Avoiding delays in winding up pension schemes consultation (PDF ...
Avoiding delays in winding up pension schemes consultation (PDF ...
Avoiding delays in winding up pension schemes consultation (PDF ...
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Introduction<br />
The Pensions Regulator (‘the regulator’), the Pension Protection Fund (PPF)<br />
and the Department for Work and Pensions <strong>in</strong> respect of the F<strong>in</strong>ancial<br />
Assistance Scheme (FAS) fully s<strong>up</strong>port Government aims of reduc<strong>in</strong>g the time<br />
occ<strong>up</strong>ational <strong>pension</strong> <strong>schemes</strong> take to w<strong>in</strong>d <strong>up</strong> or pass through a Pension<br />
Protection Fund (PPF) assessment period, as this will:<br />
• ensure scheme assets are maximised, and levy payments reduced, by<br />
not <strong>in</strong>curr<strong>in</strong>g the costs of lengthy w<strong>in</strong>d-<strong>up</strong> or passage through a PPF<br />
assessment period; and<br />
• provide members with certa<strong>in</strong>ty from the earliest opportunity, for<br />
<strong>schemes</strong> w<strong>in</strong>d<strong>in</strong>g <strong>up</strong>, about the benefits they will receive.<br />
References to <strong>schemes</strong> <strong>in</strong> w<strong>in</strong>d-<strong>up</strong> <strong>in</strong>clude those qualify<strong>in</strong>g for FAS.<br />
All three organisations are aware of the importance of a unified voice. We are<br />
committed to work<strong>in</strong>g together to ensure our approach to common issues is<br />
aligned, and s<strong>up</strong>ports parties <strong>in</strong>volved <strong>in</strong> the management and adm<strong>in</strong>istration<br />
of <strong>schemes</strong> dur<strong>in</strong>g w<strong>in</strong>d-<strong>up</strong>, apply<strong>in</strong>g for assistance through FAS or pass<strong>in</strong>g<br />
through a PPF assessment period.<br />
To this end we have produced a tripartite regulatory statement. This sets out<br />
our respective expectations; how we will provide s<strong>up</strong>port; and when and how<br />
we will <strong>in</strong>tervene.<br />
We also recognise the value to parties of accessible, practical guidance to<br />
help them achieve the Government’s aims. While some parties already<br />
demonstrate good practice <strong>in</strong> w<strong>in</strong>d<strong>in</strong>g <strong>up</strong> <strong>pension</strong> <strong>schemes</strong> and complet<strong>in</strong>g<br />
the PPF assessment period, we are acutely aware that too many take a<br />
disproportionate amount of time to complete the activities <strong>in</strong>volved. Our aim is<br />
to assist parties <strong>in</strong> m<strong>in</strong>imis<strong>in</strong>g such <strong>delays</strong>.<br />
The regulator has therefore produced guidance which provides good practice<br />
guidel<strong>in</strong>es on the common, more difficult issues that may cause delay dur<strong>in</strong>g<br />
the w<strong>in</strong>d-<strong>up</strong> process. This has been developed after seek<strong>in</strong>g views from<br />
<strong>in</strong>dustry on the issues where guidance from the regulator was considered to<br />
be most helpful. The regulator’s good practice guidance is attached as part of<br />
this <strong>consultation</strong>.<br />
The PPF is currently develop<strong>in</strong>g good practice guidance tailored specifically to<br />
cover <strong>schemes</strong> <strong>in</strong> a PPF assessment period, and this will be published <strong>in</strong> due<br />
course.<br />
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