Underfunded Schemes - Insolvent Employer

Key Points

  • Independent trustee of pension scheme may be appointed
  • Other trustees' discretionary powers fall away
  • Employer as sole trustee ceases to act
  • Employer debt: Section 75 Pensions Act 1995 and Occupational Pension Scheme (Employer Debt) Regulations 2005 may apply
  • Scheme may qualify for entry to Pension Protection Fund under Pensions Act 2004 Sections 126 onward
  • Trustees will be unsecured creditors in Employer's winding up unless they have previously obtained security (such as a charge over assets)
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