Services   |    Safe Settlement

Many defined benefit pension schemes are no longer open to accrual and relate to a membership that is no longer connected to the business.

They have become decoupled from the corporation and are often simply a liability and creditor, only vaguely connected to employees. From the point of view of the business, it often makes sense to move towards de-risking and eventual winding up. Arc Pensions Law’s team has deep experience in this area and knows the importance of preparing a scheme for the process. Our advice covers issues such as: Preparing for a buy-in:

  • Checking the terms that apply on future events (pension increases, deaths)
  • Advising on remedial action for overpayments and underpayments
  • Checking that administration practice accords with documentation
  • Validating that pensions currently in payment have been correctly calculated
  • Closing ‘Barber windows’
  • Legally formalising administration practices, and
  • Codifying discretions.

Co-ordinating the auction and contract process:

  • Clear analysis of legal entitlements and mismatches with admin practice
  • Identifying the objectives of the parties and the path to buyout
  • Advising on the shape of benefits to insure
  • Specifying benefits in an insurer-friendly format
  • Negotiating annuity contract and supporting documents, and
  • Providing legal advice to ‘sign off’.

Preparing for buyout:

  • GMP equalisation
  • Benefit specification and audit
  • Bulk transfer to a new scheme
  • Bulk annuity purchase if not in place already
  • Statutory employer reconciliation, and
  • Partial termination and demerger.