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PRACTICE NOTES
Purpose of participation
Admitting a new employer to an occupational pension scheme is intended to extend the scheme’s benefits to that employer’s relevant employees, ensuring those workers of the new employer can access the benefits provided.
Reason for participation
An employer might choose to participate in a scheme for various reasons. For example:
it has recently been acquired by an employer that already participates in the scheme
following a business reorganisation, employees have transferred to it from another employer that is already in the scheme
it wishes to alter the pension arrangements offered to its staff (for instance, closing a defined benefit scheme to new members and joining another group defined contribution arrangement), or
it must enter a pension scheme for automatic enrolment purposes
Who may participate?
The scheme’s governing documentation determines who can become a participating employer in any particular scheme and will set out the conditions for
Pensions
PRACTICE NOTES
What is a cash balance scheme?
Put simply, a cash balance pension scheme is an arrangement where a member accumulates a guaranteed pot of money during their pensionable service, which is then used to provide retirement benefits. When the member retires, this pot is generally applied to buy an annuity (or to deliver other retirement benefits) on whatever terms can be obtained in the market at that time. This kind of scheme blends features of a defined benefit (DB) arrangement with aspects of a defined contribution (DC) arrangement. That mix is important because it influences how the risks inherent in any pension arrangement are shared between the member and the sponsoring employer, as explored in this Note.
Benefit structures
Cash balance schemes come in different forms, but they broadly fall into two categories depending on how the retirement cash sum is
Pensions
PRACTICE NOTES
Although trustees of defined benefit (DB) schemes are typically not signatories to sale and purchase agreements in corporate deals, they still have a crucial part to play. To properly grasp the implications of any transaction, they must also possess a solid grasp of scheme funding, so they can see the full picture. Their responsibilities include safeguarding members’ accrued promises and, as encouraged by the Pensions Regulator, taking a proactive stance on addressing funding shortfalls—this involves evaluating the employer’s financial robustness (the employer covenant) and, where suitable, seeking improved funding terms from the sponsoring employer. In line with this, the Pensions Regulator requires trustees to maintain up-to-date insight into covenant strength by undertaking routine employer covenant reviews. This regular assessment keeps trustees’ understanding current during corporate activity and supports informed, timely engagement with the sponsoring employer when appropriate. While trustees owe fiduciary duties to act in the
Pensions
PRACTICE NOTES
THIS PRACTICE NOTE APPLIES TO TRUST-BASED DEFINED CONTRIBUTION (DC) OCCUPATIONAL PENSION SCHEMES
Statutory right to cash equivalent
In the same way as defined benefit (DB) occupational pension schemes, members of defined contribution (DC) occupational pension schemes have a legal entitlement to transfer the cash equivalent of their benefits to another pension arrangement. This entitlement is primarily set out in sections 93–101 of the Pension Schemes Act 1993 (PSA 1993). The Occupational Pension Schemes (Transfer Values) Regulations 1996, SI 1996/1847 (the Transfer Regulations) provide further detail, including the rules for working out a member’s cash equivalent. Together, these instruments govern the transfer process and calculation mechanics in DC schemes.
Overriding nature of statutory right to transfer
This entitlement is an overriding statutory right (subject to the statutory conditions below). It expressly prevails over any provision in a scheme’s trust deed and rules where those provisions conflict with that right. Some DC
Pensions
PRACTICE NOTES
Practice Note
In this Practice Note, any mention of the National Employment Savings Trust (NEST) Order refers to the National Employment Savings Trust Order 2010, SI 2010/917, in force from 25 May 2018. Citations to the NEST Rules mean the Rules of the National Employment Savings Trust effective from 5 August 2024. NEST is a trust-based, low-cost occupational pension arrangement, created within the government’s workplace pension reforms so that any employer can satisfy new obligations under the auto-enrolment framework. Its intended audience is UK workers new to pensions who previously lacked access to a high-quality, low-cost workplace scheme. NEST meets the definition of a ‘Master Trust scheme’ in sections 1–2 of the Pension Schemes Act 2017. Accordingly, from 1 October 2018 it has been subject to the authorisation and supervision regime for Master Trust schemes. It was therefore obliged to seek master trust
Pensions
PRACTICE NOTES
NEST Order and NEST Rules
In this Practice Note, any mention of the National Employment Savings Trust (NEST) Order refers to the National Employment Savings Trust Order 2010, SI 2010/917 (the NEST Order), as in force from 25 May 2018. References to the NEST Rules mean the Rules of the National Employment Savings Trust effective from 5 August 2024. NEST is a low-charge, defined contribution occupational pension arrangement created as part of the government’s workplace pension reforms. Those reforms introduced a suite of employer obligations (the ‘employer duties’), including a requirement to place eligible jobholders automatically into a pension scheme that satisfies prescribed standards (an ‘automatic enrolment scheme’). NEST was designed to guarantee that every employer could access a low-charge vehicle to help them discharge these new duties. NEST has continued to grow strongly, with membership rising from 12 million to 13 million between March 2023 and
Pensions
PRACTICE NOTES
An indemnity is a contractual responsibility resting on one of the contracting parties (the indemnifier) and owed to the other contracting party (the indemnified party), that responsibility being for the indemnifier to pay, or otherwise recompense, the indemnified party in respect of specified liabilities incurred or assumed by the indemnified party (such liabilities commonly arising after the contract is signed)...
