The Pensions Regulator (TPR) has issued a statement on Regulated Apportionment Arrangements (RAAs) and employer insolvency.
Employers of multi-employer schemes can use a number of mechanisms under the Employer Debt Regulations 2005 to manage a debt triggered under section 75 of the Pensions Act 1995. Broadly, RAAs can be used in situations where a scheme has entered into a Pension Protection Fund (PPF) assessment period, or is likely to enter into such an assessment period. TPR must approve an RAA.
TPR’s statement outlines the application process for RAA approval. It also gives examples of relevant circumstances that TPR will consider when deciding whether to give such approval.
TPR comments that the same principles outlined in its statement are likely to apply if using “other types of arrangements” that produce a similar outcome to RAAs, with or without PPF entry. It is not clear if this is referring to all (or only) other arrangements under the Employer Debt Regulations 2005.
For more information, see TPR’s website: http://www.thepensionsregulator.gov.uk