Trustees have been issued a clearance reminder by the Pensions Regulator over corporate transactions such as leveraged buy-outs, to consider whether the event is 'financially detrimental' to the pension scheme.
In the note, published ahead of a planned update to clearance guidance in the summer, the Regulator says trustees should also consider whether to seek a “materially enhanced level of mitigation in excess of Financial Reporting Standard 17 (FRS17) or International Accounting Standard 19 (IAS19)”. It says it has issued the reminder to trustees as it is “currently updating our clearance guidance to reflect our operational experience over the last two years and to clarify issues that have been raised with us”. The clearance process is a voluntary exercise for companies with an under-funded ...
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