Part 1: Collective Money Purchase Benefits Triggering events and continuity options Schedule 2: Pause orders
Paragraph 1 of Schedule 2 sets out the consequences of a pause order. Sub-paragraph (1) states that any action taken in breach of a pause order is void, that is, it has no legal effect (except to the extent that the action is validated under paragraph 3 of Schedule 2).
	Sub-paragraph (2) includes a provision that if a pause order prevents a scheme from accepting any payments then affected payments are treated as if they do not fall due and as if any obligation to make them does not arise. The pause order may include provisions under subsection (5)(c) of section 44 that where such payments have already been deducted from pay, they are to be repaid to affected scheme members.
	Sub-paragraph (3) states that where a pause order contains a direction that no benefits or specified benefits are to be paid and an amount of benefit under the scheme rules was not paid as a result of the direction, the direction does not affect any entitlement to those benefits, and that any benefits that have been paused to which the member, or a person in respect of a member, remains entitled at the end of the period for which the pause order has effect are due once the pause order ceases to have effect.
	Sub-paragraphs (4) and (5) create exceptions to a pause order to allow schemes to follow the requirements of pension sharing and pension earmarking orders. These orders are placed on member assets following divorce, dissolution and nullity proceedings in accordance with the relevant pieces of legislation in England and Wales, Scotland and Northern Ireland.
	Sub-paragraphs (6) and (7) allow the Secretary of State to make regulations modifying specified areas of existing legislation where there is a pause order preventing transfers of members rights to ensure that the existing legislation works as intended.
	Sub-paragraphs (8) to (10) apply the civil penalties under section 10 of the Pensions Act 1995 in relation to non-compliance with these provisions.
	Paragraph 2 states that any pause order can take effect for a maximum of three months (sub-paragraph (1)), and can be extended for further periods of up to three months (sub-paragraph (2)). A pause order will automatically end if a triggering event period ends while it is in force (sub-paragraph (3)).
	Paragraph 3 allows the Pensions Regulator to make an order validating any action that is taken in contravention of a pause order on application from the trustees, or a person directly affected by the pause order.
	Paragraph 4 provides for notifications between various parties in respect of a pause order, or an order made validating action in contravention of a pause order under paragraph 3. The Regulator is required to inform the trustees that the relevant order has been made as soon as is practicable (sub-paragraph (2)). The Regulator may also direct the trustees, by order, to inform employers and members that the relevant order has been made and of its intended effect within a specified time period (sub-paragraph (3)). This may relate to all employers (or certain relevant former employers) and members, or only those specified in the Regulator’s order (sub-paragraph (3)).
	Civil penalties under section 10 of the Pensions Act 1995 apply to any trustee who has not taken all reasonable steps to ensure compliance with sub-paragraph (3).
	Paragraph 5 allows pause orders to override any existing law or scheme rule to the extent that it is not unlawful under section 6(1) of the Human Rights Act 1998.