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ARTICLE · 10 AUGUST 2020

Bernard Matthews - UK Pensions Regulator Issues Regulatory Intervention Report

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The UK Pensions Regulator (tPR) has published a regulatory intervention report explaining its decision not to exercise its anti-avoidance powers in connection with the pre-pack administration...

United KingdomEmployment and HR

The UK Pensions Regulator (tPR) has published a regulatory intervention report explaining its decision not to exercise its anti-avoidance powers in connection with the pre-pack administration of Bernard Matthews Limited (BML) and the entry of the Bernard Matthews Limited pension scheme (BML scheme) into the PPF.

The report focusses on the propriety of not issuing a contribution notice (CN) to Rutland Partners LLP (Rutland), a private equity investor in BML. Under a CN, an employer or a company/individual associated with or connected to the employer, can be ordered to make a payment to a pension scheme. There are two grounds on which a CN can be issued, the "material detriment test" was the focus in this case, requiring an act or failure to act to have had a materially detrimental effect on the likelihood of accrued scheme benefits being received. In addition to satisfying this ground, tPR can only issue a CN if it believes it is reasonable to do so, having regard to

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