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Discontinuance basis meaning

What does Discontinuance basis mean?
In pensions practice, a discontinuance basis is an actuarial valuation of a defined benefit scheme’s liabilities as if the scheme has ceased and must secure members’ benefits with an insurer, typically through immediate and deferred annuities, including wind‑up expenses. It is commonly referred to as a buy‑out basis. The term is not itself defined in UK or Irish legislation or case law; it is a descriptive expression widely used by actuaries, trustees and sponsors. In the UK (England & Wales, Scotland and Northern Ireland), it aligns with the approach used to assess the employer debt under section 75 of the Pensions Act 1995 and related regulations, which reference the cost of securing benefits with an insurer on wind‑up. In Ireland, while “discontinuance basis” is similarly descriptive, the Pensions Act 1990 Minimum Funding Standard assesses solvency by reference to wind‑up/buy‑out costs. Key features and uses: - Assumes immediate wind‑up, insurer pricing and transaction costs. - Produces higher liabilities than an ongoing funding basis. - Central to wind‑up planning, section 75/employer debt assessments, bulk annuity transactions, corporate due diligence and trustee risk management. Usage and meaning are broadly consistent across the UK and Ireland.
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View the related Practice Notes about Discontinuance basis

PRACTICE NOTES
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PRACTICE NOTES
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PRACTICE NOTES
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This Practice Note outlines the key principal themes and practical considerations when contesting private prosecutions in practice. It should be read together with Practice Note: Bringing a private prosecution—practical considerations, which provides a practical guide to initiating a private prosecution in practice. Routes to defending private prosecutions The right to commence a private prosecution is an important one in law, and many such cases will be properly brought and overseen by the prosecutor from the outset. If that is not so, the defence has a number of avenues open to it to effectively and robustly challenge the proceedings. Many of these mirror those available in public prosecutions; however, certain aspects are specific to private prosecutions...

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