Pensions – Deal Advisory

Pensions - Deal Advisory

The Pension Schemes Act 2021 materially enhances the sanctions available to tPR, tPR’s information gathering powers and the Contribution Notice regime.

More than ever, sponsoring employer and trustees of defined benefit pension schemes need to consider the impact of corporate activity on associated pension schemes.

Corporates need to seek advice before entering into corporate activity including M&A, refinancing, restructuring, granting security, and/or paying dividends.

Trustees need to ensure that they understand any activity that could be materially detrimental to the ability of the scheme to meet its pension liabilities – a ‘Type A’ event – and negotiate appropriate mitigation for detriment caused.

We work with corporates, owners and trustees to:

• Understand the drivers, dynamics and impact of a transaction;
• Interpret the transaction in the context of tPR’s guidance (including review of any clearance application or apportionment proposals);
• Quantify the extent of any detriment;
• Provide insight into the options available for appropriate mitigation, based upon our experience of tPR’s expectations;
• Provide support to our clients through negotiations to ensure that their interests are protected; and
• Help our clients to respond to the demands and acute time pressure involved in such activity.