Pensions
PRACTICE NOTES
An indemnity is a contractual duty resting on one contracting party (the indemnifier) and owed to another contracting party (the indemnified party), obliging the indemnifier to pay or otherwise make good the indemnified party’s specified liabilities, whether incurred or assumed by the indemnified party, such liabilities commonly arising only after the contract has been signed by the parties to it...
Pensions
PRACTICE NOTES
FORTHCOMING CHANGE :
The Department for Work and Pensions (DWP) is preparing to introduce a secondary notifiable events regime under section 69A of the Pensions Act 2004, which was inserted by the Pension Schemes Act 2021. Under this new framework, employers will be required to notify both the trustees and the Pensions Regulator of certain defined benefit (DB) scheme events, and to provide an ‘accompanying statement’ (a declaration of intent) setting out the details and the mitigation steps for any potential detriment to the scheme.
In a 2021 DWP consultation it was proposed that three events should trigger notification:
(i) an intended disposal by the employer of a material part of the employer’s business or assets;
(ii) the intended granting or extension of security over assets that would give priority to other creditors—a decision in principle by the employer to grant or extend
Pensions
PRACTICE NOTES
Automatic enrolment duties
The auto-enrolment framework, created under Part 1 of the Pensions Act 2008 (PenA 2008), places three principal enrolment obligations on employers:
automatically enrol every ‘eligible jobholder’ into an ‘automatic enrolment scheme’ (the auto-enrolment duty)
enrol ‘non-eligible jobholders’ into an ‘automatic enrolment scheme’ when they opt in
enrol ‘entitled workers’ who ask to join a scheme into a registered pension scheme
In broad terms, from 2017 the enrolment duties take effect for an employer on the date their first worker starts employment. The minimum quality criteria an automatic enrolment scheme must meet depend on the type of arrangement, for example whether it is a defined benefit (DB) or defined contribution (DC) scheme.
To assist employers in meeting the auto-enrolment duty, the government set up a low-cost pension scheme — the National Employment Savings Trust (NEST) — which was fully compliant. Many employers still use NEST, and the
Pensions
PRECEDENTS
This precedent is produced on the assumption that the drafter acts for the buyer and on the footing that the target company (the Company) is a subsidiary of the Seller. You are strongly encouraged to engage a pensions specialist at the earliest opportunity.
1 Definitions
For the purposes of paragraphs 2 to 9 (inclusive):
Employee means any current or former employee, officer or director of the Company [ or of any Group Company ] [ and any other person involved in managing the affairs of the Company ];
Pension Scheme[s] means [ [ name(s) of scheme(s) ] OR an arrangement or practice for the payment of, or contribution towards, an annuity, pension, lump sum, gratuity or similar benefit to be provided on retirement, ill-health, death or change in service status, or pursuant to a pension sharing order, in relation to the service or
Pensions
PRECEDENTS
This precedent has been produced on the basis that the drafter is acting for the buyer. The following warranties have been prepared for a transaction where:
The Buyer will provide pension benefits through its own arrangement or via an appointed provider; and
Employees’ past service benefits will not be transferred to the Buyer’s arrangement.
You are strongly advised to involve a pensions specialist at the earliest opportunity.
