14Financial sustainability requirementE+W+S
(1)This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that a collective money purchase scheme is financially sustainable (see section 9(3)(c)).
(2)In order to be satisfied that a collective money purchase scheme is financially sustainable, the Pensions Regulator must be satisfied that the scheme has sufficient financial resources to meet the following costs—
(a)the costs of setting up and running the scheme, and
(b)in the event of a triggering event occurring—
(i)the costs of complying with the duties under sections 31 to 45, and
(ii)the costs of continuing to run the scheme for such period (which must be at least six months and no more than two years) as the Pensions Regulator thinks appropriate for the scheme.
(3)In deciding whether it is satisfied that a scheme has sufficient financial resources to meet the costs mentioned in subsection (2), the Pensions Regulator must take into account any matters specified in regulations made by the Secretary of State.
[F1(3A)In deciding whether it is satisfied that an unconnected multiple employer scheme has sufficient financial resources to meet the costs mentioned in subsection (2), the Pensions Regulator must also take into account—
(a)the liability of the scheme proprietor to provide funds to or in respect of the scheme for the purposes of meeting those costs (see section 14B), and
(b)the financial resources of the scheme proprietor.]
[F1(3B)In order to be satisfied that an unconnected multiple employer scheme is financially sustainable, the Pensions Regulator must also be satisfied that the business strategy relating to the scheme is sound.]
[F1(3C)In deciding whether it is satisfied that the business strategy relating to an unconnected multiple employer scheme is sound, the Pensions Regulator—
(a)must take into account—
(i)the scheme’s business plan, and any supporting information and documents (see section 14A);
(ii)the information and matters specified in Parts 1 and 2 of Schedule 1A;
(iii)any additional information or documents specified in a Code for the purposes of this paragraph, and
(b)may take into account the information specified in Part 3 of Schedule 1A.]
(4)Regulations under subsection (3) may include provision—
(a)requiring specified information to be provided to the Pensions Regulator [F2(including information about the financial resources of the scheme proprietor)];
(b)specifying requirements to be met by the scheme relating to its financing, such as requirements relating to assets, capital or liquidity.
(5)Regulations under subsection (3) are subject to affirmative resolution procedure.
Textual Amendments
F1S. 14(3A)-(3C) inserted (31.7.2026) by The Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025 (S.I. 2025/1313), regs. 1(3), 9(a)
F2Words in s. 14(4)(a) inserted (31.7.2026) by The Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025 (S.I. 2025/1313), regs. 1(3), 9(b)
Commencement Information
I1S. 14 in force at Royal Assent for specified purposes, see s. 131(3)(a)
I2S. 14 in force at 1.8.2022 in so far as not already in force by S.I. 2022/721, reg. 3(a)