In our webinar on 16 September we considered the Pension Schemes Act 2021 (“PSA”) in light of our practical experience on the Silentnight case, other Pensions Regulator (“TPR”) investigations and recent Pension Covenant Advisory projects. We also demonstrated our new Burges Salmon PSA Triage Tool. A link to the recording of the webinar will be available on our website soon and the Triage Tool can be requested here: Burges Salmon launches interactive pensions tool (burges-salmon.com)

Some key takeaway points from the webinar are:

It is crucial for the statutory defences to the new grounds for a contribution notice in the PSA to evidence that advance consideration had been given. Trustees should keep good records of communications with the employer and TPR.

In the Silentnight case, TPR considered that the argument put forward by the trustees (supported by Burges Salmon) had merit and that it was appropriate to seek a contribution notice for the amount of the deficit of the scheme on a buy-out basis at the time of the employers’ administration, rather than the lower sum that reflected the impact of the undervalue on the scheme’s recovery and the investment returns the scheme would have benefited from on that amount.

With conflicts of interest, you must understand the position of all stakeholders including the regulators. Future fees absolutely should not drive current behaviour.

In the Silentnight FRC case, the Tribunal considered the Respondents’ Misconduct in respect of advancing or associating themselves with untrue, misleading or incomplete statements to the PPF, TPR, and the Trustees.

In light of the new PSA, trustees should commit to a closer monitoring of employers and seek access to more information. Trustees need to engage at an early stage, be more proactive when issues arise and have greater involvement in key events.

If you have any questions about anything that was discussed in the webinar, please do get in touch with Clive Pugh.