Defined benefit schemes
Meanwhile, Karina Brookes, leader of EY’s UK pensions strategy team, said the bill reiterated the need for trustees to work closely with corporate sponsors to protect members.
Ms Brookes said: "It has never been more important for corporates which sponsor UK defined benefit schemes and their pension scheme trustees to work together with openness and transparency if they are to achieve optimal outcomes for sponsor and pension members alike.
“It is essential that sponsoring corporates are on the front foot when it comes to engaging their pension scheme trustees – in some cases, their largest creditor – around any intended major changes to the business including dividend policy, reorganisation, restructuring and transactions.”
In addition, Anne-Marie Winton, partner at Arc Pensions Law, warned employers with DB schemes to pay careful attention to the new laws to avoid any hefty fines or even being sent to prison.
She said: "Ignorance of the new laws will be no excuse for non-compliance when carrying out routine and non-routine corporate activity.”
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