A further notification (and a description of the impact on the DB pension scheme) must be given when “main terms” are proposed. The second stage notification requirement will apply not just to the sponsoring employer, but also to its parent company and any other person associated or connected with the employer.
Those in breach of the requirements will be liable to a new financial penalty of up to £1m.
This note explains the new requirements and explores the implications for corporates and their lenders.
Authored by the Pensions Team.