The Pensions Regulator's (TPR) clearance and abandonment guidance have been reviewed and amended to better fall in line with amendments in the Pensions Act 2008.

TPR said that the changes had been made for accuracy, and reflect the amendments to the regulator's powers as set out in the Act.

Appendices B and C of the clearance section feature additional factors that the regulator can consider with regards to deciding whether a contribution notice is reasonable, as well as an additional compulsory requirement for TPR to consider the reasonableness of a party's actions when deciding whether a contribution notice would be reasonable.

There is also clarification that a series of acts and failures can be considered for a contribution notice, and that these and financial support directions can require support for other schemes that members have transferred to. The insufficiently resourced test for financial support directions can now also take aggregate resources of associated persons into account. The date when changes take effect has also been revised.

In terms of both the clearance and abandonment processes, there are instances of removal of the 'otherwise than in good faith' references in the second ground for contribution notices and the abandonment guidance paragraph 76, respectively.

Since the material detriment test for contribution notices or the associated statutory defence have not yet been commenced in the Pensions Act 2008, these amendments do not apply to these areas.

The updated clearance guidance is available CLICK HERE, and for the abandonment guidance, CLICK HERE.

- Pensions Age January 2009

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