Clearance – TPR moves the goalposts?


The Pensions Regulator (TPR) has extensive anti-avoidance powers aimed at preventing employers from dodging pension scheme liabilities. However, a clearance procedure is in place which allows parties to seek a binding statement that TPR will not exercise its powers in relation to a particular event. TPR’s current guidance says that, subject to limited exceptions, TPR will only intervene if a pension scheme has a deficit on an FRS17 (or IAS19) basis. But in a “clearance reminder” published today, TPR states that clearance may now be an appropriate consideration even if a scheme is fully funded on a FRS17 / IAS 19 basis.

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