corporate activity, deficits and surpluses

Corporate activity impacting on occupational pension schemes requires specialist advice.

Where deficits are concerned, risks and liabilities need to be identified and negotiated and the Pensions Regulator takes a keen interest. New powers under the Pensions Act 2004 enable the Regulator to pursue companies and individuals whose activities might impact adversely on a pension scheme deficit, and to require third party guarantees if the scheme’s sponsoring employer is insufficiently resourced. As a result, Regulator clearance has become an important aspect of many deals.

Pension scheme funding is a key issue for businesses with defined benefit occupational pension schemes. The minimum funding requirement is being phased out and a stricter funding basis is being introduced, overseen by the Pensions Regulator. Deficits need to be managed and surpluses are also subject to a legal framework. We can help.