Pension issues on corporate transactions

Pension issues in corporate transactions can be complex when a defined benefit (final salary) scheme is involved. Factors to consider include:

  • risks of action by the Pensions Regulator – after the BHS and Carillion insolvencies the Regulator is taking a tougher approach and is expected to be given new powers;
  • penal fines and criminal sanctions announced in the March 2018 White Paper;
  • implications of a share sale – what should buyers and sellers think about;
  • implications of a business sale – what pension rights do and don't pass under TUPE; and
  • pension issues arising from dividend payments, refinancing, internal reorganizations and other non-M&A transactions.

This note outlines the different scenarios and actions for the purchaser depending on whether there is an asset or a share sale and the type of pension provision.

Read more on Pension issues on corporate transactions here.

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