1 Definitions
For the purposes of paragraphs 2 to 7 inclusive:
Employee means [ [specify as necessary, either by category or by named individuals ]; Pension Scheme [ s ] mean [ s ] [ [ name(s) of scheme(s) ] OR an arrangement or practice for the payment of, or contribution towards, an annuity, pension, lump sum, gratuity or similar benefit to be given on retirement, long-term ill-health or death, or pursuant to a pension sharing order, in relation to the service or
Pensions
PRECEDENTS
This Deed is entered into on the [ insert day ] day of [ insert month ] 20[ insert year ]
Parties
[ Insert full company name ], incorporated in England and Wales with company number [ insert number ], and whose registered office is at [ insert registered company address ] (the Departing Employer);
[ Insert full company name ], incorporated in England and Wales with company number [ insert number ], and whose registered office is at [ insert registered company address ] (the Receiving Employer); and
[ [ Insert full name of company ] incorporated in England and Wales with company number [ insert number ] and having its registered office at [ insert registered company address ] OR [ insert individual name(s) ] of [ insert individual address(es) ] ] (the
Pensions
PRECEDENTS
Date: [ insert date ]
(1) [ Name of Principal Company ]
(2) [ Names of Trustees ]
(3) [ Name of New Employer ]
Deed of Participation relating to [ Name of Scheme ]
This Deed is executed the [ insert day ] day of [ insert month ] 20[ insert year ].
Parties
[ insert full company name ] registered in England and Wales under company number [ insert number ] and with its registered office at [ insert registered company address ] (the “Principal Company”);
[ [ insert full name of company ] registered in England and Wales under company number [ insert number ] and with its registered office at [ insert registered company address ] OR [ insert individual name(s) ] of [ insert individual address(es) ] ] (the “Trustees”);
[ insert full name of the new
Pensions
PRECEDENTS
This Deed is entered into on the [ insert day ] day of [ insert month ] 20 [ insert year ], by and between the parties set out below, namely:
Parties
[ insert full company name ], registered in England and Wales with company number [ insert number ], and having its registered office situated at [ insert registered company address ] (the Receiving Employer);
[ insert full company name ], registered in England and Wales with company number [ insert number ], and having its registered office situated at [ insert registered company address ] (the Principal Employer);
[ insert full name of company ], registered in England and Wales with company number [ insert number ], and having its registered office situated at [ insert registered company address ] OR [ insert individual name(s) ] of [ insert
Pensions
PRECEDENTS
Date: [ insert date ]
(1) [ name of Former Principal Employer ] (2) [ names of Trustees ] (3) [ name of the New Principal Employer ]
Deed of Substitution of principal employer[ and change of scheme name] relating to [ name of the scheme ]
This deed is entered into on the [ insert day ] day of [ insert month ] 20[ insert year ].
Parties
[ insert name of retiring employer ], incorporated in England and Wales under company number [ insert company number ], with its registered office at [ insert registered company address ] (the Former Principal Employer);
[ [ insert full name of company ] incorporated in England and Wales under company number [ insert company number ] and whose registered office is at [ insert registered company address ] OR [ insert individual name(s) ] of [ insert
Pensions
PRECEDENTS
This precedent has been produced on the footing that the drafter is acting for the buyer. It proceeds on the understanding that the target company (the Company) is a subsidiary of the Seller. It is strongly recommended that a pensions specialist is engaged at the earliest opportunity.
1 Definitions
For the purposes of paragraphs 2 to 7 (inclusive):
Employee denotes any current or former employee, officer, or director of the Company [ or of any Group Company ] [ as well as any other individual involved in the management of the affairs of the Company ];
Pension Scheme refers to any arrangement or practice for the payment of, or contribution towards, an annuity, pension, lump sum, gratuity, or comparable benefit to be provided on retirement, ill-health, death, or change in service status, or under a pension sharing order, in relation to the service or historic service of an
Pensions
PRECEDENTS
This precedent is prepared on the assumption that the drafter acts for the seller. It also proceeds on the basis that the target company (the Company) is a subsidiary of the Seller. You are firmly encouraged to bring in a pensions specialist at the earliest opportunity.
