Pensions - Gowling Wlg

Key points Winding up an occupational pension scheme means that the scheme will come to an end, the trustees will collect in the scheme's 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.