Britain Reviews 2012 Pension Transfer Rules After Asset Manager Assumes Scheme Liabilities
Updated
Updated · Reuters · Jun 16
Britain Reviews 2012 Pension Transfer Rules After Asset Manager Assumes Scheme Liabilities
3 articles · Updated · Reuters · Jun 16
Summary
Britain will review defined-benefit pension transfer rules after an asset manager used existing law to take on a scheme’s assets and liabilities in an unusual deal.
Torsten Bell said the transaction relied on a flexible apportionment arrangement, a mechanism introduced in 2012 to reassign pension liabilities during corporate restructurings without triggering employer insolvency.
Bell said the mechanism was used in December in a way lawmakers had not anticipated, prompting the government to reassess whether current protections are adequate.
The review is meant to update regulatory standards and safeguards as innovation in the UK pension market creates new structures beyond the legislation’s original intent.