Pensions, insolvency and the Lehman legacy

30 January 2014

The Supreme Court ruled six months ago that liabilities under financial support directions (FSDs) issued by the Pensions Regulator after the start of an insolvent administration do not have "super-priority" status, meaning that the pension scheme isn't promoted ahead of other unsecured creditors.

This note considers how a recent decision of the High Court regarding the aggregate sum that targeted entities may be required to pay for non-compliance with "post-administration" FSDs may enable the pension scheme to obtain a different form of preferred status through the back door.