EMI’s failure to come to an agreement with the trustees of its company pension scheme has resulted in the matter’s reference to the Pensions Regulator (TPR).

EMI’s pension deficit currently stands at between £115million and £217million, and this is the first time that the Regulator has been called upon to determine how much extra cash is necessary to help the company to clear its deficit.

“The EMI case is the first time that the Regulator’s Determination Panel has actually had to make a decision in relation to scheme funding,” explained Jay Doraisamy, pensions partner at international law firm Eversheds. “Up until now funding cases have been settled by negotiation between the Regulator, the employer and the trustees; examples of this can be found on the Regulator’s website.

“The case also comes at a time when the Regulator seem sot have been taking a more proactive approach to its various powers.” Doraisamy cited TPR’s first issuance of a contribution notice earlier this year, and the financial support directions issued in relation to the Nortel companies.

He added that the firm understands that September will bring a hearing to decide whether or not a financial support direction should be issued with regards to the Lehman Brothers scheme, which was in around £100million of deficit when the company collapsed in September 2008.

“It will be interesting to see whether this proactively heralds a more hands on approach to pensions regulation going forward than has currently been the case.”

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