The Pensions Regulator has issued a new note for insolvency practitioners dealing with their obligations to give certain notices and their rights to act as trustee of a pension scheme.
The Pensions Regulator has recently published Notes for insolvency practitioners: trustees and statutory notices which deals with some issues which arise where an occupational pensions scheme’s employer has entered insolvency.
The Regulator describes in the note its discretionary powers to appoint a new trustee in such insolvency. However, it will not always exercise that power. An officeholder may have to consider either:
- appointing a new trustee that has the relevant expertise, independence and ability to perform the role at a reasonable cost; or
- in cases where there is no conflict and the officeholder has the relevant resources acting as trustee itself.
As the note points out doing nothing may not be a risk free option for an officeholder.
There is also a helpful reminder that an officeholder has obligations under both section 22 Pensions Act 1995 and section 120 Pensions Act 2004 to make notifications to the Regulator.