The PPF — the restructuring and insolvency approach
If an employer becomes insolvent and it has a defined-benefit (DB) pension scheme in deficit, the Pension Protection Fund (PPF), the statutory body established to compensate members in such circumstances, will act as a creditor on behalf of the scheme to maximise recovery from the employer.
Pension schemes can only enter the PPF if its sponsoring employer suffers an insolvency. However, sometimes, an employer that is facing insolvency — and has a scheme in deficit — can strike a deal with the PPF that will see it take on responsibility for the scheme, leaving the employer to continue trading.
The PPF’s role in recent high-profile cases has received a lot of scrutiny. The fund has recently published a fact sheet that summarises the conditions that need to be met before it will consider entering into such deals. Broadly, it has advised that the following conditions will need to be met…
Click on the link below to read the rest of the Gateley briefing.
News from Gateley
News from The Lawyer
Briefings from Gateley
Some say there are few things more stressful than buying or selling a company. Gateley presents its top tips to help things run smoothly when the big day finally arrives.
While the general view is that the recession is over, some of its effects can still be felt today.
Analysis from The Lawyer
The Law Society recently published guidance to assist solicitors draw up Shariah-compliant wills, causing outrage in some quarters. Gateley’s Haroon Rashid explains the facts.