Nick Stones
Nick is a partner at Pinsent Masons specialising in pensions. He advises corporate sponsors and trustees of pension schemes. Nick also has experience in the public sector, acting for contractors and central and local government. He has also built up an increasing presence in advising charitable and not-for-profit organisations on managing pension risks.
Nick is a full member of the Association of Pension Lawyers, he sits on the regional committee of the Pensions Management Institute, presents at internal and external seminars and writes for the pension press.
Practice Area
Panel
- Contributing Author
Membership
- Association of Pension Lawyers
Education
- University of Birmingham: LLB (Hons)
2 Contributions by Nick Stones
PRACTICE NOTES
Asset-backed contributions in UK defined benefit occupational pension schemes: structuring, employer-related investment compliance, Pensions Regulator/PPF treatment, tax and trustee considerations
This practice note applies solely to defined benefit occupational pension schemes
Asset-backed contribution structures are one means of helping to cut deficits within pension schemes. They carry risks; however, sound professional advice and careful structuring can limit these. Appropriate advice helps identify pitfalls and shape a robust framework. Yet the central issue for the trustee and its advisers is whether entering an asset-backed contribution puts the trustee and scheme in a stronger position than committing to a lengthy recovery plan. Trustees should weigh comparative outcomes, timing and certainty before proceeding. Since 2008, when Marks & Spencer pioneered a property-backed contribution aimed at trimming its pension deficit by £500m, several prominent organisations—among them John Lewis, Sainsbury’s and Whitbread—have adopted similar approaches. Today, employers regard asset-backed contributions as an efficient method of financing rising shortfalls in defined benefit occupational pension schemes. For many, ABCs can complement, or replace, prolonged deficit repair in suitable circumstances thoughtfully.
What is an asset-backed contribution arrangement?
An asset-backed contribution (ABC) is a contractual funding structure under which a special purpose vehicle is established to deliver an income stream to the pension scheme...
Pensions
PRACTICE NOTES
UK Occupational Pension Schemes: Statement of Investment Principles—Trustee Duties, ESG and Stewardship, Asset Manager Arrangements, Disclosure, Implementation Statements, Review and Penalties, and Default Arrangement SIPs
FORTHCOMING CHANGE :
On 3 December 2025, Torsten Bell set out plans for legislation permitting the creation of statutory guidance on fiduciary duties. The aim is to give trustees practical certainty about incorporating wider considerations within existing duties, including, in particular, system-level risks such as climate change and the long-term impacts of investments on members’ outcomes. It will further explain how trustees may take account of members’ views and will restate the need to consider all financially material factors, whilst remaining aligned with acting in members’ best interests (see DWP Parliamentary response, 19 January 2026). A consultation on the guidance will take place before it is finalised.
THIS PRACTICE NOTE APPLIES TO OCCUPATIONAL PENSION SCHEMES
Trustees of an occupational pension scheme are responsible for safeguarding and investing the scheme’s assets so that the benefits the scheme promises can be paid. These arrangements exist to ensure benefits promised by the scheme can be met. For this purpose, a range of investment powers and restrictions apply to them. For further information, see Practice Note: Investment powers and duties of pension scheme trustees...
Pensions
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