TPR changes multi-employer DB scheme section 75 rules

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.

    Share Story:

Recent Stories


CDC in the UK pensions market
Pensions Age editor, Laura Blows, talks to Sophie Dapin, Director, Institutional Solutions EMEA at BlackRock, and host of BlackRock’s Rewiring Retirement podcast, about the growing interest in collective DC in the UK pensions market

Podcast: From pension pot to flexible income for life
Podcast: Who matters most in pensions?
In the latest Pensions Age podcast, Francesca Fabrizi speaks to Capita Pension Solutions global practice leader & chief revenue officer, Stuart Heatley, about who matters most in pensions and how to best meet their needs

Advertisement