01 July 2008
The Pensions Regulator has today published guidance on scheme
wind ups. they issued the following press release:
"Final wind-up approach and guidance published
Following consultation, the Pensions Regulator has published
guidance to help trustees of occupational pension schemes meet
Government expectations that key wind-up activities are completed
within two years; an approach broadly welcomed by industry.
This expectation, set-out in a joint statement by the regulator,
PPF and FAS (as part of DWP), forms part of an aligned approach
aimed at speeding up both the wind-up and passing through a PPF
assessment period of schemes to ensure that:
. scheme assets are maximised, and levy payments reduced, by not
incurring the costs of unduly lengthy wind-up or passage through
PPF assessment period; and
. members have certainty from the earliest opportunity, for
schemes winding up, about the benefits they will receive.
The regulator's guidance outlines suggestions of good practice
on, for example: administration, planning scheme wind-up and buying
out annuities.
Alongside the guidance and the statement, the regulator, PPF and
FAS have published a joint consultation report explaining that the
majority of respondents supported our overall approach,
particularly our commitment to joint working.
The regulator has also developed e-learning modules as part of
its Trustee toolkit, covering the key elements of the wind-up and
PPF assessment period processes.
Tony Hobman, chief executive of the Pensions Regulator, said:
"The wind-up guidance, alongside our Trustee toolkit learning
modules, provides trustees with the support they will need when
preparing for and undertaking a scheme wind-up.
"The aligned approach between the regulator, PPF and FAS will
ensure consistency between the three organisations and maximise
regulatory impact."
Minister for Pensions Reform Mike O'Brien, said: "This guidance
is welcome, not just for the clarity it brings to trustees, but for
the reassurance it can bring scheme members. Members can now know
that the activities of wind-up should be completed within two
years, the best practices their scheme should follow and the
benefits they can receive."
Peter Walker, director of delivery at the Pension Protection
Fund said: "Our own experience shows that a two-year target for
shepherding schemes through the assessment period is achievable. We
will now continue to work with DWP and the Pensions Regulator to
make the process as effective as possible.
"A major step to achieving this will be the publication of our
new trustee guidance - which is currently out for consultation.
This guidance, which sets out the principles the PPF expects
trustees and their advisors to adhere to throughout the assessment
process, will be published later in the year." "
