New regulations for Occupational Pension Schemes: increase the period of grace to 36 months

Amendments to the Employer Debt Regulations (the Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations 2011) came into force on 27 January 2012, which contain provisions in relation to section 75 debts.

Regulation 9 extends the period in which an employer can employ no active members in its pension scheme without becoming liable to pay its pensions debt (the period of grace). This allows trustees of the scheme to extend the existing 12 month period to 36 months. Also the period in which an employer must give notice to the trustees that it has ceased to employ any active members in the scheme has increased from one month to two months.

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