A few thoughts on tPR this week and it’s decision to reject the Recovery Plan put forward by Uniq and the scheme Trustees. The proposal in and of itself was not really that remarkable. But clearly tPR saw something in it that they didn’t like – probably the 3 year contibution holiday – and told them to go back to the drawing board. Uniq are now saying that they will have to raise more capital in order to pay off the £400m plus deficit. Not easy when you’re only making £4m pa profit. The difficulty in all this is that since the pension scheme is the firms’ largest creditor, any equity/debt swap deal, (which is almost the only thing left on the table) will mean the trustees potentially commiting a criminal offence in that this will breach the rules on self investment. The law limits trustees to no more that a 5% stake in the Principal Employer’s business. The prosecutor for those offences would be …yup, you guessed it…tPR!!
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The Grass is Always Greener
I have had some cause recently to consider the position of those fortunate enough to be earning £150,000 or more.
After putting aside all thoughts of jealousy, it began to occur to me that maybe there are some downsides to having very large…er…assets!
The Government has of course already announced a new 50% tax rate for high earners, heralding the departure from these shores of various D list celebrities for which my sympathy rating is Zero
Jennie advises large multi-employer schemes as well as smaller single employer arrangements and has wide experience of both Defined Contribution and Defined Benefit schemes. Jennie qualified in 1986 originally as a criminal prosecutor. She sits as a Magistrate in her local justice area and is an Approved Chairman and Deputy Chair of the Bench Training and Development Committee. Jennie was formerly Legal Director of the Occupational Pensions Regulatory Authority. When her busy practice allows, Jennie likes to indulge her passion for travelling. To consult Jennie on any corporate Pensions matter, please call her on +44 (0)20 7749 2700 or send her an email by clicking below: