Part 1

Master Trusts

Triggering events: continuity

Continuity options
23
1
If a triggering event occurs in relation to a Master Trust scheme, the trustees must comply with the requirements of this section.
2
In the following cases, the trustees must pursue continuity option 1—
a
the triggering event is within item 1 or 2 of the table in section 21(6), and the decision to withdraw authorisation has become final (see section 35);
b
the triggering event is within item 3 of that table.
3
In those cases, the trustees must pursue continuity option 1 even if—
a
the triggering event within item 1, 2 or 3 occurs within the triggering event period for an earlier triggering event, and
b
the trustees have already decided to pursue continuity option 2 in respect of the earlier triggering event.
4
In any other case, the trustees must decide whether to pursue continuity option 1 or continuity option 2.
5
“Continuity option 1” is for—
a
the accrued rights and benefits under the Master Trust scheme of all members of the scheme to be transferred out of the scheme, and
b
the Master Trust scheme to be wound up,
in accordance with regulations under section 24.
6
“Continuity option 2” is for the triggering event to be resolved (see section 25).
7
This section overrides any provision of the Master Trust scheme, to the extent that there is a conflict.
8
Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with a requirement imposed by this section.
S. 23 in force at 5.9.2018 for specified purposes by S.I. 2018/965, reg. 2(a)
Pt. 1 excluded (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations2018 (S.I. 2018/1030), regs. 1(2), 26
Pt. 1 excluded (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations2018 (S.I. 2018/1030), regs. 1(2), 27
Pt. 1 modified (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations2018 (S.I. 2018/1030), regs. 1(2), 28(2)
Pt. 1 modified (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations2018 (S.I. 2018/1030), regs. 1(2), 28(3)(4)(a)(b)
S. 23 in force at 1.10.2018 in so far as not already in force by S.I. 2018/965, reg. 2(b)
Pt. 1: power to disapply conferred (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), ss. 47(3)(b), 131(1)(3)(a); S.I. 2022/721, reg. 3(a)