Part 1: Collective Money Purchase Benefits Triggering events and continuity options Section 34: Continuity options
Subsections (1) and (2) provide that where a qualifying scheme has a triggering event, the trustees must pursue a continuity option following that event. Continuity options are a series of actions to be followed by the trustees depending on the event in question.
	There are 3 continuity options available:
	continuity option 1 (discharge of liabilities and winding up) which allows the qualifying scheme’s collective money purchase liabilities to be discharged (that is moved from the scheme to another pensions arrangement or securing them by some other means as specified in regulations) and the qualifying scheme to be wound up (see section 36);
	continuity option 2 (resolving triggering event) – which allows for the triggering event to be resolved and the qualifying scheme to continue to operate (see section 37); and
	continuity option 3 (conversion to closed qualifying scheme) – which allows for conversion to a closed scheme (see section 38). A closed scheme either does not admit new members or does not allow members to build up further benefits or both.
	The continuity options are required elements of the implementation strategy outlined in section 39 and section 40. Trustees must specify a continuity option when setting out their implementation strategy.
	Subsections (3) and (4) set out when trustees must pursue continuity option 1 – i.e. where an item 1, 2 or 3 triggering event has occurred trustees are compelled to follow continuity option 1.
	Subsection (5) sets out that trustees may only pursue continuity option 3 where conversion to a closed qualifying scheme is permitted within the scheme rules, and subject to that, provides that this section overrides any provision of the qualifying scheme to the extent there is a conflict.
	Subsection (6) applies the civil penalty under section 10 of the Pensions Act 1995 to anyone who fails to act as required by this section.