Who is a former employer for section 75 debt purposes?
Produced in partnership with Liz Fallon of Eversheds Sutherland (International) LLP

The following Pensions practice note produced in partnership with Liz Fallon of Eversheds Sutherland (International) LLP provides comprehensive and up to date legal information covering:

  • Who is a former employer for section 75 debt purposes?
  • Why is the former employer regime relevant?
  • Which employers are liable for a s 75 debt?
  • What is the meaning of 'employer'?
  • Definition of ‘employer’
  • When does an employment cessation event occur?
  • The Cemex case
  • The PNPF case
  • Who is a former employer?
  • Who is not a former employer?
  • More...

Who is a former employer for section 75 debt purposes?

Section 75A of the Pensions Act 1995 (PA 1995) and the Occupational Pension Scheme (Employer Debt) Regulations 2005, SI 2005/678 (the Employer Debt Regulations), together with the repealed versions of these pieces of legislation, set out how the s 75 debt regime applies to multi-employer occupational pension schemes.

This Practice Note sets out the legal issues surrounding who is a former employer in the context of the s 75 debt regime.

Why is the former employer regime relevant?

It is important that a company, which participates or has participated in a defined benefit pension scheme, understands what its liabilities are in relation to the scheme. This is particularly the case in relation to a corporate restructuring or transaction where that restructuring or transaction may have an impact on the company’s liabilities to the scheme.

The Pensions Regulator’s statement dated 28 July 2011 requires schemes to identify their statutory employers and list those employers on the scheme return. A statutory employer for these purposes includes those employers who meet certain criteria including liability to meet a section 75 debt. The Pensions Regulator may consider taking action where a scheme has no statutory employer.

For more information on statutory employers, see Practice Note: Who is the statutory employer?

The s 75 debt regime has been amended on many occasions since it was introduced

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