Third Time Unlucky

Last month the Pensions Regulator was finally able to publish its decision on the Desmond & Sons case.

The delay in the Pensions Regulator's publication was caused by a confidentiality clause in relation to the Upper Tribunal's judgment. Once that restriction was lifted and the Upper Tribunal published its conclusion earlier last month, the Pensions Regulator was also free to publish its own decision.

In February 2004 Desmond & Sons became aware that its sole customer, Marks & Spencer, was planning to terminate their relationship. Following this news Desmond & Sons entered into a members' voluntary liquidation. The Regulator believed the aim of the reorganisation was to exploit a loophole because it allowed the employer to be treated as an insolvent company, meaning its section 75 debt would be calculated on the less generous MFR basis. Indeed, there was no deficit on the MFR basis at that time and the employer paid just £4m into the scheme in May 2004, in