Commentary

109 Calculating transfer values in relation to a group defined benefit scheme

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

109 Calculating transfer values in relation to a group defined benefit scheme

| Commentary

109 Calculating transfer values in relation to a group defined benefit scheme

Where the target company is a participator in the seller’s groups scheme, the takeover will usually involve the target leaving that scheme, in which case a transfer value will generally be paid by the group scheme transferring assets of the agreed value into a scheme nominated by the buyer1. In these circumstances, the parties should consider whether it is necessary for the buyer to participate in the scheme for a short period to allow it time to establish its own arrangements2.

The calculation of the transfer value raises many

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