The following Pensions guidance note Produced in partnership with Laura Hickman of Eversheds Sutherland (International) LLP provides comprehensive and up to date legal information covering:
THIS PRACTICE NOTE APPLIES IN RELATION TO DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES
Sections 75 and 75A of the Pensions Act 1995 (PA 1995) impose an obligation on a statutory employer in relation to a defined benefit occupational pension scheme to fund any shortfall in scheme funding upon the occurrence of certain events. A debt triggered under either of these sections is referred to as a ‘section 75 debt’ or 'employer debt’.
The finer details as to how sections 75 and 75A apply are set out in the Occupational Pension Schemes (Employer Debt) Regulations 2005, SI 2005/678 (the Employer Debt Regulations), although the Occupational Pension Schemes (Deficiency on Winding Up etc) Regulations 1996, SI 1996/3128 may also be relevant (see Calculating the section 75 debt: single-employer schemes, below).
For more information on section 75 debts and circumstances in which they can be triggered, see Practice Note: When is a section 75 debt triggered?
Since 6 April 2008, calculating the section 75 debt has been a shared responsibility between the scheme trustees and the scheme actuary:
the trustees are responsible for:
determining, calculating and verifying the assets, and
determining the liabilities. In a multi-employer scheme, this involves allocating liabilities between employers. Before 6 April 2008, this responsibility belonged to the scheme actuary. However, this was
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