Understanding The Pensions Regulator's New Criminal Powers

There are thankfully relatively few ways you can end up in prison for activities involving occupational pension schemes.  However, the list of possible criminal sanctions has grown over recent weeks with the coming into force of the long-awaited Pension Schemes Act 2021 (2021 Act) which includes two new criminal offences relating to defined benefit pension schemes.

The offences relate to (1) the avoidance of an employer debt and (2) conduct which risks accrued scheme benefits. "Avoidance" of an employer debt includes preventing the recovery or some or all of a debt, stopping the debt becoming due at all, and settling, compromising or otherwise reducing a debt. "Conduct risking accrued benefits" includes doing something which detrimentally and materially affects the likelihood of members receiving their accrued benefits. In both cases, there must be an intention that the relevant act or failure to act would have this effect, and it must be proved that there was