Excellent service and legal advice from team specialising in pensions funding and pension law delivering an amazing client experience for companies in the UK.
The outcome of actuarial valuations and reports may lead to activity by the sponsoring employer leading to proposals to change the structure of the pension scheme in order to minimise risk or reduce cost for the future.
We can advise you on ways of implementing any changes and the documents needed to effect those changes together with any restrictions in the existing scheme provisions which limit the scope of those changes. Additionally, we can advise you on any requirements to consult with employees as well as reviewing any potential obstacles in employment contracts.
Additionally, part of the funding process may require legal analysis of which companies are responsible for contributing to the pension scheme, and the extent of their responsibility.
Where the bulk of pension scheme liabilities rest with companies that have a weaker covenant, we can advise the trustees or the company on ways in which liabilities can be transferred or recognised by the stronger employer.
Possible solutions include apportionment arrangements under the employer debt legislation, or use of contingent assets such as parent company guarantees or guarantees from the stronger employers.
- Advising trustees on legal obligations in relation to reviewing employer covenants
- Advising trustees on possible ways of ensuring that stronger employers are recognised as legally liable for scheme liabilities in circumstances where a smaller weaker employer would otherwise be liable for the bulk of the scheme liabilities
- Advising trustees on proposals by a sponsoring employer to close a scheme to future benefit accrual
- Advising a sponsoring employer on whether the rules of the pension scheme required a link with Pensionable Salary to be maintained following closure of the pension scheme to accrual of benefits