Pensions & Employer Debt

    September 2009

    THE LONG AWAITED DWP CONSULTATION

    The DWP is consulting on proposals to amend the debt on employer regulations to make it easier for certain corporate restructures to take place without a debt being triggered in a defined benefit pension scheme. In broad terms a debt is currently triggered if a participating employer ceases to employ any active scheme members (but other participating employers continue to do so). The DWP has acknowledged that industry sees the debt regulations as a barrier to corporate restructuring and has, after lengthy informal consultation, now proposed two easements in the revised draft regulations: a general easement and a de minimis easement.