Improved outcomes expected for DB schemes affected by corporate distress

Successful multi-creditor re-financings and restructurings require those involved to understand the commercial and legal priorities of other stakeholders in order for a positive outcome to be achieved and unnecessary value destruction avoided. To aid this we have collaborated with Grant Thornton UK LLP to publish ‘Getting inside each other’s heads’ – a paper which explores … Read more

Evolution or revolution? Recent developments in pensions M&A

In the latest podcast from Herbert Smith Freehills’ pension team, Michael Aherne, Partner, is joined by Alex Hutton-Mills, Co-founder and Head of Pension Corporate Finance at Cardano Advisory, to discuss corporate transactions involving occupational pension schemes and how the UK’s regulatory framework has changed over the past decade. In particular, Michael and Alex discuss: The … Read more

Draft funding Code offers some flexibility to DB schemes and sponsors

The Pensions Regulator has launched its long awaited consultation on a new funding Code of Practice for defined benefit (DB) pension schemes. The draft Code sets out the Regulator’s views on how the new statutory requirements regarding the need for trustees to put in place a long-term funding and investment strategy for their scheme are … Read more

Pension Disputes Bulletin – Winter 2022

Here is the latest edition of our regular Pension Disputes Bulletin which contains summaries of key cases, Ombudsman decisions and regulatory activity and highlights emerging risks for pension schemes, providers, sponsors, administrators, and other service providers. In this edition, we cover the implications of: a recent judgment on the operation of a scheme’s forfeiture rule … Read more

Regulator publishes latest Annual Funding Statement

The Pensions Regulator has published its latest Annual Funding Statement. Most of the messages are consistent with those contained in last year’s statement but, as you might expect, this year’s statement emphasises the need for trustees to assess the impact on their scheme and sponsor covenant of high inflation, the prospect of higher interest rates … Read more

Update: New corporate pensions notifiable events delayed

Last September, the Government launched a consultation on proposals to introduce two new notifiable events to require corporate sponsors of defined benefit (DB) pension schemes in the UK to give early notice of material corporate transactions and security arrangements to their scheme’s trustees and the UK Pensions Regulator. They also planned to make changes to … Read more

Restructuring and insolvency and the Pensions Regulator’s new powers

In this latest podcast in our Pension Schemes Act 2021 Soundbite series, Senior Associate, Philip Lis from our restructuring and insolvency team, joins Professional Support Consultant, Tim Smith, to discuss the impact the new pensions criminal offences and regulatory sanctions are likely to have on corporate restructuring and insolvencies where a company or group has … Read more

Directors and insolvency practitioners must tread carefully as new pensions offences lie in wait

Since 1 October 2021, directors, lenders, investors and advisers (including insolvency practitioners in some contexts) face the spectre of criminal prosecution and regulatory sanctions if they take action which is deemed to be materially detrimental to a defined benefit (DB) pension scheme without a reasonable excuse. The offences and sanctions are broadly drafted and despite … Read more

Directors beware – Dividend payments and the Pensions Regulator’s new powers!

As we enter dividend season Pensions Partner, Rachel Pinto, joins Professional Support Consultant, Tim Smith, to discuss how directors should approach decisions over the payment of dividends in light the Pensions Regulators extended powers which came into force on 1 October 2021. In particular, Rachel shares her views on: • what directors need to be … Read more