Consultation outcome

Government response to the public consultation on draft legislation to amend The Occupational Pension Schemes (Preservation of Benefit) Regulations 1991

Updated 3 June 2026

The Occupational Pension Schemes (Preservation of Benefit) (Amendment) Regulations 2026

Chapter 1 Introduction

About the Government Response

1. This document forms the government’s response to Chapter 9 of the public policy consultation on Retirement Collective Defined Contribution pension schemes^{[footnote 1]} that was launched on 23 October 2025 and ran for 6 weeks.

2. Chapter 9 sought views on a draft amendment we proposed making to regulation 12(7) of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (“the 1991 Regulations”). The amendment would make a pension scheme or sections of a scheme authorised under Part 1 of the Pension Schemes Act 2021 a condition under which transfers without member consent could be made to authorised collective money purchase schemes (“CMPS”)^{[footnote 2]}.

3. The same amendment was made for authorised Master Trusts in 2018 on the basis that the receiving scheme has passed a robust authorisation process and remains subject to regulatory supervision on an ongoing basis, which means that the risk of member detriment is significantly reduced. This is also true for CMPS as they are also subject to a robust authorisation and supervision regime.

4. The amendment will mean that prospective CMPS, including unconnected multiple employer CMPS, will be able to receive transfers without member consent into their schemes in the same way that Master Trusts are able to.

Responses to the consultation

5. We received 31 responses to the consultation on Chapter 9 from a range of pension industry stakeholders, including occupational pension schemes, Master Trust sponsors, law firms, trustee representatives, trade associations and actuarial bodies and associations.

6. This document highlights the key points raised by respondents and the government’s response, but is not an exhaustive commentary on every response received.

7. Subject to parliamentary approval, we plan on bringing this statutory instrument into force alongside the Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025^{[footnote 3]} at the end of July.

8. This policy applies to Great Britain. It is envisaged Northern Ireland will make corresponding regulations to ensure a common approach across the United Kingdom.

Chapter 2 Amendment to the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (“the 1991 Regulations”)

Question 18: Do you have any comments on the proposed amendment to Regulation 12 of the Preservation of Benefit Regulations 1991?

Summary of Responses

9. There were 31 responses to this question. 25 respondents agreed with the approach though 20 of those raised a number of points for our consideration. Only six respondents disagreed with the approach, expressing concern for the potential for member harm and that this provision should not apply to retirement CDC schemes.

10. Nine respondents wondered whether a transfer without member consent from a Defined Contribution (DC) scheme to a CMPS constituted a change in the nature of the benefits. Linked to this point, 11 respondents suggested that if that was the case then it might be prudent for the trustees to seek appropriate advice before the transfer took place.

11. Some respondents queried whether the drafting that was consulted on would cover CMPS as well as CMPS sections. Another respondent asked whether the provision would cover a scenario where a Master Trust opened a CMPS section and if the Master Trust would be able to use the provision to transfer members without consent into the CMPS section. One respondent wondered whether the reference to ‘receiving scheme’ in regulation 12(7) of the 1991 Regulations should be amended to clarify that it would also cover CMPS sections.

12. Five respondents thought that members should be able opt out of the transfer if they wished and that they should have sufficient time to choose an alternative.

13. Two respondents thought that employers should also be given the power to request such transfers and a further three respondents thought that employers should be engaged with regarding the transfer and their views taken into account.

14. Three respondents thought that provisions should also apply to contract-based workplace pension schemes.

Government Response

15. As is the case with DC pension schemes, there are no guarantees in CMPS, and collective money purchase benefits are a sub-set of money purchase benefits^{[footnote 4]}. As with DC schemes, members of CMPS have a statutory right to transfer out of the scheme until they crystallise their benefits. We appreciate that the benefits in CMPS may be managed and structured differently and that the risk profile may also be different, but the benefit itself is still money purchase i.e. there are no guarantees as is the case with non-money purchase benefits^{[footnote 5]}.

16. We agree that this provision should not apply to retirement CDC schemes. Members will retain a statutory right to transfer out of the receiving CDC scheme until they crystallise their benefits. We do not consider it appropriate to be able to transfer members without consent into a retirement CDC because they may not be able to transfer out if they want. We will consider what steps if any are needed to ensure this provision does not apply to retirement CDC schemes.

