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Revised Employer Debt Regulations Show Potential

18 March 2008
18 March 2008 - After a thorough consultation and more than a slight delay the Department for Work and Pensions has finally published the revised employer debt Regulations.

The Regulations amend the law as to employer debts under S.75 of the Pensions Act 1995. The amending regulations will come into force on 6 April 2008.

Commenting on the Regulations Mayer Brown's London Head of Pensions, Anna Rogers said: "The amending Regulations are certainly good news in several important respects. They strip away some of the red tape as to the calculation of employer debts which has to be a good thing. I'm not sure why we had to wait so long for them. " She adds: "They also make it easier for the Regulator to give its blessing to Approved Withdrawal Arrangements, and introduce a new, simpler, alternative - Withdrawal Arrangements - allowing trustees and employers to bypass the Regulator altogether in suitable cases." She concludes: "A note of caution should however also be sounded. It is essential for trustees and employers to take advice about whether they can rely on existing apportionment rules in cases where employer debts are triggered after 6 April 2008."

For further information:
Anna Rogers
Partner, London
+ 44 20 7782 8872

Jo Natabus
Marketing Manager, London
+44 20 7782 8842

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