1 Definitions
For the purposes of paragraphs 2 to 11 (inclusive):
Employee means any current or former employee, officer or director of the Company [ or of any Group Company ] [ and any other person participating in the management of the Company’s affairs ] ;
Pension Scheme [ s ] mean [ s ] [ [ name(s) of scheme(s) ] OR an arrangement or practice for the payment of, or contribution towards, an annuity, pension, lump sum, gratuity or comparable benefit to be provided on retirement, long-term ill-health or death, or pursuant to a pension sharing order, in
Pensions
PRECEDENTS
This template has been prepared on the basis that the writer is acting for the buyer, and that the target company (the Company) is a subsidiary of the Seller. It is strongly recommended that a pensions expert is engaged at the earliest opportunity.
1 Definitions
For purposes of paragraphs 2 to 9 inclusive, the following apply:
Employee means any present or former employee, officer, or director of the Company [ or of any Group Company ] [ and includes any other person participating in the management of the Company’s affairs ] ;
Pension Scheme [ s ] mean [ s ] [ [ name(s) of scheme(s) ] OR an arrangement or practice for the payment of, or for contributing towards, an annuity, pension, lump sum, gratuity, or a similar benefit to be provided upon retirement, ill-health, death, or a change in service status, or in
Pensions
PRECEDENTS
This precedent is prepared on the footing that the drafter acts for the Seller. It is prepared on the basis that the target company (the Company) is a subsidiary of the Seller.
It is strongly recommended that a pensions specialist is engaged at the earliest opportunity.
1 Definitions
For the purposes of paragraphs 2 to 12 (inclusive), the following definitions set out below shall apply:
Employee means any current or former employee, officer, or director of the Company [ or of any Group Company ] [ and any other individual involved in the management of the Company’s affairs ] ;
Pension Scheme means any arrangement or practice providing for, or contributing towards, an annuity, pension, lump sum, gratuity, or similar benefit on retirement, long-term ill-health, or death, or pursuant to a pension sharing order, arising from the service or historic service of an
Pensions
99 Contributions by gunnercooke LLP Experts
PRACTICE NOTES
The question of the nature of money purchase benefits
In recent years, significant attention has been directed at defining the nature of money purchase benefits. With the weighty and increasing financial obligations that defined benefit pension schemes may place upon employers, being able to specify, with precision and without ambiguity, exactly what a scheme’s benefits are has grown in importance. This matters especially for hybrid pension arrangements, which commonly combine multiple, differing kinds of benefits within a single structure. For more detail on the various forms of pension arrangements, see Practice Note: Types of pension arrangements for employees. For most practical purposes, a benefit will be a ‘money purchase benefit’ where it falls within the statutory definition of that expression in the Pension Schemes Act 1993, s 181. However, in certain contexts an equivalent definition can be found in another provision, for example in the
Pensions
PRACTICE NOTES
THIS PRACTICE NOTE APPLIES TO REGISTERED OCCUPATIONAL PENSION SCHEMES
Given the intricacies of contemporary pensions law and scheme administration, it is little surprise that trustees of occupational pension schemes typically engage professional advisers to help them discharge their responsibilities. In addition, trustees of most registered arrangements are under a legal duty to appoint specified professional advisers, though certain schemes are excluded from these duties, depending on the character of the relevant pension scheme. For more information, see Appointing pension professional advisers and other service providers.
Types of professional advisers
Professionals commonly engaged in connection with (defined benefit) occupational pension schemes include:
scheme auditor
scheme actuary
fund manager
custodian of assets
legal adviser
Strictly, there is no statutory obligation on trustees of registered pension schemes to appoint legal advisers; however, where any individual is appointed as a legal adviser by someone other than the
Pensions
PRACTICE NOTES
This guide is aimed at trainees, newly qualified lawyers and others who are new to pensions law, and also offers a high-level overview for in-house lawyers who are not pensions experts.
Good scheme governance is crucial as it helps ensure a pension scheme is administered effectively and in members’ best interests. Specifically:
it gives trustees clear oversight of day-to-day operations, responsibilities and delegations, promoting consistent compliance with legal and regulatory requirements
it supports better decision-making and improved value for members
Good governance spans several areas, including:
the duty to have an effective system of governance (including internal controls)
risk management
conflicts of interest
working with advisers
equality, diversity and inclusion (EDI)
record-keeping
Effective system of governance (including internal controls)
Since 13 January 2019, trustees of occupational pension schemes must put in place and operate an effective system of
Pensions
PRACTICE NOTES
THIS PRACTICE NOTE APPLIES TO OCCUPATIONAL PENSION SCHEMES STOP PRESS :
On 8 December 2025, TPR unveiled a programme examining how DC and DB pension schemes approach allocating to growth assets, and identifying obstacles to investing in private markets and infrastructure. Through targeted engagement with investment consultancies, schemes and industry representative bodies, TPR is collecting market insight on opportunities, vehicles, constraints and enablers, with a particular focus on UK opportunities and investment routes. The regulator’s attention is on schemes of meaningful scale that are weighing, or have the capacity to pursue, investments in private markets and related assets. This outreach is scheduled to conclude by end‑2025; TPR will then share outcomes with government and issue a market oversight report in 2026. Executive Director Julian Lyne signalled that, where schemes do not meet required standards, TPR will invite trustees to consider whether
Pensions
PRACTICE NOTES
This guide is chiefly directed at trainees, newly qualified lawyers and others who are new to, or not familiar with, pensions law.
