NAPF response to consultation on employer debt and section 75 reform
11 August 2011
The National Association of Pension Funds (NAPF) today published its response to the consultation on Employer Debt and Section 75 reform.
Commenting on the proposed Flexible Apportionment Arrangements, Darren Philp, NAPF Director of Policy, said:
"The proposals offer a simpler and more practical approach than the current rules, and this is a reform that pension funds are broadly supportive of.
"Trustees should be firmly in charge of approving Flexible Apportionment Arrangements, but they are likely to find operating the new funding test a real challenge. The DWP needs to recognise that clear guidance is a must.
"Extending the grace period before a debt is triggered from 12 to 36 months is welcome. However, we think more flexibility would be provided if the notice period was lengthened from one month to six, instead of the two proposed by the DWP.”
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Notes to editors:
1.The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Contacts:
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]