Pensions & Employer Debt

    September 2009


    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.