Following a consultation held earlier this year, the Pensions Regulator (TPR) has published its latest guidance which covers the use of the six available statutory cessation mechanisms for reducing or avoiding employer debts in multi-employer defined benefit schemes. These are scheme apportionment arrangements, withdrawal arrangements, the restructuring test, the de minimis restructuring test, approved withdrawal arrangements and regulated apportionment arrangements (SCMs). The guidance applies to employers which cease to participate in multi-employer DB Schemes on and from 6 April 2010. Following the consultation, only minor changes have been made.

The guidance sets out TPR's expectations of both employers and trustees and emphasises that it is essential for trustees to understand fully the implications of an employer's departure from a multi-employer defined benefit scheme and the mechanism under which such an exit may be effected. An explanation of each of the six SCMs has been included. In addition, a table has been provided within the guidance which also summarises the key characteristics of each mechanism and the circumstances in which it may be used. Unfortunately, TPR rejected a suggestion made during the consultation process for specific details to be given in the guidance of the criteria used in authorising approved withdrawal arrangements or regulated apportionment arrangements due to the "individual nature of these arrangements". Equally, a request for a section dealing with the tax implications where one employer pays another employer's debt was rejected.