Updated TPR Guidance On Regulated Apportionment Arrangements

The Pensions Regulator (TPR) has published an update to its guidance on Regulated Apportionment Arrangements (RAAs), replacing its earlier guidance published in 2010 and its subsequent 2017 ‘quick guide'.

An RAA enables an employer facing inevitable insolvency to apportion its liabilities under a defined benefit scheme to another participating employer(s) and cease participation in the scheme, which will then enter the Pension Protection Fund (PPF). There are a number of regulatory requirements to be met including TPR approval and the PPF must not object to it.

The updated TPR guidance, while mostly aligned with TPR's current approach, is more detailed than earlier guidance and places a stronger focus on the criteria needed for RAA approval.