Before pensions tax simplification (Finance Act 2004), HMRC limited pension contributions in relation to each tax year. Simplification meant that there are now only two main limits: the lifetime and the annual. The annual limit is £50,000 (2013/14). The simple system has now been complicated by the PIP, a rolling window of up to a year in which contributions can be made up to the annual limit. Each PIP starts with the first pension contribution and lasts for a maximum of 12 months. The pension input period has a start and end date. For DB arrangements, the start date of the first PIP is the date on which benefit accrual starts. For active members on 6 April 2006 (A-day) the start date of the PIP was set as 6 April 2006. For DC members the start date of the first PIP is the date of the payment of the first contribution (which for members active on 6 April 2006 is the first date on or after 6 April 2006). In DC arrangements either the trustees or the members can set the PIP end date.

The Department for Business, Innovation, Science and Trade (DBIST), together with HM Treasury, the Office for Investment and the British Business Bank, has announced that a consortium of major UK pension investors—Railpen, Nest, LPPI, LGPS Central and Border to Coast—is exploring the creation of a new UK Scale-up Fund of more than £1 billion. If established, the fund would invest pension assets in high-growth UK science and technology businesses to help innovative companies scale up, commercialise new technologies and create skilled jobs, while seeking to generate long-term returns for pension savers. The British Business Bank intends to invest alongside the consortium and is beginning a market engagement process to appoint a fund manager, although no launch date has yet been announced.

The term 'joint venture' (JV) has no specific legal meaning under UK law. It is essentially a commercial arrangement between two or more parties who agree to pool their resources for the purpose of accomplishing an intended project (or other business activity). The JV vehicle can, for example, take the form of a limited liability company where each party is a shareholder. For more information on JVs, see Overview Document (available to those with a subscription in Lexis+® UK Corporate). Establishment of the JV vehicle—identify the pension issues The process of establishing a JV between two or more sponsoring parties requires the parties to the JV to identify the various pensions issues arising from setting up such a vehicle. The pensions issues fall into three categories: • the requirement to make pension provision for the employees of the JV vehicle • problems arising from pension schemes operated by one or more of the sponsoring parties prior to the establishment of the JV (particularly relevant to the employees who become employed by the JV

THIS PRACTICE NOTE APPLIES IN RELATION TO ALL PRIVATE SECTOR PENSION SCHEMES This Practice Note considers the pension issues relevant to the buyer on a business sale. For pension issues relevant to the seller, see Practice Note: Pension issues in business sales—acting for the seller. For an overview of the pension considerations relevant to the trustees of any occupational pension scheme in which the seller participates, see Practice Note: Corporate transactions—pension issues when acting for the trustees. Dealing with the pension issues of a business sale can be a complex area. Corporate lawyers looking at this should involve a pensions specialist at the earliest opportunity. This Practice Note assumes that: • the business sale constitutes a transfer of undertaking under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), SI 2006/246 • the seller (ie the transferor) is the employer of the transferring employees pre-completion • the buyer (ie the transferee) becomes the employer of the transferring employees on completion • the buyer and the seller operate in the private sector References

THIS PRACTICE NOTE APPLIES IN RELATION TO ALL PRIVATE SECTOR PENSION SCHEMES This Practice Note considers the pension issues relevant to the seller on a business sale. For pension issues relevant to the buyer, see Practice Note: Pension issues in business sales—acting for the buyer. For an overview of the pension considerations relevant to the trustees of any occupational pension scheme in which the seller participates, see Practice Note: Corporate transactions—pension issues when acting for the trustees. Dealing with the pension issues of a business sale can be a complex area. Corporate lawyers looking at this should involve a pensions specialist at the earliest opportunity. This Practice Note assumes that: • the business sale constitutes a transfer of undertaking under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), SI 2006/246 • the seller (ie the transferor) is the employer of the transferring employees pre-completion • the buyer (ie the transferee) becomes the employer of the transferring employees on completion • the buyer and the seller operate in the private sector References

This Practice Note looks at pensions-related issues that can arise under settlement agreements within the arena of English law. Settlement (or compromise) agreements are commonly encountered in an employment law context as a means of agreeing and settling outstanding claims of employees against their employers (and indeed vice versa) in employment termination situations. Such claims may arise from a variety of sources, for example: • statute • the relevant contract(s) of employment, or • areas of common law such as tort (for example, claims alleging negligence) Claims can arise in respect of any part of the employment process (eg at the initial hiring stage, during the actual period of employment or during the termination process) and can involve complex and expensive issues, particularly where the settlement agreement relates to the employment of senior executives (which is often the case). For further information on settlement agreements, see: • Practice Note: Settlement agreements in employment—legal requirements • Practice Note: Taxation of termination payments—settlement agreements • Precedent: Settlement agreement (employment) • Precedent: Settlement agreement (employment) (short form) Settlement

