gunnercooke LLP
7 Experts
20 Contributions by gunnercooke LLP
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
What is disguised remuneration?
For many years, HMRC has worked to ensure that rewards arising from employment are correctly brought within income tax and National Insurance contributions (NICs), deducted by employers through the pay as you earn (PAYE) regime. To support this objective, the Finance Act 2011 introduced the disguised remuneration rules, designed to address the use of Employer Financed Retirement Benefit Schemes (EFRBS), Employee Benefits Trusts and other forms of ‘disguised remuneration’, so that receiving benefits is no more advantageous than taking a wage.
The legislation places a PAYE duty on the employer and/or trustees of pension arrangements to collect income tax and the related National Insurance Contribution (NIC) charges. It also serves as a clear warning to employers and the promoters of tax avoidance schemes that contrived pay structures intended to avoid, defer or lessen income tax liabilities will face robust
Pensions
PRACTICE NOTES
This guide is chiefly intended for trainees, recently qualified lawyers and other persons who are new to, or unfamiliar with, pensions law.
It addresses discrimination chiefly in the specific context of occupational pension schemes.
It includes citations to the case law of the Court of Justice of the European Union.
For advice on whether EU judgments remain binding on UK courts, see Practice Note: Assimilated law — Assimilated case law.
Development of anti-discrimination law in the pensions arena
Unlawful discrimination in its many forms has created significant legal and administrative challenges for occupational pension schemes over many decades now.
Perhaps the best-known development was the European Court of Justice’s landmark ruling in the Barber case, made on 17 May 1990 (one of the most famous dates in UK pensions law history), in which the ECJ stated that pensions constitute a form of deferred pay, and that,
Pensions
PRACTICE NOTES
Types of death benefits payable
There are two categories of scheme benefits payable when a member dies:
pension death benefits
lump sum death benefits
Up to 5 April 2015, the pension death benefit provisions in the Finance Act 2004 (FA 2004), s 167, meant a pension death benefit could only be paid to a dependant of the member for it to be an authorised payment. ‘Dependant’ is set out in FA 2004 Sch 28 Pt 2 para 15. From 6 April 2015, a pension death benefit may be settled not only on a dependant of the deceased member but also on a nominee or a successor and still be treated as an authorised payment. ‘Nominee’ is defined in FA 2004 Sch 28 Pt 2 para 27A, while ‘successor’ is defined in FA 2004 Sch 28 Pt 2 para 27F. In
Pensions
PRACTICE NOTES
This guide is intended mainly for trainees, newly qualified lawyers and anyone else who is new to, or not familiar with, pensions law.
A-Day
The registered pension scheme framework began on A-Day (6 April 2006). Under this framework, described in Part 4 of the Finance Act 2004 (FA 2004), pension schemes of any kind are classed as either registered or unregistered. Schemes that held ‘tax approval’ before A-Day, under the then existing approval systems, were switched automatically to registered pension scheme status on A-Day, unless they chose to opt out. Since A-Day, other schemes have been able to seek registration under FA 2004, s 153, provided they meet the regime’s conditions. To benefit from the tax reliefs available under the registered pension scheme regime, it is not enough for a person merely to belong to a registered pension scheme...
Pensions
PRACTICE NOTES
FORTHCOMING DEVELOPMENT :
Under section 10 of the Finance Act 2022, the normal minimum pension age (NMPA) is set to rise from 55 to 57 with effect from 6 April 2028, excluding members of the public service schemes for firefighters, police and the armed forces. It also introduces a right for members of registered pension arrangements to access benefits before 57 where, on or before 4 November 2021, they already held an ‘unqualified right’ to do so, or were actively transferring to a scheme that, by that date, offered an unqualified right to a protected pension age below 57. To rely on this 2028 protection, the scheme’s rules must have, as at 11 February 2021, conferred an unqualified right to draw scheme benefits before age 57. For more detail, see Practice Note: Increasing the normal minimum pension age (NMPA) to
Pensions
PRACTICE NOTES
ARCHIVED
This archived Practice Note outlines how the lifetime allowance regime worked before its abolition on 6 April 2024. It is not maintained. For further details, see Practice Note: Abolition of the lifetime allowance.
The core principle of the pensions tax regime is that members of registered pension schemes receive:
various tax advantages while building up retirement and life assurance benefits; and
certain tax advantages when specific benefits are paid from a registered pension scheme (eg the tax-free pension commencement lump sum)
In return, and to avoid tax charges, a registered pension scheme must comply with a range of restrictions relating to the:
accrual of benefits
payment of contributions; and
payment of benefits
Until 5 April 2024, a key constraint on the build-up of members’ benefits within the pensions tax regime was the lifetime allowance, which limited the amount of benefits that could be
Pensions
PRACTICE NOTES
This Practice Note concentrates on the range of tax reliefs (income tax relief, national insurance contribution relief and corporate tax relief) available for member and employer payments into registered pension schemes. It further outlines how a member may obtain income tax relief for their own contributions, and explains the tax position of employer contributions paid on termination of the member’s employment. For broader guidance on pension taxation, see Practice Note: Tax treatment of pensions—an introduction.
