PPF publishes refreshed guidance for restructuring & insolvency professionals

18 Aug 2016 | 2 min read

The Pension Protection Fund (PPF) has updated its restructuring principles guidance and its general guidance for restructuring & insolvency professionals. The guidance documents set out the criteria that should be incorporated in any proposals made in respect of a sponsoring employer suffering an insolvency event and provide information on the roles and responsibilities of insolvency practitioners throughout the PPF assessment process.

In order to ensure employers do not ‘dump’ schemes in the PPF, the organisation works closely with The Pensions Regulator to ensure any scheme that enters the PPF is the subject of an actual or inevitable employer insolvency.

The PPF has updated the following guidance documents:

The PPF Approach to Employer Restructuring

This gives an overview of how and why the PPF enters restructuring and rescue deals and summarises the principles the PPF uses to make its decisions.

General Guidance for Restructuring & Insolvency Professionals

This gives general guidance on the action to be taken following an insolvency event. It also explains the role of the PPF in restructurings & insolvencies and how to deal with pensioners and employees.

The documents set out the criteria that should be incorporated in any proposals made in respect of a sponsoring employer suffering an insolvency event. The PPF is not obliged to consider a restructuring proposal, and to do so, the criteria must be met. The documents also provide information on the roles and responsibilities of insolvency practitioners throughout the PPF assessment process.

Malcolm Weir, Head of Restructuring & Insolvency at the PPF, said:

Regulated Apportionment Arrangements are rare and we do not agree to them lightly. We will only support such proposals if they provide a significantly better return for the pension scheme than it would receive through the normal insolvency process. These arrangements can sometimes be controversial, so we feel it is important that people have a better understanding about our approach to them.

The updated guidance documents can be found on the PPF's website here.

Further Reading

If you are a LexisPSL subscriber, click the links below for further information:

What happens to a pension scheme on a company’s insolvency?

The Pension Protection Fund—eligibility and entry

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First published on LexisPSL Restructuring and Insolvency

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