Then there are the challenges peculiar to the winding up of occupational pension schemes, all too familiar to independent trustees and pensions practitioners. As often as not, the past administration of the scheme will have been less than satisfactory, manifesting itself in poor records and consequent difficulties in:
- identifying and quantifying all the scheme's assets and liabilities
- realising the assets and discharging the liabilities
- tracing former members and other beneficiaries
- agreeing and settling contracted-out liabilities
- perfecting documentation
- the list goes on - and all within an increasingly stringent legislative and regulatory regime.
Probis has specialised in the administrative aspects of scheme wind-ups for over fifteen years. Recognising the demands involved, ours is an analytical approach and thoroughness the essential ingredient. We leave no stone unturned in investigating all available records and in reconciling the membership, contributions and benefit settlement history of the scheme.
Recent legislation and the introduction of the PPF has meant a reduction in the number of defined benefit schemes entering wind up. However, defined contribution schemes are continuing to wind up, particularly through the sponsoring employer entering receivership or liquidation. Winding up this type of scheme can have added complications, not least where contribution allocations have not been carried out correctly. With our particular skills set, we are well-versed in the accounting disciplines and approach best employed in dealing with such situations.