Halcrow: Latest restructuring of a pension scheme

22 July 2016

The Pensions Regulator has approved a Regulated Apportionment Arrangement (RAA) to restructure the Halcrow Pension Scheme. The restructure will allow the scheme to be split so that consenting members can transfer to a new scheme with reduced benefits while the remainder transfer to the Pension Protection Fund.

The Halcrow case shows that the Pensions Regulator and the Pension Protection Fund may, in appropriate circumstances agree to release a company from its pension liabilities and facilitate benefit reductions provided some new financial support is made available.

This publication analyses the RAA structure, and looks at the potential impact of recent events surrounding the BHS and British Steel Pension Schemes, which have put pension restructuring in the spotlight.