SCHEDULE 5CONTINUITY OPTION 1: TRANSFER OUT AND WINDING UP

Administration charges

13.

(1)

For the purposes of section 24(5)(i) of the Act (continuity option 1: transfer out and winding up), the trustees of an applicable scheme must provide to the Regulator a document setting out the administration charges in accordance with the following provisions.

(2)

The document must be provided within 28 days beginning with—

(a)

in the case of the trustee default scheme, the date on which the trustees received notice from the trustees of the transferring scheme under paragraph 4(1), or

(b)

in the case of an employer default scheme, the date on which the trustees received notice from the employer under paragraph 5(1)(b).

(3)

The document must set out all levels of administration charges for each charge structure, 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, including the reason for imposing them;

(c)

for any third-party charges, including the reason for imposing them; and

(d)

for any other type of administration charge in the scheme, including the reason for imposing it.

(4)

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 applicable scheme submitted a continuity strategy to the Regulator.

(5)

The levels must be set out on an annualised basis.

(6)

Where there is a discounted level, the reason for charging the lower level must also be set out.

(7)

The document must include a statement explaining—

(a)

how the applicable scheme has complied with section 33(2) of the Act (prohibition on increasing charges during triggering event period);

(b)

whether the applicable scheme is liable for the costs mentioned in section 33(3) of the Act; and

(c)

if the applicable scheme is liable for those costs, how it is to meet them.