Partner Jane Kola comments in Pensions Expert on Lawyers’ calls for reform of Section 75 debts and flexible apportionment agreements
Experts say section 75 debts and flexible apportionment agreements, one of the most complex areas of pensions law, is crying out for change.
Section 75 of the Pensions Act 1995 refers to the debt payable by an employer that ceases to participate in a defined benefit scheme. The debt reflects the cost of buying out an employer’s portion of scheme liabilities. However, the whole area is weighed down in arcane legislation.
Jane Kola commented:
“The rules for how employers transfer such liabilities to one another in the course of normal business are crying out for change, but in the past that has only resulted in tinkering around the edges, which has made the law more, not less, complex.”
Read Jane’s comments in Pensions Expert.
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