Once more unto the employer debt breach


In response to industry concerns that the employer debt legislation unnecessarily inhibits corporate activity (a concern also voice by the Deregulatory Review), the Department for Work and Pensions (DWP) has published a consultation setting out proposed easements when businesses restructure. If implemented, the consultation and accompanying draft regulations will result in further changes to the Regulations, which were the subject of substantial amendments as recently as April 2008. The proposals aim to reduce the circumstances in which a corporate restructing (namely, an internal reorganisation) will trigger a debt in a defined benefit (DB) pension scheme. However, they will only apply in limited circumstances.

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