In the May 2015 edition of Pensions Priorities we reported on a case where the High Court found that an agreement dealing with the costs associated with the secondment of employees between group companies included liability for the receiving company to pay for the section 75 debt arising in relation to the seconded employees. This decision has been upheld in the Court of Appeal1 . As mentioned in our previous article, although specific to its facts, the decision does illustrate the importance of properly documenting which parties are to be responsible for pension liabilities in these sorts of intra-group company arrangements.

As the context of this case was about the distribution of liabilities on insolvency, it is also relevant in an insolvency context – a link to an article by our colleagues in our restructuring and corporate recovery group is set out here.