Partner Vikki Massarano comments in Actuarial Post on the PPF and TPR’s involvement in insolvency procedures
Arc Pensions Law comments on the news that the UK government has been forced to amend proposals under which The Pensions Regulator (TPR) and the Pension Protection Fund (PPF) would have been locked out of rescue talks involving companies with underfunded retirement schemes.
Vikki Massarano commented:
“The Government has clearly listened to feedback about the importance of ensuring the PPF and pension schemes have a voice as part of the new insolvency procedures. The detail of the changes is to be set out in regulations, so it is still a case of “watch this space” for how this will actually work, but it appears in principle to take account of the fact that the DB pension scheme is often a significant creditor who needs to be taken into account.
“There are still a number of questions to be resolved such as how the courts will approach any restructuring plan which has an adverse impact on a pension scheme and what impact a court approved plan would have on the Pension Regulator’s ability to exercise its “moral hazard” powers. Could we see arrangements imposed on pension schemes which restrict their ability to recover amounts from an employer – or in reality would the courts not approve something if the PPF opposed it?”
Read Vikki’s comments in Actuarial Post.
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