Opra Update 7 – compromising employer debts


On 17 May 2004, Opra published new guidance to trustees of defined benefit (DB) pension schemes who are considering compromising an employer’s debt. Agreements to compromise the employer’s debt have become increasingly commonplace since the High Court’s approval of such an arrangement in theBradstock case back in 2002. Concerned at this growing trend and the possibility that some members may be getting a poor deal, Opra Update 7 “outlines important steps trustees must take” when facing this particular dilemma.

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