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The Pension Protection Fund

New guidance was published by the Pension Protection Fund (PPF) in January 2019.

This guide examined, among other things, how IPs interact with the PPF when a sponsoring employer enters into an insolvency event, and how the assessment process is efficiently progressed. Depending on the size of a company’s pension scheme, either the scheme or the PPF could potentially be the largest creditor in a case. This could potentially involve the agreement of the IP’s remuneration.

As you will no doubt be aware, IPs play a vital role and need to understand how and when to involve the PPF in relation to an employer’s insolvency.

Once an insolvency event occurs, this triggers the start of a PPF assessment period to decide whether the PPF should assume responsibility for the scheme, whilst the scheme continues to be administered by its trustees. The scheme will be withdrawn from the PPF if the employer is to continue as a going concern. On the other hand, if the employer is no longer a going concern, this will be deemed a scheme failure.

They will only assume responsibility for a scheme where in addition to the insolvency event, the scheme has not been rescued (amongst other conditions).

Where there is a ‘pre-pack’, the PPF are concerned that consultation with either the scheme trustees or the PPF does not take place early enough.

We recently issued a trio of webcasts to our CPD Tap members which went into the guide in detail, and also what it means for you as an Insolvency Practitioner.

Posted: 26.03.2019
Tags:  newsletter

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