SCHEDULE 6Continuity Option 1: transfer out and winding up
Administration charges
18
1
This paragraph applies to the trustees or managers of any occupational pension scheme (the “proposed receiving scheme”) to which the trustees of a collective money purchase scheme that is pursuing continuity option 1 (the “transferring scheme”) propose to transfer the value of beneficiaries’ accrued rights to benefits under the scheme, under a default discharge option.
2
The trustees of the proposed receiving scheme must provide to the Regulator, in accordance with this paragraph, a document setting out the level of administration charges that applies in relation to members of the proposed receiving scheme.
3
The document must be provided before the end of 28 days beginning with the date on which the trustees of the proposed receiving scheme receive the notice under paragraph 11.
4
The document must set out for each charge structure all levels of administration charges (including any discounted levels)—
a
for each arrangement, including a default arrangement, and any different levels in relation to any one arrangement;
b
for any additional charges, and the reason for imposing them;
c
for any third-party charges, and the reason for imposing them, and
d
for any other type of administration charge in the scheme, and the reason for imposing it.
5
Where the proposed receiving scheme is a Master Trust scheme the charges must be set out as at the most recent date, not falling within a triggering event period in relation to the transferring scheme, on which the receiving scheme submitted a continuity strategy to the Regulator.
6
In all other cases the charges must be set out as at the date the triggering event occurred in relation to the transferring scheme as a result of which continuity option 1 is being pursued.
7
The levels must be set out on an annualised basis.
8
Where there is a discounted level, the reason for charging the lower level must also be set out.
9
The document must include a statement explaining—
a
how the scheme will be in compliance with section 96(2) of the 2021 Act (prohibition on increasing charges etc during triggering event period);
b
whether the scheme is to be liable for the costs mentioned in section 96(4) of the 2021 Act, and
c
if the scheme is to be liable for those costs, how it is to meet them.