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ARTICLE · 06 DECEMBER 2020

Brexit And Pensions - Be Ready To Act

Gowling WLG
Gowling WLG
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Gowling WLG

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At 11pm on 31 January 2020, the UK ceased to be a member of the European Union.

United KingdomEmployment and HR

At 11pm on 31 January 2020, the UK ceased to be a member of the European Union (EU). A legal and regulatory 'cliff edge' was avoided at this point because the UK entered into a transition period. During the transition period the UK was, for most purposes, treated as though it were still a member of the EU. The transition period will come to an end at 11pm on 31 December 2020.

With the end of the transition period rapidly approaching, trustees of defined benefit (DB) and defined contribution (DC) pension schemes must get ready to deal with the consequences of the change in the UK's relationship with the EU. However there is still a great deal of uncertainty as to what that relationship will be. It is unlikely that a deal between the UK and the EU will be agreed until the last minute. It is also possible that no deal will be reached.

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