Q&As

Do the preservation requirements apply to public sector schemes?

read titleRead full title
Published on LexisPSL on 18/11/2013

The following Pensions Q&A provides comprehensive and up to date legal information covering:

  • Do the preservation requirements apply to public sector schemes?
  • Scope of preservation requirements
  • Status of public service schemes
  • In practice

Scope of preservation requirements

The preservation requirements apply to occupational pension schemes that are funded at least in part by payments that the sponsoring employer is legally obliged to make to the scheme.

Case law has confirmed that the requirements do not apply to unfunded private sector occupational pension schemes since employers are not legally obliged to fund such schemes. A promise to pay a member's benefits at the time they fall into payment is not the same as an obligation to fund the scheme, and the existence of the latter obligation is necessary for a private sector occupational pension scheme to be a funded scheme.

Popular documents