The publication of the Pensions (Amendment) Bill 2017 is to be welcomed this week with the aim of preventing solvent companies from walking away and reneging on their pension obligations to their employees.
The Pensions Act 1990 is amended by inserting the following new section after section 48A:
“48AA.(1) A healthy sponsor shall not be allowed to close a defined benefit pension scheme except where the scheme has reached a minimum 90 per cent funding standard.
(2) For the purposes of this section a healthy sponsor means an employer that—
(a) has positive net revenues, or
(b) has a parent company with positive net revenues.”.
A copy of the Bill is available to download here.