Winding up or transferring a defined contribution scheme
Published: March 2019
Updated: March 2026
See all updates to this guidance
31 March 2026
Guidance revised in its entirety.
23 September 2021
Information added to stage 1 of the guidance about the new legal requirement for smaller DC schemes to carry out a more detailed value for members assessment.
Overview
Who this guidance is for
This guidance is for trustees of defined contribution (DC) occupational pension schemes or DC sections of hybrid schemes (hybrid schemes provide both DC and defined benefit (DB) benefits for example, guaranteed minimum pensions).
Although this guidance is designed for trustees, employers may also find some of the information helpful in understanding the wind up and transfer process for a DC scheme.
Master trusts
If you want to wind up a master trust pension scheme, you will need to comply with the requirements of the authorisation regime. See our guidance on triggering events for more information.
The wind up process
The process to wind up a pension scheme can be divided into three stages:
- Stage 1: Decide whether the scheme should be wound up and assess the options available
- Stage 2: Prepare to start formal wind up
- Stage 3: Complete formal wind up of the scheme and transfer member benefits
This guidance takes you through each stage, with more detailed information about the actions to consider at each stage of the process.
When to consult professional advisers
This guide is illustrative and you should consider carefully how it applies in relation to your own scheme. Although you may find it necessary to seek professional advice at some point during this process, you may wish to read through this guidance first to identify the areas where you can carry out the steps yourself. If you are transferring your members to another pension scheme, such as a master trust, the receiving scheme may offer assistance with this process. You can then work out where you may need additional help from a professional adviser. Read more about managing advisers and service providers in our code of practice.