This briefing on flexible apportionment arrangements is the second in our series of briefings on employer debts under section 75 of the Pensions Act 1995. The first in the series looked at the circumstances in which a section 75 debt arises – to view that briefing click here.
The employer debt legislation was updated in December 2011 by the Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations 2011 (2011/ 2973) which, among other things, introduced a new mechanism, a flexible apportionment arrangement (FAA), for apportioning the liabilities of an employer withdrawing from a multi-employer defined benefit scheme.
This briefing considers the FAA regime, particularly in light of the Pensions Regulator's guidance on FAAs in its recently updated "Multi-employer and employer departures" guidance. To view the briefing click here.