DWP has published its White Paper on protecting defined benefit pension schemes. The government doesn’t intend to make any changes to the employer debt provisions for multi-employer pension schemes because:
- if it made changes to help the Plumbing Pensions Scheme it would apply to all 1000 last man standing multi-employer schemes;
- it is not willing to pass the “burden” of orphan liabilities to the Pension Protection Fund (PPF); and
- it believes there are sufficient easements already in place to help employers.
While this will be disappointing for employers affected by the employer debt legislation, it provides clarity for the Trustee that the employer debt legislation is unlikely to change. Employers concerned about their situation or wishing to use any of the existing easements should seek independent professional advice, speak to your Trade Body or contact Plumbing Pensions for further information.
