11 February 2021 saw the enactment of the Pension Scheme Act 2021 and was "a historic day for UK pensions", according to Pensions Minister, Guy Opperman. With commentators describing the Act as a big shake-up of UK pensions, the first in our series of Pension Scheme Act 2021 flyers explains how it will affect business operations and corporate activity.

The Act gives the Pensions Regulator new powers which have the potential to impact on a whole range of corporate activity. This includes mergers and acquisitions, payment of a special dividend to shareholders and internal restructurings, particularly in a distressed context. The new powers build on the current "moral hazard" powers of the Regulator, with the aim of making it "tougher and quicker", extending its reach beyond persons associated with or connected to a scheme sponsor to third parties, such as insolvency practitioners, financial institutions and professional advisers. 

A new regime of criminal sanctions and increased civil penalties (of up to £1 million) will enforce the Regulator's powers and it will have greater information-gathering powers and knowledge through a strengthened notification regime.

Please click here to download the flyer.

Please get in touch if you would like to know more about how the new powers could impact you or any planned corporate activity.