16/07/2012

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.

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.

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