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.