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default arrangement

  1. 101(a) an arrangement expressly provided by an operator of a qualifying scheme for the purpose of investing the workplace pension contributions of employees who have expressed no choice in relation to the investment of such contributions;
  2. (b) where no such arrangement is expressly provided, an arrangement whereby, in relation to members who are employees of the same employer, at least 80% of those members of the qualifying scheme, whether they had expressed a choice or not prior to the qualifying scheme coming into being, have their workplace pensions contributions invested, is deemed to be a default arrangement;
  3. (c) but an arrangement will not be a default arrangement under (b) if, prior to a scheme becoming a qualifying scheme:
    1. (i) all members within that arrangement have been told that their workplace pension contributions will be invested in a new arrangement once the scheme becomes a qualifying scheme, unless they give express agreement for their contributions to continue to be invested in the original arrangement;
    2. (ii) any members who wish to remain in the original arrangement have given express agreement in writing, including an acknowledgement that continuing in the original arrangement might mean that charges are higher than the limits set out in COBS 19.6 (Restriction on charges in qualifying schemes); and
    3. (iii) any members who did not agree to remain in the original arrangement have had their workplace pension contributions invested in the new arrangement;
  4. (d) where an arrangement is a default arrangement by virtue of (a) and (b), it continues to be such an arrangement regardless of whether it continues to satisfy those paragraphs.