The trustees have confirmed to the scheme actuary that it is their intention, if the scheme winds up and subject to their fiduciary duties at the time of wind-up, to secure [specify level of pensions in payment to which trustees’ intention relates] through the purchase of sovereign annuities. This will include the benefits payable to or in respect of persons who have attained normal pensionable age at the date of wind-up even if those benefits are not yet in payment.
This confirmation may allow the scheme actuary to place a lower value on pensions in payment than would otherwise be the case when assessing whether or not the scheme satisfies the statutory minimum funding standard set out in the Pensions Act.
If the scheme were to wind-up and pensions in payment secured using sovereign annuities, payment of any pension so secured would be dependent upon certain EU Member States fulfilling their payment obligations under the terms of bond(s) which they have issued and not varying the te
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