Trapped employers - relief any time soon?

18 months after the close of a Government consultation, we still await proposals to reduce the burdens on employers facing debts triggered by the rules of a multi-employer scheme. Pensions expert Colin Greig writes for The Journal of the Law Society of Scotland.

In certain circumstances a deficit in a defined benefit pension scheme can become the basis for a debt on an employer (or former employer) participating in it. In such schemes where there are a number of employers participating (known as multi-employer schemes), special provisions apply such that in certain circumstances a debt can be triggered on an employer where that employer ceases to employ at least one person who is an active member of the scheme, when at least one other relevant employer continues to employ at least one active member of the scheme (referred to as an “employment cessation event”).

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Trapped employers relief any time soon


This information is intended as a general discussion surrounding the topics covered and is for guidance purposes only. It does not constitute legal advice and should not be regarded as a substitute for taking legal advice. DWF is not responsible for any activity undertaken based on this information.

Colin Greig


I have extensive experience of providing clear, practical advice to employers, trustees of pension arrangements, institutions and individuals on a wide range of pensions issues.