The following Pensions guidance note provides comprehensive and up to date legal information covering:
THIS PRACTICE NOTE APPLIES IN RELATION TO DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES
This Practice Note looks at the alternative methods available to deal with a section 75 debt, particularly in a multi-employer scheme. This Practice Note also covers any clearance and notifiable event issues that may arise.
For considerations specific to scheme trustees when deciding how a section 75 debt should be dealt with on an employment cessation event, see Practice Note: Employment cessation events—trustee decision-making process.
For considerations specific to a section 75 debt triggered in the context of a transaction, see Practice Note: How to deal with a section 75 debt on a corporate transaction.
For considerations specific to section 75 debts triggered in the context of a group reorganisation, see Practice Note: Intra-group reorganisations and pensions.
A section 75 debt (known as an 'employer debt') may become due from the employer of a defined benefit occupational pension scheme where:
the scheme is a multi-employer scheme and an employment cessation event occurs in relation to that employer (referred to in this Practice Note as a 'cessation employer')—an employment cessation event occurs where the cessation employer ceases to have active members in the scheme at a time when one other participating employer in the scheme
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