Background
Trustees occupy a pivotal position within the pensions landscape. This is especially true for occupational pension schemes, although trusts and their trustees also appear in various other forms connected to pensions in everyday practice. For instance, pension and life assurance schemes may set up trusts to receive death-in-service lump sums that are owed to beneficiaries who cannot give 'good receipt' for monies due to them at the relevant time, including children below the age of legal majority and individuals who are otherwise legally incapacitated personally. Trust-based pension schemes remain governed by the ordinary principles of trust law (e.g. the overarching duty for trustees to act in the best interests of their beneficiaries, always ultimately subject, of course, to the
Pensions
PRACTICE NOTES
FORTHCOMING CHANGE :
The Pension Schemes Bill, anticipated to secure Royal Assent in 2026, contains measures that confer on the Pensions Ombudsman authority equivalent to that of a competent court for matters concerning the recoupment of pension overpayments. This reform removes the necessity for trustees to seek County Court involvement in such cases, thereby cutting legal costs, easing administrative burdens and promoting a swifter, more effective recovery process for schemes and their members. For more detail, see LNB News 05/06/2025 42 and Pension Schemes Bill—tracker — Pensions Ombudsman and overpayments.
THIS PRACTICE NOTE APPLIES TO OCCUPATIONAL PENSION SCHEMES ONLY
This Practice Note explores the extent to which accrued pension entitlements under registered occupational pension schemes may be surrendered or forfeited.
The general rule against surrender—the inalienability rule
Under section 91(1) of the Pensions Act 1995 (PA 1995), a member’s accrued benefit rights in a registered
Pensions
PRACTICE NOTES
Employer-backed pension arrangements are, in effect, tax‑favoured savings structures through which employers fund future financial support for staff and their dependants in later life. Unsurprisingly, the employment relationship, shaped by the contract of employment and general law, is central to pension scheme governance. The key aspects of that role are relevant to occupational schemes, though many of the same points also apply where pension provision is via personal pension arrangements to which an employer contributes.
Dual nature of accrued pension rights under trust and contract law
Accrued pension rights under an occupational pension scheme can typically be categorised as:
pension rights of scheme members (trust beneficiaries) arising under the trusts of the scheme, and
pension rights arising as contractual terms of the employment relationship between an employer and employee
Members’ rights under the pension scheme trust are, in principle, enforceable against the scheme’s
Pensions
PRACTICE NOTES
The Fraud Compensation Fund (FCF) was set up as a statutory fund under section 188 of the Pensions Act 2004 (PeA 2004) to provide compensation to trustees or scheme managers of occupational pension schemes where a scheme’s assets have been reduced due to an act or omission amounting to an offence of dishonesty. The FCF is administered by the Board of the Pension Protection Fund (PPF), which was created under PeA 2004, s 107. For details on the PPF’s general operations, see Practice Note: The Pension Protection Fund—an introduction.
The obligation to make fraud compensation payments
The PPF’s obligation to pay fraud compensation in respect of an occupational scheme arises under PeA 2004, Pt 2, Ch 4. The duty to make such payments is set out in PeA 2004, s 182. Under PeA 2004, s 182(1), the PPF must make one or more fraud
Pensions
PRACTICE NOTES
Before 2012, employers were under no broad duty to either:
pay contributions for their staff, or
set up pension arrangements for their staff
The arrival of the auto-enrolment regime in 2012 reshaped this landscape, and employers caught by the auto-enrolment rules must pay into employees’ pension arrangements in line with those requirements. For details of the minimum employer contribution rates, see Practice Note: Auto-enrolment—what types of scheme may be used?
