The Pensions Regulator

Clearance

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Introduction
About this guidance
Our approach
The effect of a clearance statement
Who is clearance relevant to?
Part I – type A events
Identifying type A events
Employer-related type A events
Scheme-related type A events
Events that are related to each other
Where an event is type A
Considering clearance
Part II – applying for a clearance statement
Who can apply
How to apply
Multiple applicants
Approved withdrawal arrangements and type A events
Regulated apportionment arrangements and type A events
Clearance statements requested
What happens when an application is received?
Timescales for clearance
Enquiries
The effect of a clearance statement
Changes to the circumstances described in an application
Appendix A: Assessing the employer covenant
Appendix B: Contribution notices and financial support directions
Appendix C: Definitions

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Introduction

1. The Pensions Regulator (the ‘regulator’) is the regulatory body for work-based pension schemes in the UK. The Pensions Act 2004 (the ‘Act’) gives the regulator a set of specific objectives, which are: 
   • to protect the benefits of, or in respect of, members of occupational pension schemes; 
   • to reduce the risk of situations arising that may lead to claims for compensation from the Pension Protection Fund (the ‘PPF’); and 
   • to promote, and to improve understanding of, the good administration of work-based pension schemes.
2. 'Clearance' is the term used to describe the voluntary process of obtaining a clearance statement from the regulator. A clearance statement gives assurance that, based on the information provided, the regulator will not use its anti-avoidance powers to issue to the applicants either contribution notices or financial support directions in relation to a defined benefit occupational pension scheme and a particular event. ‘Events’ include transactions, agreements, decisions, other acts and failures to act.
3. A clearance statement will not bind the regulator if circumstances are materially different from the contents of the application.
4. Contribution notices require payment to be made into a scheme, and financial support directions require financial support to be put in place for a scheme. They were introduced by the Act in order to protect the benefits of scheme members and to ensure that pension liabilities are not avoided or unsupported. Further information about these powers can be found in Appendix B.  
5. These powers are only part of the regulator’s approach to ensuring that schemes are properly funded, administered and supported. The regulator also has powers in relation to scheme funding, as well as other powers to protect members’ benefits, such as powers to wind up schemes or to appoint an independent trustee. Further information about these other regulatory powers can be found on our website: About us / Our powers. 
   

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