Auto-enrolment—hybrid schemes and the quality requirements
Auto-enrolment—hybrid schemes and the quality requirements

The following Pensions guidance note provides comprehensive and up to date legal information covering:

  • Auto-enrolment—hybrid schemes and the quality requirements
  • The quality requirements for hybrid schemes
  • Types of hybrid scheme
  • Hybrid schemes to which the general rule applies (rule 3)
  • Sequential hybrid schemes (rule 4)
  • Self-annuitising hybrid schemes (rule 5)
  • Combination hybrid schemes (rule 6)
  • Hybrid schemes to which more than one rule applies (rule 7)
  • Hybrid schemes and certification
  • For further information, see:
  • more

The quality requirements for hybrid schemes

Hybrid schemes are schemes which provide both defined benefits and money purchase benefits. Special rules apply to hybrid schemes in relation to meeting the requirements for a qualifying scheme under the auto-enrolment legislation (the quality requirements). Those rules are based on the quality requirements for defined benefit schemes and money purchase schemes.

For further information on the quality requirements for defined benefit schemes and money purchase schemes (also referred to as defined contribution schemes), see Practice Note: Auto-enrolment—what types of scheme may be used?

A hybrid scheme that has its main administration in the UK will satisfy the quality requirement in relation to a jobholder if it satisfies the requirements of whichever is the appropriate of:

  1. the quality requirements for a money purchase scheme (under the Pensions Act 2008, s 20 (PenA 2008)), subject to any prescribed modifications

  2. the quality requirements for a defined benefits scheme (under the PenA 2008, ss 21–23—also known as the test scheme standard), subject to any prescribed modifications, or

  3. a combination of the above where different quality requirements are appropriate for different provisions of the scheme

The appropriate requirements which apply depend on the type of hybrid scheme and are set out in the Hybrid Schemes Quality Requirements Rules 2016 (the Hybrid Schemes Rules). The requirements may be subject to prescribed