0370 270 6000

Re Uniq plc – hopefully not unique!

1 April 2011

The Uniq plc case opens a door to a brighter future for employers sponsoring defined benefit schemes facing large deficits.

In this recent case the High Court approved the ground-breaking arrangement of a pension deficit for equity swap. This decision could pave the way for other employers looking to manage their defined benefit pension liabilities.

Whilst this may not be a cure for all, it certainly is a sound beginning and will no doubt be explored by many employers wanting to be released from their financial obligations to their defined benefit scheme and avoid insolvency.

By virtue of a regulated apportionment arrangement and a complex restructuring involving the employers, pension scheme trustees and the Pension Protection Fund (PPF), Uniq plc has been released from its employer pension debt liability in exchange for giving the trustees a large stake in the company. The shareholding is then held on charitable trust under a new corporate entity, which has entered administration with the pension scheme entering a PPF assessment period.

Related opinions

Bill to establish an “Office of the Whistleblower”

Baroness Kramer has now introduced the Protection of Whistleblowing Bill as a Private Members’ Bill, starting in the House of Lords.

View blog

New mothers suffer a cumulative loss of income of £66,434 over the following decade

Independent think-tank, the Social Market Foundation (“SMF”), has launched a cross-party parliamentary commission on childcare and its implications for mothers.

View blog

New rules for Fit Notes

Where employees are absent from work due to sickness for more than 7 days, they need to provide reasonable medical evidence in respect of that absence for statutory sick pay purposes – this is most frequently satisfied through the provision of a Statement of Fitness for Work, otherwise known as a Fit Note.

View blog

80% hours for 100% pay? That’ll do nicely

As has been widely reported this week, some 3,000 UK workers are taking part in a six month trial to assess the viability of a four-day working week without any reduction in their normal pay.

View blog

Mailing list sign up

Select which mailings you would like to receive from us.

Sign up