Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • October 2013
10

Pensions regulator issues 'double counting' warning to DB schemes

Open-access content 28th October 2013

The Pensions Regulator has warned trustees and employers against double counting in multi-employer defined benefit schemes

In a statement, the regulator said it had become 'increasingly apparent that some trustees and employers consider that a payment under a schedule of contributions can settle a section 75 debt'.

Geoff Cruickshank, TPR's interim executive director for DB regulation, said: 'Double counting carries significant risks for schemes and members and it is important that trustees understand these risks and how to avoid them.'

Risks of double counting include: leaving a debt owed to the scheme unpaid, which will have a detrimental impact to scheme assets and member security; potential ineligibility of the scheme for Pension Protection Fund entry; and failing to properly consider the impacts on the 'employer covenant' following an employer departure.

'Where we become aware that double counting has occurred we will raise this with the trustees and expect it to be addressed,' said Cruickshank.

The regulator said legislation requires the 'section 75' debt that is triggered when an employer departs from a multi-employer scheme to be treated as a separate payment from ongoing contributions to repair the pension scheme's deficit under a recovery plan.

In most cases, an employer departing a scheme results in a change to the employer agreement. To avoid double counting, trustees should assess the impact of an employer's departure and deal with the section 75 debt and ongoing funding issues separately.

As such, the regulator is now dealing with a number of cases where 'section 75' debt repayments and ongoing recovery plan payments have been 'double counted', contrary to legislation, the TPR said.

This article appeared in our October 2013 issue of The Actuary.
Click here to view this issue
Filed in:
10
Topics:
Regulation Standards
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Pricing Actuary

London (Central)
£95000 - £120000 per annum + benefits
Reference
118966

Senior Longevity Actuary – Reinsurance

London (Central)
£100,000
Reference
118949

Senior Capital Actuary

London (Central)
£90000 - £110000 per annum + + bonus + benefits
Reference
118965
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200