Tom Jackman comments on plans for new Declaration of Intent law affecting DB pension schemes in Pensions Expert
Associate Director, Tom Jackman, explains the potential impact of planned legislation requiring all employers with DB pension schemes to send a Declaration of Intent (DOI) in advance of a range of corporate activities.
The requirement, included in the governments white paper on Protecting Defined Benefit Pensions Schemes, published last year, will see employers sending a DOI to the scheme trustees and the Pensions Regulator, setting out the impact of the transaction on the scheme and how many risks will be mitigated, ahead of any corporate transactions.
Jackman considers that whilst drafting the requirements so that they are sufficiently objective while not becoming an unnecessary burden, ““If implemented correctly, the requirement for a DOI won’t really change what we would normally expect a well-advised (and well-behaved!) company to do – engage with the trustees in advance of relevant transactions and make proposals to mitigate any material detriment”.
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