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Trustee checklist for closure of occupational pension schemes to future accrual: duties, amendment powers (including contracted-out requirements), conflicts, funding, investment, employer negotiations and member communications

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Trustees' duties under trust law

When considering whether to approve a closure proposal, trustees must ensure they comply fully and consistently with their fundamental trustee obligations under trust law, namely:

  • acting in the best interests of the scheme beneficiaries; and
  • advancing the purposes of the scheme.

In deciding whether closure is in the beneficiaries’ best interests, in particular, trustees should:

  • assess the overall long-term effect of the changes on members and their accrued entitlements;
  • take into account the employer’s interests as a beneficiary of, and contributor to, the scheme; and
  • also take account of the impact the closure will have on the employer’s business.

Exercising the scheme's amendment power

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Web page updated on 01/06/2026

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