http://www.legislation.gov.uk/ukpga/2000/8/section/117DFinancial Services and Markets Act 2000An Act to make provision about the regulation of financial services and markets; to provide for the transfer of certain statutory functions relating to building societies, friendly societies, industrial and provident societies and certain other mutual societies; and for connected purposes.2000-06-15texttext/xmlenStatute Law Database2026-07-30Expert Participation2026-07-15 Part 7A<Addition ChangeId="key-acad4d00c0669c167e0aa25529827af5-1780069563865" CommentaryRef="key-acad4d00c0669c167e0aa25529827af5">Unilateral changes to pension schemes</Addition><Addition ChangeId="key-acad4d00c0669c167e0aa25529827af5-1780069563865" CommentaryRef="key-acad4d00c0669c167e0aa25529827af5">Best interests test</Addition>117D1The provider of a pension scheme to which this Part applies may effect a unilateral change under section 117B(1) only if—athe provider concludes, before doing so, that the best interests test is met in relation to the unilateral change, andbit is reasonable for the provider to have reached that conclusion at that time.2“The best interests test”, in relation to a unilateral change, is that it is reasonably likely that effecting it will achieve—aa better outcome for the directly affected members of the scheme (taken as a whole), andbno worse an outcome for the other members of the scheme (taken as a whole),than the relevant alternative action or, where there is more than one alternative action, each of them.3For the purposes of this Part, the members of a pension scheme who are “directly affected” by a unilateral change are the members for whom the scheme holds pension pots of the description in question.4The following are “relevant alternative actions” for the purposes of subsection (2) in relation to a unilateral change—anot effecting the unilateral change, andbwhere the unilateral change is an internal change, each other internal change that could be made in accordance with this Part in relation to pension pots of the description in question.5In subsection (4) “internal change” means a unilateral change that results in a description of pension pot held by the scheme being held—asubject to a different arrangement under the same scheme, orbsubject to a particular arrangement under a different pension scheme operated by the same provider (including where there is only one arrangement under that scheme).6The FCA must make general rules specifying considerations or information that must be taken into account in determining whether the best interests test is met.Pt. 7A inserted (29.4.2026 for specified purposes) by Pension Schemes Act 2026 (c. 22), ss. 49(2), 133(1)(4)(e)