ÀÏ˾»úÎçÒ¹¸£Àû

A key piece of pensions legislation is section 75 (and 75A) of the Pensions Act 1995 (PA 1995) and its underlying legislation, which collectively comprise what is commonly referred to as the ‘Employer debt ±ô±ð²µ¾±²õ±ô²¹³Ù¾±´Ç²Ô’.

Broadly speaking, the employer debt legislation provides that a statutory (non-priority) Debt will be created in respect of an Employer (or employers) participating in a registered defined benefit occupational pension scheme at a time when the scheme is underfunded on the buy-out basis upon the occurrence of one of three triggering events:

1. •

   the scheme commencing wind-up

2. •

   an insolvency event (as defined for the purposes of the legislation) occurring in relation to a participating employer, or

3. •

   in the case of a multi-employer scheme, a participating employer ceasing to employ active members at a time when at least one other employer continues to do so (an ‘employment cessation event’)

The statutory debt created under PA 1995, s 75 (a ‘section 75 debt’ or 'employer debt') is owed by the relevant employer to the pension scheme, and is calculated