SCHEDULE 6Continuity Option 1: transfer out and winding up
Trustees’ first notice to beneficiaries in respect of discharge options
12
1
The trustees of a collective money purchase scheme that is pursuing continuity option 1 must send a notice to each beneficiary of the scheme containing the information mentioned in sub-paragraph (2), in accordance with sub-paragraph (3).
2
The information is—
a
details of the default discharge option for the beneficiary;
b
where the beneficiary can obtain information and guidance about the default discharge option;
c
details of the beneficiary’s right to choose whether the value of the beneficiary’s accrued rights to benefits under the scheme are discharged by—
i
the default discharge option proposed by the trustees; or
ii
an alternative option specified by the beneficiary;
d
details of the alternative options available to the beneficiary in accordance with paragraph 14(2);
e
details of the beneficiary’s rights under Chapter 2 of Part 4ZA of the 1993 Act (early leavers: cash transfer sums and contribution refunds);
f
next steps and the timetable for future communications with the beneficiary.
3
A notice under this paragraph must be sent before the end of 14 days beginning with—
a
the date on which the trustees identify the default discharge option in relation to the beneficiary; or
b
if later, the date on which the Regulator notifies the trustees that the implementation strategy is approved.