The Trustee Directors have recently agreed a Rule change with the Association (APHC), the Federation (SNIPEF) and the Union (Unite). The rule change means that for the period up to 31 December 2018, no Participating Employer can cease to participate in the Scheme or be discharged from their past, present or future obligations under the rules without the consent of the Trustee.
The Trustee Directors felt that a rule change was necessary to provide all the Scheme’s stakeholders with time to discuss and decide on how to secure a strong and equitable future for the Scheme in terms of benefit design, funding and covenant.
Without this rule change there was a risk that certain employers were able to release themselves from any future obligation to the Scheme and so reduce the employer covenant which could worsen the funding and liability position for all employers (and for all members) prior to conclusion of those important discussions.
