Pensions aspects of acquisitions and mergers

Pensions aspects of acquisitions and mergers

Corporate activity such as acquisitions and mergers can often have a complicated pensions element, particularly where there is a legacy defined benefit scheme involved.

Our experience includes working with Shoosmiths' corporate team, or providing a standalone advice assisting other law firms without a pensions practice.

Our involvement can include due diligence and preparation of appropriate warranties. 

When there is a defined benefit scheme involved, we can look at the regulatory aspects, and in particular whether the transaction is likely to result in any activity by the pension scheme's trustees, or indeed whether there is likely to be any Section 75 employer debt liability. 

Often, such corporate activity will result in Pensions Regulator involvement, and we can assist in any discussions with the Pensions Regulator, including an application for clearance.

Additionally, we can assist you with post-completion activities which may include merging an acquired target's pension scheme into your own arrangements.

Work highlights

  • Advising on acquisition of a company where the target company was the sponsoring employer of a final salary pension scheme, including negotiations around the purchase price
  • TUPE transfer of members who had potential early retirement benefits that would transfer under TUPE
  • Advising the trustees on acquisition of the principal employer by a company and renegotiation of the parent company guarantee and cash injections into the scheme