By Adam Cadle
An employer can from now on depart a multi-employer DB scheme, without the section 75 debt being due, the Pensions Regulator (TPR) has revealed.
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Under the introduction of flexible apportionment arrangements, schemes which are closed to future benefit accrual are also exempt. According to TPR guidance, an employer can depart a scheme without having to pay a section 75 debt if “trustees are satisfied that there is no weakening of the covenant”.
Prior to this announcement, employers who chose to depart from a scheme would have to pay their share of scheme liabilities.
In addition, TPR has also announced that the grace notice period has been extended to a maximum of 36 months, from the previous notice period of 12 months.
The Government has announced the launch of a Section 75 Consultation, following claims that the employer debt rules stand in the way of business restructure, and is considering plans to make them more straightforwardHigh Court case clarifies section 75 debt claims
The section 75 debt should be calculated using estimated insurance company annuity rates on the insolvency date and not the date of finalising the claim, the High Court of Justice ruled in the Kaupthing Singer & Friedlander Ltd caseGovernment seeks views on draft s75 changes
The Department for Work and Pensions has launched a consultation seeking views on new draft regulations regarding section 75 employer debt, or buy-out debt