to pursue continuity option 2 or 3 in respect of the earlier triggering event.

(5) The trustees may pursue continuity option 3 only if (or to the extent that) the provisions of the scheme allow them to do so.

Subject to that, this section overrides any provision of the collective money purchase scheme to the extent that there is a conflict.

(6) Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with a requirement imposed by this section.