Pension Schemes Act 2021

14 Financial sustainability requirement

(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.

(4) Regulations under subsection (3) may include provision—

(a) requiring specified information to be provided to the Pensions Regulator;

(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.