Pensions - Articles - Government caves on pension concerns on insolvency changes

 Vikki Massarano, Partner at Arc Pensions Law: "The Government has clearly listened to feedback about the importance of ensuring the PPF and pension schemes have a voice as part of the new insolvency procedures. The detail of the changes is to be set out in regulations, so it is still a case of “watch this space” for how this will actually work, but it appears in principle to take account of the fact that the DB pension scheme is often a significant creditor who needs to be taken into account.

 "There are still a number of questions to be resolved such as how the courts will approach any restructuring plan which has an adverse impact on a pension scheme and what impact a court approved plan would have on the Pension Regulator’s ability to exercise its “moral hazard” powers. Could we see arrangements imposed on pension schemes which restrict their ability to recover amounts from an employer – or in reality would the courts not approve something if the PPF opposed it?"