Requirement to process core financial transactions—DC occupational pension schemes
From 6 April 2015, trustees of relevant schemes (essentially defined contribution (DC) occupational pension schemes, with certain exceptions) must ensure core financial transactions are handled swiftly and correctly.
Notably, ‘core financial transactions’ encompass receiving and investing contributions.
The Pensions Regulator (TPR) therefore expects schemes to maintain robust controls to monitor and secure the prompt, accurate payment of employer and member
Pensions
PRACTICE NOTES
THIS PRACTICE NOTE APPLIES IN RELATION TO OCCUPATIONAL AND PERSONAL PENSION SCHEMES
Conflicts concerning pension schemes arise in many guises and contexts. The route for pursuing them will vary with the scheme’s nature and the particular circumstances, and may involve several possible forums available for resolution. This Practice Note concentrates on claims that dissatisfied members might bring in connection with their pension entitlements under either occupational or personal pension schemes...
Pensions
PRACTICE NOTES
This guide is chiefly directed at trainees, recently qualified solicitors and others who are new to, or inexperienced with, pensions law. Disagreements about pension schemes arise in many ways and, depending on the scheme type and the dispute’s character, there are different routes for pursuing them, and the applicable procedures for progressing those disputes can vary considerably.
Disputes relating to occupational pension schemes
An employee (or former employee) with a complaint about pension entitlements under a trust-based occupational scheme gained during employment may, subject to the specific facts, including the context and documentation on which their position depends, have two main paths to advance their claim:
submit a written grievance to their employer—available where the pension issue can be shown to concern contractual rights under the employment contract in force at the relevant time (a contractual claim), or
submit a written
Pensions
PRACTICE NOTES
This guide is chiefly intended for trainees, newly qualified lawyers and anyone else who is new to, or unfamiliar with, pensions law.
A pension scheme is, at its core, a form of savings arrangement set up to provide benefits upon the happening of a triggering event, such as retirement or the death of a spouse, or another person upon whom the beneficiary was financially dependent.
Pension schemes take many forms and operate widely in both the public and private sectors, and provision is also made by the State in the guise of the state pension. This guide considers the following examples of the different types of pension scheme:
the state pension
private sector pensions
workplace pensions
occupational pension schemes
hybrid schemes
cash balance schemes
employer financed retirement benefit schemes (EFRBS)
personal pension schemes
Pensions
PRACTICE NOTES
This guide chiefly targets trainees, newly qualified lawyers, and other individuals who are new to, or not yet familiar with, pensions law. This introductory guide explores relevant pensions law and practice matters that may emerge in the event of the insolvency, or potential insolvency, of employers sponsoring defined benefit (DB) and hybrid occupational pension schemes.
Pension Protection Fund (PPF)
The PPF is intended to offer support to members of eligible, underfunded DB pension schemes when sponsoring employers experience qualifying insolvency events...
Pensions
PRACTICE NOTES
This guide is primarily directed at trainees, newly qualified lawyers and anyone who is new to, or not yet familiar with, pensions law.
Types of commercial transactions
In essence, commercial deals fall into two broad categories:
share purchases or share sales, that is, transactions centred on acquiring the shares of a target company (or a number of target companies). For an overview, see: Share sales and pensions—overview, and Practice Note: Pensions and share sales—beginners’ guide
business purchases or business sales, that is, transactions resulting in the acquisition of businesses operated by sellers (in which case the buyer is not acquiring the actual companies running the target businesses within the sellers’ groups), and any employees engaged within the target businesses are transferred into the employment of the buyer by operation of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (the TUPE
Pensions
PRACTICE NOTES
FORTHCOMING DEVELOPMENT :
Under the Pension Schemes Act 2021, a secondary notifiable events framework is being introduced (pursuant to section 69A of the Pensions Act 2004) designed to capture certain employer‑related notifiable events in relation to a DB scheme. The framework requires the trustees to be copied into their notification to the Pensions Regulator, and for both the trustees and the Regulator to receive an accompanying statement, also known as a declaration of intent, setting out and explaining the notifiable event and how any detriment to the scheme is to be mitigated. On 8 September 2021, the Department for Work and Pensions (DWP) published a consultation on draft regulations which, among other things, in particular, detail the types of events that will fall within the scope of the secondary notifiable events regime...
Pensions
PRACTICE NOTES
This guide is chiefly intended for trainees, newly qualified lawyers and anyone new to or unfamiliar with pensions law.
