Regulations amending the employer debt (‘section 75’) legislation are not to be introduced until December.
The DWP’s draft regulations, issued in June, proposed introducing
- a new Flexible Apportionment Arrangement, which should be particularly useful for corporate restructurings; and
- extending the period of grace (for admitting active members to avoid triggering a debt) from 12 to 36 months.
Consultation closed in August, and the regulations were intended to come into force on 1 October 2011 (see July’s Pensions Update). At the end of September a DWP statement included a note announcing that they will instead come into force in December 2011. We still await the final regulations.