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  Pension Schemes Bill - New Clause 4 - Employer Debt: Trusteesâ Discretion
  
  --- MOTION EFFECT ---
  
  @ MP voted aye to allow pension scheme trustees to decide not to pursue employer debt where the employer operated as an unincorporated business and the debt is less than 0.5% of the scheme's liabilities. 
  
  @ MP voted no not to allow pension scheme trustees to decide not to pursue employer debt where the employer operated as an unincorporated business and the debt is less than 0.5% of the scheme's liabilities. 
  
  The majority of MPs voted not to allow pension scheme trustees to decide not to pursue employer debt where the employer operated as an unincorporated business and the debt is less than 0.5% of the scheme's liabilities. 
  
  MPs were considering the Pension Schemes Bill[1]
  
  The proposed new clause rejected in this vote stated:
  
  :(1) The following changes are made to the [https://www.legislation.gov.uk/uksi/2005/678 Occupational Pension Schemes (Employer Debt) Regulations 2005 (SI 2005/678)].
  
  :(2) In regulation 2, in the definition of âscheme apportionment arrangementââ
  
  :(a) in sub-paragraph (f)(ii), after âapplyâ, insert âbut not if the circumstances in paragraph (h) applyâ;
  :
  :(b) at end insertâ
  :
  :â(h) the consent of the remaining employer or employers shall not be required under (f)(ii) above where all of the following conditions applyâ
  :
  :(i) the departing employerâs debt was treated as becoming due prior to the coming into force of this provision; and
  :
  :(ii) the departing employerâs debt was less than 0.5% of the schemeâs overall liabilities, as estimated by the trustees or managers on advice of the scheme actuary, as if the whole scheme had been winding-up at the time the debt was treated as becoming due; and
  :
  :(iii) the employer in question was operating as an unincorporated business during his participation in the scheme; and
  :
  :(iv) the trustees or managers consider that, in the context of the scheme overall, taking into account factors such as the schemeâs assets, liabilities and the trusteesâ or managersâ most recent assessment of the overall employer covenant, there would be no material benefit to the scheme and its members in seeking recovery of the employerâs liability share from the departing employer.â
  :
  :(3) In regulation 9, after paragraph (14B), insert the following new paragraphâ
  :
  :â(14C) Condition L is that a debt was treated as becoming due from him under section 75 of the 1995 Act but is excluded under this Condition becauseâ
  :
  :(a) the employerâs debt was treated as becoming due prior to this Condition coming into force; and
  :
  :(b) the employerâs debt was less than 0.5% of the schemeâs overall liabilities, as estimated by the trustees or managers on advice of the scheme actuary, as if the whole scheme had been winding-up at the time the debt was treated as becoming due; and
  :
  :(c) the employer in question was operating as an unincorporated business during his participation in the scheme; and
  :
  :(d) at or before the applicable time, the trustees or managers have made a determination not to pursue the debt on the grounds that, in the context of the scheme overall, taking into account factors such as the schemeâs assets, liabilities and the trusteesâ or managersâ most recent assessment of the overall employer covenant, seeking recovery represented a disproportionate cost to the scheme and would be of no material benefit to the scheme overall.
  
  The rejected new clause was accompanied by the following explanatory statement from its proposer:
  
  :This new clause would enable pension scheme trustees to exercise discretion not to pursue employer debt following an employerâs exit from a pension scheme where such debt is below a de minimis threshold. This aims to support unincorporated employers who are now retired for business and for whom the current regulation allows no easements.
  
  
  
  * [1] [https://bills.parliament.uk/bills/2526 Parliament's webpage on the Pension Schemes Bill], Parliament.uk
  --- COMMENTS AND NOTES ---
  
  (put thoughts and notes for other researchers here)
  