Pension issues in business sales—acting for the buyer

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Pension issues in business sales—acting for the buyer
  • Key considerations for the buyer
  • Impact of TUPE
  • Due diligence, warranties and indemnities
  • Future pension provision
  • What does the buyer need to provide post-completion?
  • Ways of providing pension benefits post-completion
  • Considerations where providing access to own pension scheme
  • Other options where seller has an occupational pension scheme
  • Issues specific to DB schemes
  • More...

Pension issues in business sales—acting for the buyer

FORTHCOMING DEVELOPMENT 1: On 11 February 2021 the Pension Schemes Bill received Royal Assent becoming the Pension Schemes Act 2021 (PSA 2021). Among other things, Part 3 of PSA 2021 is designed to strengthen the powers of the Pensions Regulator (TPR), including the introduction of new criminal offences targeting certain behaviour in respect of DB schemes (namely the offence of avoidance of employer debt and the offence of conduct risking accrued scheme benefits), making changes to the contribution notice (CN) regime and notifiable events regime (including by requiring corporate planners to make a declaration of intent in respect of certain corporate transactions), broadening TPR’s information gathering powers and extending TPR’s powers to impose civil penalties as well as making changes to TPR’s powers in its oversight of corporate transactions. These provisions have yet to come into force.

More specifically, the PSA 2021 will introduce three new criminal offences to prevent and penalise the mismanagement of DB pension schemes — two of these criminal offences aim to target individuals who mishandle DB pension schemes and thus endanger workers’ pensions. These criminal offences include:
the offence of avoidance of employer debt. A person will commit such an offence if, without reasonable excuse, they intentionally prevent the recovery of part or the whole of an employer’s s 75 debt calculated by

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