Explanatory Notes

Pension Schemes Act 2015

2015 CHAPTER 8

3 March 2015

Commentary on Sections

Part 3 – General Changes to Pensions Legislation about Pension Schemes

Section 37: Duty to act in the best interests of members

102.Regulations under this section may require managers in non-trust based schemes to act in members’ best interests when taking certain specified decisions. This duty may apply in relation to shared risk schemes and schemes offering collective benefits.

103.Regulations may provide for the duty to override obligations that are inconsistent with that duty, but do not otherwise affect any other duty that might arise. Where a manager has breached or threatened to breach such regulations to act in members’ best interests, regulations may provide that the manager will be subject to the same consequences as the consequences of breaching a fiduciary duty to the members.