FORTHCOMING CHANGE: The Department for Work and Pensions (DWP) is planning to introduce a secondary notifiable events regime under section 69A of the Pensions Act 2004 (inserted by the Pension Schemes Act 2021). This new framework will require employers to inform both the trustees and the Pensions Regulator of certain defined benefit (DB) scheme events and to provide an ‘accompanying statement’ (declaration of intent) outlining details of the event and mitigation steps for any potential detriment to the scheme. A 2021 DWP consultation proposed that three events should trigger notification: (i) an intended sale of a material part of the employer’s business or assets, (ii) the intended granting or extension of security over assets giving priority to other creditors (a decision in principle by the employer to grant or extend a relevant security over its assets, such that, should the employer become insolvent, the secured creditor would be ranked above the scheme in the order of priority for debt recovery), and (iii) a controlling company’s intended or actual relinquishment of control of an employer

THIS PRACTICE NOTE APPLIES IN RELATION TO DEFINED CONTRIBUTION OCCUPATIONAL PENSION SCHEMES This Practice Note focuses on the issues which a buyer and seller must consider, in the context of a share sale, where the target company, or one of its subsidiaries: • is the sole employer of a defined contribution (DC) occupational pension scheme • is the principal employer of a multi-employer DC occupational pension scheme • is a participating employer (but not the principal employer) in a multi-employer DC occupational pension scheme • has personal pension arrangements in place • is the principal employer of a small self-administered scheme (SSAS) In this Practice Note, references to the target company include such a subsidiary. This Practice Note should be read in combination with the following Practice Notes: • Pension issues in share sales—an introduction, which focuses on the pensions issues generally applicable on share sales (regardless of the nature of the target company's pension arrangements) • Pensions due diligence in share sales—an introduction, which provides an overview

THIS PRACTICE NOTE APPLIES IN RELATION TO DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES This Practice Note focuses on the issues which a buyer and seller must consider, in the context of a share sale, where the target company, or one of its subsidiaries, is a participating employer (as opposed to principal employer) of a multi-employer defined benefit (DB) scheme. In this Practice Note, references to the target company include such a subsidiary. For information on the issues relevant where the target company (or one of its subsidiaries) is the principal employer of a multi-employer DB scheme, see Practice Note: Pension issues in share sales—where target is principal employer of DB multi-employer scheme. This Practice Note should be read in combination with the following Practice Notes: • Pension issues in share sales—an introduction, which focuses on the pensions issues generally applicable on share sales (regardless of the nature of the target company's pension arrangements) • Pensions due diligence in share sales—an introduction, which provides an overview of the pensions

THIS PRACTICE NOTE APPLIES IN RELATION TO DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES This Practice Note focuses on the issues which a buyer and seller must consider, in the context of a share sale, where the target company, or one of its subsidiaries, is the principal employer of a multi-employer defined benefit (DB) scheme. In this Practice Note, references to the target company include such a subsidiary. For information on the issues relevant where the target company (or one of its subsidiaries) is a participating employer of a multi-employer DB scheme, see Practice Note: Pension issues in share sales—where target is participating employer of DB multi-employer scheme. This Practice Note should be read in combination with the following Practice Notes: • Pension issues in share sales—an introduction, which focuses on the pensions issues generally applicable on share sales (regardless of the nature of the target company's pension arrangements) • Pensions due diligence in share sales—an introduction, which provides an overview of the pensions aspects of the due diligence

FORTHCOMING DEVELOPMENT: Through the Pension Schemes Act 2021, a secondary notifiable events regime is being introduced (under section 69A of the Pensions Act 2004) which will target certain employer-related notifiable events in relation to a DB scheme. This regime includes a requirement to copy in the trustees on their notification to the Pensions Regulator and provide both the trustees and the Pensions Regulator with an ‘accompanying statement’ (also known as a declaration of intent) setting out information on the notifiable event and how any detriment to the scheme is to be mitigated. On 8 September 2021 the Department for Work and Pensions (DWP) published a consultation on draft regulations which, among other things, detail the type of events that will be subject to the secondary notifiable events regime. The draft regulations propose that there should be three notifiable events: (i) the intended sale by the employer of a material proportion of its business or assets, in respect of which a decision in principle has been reached; (ii) the intended

In this Checklist, references to 'transferring employees' are to employees of an undertaking or service provider whose employment is intended to transfer under the operation of the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE). When does TUPE apply? The Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE), which have been in force since 6 April 2006, apply where there is a 'relevant transfer'. This covers: • business transfers—a transfer of an undertaking, business or part of an undertaking or business, situated immediately before the transfer in the United Kingdom to another person where there is a transfer of an economic entity which retains its identity • a service provision change—involving a change in the provider of a service, ie a client 'outsourcing' work to a contractor (first generation outsourcing), bringing that work back in-house ('insourcing') or re-assigning that work to another contractor (second generation outsourcing), where certain conditions are satisfied. The supply of goods for the client's use and 'single specific events or tasks of short-term duration' are excluded Note