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ARTICLE · 06 FEBRUARY 2024

Key Issues To Consider When A Corporate Insolvency Involves A Defined Benefit Pension Scheme

Weightmans LLP
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The latest Government statistics indicate that Q2 and Q3 2023 saw the greatest number of quarterly insolvencies since Q2 2009.

United KingdomInsolvency/Bankruptcy/Re-Structuring
Oliver Nelson
Oliver Nelson
Mark Poulston
Mark Poulston

The latest Government statistics indicate that Q2 and Q3 2023 saw the greatest number of quarterly insolvencies since Q2 2009.

The rate of corporate insolvencies remains high. The latest Government statistics indicate that Q2 and Q3 2023 saw the greatest number of quarterly insolvencies since Q2 2009 and the highest number of Creditors' Voluntary Liquidations since 1960. The number of compulsory liquidations and administrations increased to levels last seen before the coronavirus pandemic. (Source: Insolvency Service, commentary on company insolvency statistics, 31 October 2023, seasonally adjusted.)

Whilst many companies are struggling, many of their pension funds are in a strong financial position. A recent analysis of FTSE 350 pension funds shows a marked increase in funding levels across company accounts with a near doubling of the level of surplus within defined benefit pension schemes since the start of 2023. (Source: Mercer FTSE 350 analysis, 5 October

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