Pension Protection Fund: reapportioning employer debt does not make scheme ineligible | Practical Law
In L and others v M Limited, the High Court has held that the trustees of a defined benefit scheme may enter into an agreement with the scheme's participating employers without making the scheme ineligible for entry to the Pension Protection Fund. The agreement was part of a wider restructuring plan designed to avoid insolvency and release the company from its financial obligations to the scheme. The plan involved the reapportionment of the deficit in the scheme between M Limited and a newly established company. That company would become insolvent, thereby triggering the winding-up of the scheme.