09 May 2019 | 03:10 pm | 1 min. read
International law firm Pinsent Masons has found that proposed new rules, requiring employers with Defined Benefit (DB) pension schemes to send a Declaration of Intent (DOI) in advance of a wide range of corporate activities, could result in crippling fines for basic activities, such as a discussion over coffee between contracting parties.
The firm has produced a short report analysing this reform and bringing together views from those who would be affected, including employers' representatives and trade unions and the pensions industry.
Under new proposals from the UK government, aimed at strengthening the Pensions Regulator’s powers, all employers with DB schemes will be required to send a DOI to the scheme trustees and the Regulator in advance of a wide range of corporate activities. The DOI will need to set out the impact of the transaction on the DB scheme and how any risks will be mitigated. Failure to comply leaves employers with DB schemes open to fines of up to £1 million.
An existing framework requires certain events to be reported to the Regulator. However, this will be expanded to include the transactions that trigger a DOI, including the sale of a controlling interest in the sponsoring employer, the sale of the employer's business or assets, and the granting of security in priority to scheme debt.
Isabel Nurse-Marsh, Head of Pensions Litigation at Pinsent Masons said, "With announcements of a potential seven year jail sentence for recklessly endangering a pension scheme gripping everyone's attention, the possible impact of the new DOI measure seems to have fallen under the radar.
"However, with over 5,000 DB schemes in the UK, the potential impact on business deals is considerable. The requirement for a DOI could lead to delays in transactions, affect the sustainability of employers supporting DB schemes and expose employers to hefty fines.
"With the full details of this regime not yet finalised it is difficult to predict exactly what the impact will be. The final design will be crucial in ensuring a balance between protecting schemes when a significant transaction is on the horizon, and not stifling business activity. We hope that TPR is able to create a framework that helps to negate some of the potential pitfalls."
Multinational law firm Pinsent Masons has advised Tokai Carbon Co., Ltd. (“Tokai Carbon”) on the sale of its German subsidiary TOKAI ERFTCARBON GmbH (“TEG”), to Lenbach Equity Opportunities III. GmbH & Co. KG, which is exclusively advised by DUBAG Investment Advisory GmbH (“DUBAG”).
Multinational law firm Pinsent Masons has advised the shareholders of independent financial advisory and wealth management firm Shackleton, including the private equity buy-and-build specialist Sovereign Capital Partners, on the exit to Lee Equity Partners.
Multinational law firm Pinsent Masons has been announced by Business in the Community as one of The Times Top 50 Employers for Gender Equality in 2025. This year’s list marks the sixth time that the firm has been recognised for its commitment to embedding gender equality into all levels of the organisation.
Multinational law firm Pinsent Masons has advised Tokai Carbon Co., Ltd. (“Tokai Carbon”) on the sale of its German subsidiary TOKAI ERFTCARBON GmbH (“TEG”), to Lenbach Equity Opportunities III. GmbH & Co. KG, which is exclusively advised by DUBAG Investment Advisory GmbH (“DUBAG”).
Multinational law firm Pinsent Masons has advised the shareholders of independent financial advisory and wealth management firm Shackleton, including the private equity buy-and-build specialist Sovereign Capital Partners, on the exit to Lee Equity Partners.
Multinational law firm Pinsent Masons has been announced by Business in the Community as one of The Times Top 50 Employers for Gender Equality in 2025. This year’s list marks the sixth time that the firm has been recognised for its commitment to embedding gender equality into all levels of the organisation.
For all media enquiries, including arranging an interview with one of our spokespeople, please contact the press office on
Location contacts
Europe: [email protected]
Asia: [email protected]
Middle East: [email protected]
Australia: [email protected]