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ARTICLE · 25 APRIL 2008

Proposed Extension Of Pensions Regulator´s Powers

The Pensions Act 2004 gives the Regulator various 'anti-avoidance' powers, which include the powers to issue contribution notices and financial support directions with a view to supporting defined benefit pension schemes and reducing calls on the Pension Protection Fund.

United KingdomEmployment and HR

Originally published 24 April 2008

Last Monday, the Department for Work and Pensions announced an eight-week consultation on extending the powers of the Pensions Regulator.

The Pensions Act 2004 gives the Regulator various 'anti-avoidance' powers, which include the powers to issue contribution notices and financial support directions with a view to supporting defined benefit pension schemes and reducing calls on the Pension Protection Fund.

Contribution notices can require contributions to be paid to a pension scheme if there is or has been behaviour aimed at avoiding a debt payable to a pension scheme or preventing such a debt becoming due: this could extend to what some may view as innocuous corporate activities (e.g. returns of capital).

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