Insolvency and restructuring of employers – issues for trustees of defined benefit pension schemes
September 2012Pensions Alert
The credit crunch caused problems for businesses at the same time as the value of pension scheme assets plunged, adding ballooning defined benefit pension deficits to the woes of struggling companies.
Company insolvencies, and attempts at restructuring to avoid insolvencies, can have a significant impact on the pension schemes sponsored by those companies. The pensions issues can also act as a significant obstacle to restructuring.
This note considers the issues that face trustees of defined benefit pension schemes in such circumstances. It does not, however, give any detail on entry into the Pension Protection Fund (the "PPF").