Pension Schemes Act 2017

23 Continuity options

(1) If a triggering event occurs in relation to a Master Trust scheme, the trustees must comply with the requirements of this section.

(2) In the following cases, the trustees must pursue continuity option 1—

(a) the triggering event is within item 1 or 2 of the table in section 21(6), and the decision to withdraw authorisation has become final (see section 35);

(b) the triggering event is within item 3 of that table.

(3) In those cases, the trustees must pursue continuity option 1 even if—

(a) the triggering event within item 1, 2 or 3 occurs within the triggering event period for an earlier triggering event, and

(b) the trustees have already decided to pursue continuity option 2 in respect of the earlier triggering event.

(4) In any other case, the trustees must decide whether to pursue continuity option 1 or continuity option 2.

(5) “Continuity option 1” is for—

(a) the accrued rights and benefits under the Master Trust scheme of all members of the scheme to be transferred out of the scheme, and

(b) the Master Trust scheme to be wound up,

in accordance with regulations under section 24.

(6) “Continuity option 2” is for the triggering event to be resolved (see section 25).

(7) This section overrides any provision of the Master Trust scheme, to the extent that there is a conflict.

(8) Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who fails to comply with a requirement imposed by this section.