The Regulator’s expanded powers, effective 1 October 2021, reinforce the need for all relevant parties to give proper consideration to the effect of corporate transactions, refinancings, restructurings and other activity on UK defined benefit pension plans.

The UK Pensions Regulator’s (the Regulator) statutory moral hazard powers are to be materially expanded by the UK government with effect from 1 October 2021. This is expected to result in the Regulator taking a more interventionist and proactive approach in relation to any corporate activity which is or could be detrimental to a UK defined benefit pension plan.