17. With regards to the suggestion that trustees should take advice before a transfer takes place, we have adopted the same approach taken in respect of Master Trusts, since both that regime and the CMPS regime are subject to a rigorous authorisation and supervision regime. Non-statutory guidance^{[footnote 6]} for trustees regarding transfers without member consent was published in 2018 and this made clear that advice was not required in a transfer without member consent to a Master Trust. This was because in order to become authorised, such schemes have to satisfy minimum criteria, covering, amongst other things, governance and administration. This is also the case with CMPS. Trustees’ existing fiduciary duties will require them to carefully assess what is in the best interests of their membership before deciding to transfer members. This will include an assessment of the differing nature of CDC schemes and why such a transfer would be in the interests of the members.

18. The guidance also makes clear that trustees are not prohibited from taking advice if they consider it appropriate to carry out their fiduciary duty. We intend to follow the same approach taken by Master Trusts. It should also be noted that regulation 12(9) of the 1991 Regulations already allows trustees to undertake transfers where they have taken independent advice.

19. We have considered the concerns raised about the drafting and whether it would cover CMPS sections and agree that the drafting should be amended to make clear that CMPS sections that are the receiving scheme for the transfer of members without consent will also be covered. The alternative wording now adopted in the amendment looks to ensure transfers can be made to CMPS sections.

20. On whether members should be given the right to opt out and have sufficient time to do so, there is nothing in the 1991 Regulations that prohibits this. Where provided, trustees will need to take into account the member’s view in determining whether a transfer is appropriate. If the trustees determines that the transfer is appropriate and proceed with the transfer against the member’s wishes, the member will still retain the statutory right to transfer out of the receiving CMPS to an alternative scheme if they wished to do so.

21. Regulation 12(4)(B) of the 1991 Regulations already stipulates that information about the transfer should be provided to members at least one month before the transfer takes place. We expect this to include information about the CDC scheme, its benefits, the specific nature of CDC and what it will mean for members. We consider that this is an appropriate notification period for transfers without consent to receiving CMPS.

22. On the point about granting employers to request such transfers and taking their views into account, we consider it entirely appropriate for the trustees to be the ones to decide whether a transfer without member consent should take place. This is because trustees have a fiduciary duty to act in the interests of the members. In practice, we would expect trustees to engage with employers regarding such a transfer, if only to explain why the transfer is appropriate and what it would mean for the members that worked for the employer.

23. We can understand why a few respondents queried whether the proposed amendment should also apply to contract-based workplace pension schemes. However, the provisions in regulation 12 of the 1991 Regulations only apply to occupational pension schemes. In addition, the amendment to the 1991 Regulations is intended for receiving CMPS, which are also occupational pension schemes. We do not consider bringing contract-based schemes into scope of the 1991 Regulations is appropriate or indeed necessary since contract-based schemes cannot establish CMPS under Part 1 of the Pension Schemes Act 2021.

Guidance

24. In 2018, the Department for Work and Pensions produced non-statutory guidance^{[footnote 7]} in support of amendments that were made to regulation 12 of the 1991 Regulations, and regulation 4 of the Occupational Pension Schemes (Charges and Governance) Regulations 2015, which were effective from 6 April 2018. As mentioned above, this included making an authorised Master Trust a condition under which transfers without member consent could be made.

25. The guidance is intended to assist trustees in complying with the new legislative requirements. This guidance has also now been amended to reflect the change we propose making in respect of collective money purchase schemes or sections authorised under Part 1 of the Pension Schemes Act 2021.

1. Retirement Collective Defined Contribution pension schemes – GOV.UK ↩

2. Collective money purchase schemes are commonly referred to as collective defined contribution schemes (“CDC”) ↩

3. The Occupational Pension Schemes (Collective Money Purchase Schemes) (Extension to Unconnected Multiple Employer Schemes and Miscellaneous Provisions) Regulations 2025 ↩

4. A pension where contributions from the employee and the employer are invested in a fund, building up a ‘pension pot’. The amount received at retirement depends on the total contributions and the investment performance. It is not a guaranteed amount, so the final pension pot can fluctuate in value.  ↩

5. A pension that guarantees a specific, predetermined income in retirement, calculated by a formula based on an employee’s salary and length of service, rather than investment performance.  ↩

6. Bulk transfers without consent: money purchase benefits without guarantees – guidance for trustees – GOV.UK ↩

7. Bulk transfers without consent: money purchase benefits without guarantees – guidance for trustees – GOV.UK ↩