Last summer the DWP consulted on a new option for dealing with a debt arising when an employer leaves* a multi-employer occupational pension scheme, particularly to assist in corporate restructurings. The proposed innovation, termed a 'flexible apportionment arrangement', is the principal subject of a new set of regs laid today.

* Technically, when an "employment-cessation event" occurs, ie when an employer no longer employs any active members of the pension scheme, whilst other employers still employ active members.

The Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations 2011 (SI 2011/1793), coming into force on 27 January 2012, are the outcome of a consultation last summer (see Aries article). The Regs are accompanied by a detailed Explanatory Memorandum. Simultaneously the DWP has published an official Response to the consultation, which describes the main changes which have been made to the draft regs.

This is the twelfth set of amendments which have been made in six years to The Occupational Pension Schemes (Employer Debt) Regulations 2005 (SI 2005/678). Commenting on this, one respondent to the consultation proposed the regs should be consolidated, as they had become so difficult to use. In the consultation document, the Government itself said that its approach was to control and reduce the burden of regulation. The response to this suggestion is therefore interesting:

"The Government accepts that some pensions legislation would benefit from consolidation in due course. However most users of pensions legislation are pensions professionals who will have access to their own online resource materials. In addition the Department for Work and Pensions publishes the "Blue Volumes" which can be accessed by members of the public. The Blue Volumes contain the legislation for which the Department is responsible. The legislation is presented in a consolidated form and is updated regularly via this web link.