Winding up Occupational Pension Schemes
- Winding up an occupational pension scheme means that the scheme will come to an end, the trustees will collect in the schemes assets and distribute them for the benefit of the scheme’s beneficiaries.
- The trustees will need to carry out data reconciliation of member records.
- Benefits may be secured by transferring benefits to another scheme and/or by buying annuities with an insurance company.
- The trustees must notify the Pensions Regulator of the scheme wind up.
- Where a defined benefit scheme is in deficit upon wind-up, an "employer debt" may become payable under s75 of the Pension Act 1995.
- If wind-up is triggered because an employer suffers an insolvency event, it may enter a PPF assessment period and ultimately go into the PPF.