Winding-up – full buy-out for solvent employers


On 23 February 2004, the Regulations requiring solvent employers of defined benefit (DB) schemes which are winding up to buy all members’ benefits out in full were finally laid before Parliament. The Regulations, which were first published on 11 June 2003, officially come into force on 15 March 2004. The Regulations will generally apply to all DB schemes which began to wind-up on or after 11 June 2003 where the employer is “not insolvent”. Crucially, the Regulations now make it clear that if the date by reference to which the debt is calculated falls before 15 March 2004, the full buy-out provisions will not apply.

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