Checklist for approval of CVAs involving the Pension Protection Fund


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Restructuring & Insolvency expert
Checklists

Checklist for approval of CVAs involving the Pension Protection Fund


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Restructuring & Insolvency expert

Checklists
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This Checklist sets out guidance to consider when drafting and seeking approval of a company voluntary arrangement (CVA) where the Pension Protection Fund (PPF) are involved. It is based on a guidance note 5 issued by the PPF in 2018 (see PPF Guidance Note 5: CVAs).

When a company which is an employer (or all employers, in the case of a last man standing scheme) lodges a CVA proposal in court, a PPF assessment period will commence. The PPF will acquire the pension trustees’ voting right under section 137 of the Pensions Act 2004 (see Practice Note: The Pension Protection Fund—eligibility and entry).

Essentially, the PPF will normally vote in favour or against a proposal rather than abstain from voting. The PPF is always concerned to ensure that it doesn’t set any precedent that would permit any pension schemes to be weakened where there is a possibility of PPF entry in the foreseeable future (the PPF note that this has happened in many previous CVAs).

The PPF expects that pension trustees

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