Draft Regulations – forever in your debt?
Companies routinely cease participating in occupational pension schemes following transactions or group re-organisations. Whenever this happens in a multi-employer defined benefit (DB) scheme, the employer debt legislation is always a consideration. But the Employer Debt Regulations have become increasingly unwieldy and difficult to operate in practice. Draft amending regulations (the Amendment Regulations) have now been published which are intended to cure some of the ills, but might they make the condition worse in certain cases? In this Alert we look at what the Amendment Regulations are designed to do, focusing on the position of ongoing multi-employer schemes.