Companies: Mergers and Takeovers

(asked on 14th September 2017) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will bring forward legislative proposals to require companies with a deficit on their defined benefit pension scheme to seek the approval of the Pensions Regulator before agreeing to any merger or takeover.


Answered by
Guy Opperman Portrait
Guy Opperman
Parliamentary Under-Secretary (Department for Transport)
This question was answered on 9th October 2017

Our Green Paper: Security and Sustainability in Defined Benefit Schemes looked at a number of potential measures to further protect DB schemes – including introducing a system for compulsory clearance by the Regulator for certain corporate transactions and a requirement for employers to consult with trustees before paying dividends where the scheme is underfunded.

We are currently analysing the feedback received and will publish a White Paper in winter. Any future changes to legislation need to be considered carefully against the need to ensure appropriate protections for members, the impact on business and the wider economy.

Reticulating Splines