The Pensions Regulator has issued Guidance to trustees of defined benefit pension schemes reminding them of the importance of identifying their statutory employers.
The Guidance, entitled "Identifying your statutory employer" reminds trustees that certain employers, who may be the scheme's sponsoring employer, or even an employer with an ongoing funding obligation, may not be the statutory employer for the purposes of PPF entry or Section 75 debts. The guidance reminds trustees that from November 2011 they will be under a legal obligation to notify the Regulator of the identity of all their scheme's statutory employers. This will therefore require trustees to have investigated their own scheme and to have taken legal advice where necessary.
The issue of who is a statutory employer under the various arms of pensions legislation (PPF, funding and discontinuance) can be quite complex. However, the Regulator is right that trustees need to know who their statutory employers are so that they can monitor both their covenants and associated corporate activity.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.