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.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Briefings from Gateley Plc
With effect from 1 October 2015, the right to take a short service refund from a defined contribution occupational scheme will be abolished.
Being sued is bad, but it’s worse if you are running up substantial costs in defending a claim while in fear that the claimant may not have the means to compensate you if you win.
Analysis from The Lawyer
Gateley bigshots see personal wealth soar on flotation, but face penalties for early exit .
Gateley is to float on the London Stock Exchange, becoming the first UK firm to list itself as a public limited company. But why would a firm would look to float, and what it could mean for the industry?