TPR’s consultation on Employer Debt Guidance: Sackers’ Response
Background
The draft guidance issued for consultation by the Pensions Regulator on “Defined benefit multi-employer schemes and employer departures: guidance for trustees” is easy to read and does a good job of explaining the different arrangements. It meets its aim of educating trustees well. We are supportive of the Regulator’s decision to shine light on this difficult area. We think that the guidance, whilst not comprehensive, is a very useful and informative document and a good starting point for anyone looking at this area.
But, inevitably, we have some ideas as to the way the information in the Guidance is currently presented as well as a number of comments on the content, although these are minor. In particular, the draft is, in places, a little repetitive. Whilst we understand that this may be to ensure that each section can be read as a stand alone primer on the specific arrangement, it may be easier to follow if a general section was introduced which would enable the guidance to be streamlined.
In this response:
Hybrid schemes
Our principal concern is that the guidance does not adequately cover hybrid schemes. It would be helpful to insert a reference to hybrid schemes, even if this is to suggest that, if necessary, trustees seek professional advice in order to identify what benefits are in fact DB. Following Bridge Trustees this can be difficult.
Forward-looking only
We understand that the guidance is deliberately forward looking and only applies to exits since 5 April 2010. However, we note that this means it does not cover the trickier area of pre-2008 exits which are now subject to Warren J’s comments in the Pilots case .
+44 (0)20 7329 6699
enquiries@sackers.com
20 Gresham Street, London, EC2V 7JE - 
