Advice costs no excuse for scheme abandonment

In its response to the feedback received on the consultation ‘Abandonment of defined benefit pension schemes’ the Regulator says cost issues “do not remove trustees’ fiduciary duty”. Instead it suggests trustees “seek immediate reimbursement from the employer of all necessary advice the trustees require in order to properly consider any transaction proposed by the employer”. Following the consultation, which received 21 responses, the Pensions Regulator has issued 18 pages of ‘reinforced’ guidance for trustees on the issue of abandonment, as it believes it is “appropriate to provide furt...