Pensions Regulator publishes guidance on multi-employer schemes

Since September 2005, employers wishing to withdraw from a multi-employer scheme have had to fund any remaining debt on a full buy-out basis, which is the amount it would cost to buy out the members’ benefits by purchasing annuities, as this gives members greater protection should an employer stop participating in a pension scheme. But employers can modify their share of the debt owed to the scheme by entering into a withdrawal arrangement with the trustees and the guarantor to guarantee part of the debt.But they must gain approval from the Pensions Regulator for this arrangement. The n...