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Code of Practice 12 consultation

Published: 27 May 2021
Closing date: 7 July 2021

Consultation on a revised version of Code of Practice 12.


This consultation focuses on the revised version of Code 12: Contribution Notices: Circumstances in relation to the material detriment test, the employer insolvency test and the employer resources test.

The Pension Schemes Act 2021 has altered our Contribution Notice (CN) power in section 38 of the Pensions Act 2004. In addition to the existing main purpose and material detriment ‘act’ tests for use of that power, there will be two further alternative ‘act’ tests: the employer insolvency test, and the employer resources test.

As a result of these new tests, we have updated Code 12 to explain what the tests are and the circumstances in which we may expect to issue a CN. When finalised, this code will be published under powers given to us under section 90 of the Pensions Act 2004.

In addition to seeking general views on this draft code, we are asking questions on areas where we are particularly interested in feedback, and will consider all comments before laying the final version of the code before Parliament. Please note that this code will be presented in the new ‘single code’ format when it is finalised later in the year.

This consultation is for anyone seeking to understand the two new ‘act’ tests and the circumstances in which we may expect to issue a CN if any or all of the tests, or the material detriment test, are met.

Consultation document

The proposed draft of this code is available to review.

Read our consultation document and share your views with us [PDF, 12 pages, 125KB].