Informal consultation issued December 2010

Regulations expected October 2011  

The Government is consulting informally on various technical issues relating to the employer debt provisions. In particular:

  • For schemes with underpins, the Government's approach is that members better off under money purchase arrangements under the scheme should be excluded from calculations of assets and liabilities for section 75 purposes, with the section 75 debt calculated by reference to the remaining assets and liabilities;
  • The Government is not minded to amend the definition of "active member".
  • The Government is not minded to allow apportionment arrangements to be calculated on a floating basis.
  • The Government is considering providing that a person ceases to be a former employer immediately after a relevant event rather than on a later occurrence such as the payment of the section 75 debt.