Corporate Transactions
The pensions aspects of corporate transactions are becoming more important than ever. Both buyer and seller need to be aware of their responsibilities and possible liabilities in the light of both current and proposed UK and EU legislation. We can help to identify potential issues at an early stage.
Working alongside our clients, we can provide commercially effective solutions to a wide range of transaction-led issues including how to:
- deal with deficits and surpluses;
- understand the implications of TUPE; and
- deal with 'moral hazard' risks
We can:
- investigate existing pension arrangements and identify any liabilities which may affect the sale or purchase price;
- request full disclosure of all relevant pension arrangements;
- consider the proposed future pension arrangements and what problems there may be in connection with them;
- advise on any warranties and indemnities to be given;
- advise on managing changes in pension arrangements and communicating these to pension scheme members and trustees; and
- advise on the appointment and co-ordination of other professional advisers
Scheme trustees also have a role to play during transactions. The Pensions Regulator has wide powers to tackle risks to pension scheme members' benefits.
Trustees of pension schemes need to monitor corporate activity and take advice on whether the activity will affect the security of the scheme.
We can assist the trustees to consider the effect of corporate activity on the employer's willingness and ability to maintain existing pension arrangements and on what action trustees should take if they have any concerns.
Clearance from The Pensions Regulator ("TPR") can give comfort to trustees and employers that any corporate activity will not lead to TPR exercising its 'moral hazard' powers. We can advise on whether to seek clearance from TPR and we can help with clearance applications.
We can also work with insolvency practitioners to help them to understand their powers and duties in relation to pension schemes.