New Employer Debt Regulations, Revised Clearance Guidance And Changes To The Pensions Regulator's Powers

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New Employer Debt Regulations, Revised Clearance Guidance And Changes To The Pensions Regulator's Powers

The spring saw a burst of activity from the Pensions

Regulator and Department of Work and Pensions. The long-awaited

amendments to the Occupational Pension Schemes (Employer Debt)

Regulations came into force on 6 April 2008. The Pensions

Regulator has issued revised clearance guidance following the

consultation which took place last September. Finally, the

Department of Work and Pensions began consulting on changes to

the Regulator's powers to issue contribution notices and

financial support directions.

All of these changes will have an impact on corporate

transactions or reorganisations where there is a defined

benefit scheme in place.

Employer Debt Regulations

The Employer Debt Regulations apply when an employer in a

defined benefit multi-employer occupational pension scheme has

an "employer cessation event". If the scheme is in

deficit on a buy-out basis that employer becomes liable to the

trustees for a proportionate share of the buy-out deficit in

the scheme under section 75 Pe...

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