Pension Schemes Act 2021

40 Approval of implementation strategy

(1) The Pensions Regulator may approve an implementation strategy only if it is satisfied that the strategy is adequate.

(2) Subsections (3) to (6) apply for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that an implementation strategy for a collective money purchase scheme is adequate.

(3) An implementation strategy must include information about the levels of administration charges in relation to members of the scheme.

(4) The information must—

(a) relate to the levels of administration charges as at the date specified or described in regulations made by the Secretary of State, and

(b) be set out in the manner specified or described in the regulations.

(5) An implementation strategy must include information about the following matters—

(a) the continuity option that is to be pursued (see section 34);

(b) where continuity option 1 (discharge of liabilities and winding up) is to be pursued—

(i) the scheme or schemes to which it is proposed to transfer the value of accrued rights to benefits, or the alternative payment mechanism by which the payment of benefits is to be secured, if known;

(ii) when the transfer is expected to take place, or (as the case may be) when the payment of benefits is expected to be secured;

(c) where continuity option 2 (resolving the triggering event) is to be pursued, how it is proposed that the triggering event should be resolved;

(d) where continuity option 3 (conversion to closed scheme) is to be pursued—

(i) the way in which, the extent to which and the time by which it is proposed to close the scheme;

(ii) how the scheme will continue to meet the authorisation criteria;

(iii) any revisions that will be needed to the viability report and the continuity strategy (see sections 13 and 17).

(6) An implementation strategy must—

(a) include any other information specified or described in regulations made by the Secretary of State, and

(b) be prepared in accordance with regulations made by the Secretary of State.

(7) Regulations under this section are subject to negative resolution procedure.