(1)This section applies during a triggering event period for a collective money purchase scheme.
(2)The Pensions Regulator may make a pause order in relation to the scheme if either of the following two conditions is met.
(3)Condition 1 is that the Pensions Regulator is satisfied that making a pause order will help the trustees to carry out the implementation strategy.
(4)Condition 2 is that the Pensions Regulator is satisfied that—
(a)there is, or is likely to be if a pause order is not made, an immediate risk to the interests of members of the scheme or the assets of the scheme, and
(b)it is necessary to make a pause order to protect the interests of the generality of the members of the scheme.
(5)A pause order is an order that during the period for which it has effect one or more of the following directions has effect—
(a)a direction that no new members (or no new members of a specified description) are to be admitted to the scheme;
(b)a direction that no further payments (or no further payments of a specified description) are to be made towards the scheme—
(i)by or on behalf of employers or relevant former employers (or employers or relevant former employers of a specified description), or
(ii)by or in respect of members (or members of a specified description);
(c)a direction that an amount (or specified amount) which—
(i)corresponds to a payment that would be due to be made towards the scheme in respect of a member but for a direction under paragraph (b), and
(ii)has been deducted from a payment of earnings in respect of an employment,
is to be repaid to the member in question by the employer;
(d)a direction that no benefits (or no benefits of a specified description) are to be paid to or in respect of members (or members of a specified description) under the scheme rules;
(e)a direction that—
(i)no transfers (or no transfers of a specified description) of or in respect of a member's rights under the scheme rules are to be made from the scheme,
(ii)no transfer payments (or no transfer payments of a specified description) in respect of a member's rights under the scheme rules are to be made from the scheme, or
(iii)no other steps (or no other steps of a specified description) are to be taken to discharge a liability of the scheme to or in respect of a member of the scheme in respect of pensions or other benefits.
(6)In subsection (5)(b)—
(a)a reference to payments does not include payments due to be made before the order takes effect, and
(b)a reference to payments towards a scheme includes payments in respect of pension credits where the person entitled to the credit is a member of the scheme.
(7)A direction under subsection (5)(e) may provide that—
(a)no transfers of or in respect of a member's rights under the scheme rules, or no such transfers of a specified description, may be made from the scheme, or
(b)no transfer payments in respect of such rights, or no such transfer payments of a specified description, may be made from the scheme,
unless the amounts paid out from the scheme in respect of the transfers or transfer payments are determined in a specified manner and the transfers or transfer payments satisfy such other conditions as may be specified.
(8)A pause order may also require the trustees of the scheme to obtain an actuarial valuation within a specified period.
(9)A pause order containing such a requirement must specify—
(a)the date by reference to which the matters to be set out in the valuation must be determined;
(b)the information and statements that the valuation must contain;
(c)any other requirements that the valuation must satisfy.
(10)Schedule 2 makes further provision about pause orders.
(11)In this section—
“earnings” has the meaning given in section 181(1) of the Pension Schemes Act 1993;
“pension credit” means a credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999 or Article 26(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11));
“specified” means specified in the pause order.
Commencement Information
I1S. 44 in force at Royal Assent for specified purposes, see s. 131(3)(a)
I2S. 44 in force at 1.8.2022 in so far as not already in force by S.I. 2022/721, reg. 3(a)