Member contributions to registered pension schemes
Section 188 income tax relief
A key benefit of registered pension schemes is the availability of income tax relief for members on contributions they, or a third party on their behalf, pay into the scheme. That relief, set out in section 188 of the Finance Act 2004 (FA 2004), has the following features:
conditions...
Pensions
PRACTICE NOTES
This Practice Note should be read alongside the following materials:
Pensions schedule: acting for sellers in a share sale — EFP vol 31(1) PENSION SCHEMES [2485]–[2490]
Pension schedule: acting for buyers in a share purchase — EFP vol 31(1) PENSION SCHEMES [2479]–[2484]
When can a pension schedule be used on a share sale?
In a share sale, a pension schedule can be deployed where:
the buyer is purchasing shares in the employing company (the target), which, immediately pre-completion, participates in a defined benefit (DB) occupational pension scheme
that DB scheme remains open to future accrual, and
the scheme itself is to stay within the seller’s group after completion (this Practice Note calls it the seller’s scheme)
A pension schedule can also be adopted in other situations.
Given today’s underfunded DB schemes and the Pension Regulator’s wide moral hazard powers, such
Pensions
PRACTICE NOTES
THIS PRACTICE NOTE APPLIES TO TRUST-BASED OCCUPATIONAL PENSION SCHEMES
This Practice Note considers the Pensions Regulator’s (the Regulator’s) powers to suspend or prohibit trustees of occupational pension schemes, and the statutory bases on which an individual or other legal person can be disqualified from acting as a trustee of an occupational pension scheme.
Suspension and prohibition orders—reserved regulatory functions of the Regulator
The Regulator’s powers to suspend or prohibit trustees of occupational pension schemes are:
reserved regulatory functions exercised by the Regulator’s Determinations Panel
and therefore subject to the standard procedure or, in special circumstances, the special procedure
As part of the standard procedure, the Regulator must notify those persons who appear to be directly affected by a suspension or prohibition order that such an order is to be made. This will ordinarily include the continuing trustees of the relevant scheme. For further information on the
Pensions
PRACTICE NOTES
This archived toolkit sets out the key matters around pensions auto-enrolment and draws attention to the practical measures employers needed to take to meet their auto-enrolment responsibilities for employees in the UK. The Pensions Regulator also issued useful guidance to help employers get ready for auto-enrolment.
Overview
The auto-enrolment legislation took effect on 1 October 2012 and creates a legal duty on employers to enrol their workers automatically into a pension scheme that meets at least the minimum standards, unless workers opt out. Employers that fail to follow the auto-enrolment rules risk fines of up to £50,000 and, for wilful and persistent breaches, imprisonment for up to two years.
Checklist—preparing for auto-enrolment
Employers would have needed to complete the following preparatory actions for auto-enrolment:
Speak to their benefits adviser (if they have one) or consider appointing a new adviser to support them in meeting their
Pensions
PRACTICE NOTES
This PN ought to be considered together with the following related precedents listed below:
Pension schedule: acting for sellers in an asset sale EFP vol 31(1) PENSION SCHEMES [2517]–[2522]
Pension schedule: acting for buyers in an asset purchase EFP vol 31(1) PENSION SCHEMES [2512]–[2516]
For the purposes of this Practice Note, it is assumed that, at completion, the buyer acquires a business and the employees transfer into the buyer’s employment under the operation of the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE).
When can a pension schedule be used on a business sale?
In a business sale, a pension schedule can be used where all of the following apply:
immediately before any TUPE transfer, at least some employees are active members of a defined benefit (DB) occupational pension scheme run by the seller
the DB scheme remains open to future accrual; and
the DB scheme is
Pensions
PRACTICE NOTES
Introduction
Waste is defined as ‘any substance or object which the holder discards or intends or is required to discard’. Assessing whether something amounts to waste is complex and usually calls for a case-by-case evaluation of whether the holder has discarded an item, intends to do so, or is obliged to discard it. The term ‘discard’ must be construed in light of legislative provisions addressing the harmful effects of waste and the protection of the environment and human health. Nonetheless, some materials lie outside the scope of waste. This Practice Note describes the provisions dealing with matters excluded from the statutory definition of waste.
See also the following Practice Notes:
Meaning of waste—what is waste?
Meaning of waste—definition of waste
Waste projects—overview
Environmental Permitting Regulations 2016—waste installations, waste operations and exempt waste
Environment
PRACTICE NOTES
What is the ‘waste hierarchy’?
