UK Pension Schemes Bill: Potential consequences for lending transactions

16 March 2020

The Pension Schemes Bill is currently making its way through Parliament. The bill introduces significant changes to the UK's existing legislative framework in respect of defined benefit pension schemes. One of the key changes is the introduction of a new criminal offence for anyone engaging in conduct that detrimentally affects in a material way the likelihood of accrued scheme benefits being received. While new defined benefit pension schemes are increasingly rare in the UK, the potential consequences are severe in relation to legacy schemes. The threshold for detrimental conduct is low and the net is cast widely to any person who engages in such conduct.

In this briefing, we consider how the proposed changes may impact lending transactions.

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