THIS PRACTICE NOTE APPLIES TO TRUST-BASED OCCUPATIONAL PENSION SCHEMES
This beginners’ guide reviews the Pensions Ombudsman’s remit to handle occupational and personal pension complaints and disputes, covering:
the Ombudsman’s role
who can submit a complaint to the Ombudsman and the method for doing so
the kinds of complaints/disputes that are outside scope
the Ombudsman’s remedies
how to appeal the Ombudsman’s determinations
What is the role of the Pensions Ombudsman?
The Pensions Ombudsman investigates and determines:
specified authorised complaints about injustice resulting from maladministration by trustees, managers and employers involved in occupational and personal pension schemes
disputes of fact or law between specified authorised complainants and trustees, managers and employees connected with occupational and personal pension schemes
any question about
Pensions
PRACTICE NOTES
STOP PRESS :
On 18 March 2026, the Pension Protection Fund (PPF) issued its levy policy statement and the final rules for 2026/27, together with guidance for pension schemes on meeting the levy rule requirements, and setting out how the PPF intends to operate in areas where the rules allow discretion. The accompanying guidance explains how schemes should demonstrate compliance with the levy requirements and clarifies the PPF’s expected approach wherever discretion applies. The PPF’s policy statement and final rules for 2026/27 implement its earlier announcement confirming that no PPF levy will be charged to conventional schemes for 2026/27, while a proportionate, risk-based Alternative Covenant Schemes (ACS) levy will be retained. The existing ACS framework is largely unchanged; however, the PPF has committed to accelerate its review of the ACS levy methodology to ensure it remains proportionate from 2027/28 onwards. Meanwhile, it has
Pensions
PRACTICE NOTES
THIS PRACTICE NOTE CONCERNS DRAWDOWN PENSIONS STARTED BEFORE 6 APRIL 2011 — ARCHIVED: This archived Practice Note outlines the legal framework applying to drawdown arrangements under registered pension schemes entered into before 6 April 2011, when these were referred to as ‘unsecured pension’ and ‘alternatively secured pension’. This archived Practice Note is not maintained. For information on the legal regimes for drawdown on or after 6 April 2011, see the following Practice Notes:
Drawdown between 6 April 2011 and 5 April 2015 [Archived]
Drawdown from 6 April 2015
Drawdown and death benefits from 6 April 2015
What is a drawdown pension?
The A‑day tax simplification measures, effective from 6 April 2006, introduced a new drawdown regime for registered pension schemes, replacing the previously limited facility to draw down pensions that existed beforehand. The A‑day changes brought in the concepts of the ‘unsecured pension’ and the
Pensions
PRACTICE NOTES
This Practice Note explores the issues that may arise when the sponsoring employer(s) of a pension scheme becomes the subject of a ‘pre-packaged administration’ (also referred to as a pre-pack administration or simply a ‘pre-pack’). Pre-packs involve selling an insolvent company’s business and/or assets under terms negotiated and settled before the company enters administration, with completion taking place straight after the administrator’s appointment or very soon after.
What is an administration?
An administration is an insolvency procedure intended to promote, where possible, the rescue of companies in financial distress (or at least their underlying businesses) and to avoid the necessity of liquidation if at all possible. First introduced in 1986, administrators—who are a type of insolvency practitioner—have powers to oversee administrations. The ambit of administration was expanded in 2003 to further encourage a ‘rescue culture’. Reforms included an automatic moratorium preventing
Pensions
PRACTICE NOTES
THIS PRACTICE NOTE RELATES TO REGISTERED PENSION SCHEMES
On A-day (6 April 2006), primary protection was among the first two safeguards offered to pension savers when the registered pension scheme regime and the lifetime allowance concept came into force under the Finance Act 2004; the companion protection was enhanced protection. Unlike enhanced protection, primary protection was only available if, on 5 April 2006, the individual’s total registered pension scheme rights—whether crystallised or uncrystallised—exceeded £1.5m. Its purpose was to provide transitional cover for those who had already accumulated pension savings before A-day that could otherwise have been negatively impacted by the new lifetime allowance, which was initially set at £1.5m. Although the lifetime allowance was abolished from 6 April 2024, primary protection still delivers limited transitional safeguards for an individual’s entitlements to:
the lump sum allowance;
the lump sum and death benefit
Pensions
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