Part 1: Master Trusts Chapter 5: Triggering events: continuity Section 24: Continuity option 1: transfer out and winding up
Section 24 makes provision for continuity option 1 under which trustees will transfer out all accrued rights and benefits in the scheme and then wind up the remaining structure of the scheme. Subsection (4) requires regulations to be made which set out how continuity option 1 is to be pursued in a case where a proposed transfer is to a Master Trust. The regulations must include provision for the matters set out at subsection (5). Under subsection (4)(a) regulations may be made about how continuity option 1 is to be pursued in a case where a proposed transfer is to an "alternative scheme" as specified in regulations (as defined under subsection (2)(b)). Under subsection (4)(c) regulations may also be made for the purpose of otherwise giving effect to continuity option 1, in either case.
	The trustees must identify one or more pension schemes which are able to accept the accrued rights and benefits of their Master Trust. These schemes can be either a Master Trust or, in circumstances which can be set out in regulations, an "alternative scheme" that has characteristics specified in regulations. Members of the Master Trust will retain their right to transfer to a scheme of their own choosing if they do not wish to transfer to the trustees’ choice (see subsections (5)(b) and (d)).
	The trustees must also (subsection (1)(b)) notify employers and members of the transfer, and of other details specified in regulations. Subsection (3) allows for regulations which will set out the way in which the notification in subsection (1)(b) must be made, and the timing of the notification.
	The matters under subsection (5) to be addressed in regulations made under subsection (4)(a) address a comprehensive range of issues including information requirements, duties on trustees, the duties of trustees of receiving schemes, and the rights of members to opt-out of a transfer in favour of their preferred receiving scheme. Regulations must also confer powers on the Pensions Regulator to direct the trustees to do things required by the regulations. Regulations made under subsection (4) are subject to affirmative resolution procedure.
	Subsection (6) allows regulations under subsection (4)(b) to include any provision mentioned in subsection (5) as well as provision to deem a member whose rights or benefits have been transferred to have entered into an agreement with a person of a description specified in the regulations.
	A penalty under section 10 of the Pensions Act 1995 applies to anyone who fails to comply with any requirement imposed by Section 24 and the regulations may also make provision for the application of section 10 of the Pensions Act 1995 to requirements in the regulations.
	Subsection (10) provides that any regulations made under subsection (2)(b) or (4) of this section are subject to the affirmative resolution procedure. Subsection (11) provides that any other regulations made under this section are subject to the negative resolution procedure.