We represented a global corporate in relation to the restructuring of its UK operations and the impact of this on its UK registered defined benefit scheme.
The scheme is closed to new entrants but still open to the continued accrual of pension benefits for existing members. It has several participating employers, each employing active members. The planned restructuring involved the sale of a significant part of the UK business and operations of the company. This would have resulted in a significant pensions exit debt payable by the company. We advised on a number of options to mitigate the section 75 debt.
After the restructuring, the scheme would still have some active members who were employed in the UK and seconded overseas to group companies spread across the world.
The overall employment strategy was to localise the employment contracts and as a consequence of this cease pension accrual under the UK scheme. We advised on the pensions implications of this exercise.