Government papers: Consultation outcome: The draft Occupational Pension Schemes (Employer Debt) (Amendment) Regulations 2017

The government’s response to the consultation into employer debt within occupational pension schemes has been released. It includes several amendments to the original draft regulations.

The regulations have been developed to introduce a new option that will enable employers in multi-employer pension schemes to defer the requirement to pay an employer debt on ceasing to employ an active member. The deferred debt arrangement will be subject to a condition that the employer retains all their previous responsibilities to the scheme.

The regulations also include separate provisions to address some situations where two successive employment-cessation events occur in respect of the same employer, as well as changes to existing options that are already in place to help employers manage an employer debt.

The Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations 2018 are planned to come into effect on 6 April 2018.