Put simply, a DDA is a legal agreement which defers when a section 75 employer debt is triggered when there is an employer cessation event. While the DDA is in place, the employment-cessation event is deemed not to have occurred.
A DDA requires the agreement of the Trustee. Only employers that intend to keep trading and offer financial support to the Scheme for at least the next 12 months can apply for a DDA.
For full details on DDAs see ‘The Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations 2018`.