Winding up
Winding up
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If a pension scheme providing any defined benefits starts to wind up while an employer is still solvent, the value of members' benefits must be calculated using the cost of buying annuities to secure those benefits.
If the scheme's funds are insufficient to secure benefits on this basis, the shortfall is treated as a debt due from the employer to the trustees.
As an employer, you must ensure that you are aware of the measures introduced in the Pensions Act 2004 that prevent employers from taking action to avoid their liabilities in these circumstances.
Take a look at a summary of our powers, including our powers to act against avoidance of pensions obligations.