Jurisdiction(s):
United Kingdom

Key definition

Contribution notice definition

What does Contribution notice mean? A contribution notice is a demand by The pensions regulator (TPR) requiring an employer, or a connected/associated third party, to pay a specified sum to a defined benefit pension scheme. It is a statutory anti-avoidance power under sections 38–42 of the Pensions Act 2004 (as amended, including by the Pension Schemes Act 2021). TPR may issue a contribution notice if, in its opinion, the person was party to an act or deliberate failure to act and: - the main purpose, or one of the main purposes, was to prevent recovery of all or part of a section 75 employer...

Desmond & Sons: contribution notices against directors, MVL loophole, and Northern Ireland rulings on time limits, privilege and disclosure

Published by a LexisNexis Pensions expert

Practice notes

THIS PRACTICE NOTE ONLY APPLIES TO defined benefit OCCUPATIONAL PENSION SCHEMES ARCHIVED:

This archived Practice Note examines in detail the Desmond case, which is significant because it resulted in the issue of contribution notices against individual persons. The Pensions Regulator contended that the director shareholders of Desmond & Sons Ltd had avoided paying the company’s employer debt on a buy-out basis, instead making use of the weaker minimum funding basis, by arranging for the company to enter members’ voluntary liquidation on 3 June 2004. The case raised issues concerning the motives of the director shareholders, as the Regulator had to establish (at the time) that their conduct was ‘otherwise than in good faith’. This archived Practice Note is supplied for background information purposes only. For further information on contribution notices, please see Practice Note: Contribution notices (CNs).

Facts

Desmond & Sons Ltd (Desmonds) was a clothing producer based in Northern Ireland and the sole employer participating in the Desmond & Sons 1975 Pensions and Life Assurance Scheme (the Desmond Scheme). At all relevant times, Desmonds remained a solvent company...

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Web page updated on 21/05/2026

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