Under the Waste (England and Wales) Regulations 2011, SI 2011/988, reg 12, any establishment or undertaking that imports, produces, collects, transports, recovers or disposes of waste—or that, as a dealer or broker, has control of waste—must, at the point of transfer, take all measures reasonably available in the circumstances to apply the following hierarchy in order of priority:
prevention
preparing for re-use
recycling
other recovery (eg energy recovery)
disposal
The Waste (England and Wales) Regulations 2011 transposed the requirements of the Waste Framework Directive 2008/98/EC (WFD) into domestic law...
Environment
PRACTICE NOTES
Waste indicators guidance
The EA has issued guidance ‘Check if your material is waste’, which assists in judging whether a material is waste, a ‘by-product’, or attains ‘end of waste’ status. As we move towards a more circular economy, waste indicators have evolved to support resource efficiency and productivity. For more on the circular economy, see Practice Note: Circular Economy and Resource Efficiency.
Positive waste indicators
Production residues
‘Production residues’ are substances not intentionally generated during extraction, production or manufacturing. They are usually regarded as waste unless they meet the tests for ‘by-products’, which are not treated as waste. See Practice Note: Meaning of waste—products and by-products.
In Commission v Italy, three separate enforcement proceedings were brought against Italy for failing to fulfil its obligations under Directive 75/442/EEC (as amended), and were heard by the same court on the same day. Each matter addressed different issues, although the core
Environment
PRACTICE NOTES
Scope of this Practice Note
This Practice Note sets out the core ideas behind Web 3.0, digital assets and cryptoassets. Regulators, tax authorities and commentators use a variety of labels—cryptoassets, digital currencies, virtual currencies, cryptocurrencies, and crypto/digital tokens—and it is often uncertain whether these are used as interchangeable terms or with distinct meanings. For the purposes of this Practice Note, ‘cryptoasset’ is adopted as a broad term covering cryptocurrencies, virtual currencies, virtual assets and digital tokens. As outlined in the section What are digital assets and cryptoassets? below, although all cryptocurrencies are cryptoassets and all cryptoassets are digital assets, some digital assets are not cryptoassets, and some cryptoassets are not cryptocurrencies. This Practice Note primarily concentrates on ‘cryptoassets’ rather than the wider category of ‘digital assets’, because targeted regulatory measures in the digital arena have, so far, largely focused on
Financial Services
PRECEDENTS
These notes and specimen documents make up an automatic enrolment (AE) pack created to assist employers—including small and micro-employers—in meeting the duty to enrol employees into an AE scheme...
(A) Notes about AE
(i) the statutory obligation
(ii) financial thresholds and limits
(iii) the statutory and other key terms
(B) Documents
(i) letters
(ii) notices
(iii) the employment contract—sample pension clauses
AE scheme providers generally issue the core letters and notices, though not always everything required in every relevant situation, and typically none where an employer fulfils the AE duty by using a
Pensions
Q&As
Apart from minors and those lacking mental capacity, a testator is, in principle, generally free to choose any executor. That said, a court is unlikely to grant representation to a bankrupt or insolvent individual, save where the testator was aware of the bankruptcy when naming that executor in the Will. At present, there is no bar on appointing a personal representative who has been discharged from bankruptcy or insolvency, this extends to someone released from an individual voluntary arrangement. Refer to Practice Note: Definition of a personal representative, particularly the section ‘Bankruptcy and PRs’ for further guidance and detailed discussion on this...
Private Client
CHECKLISTS
This Checklist outlines the principal actions to take when undertaking a bulk transfer of a group of members from one occupational pension scheme to another. Full details of the laws and regulations governing such transfers appear in Practice Note: Bulk transfers between occupational pension schemes—an introduction.
Planning of bulk transfer
Trustees of both the transferring and receiving schemes should be satisfied that the proposed form of bulk transfer is, in their own judgement, in the interests of their respective beneficiaries.
Consider whether the bulk transfer could create adverse tax outcomes for transferring members (eg potential loss of tax protections).
Obtain an in principle agreement between trustees and employers of both transferring and receiving schemes to proceed with the bulk transfer exercise.
Review the governing provisions of both schemes to confirm that assets, liabilities and members can be
Pensions
CHECKLISTS
Planning of merger
Secure an 'in principle' commitment from the trustees and employers of both the transferring and receiving schemes to proceed with the merger.
Examine the governing provisions for each scheme to verify that the transfer of assets, liabilities and members can take place; amend those provisions where necessary and practical.
Confirm whether the schemes' benefit structures align and are compatible.
Assess if the contracted-out status of either scheme creates any issues.
Review the funding positions of both schemes and obtain actuarial advice; determine whether an employer top-up contribution is required.
...
Pensions
If you expected to see yourself on this page, click here.
