Amendments have been published to the employer debt regulations. These are the regulations which set out how much an employer will have to pay when it leaves an underfunded scheme or when such a scheme is wound up. The new regulations come into force on 6 April 2008 and make significant changes to the existing regime particularly in relation to the ways in which a debt can be dealt with when an employer leaves an ongoing scheme.
In addition, the Pensions Regulator has finally issued the final version of its revised clearance guidance. Clearance is the voluntary process of obtaining a statement from the Regulator that it will not use its powers to issue either contribution notices or financial support directions to the applicants in relation to a particular event. The guidance describes the type of events where the Regulator expects clearance to be sought and what it expects trustees and employers to do during the clearance process. Among the events considered are the new ways of dealing with the debts of leaving employers where the full amount of the debt is not being paid immediately.
For a copy of the clearance guidance please click here.
For a copy of the amending regulations please click here.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 27/03/2008.