Companies may have more than one pension scheme either where executive scheme benefits have been provided from a separate scheme or where corporate activity has resulted in acquisition of companies with pension arrangements.
Scheme merger activity can be complicated, particularly where the benefit structures for members are different, or where there are special provisions applicable to different groups of members.
The process is relatively document intensive, with requirements to notify members especially where the transfer will take place without their consent, as well as drafting the bulk transfer agreement itself.
We have experience of advising the trustees of both transferring and receiving schemes in connection with such a bulk transfer.
Additionally, we can assist the sponsoring employer in planning and designing a scheme merger project. This decision is often driven by specific provisions around the powers and provisions in the documentation governing each scheme (in particular, relating to amendment, winding-up and payment of surplus monies to sponsoring employers).
Recent work includes:
- Advice to Trustees in relation to bulk transfers of defined contribution benefits into a master-trust
- Merger of four pension schemes into a new scheme
- Bulk transfer of deferred members’ benefits from their old employer's scheme into a new pension scheme set up to receive the benefits
Pensions scheme mergers & bulk transfers is part of Shoosmiths’ wider pensions offering. If you would like help finding the right team or lawyer please contact us on +44 (0)3700 863 000 or contact us by email to [email protected].
