The Pensions Regulator

Clearance

.

.

.

Identifying type A events

25. Employers and trustees should assess whether any detrimental event is a type A event.
26. A detrimental event, including any type A event, will have one or more of the following effects, either immediately or in the future:
    • it prevents the recovery of the whole or any part of the employer’s s75 debt;
    • it prevents the employer’s s75 debt becoming due or compromises the s75 debt;
    • it reduces the amount of the employer’s s75 debt which would otherwise become due; or
    • it weakens the employer covenant, because:
      • it has an impact on the ability of the employer to meet its ongoing funding commitments to the scheme, or an impact on those commitments; or
      • it reduces the dividend that would be available to the scheme in the event of employer insolvency.
27. In order to assess whether an event is a type A event, employers and trustees must determine whether the event is an employer-related event or a scheme-related event.
28. An employer-related event will only be a type A event if the scheme has a relevant deficit. See paragraphs 48 to 55.
29. If a scheme-related event is detrimental to the ability of a scheme to meet its liabilities, or directly detrimental to members’ benefits, and if the detriment is material, then it will be a type A event whether or not the scheme has a relevant deficit.
30. When assessing any event, employers and trustees should also refer to the guidance on the 'Abandonment of defined benefit pension schemes', on our website: Regulatory guidance / Subject listing / Abandonment.
    

.

.

.