Life Cover Only Members: Quick Reference Table


 

Benefit Design

Can you continue to offer benefit?

Life cover being provided under separate scheme Yes (but the separate life cover only scheme will not be regarded as an “occupational pension scheme”)
Reliance on life cover only scheme to provide exemption from requirement to designate a stakeholder scheme You must now offer stakeholder access
Life cover being provided under occupational pension scheme (where no other benefit provided) No
Life cover being provided under a closed occupational pension scheme (to existing members with existing pension benefits) Yes (“likely to be acceptable”)
Life cover being provided under a closed occupational pension scheme (to new members) No
Life cover being provided under closed occupational pension scheme (where employer offers pension benefit through alternative vehicle)Yes (provided “sufficient concrete and identifiable link through the employer”)
Life cover provided to member in waiting periodYes (“likely to be acceptable”)
Life cover provided to member who has opted out of active membership Yes (“likely to be acceptable”)