Clearance

The anti-avoidance provisions introduced in the Pensions Act 2004 have given the Pensions Regulator (TPR) increased powers to minimise the risk of pension schemes falling into the PPF and to prevent employers attempting to avoid their pension scheme liabilities.

The circumstances in which these powers can be exercised are wide-ranging, as are those who may be subject to them. As a result, trustees of defined benefit pension schemes will need to effectively monitor corporate activity and take appropriate advice as to whether they should be seeking additional funding or security for the pension scheme.

Equally, employers will find it increasingly difficult, for example, to distribute profits to shareholders without diverting some cash, or other form of security, in the direction of their under-funded defined benefit scheme.

Clearance from TPR can be an effective tool for giving certainty to both trustees and employers. If granted, it removes the risk of TPR exercising its powers under the anti-avoidance provisions.

How we can help

Sacker & Partners' specialist Clearance team have the knowledge and expertise to advise employers and trustees on what the provisions mean for planned corporate activity and whether seeking clearance from TPR is advisable.

Please contact Peter Murphy or Ian Cormican for further information on how our Clearance team can help you with the anti-avoidance provisions.

© Sacker & Partners LLP 2008. Sacker & Partners LLP is a Limited Liability Partnership.