Legislation requires the Trustee consult employers on the section 75 debt calculation methodology.
Counsel’s advice is that the Trustee only needs to consult with employers on the calculation method once ie additional consultation is not required each time an employer triggers a debt payment in the future.
The Scheme Trustee is writing to all employers that have participated in the Plumbing & Mechanical Services (UK) Industry Pension Scheme (the “Scheme”) since 2 September 2005 that may be affected by section 75 employer debt legislation to consult on a proposed consultation method.
This is the second consultation with employers on the calculation methodology. We previously wrote to employers in April 2016, June 2016, January 2017 and July 2017 about this complex matter. Since then, the Trustee has been working closely with its professional advisors to refine the proposed calculation methodology in light of feedback received. The Trustee asked a senior Scottish lawyer called a “QC” or “Counsel” to provide legal advice on a revised calculation approach.
The consultation will run until 13 May 2018. At the end of the consultation, the Trustee will consider all the feedback and decide how to calculate the section 75 employer debts that are due, or may become due, to the Scheme.