SCHEDULE 6 Continuity Option 1: transfer out and winding up

Requirements of rules of scheme
3. (1) The rules of a collective money purchase scheme must make provision about how continuity option 1 is to be given effect in the event that the trustees are required or decide to pursue continuity option 1.
(2) The rules must include the following—
(a) the time when the winding-up is to be taken to begin for the purposes of continuity option 1, taking account of the requirements of paragraph 4;
(b) how the value of the available assets of the scheme is to be determined;
(c) how the amount that represents the value of each beneficiary’s accrued rights to benefits under the scheme is to be quantified for the purposes of the initial quantification, the winding-up quantification and any subsequent quantification (including the penultimate quantification) carried out prior to the final quantification;
(d) how the amount that represents the value of each beneficiary’s accrued rights to benefits under the scheme is to be quantified for the purposes of the final quantification;
(e) how the amount or rate of periodic income payable during the winding-up period is to be calculated and adjusted from time to time.
(3) Rules for determining how the amount that represents the value of each beneficiary’s accrued rights to benefits under the scheme is to be quantified must apply to all beneficiaries of the scheme without variation.

Sch. 6 para. 3 in force at 1.8.2022, see reg. 1(3)