The Pensions Regulator (Regulator) has issued a statement on the UK’s exit from the European Union. The statement is aimed primarily at trustees of UK occupational defined benefit (DB) schemes and confirms that the Regulator does “not expect the UK’s departure from the European Union (EU) to have a significant effect in respect of the legislative basis under which schemes operate or trustees’ ability to continue to administer their scheme effectively.” The Regulator considers that is the case in both a deal and no deal scenario.

In terms of the steps trustees should be taking to prepare for a no deal scenario, the statement recommends that trustees should, if they have not done so already, review any actions and contingency plans which have been identified in a no deal scenario. The Regulator also stresses the importance of maintaining continuity in respect of the payment of benefits in a no deal scenario. It recommends that trustees familiarise themselves with DWP’s guidance on the payment of occupational pension benefits to EU citizens in the UK and UK nationals in the EU. Broadly, this confirms the DWP’s view that that there is nothing in UK pensions legislation which would prevent trustees of occupational pension schemes from continuing to make payments to UK nationals in the EU in a no deal scenario.

 

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Prior to becoming a professional support lawyer, Sarah was a Senior Associate in the London pensions team advising companies and trustees on all aspects of pensions law. As a professional support lawyer Sarah helps lawyers to keep up to date on key legal developments and ensures that they have the tools which they need to provide top quality advice efficiently and effectively. She has written on a number of different topics for the International Pension & Employee Benefits Law Association and the Pensions Management Institute. Most recently she has co-authored a number of articles on the changing regulatory landscape for defined benefit schemes.

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Chantal is a Partner in the Pensions Department. She has extensive experience advising clients on all aspects of UK pensions law and is recognised as an “Acritas Star” 2018. She also serves on the International Committee of the Association of Pension Lawyers, is a member of the Management Committee and chairs the Personnel Sub-Committee of London Cyrenians Housing Limited, and frequently speaks at seminars and courses on multiple aspects of pension law. Chantal advises companies and trustees on a wide range of legal issues arising from the operation of occupational pension schemes. Her practice focus includes pensions issues arising from outsourcing — including transfers from the public sector — as well as the full range of advisory work for employers and trustees. Chantal has worked on several projects involving the capping of final salary liabilities and securing of final salary benefits.

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