New contribution notice powers under the Pension Schemes Act 2021

Since 6 April 2005, the Pensions Regulator has been able to issue contribution notices (CNs) and financial support directions (FSDs) as a means of imposing funding liabilities on any employer who sponsors a defined benefit pension scheme, and any person connected or associated with the employer. In the case of a CN, these potential targets include individuals as well as companies.

The Pension Schemes Act 2021 includes several changes relating to CNs. These provisions are not yet in force but are expected to come into force in October. Potential targets should familiarise themselves with the changes.

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