“It’s every lawyers’ dream to help develop the law, to push to find a way forward for your client that sets a new market standard,” explains Clive Pugh, pensions partner at Burges Salmon. “When we saw what had happened to the Silentnight Pension Scheme, it made us uneasy. Of course so many pensioners and their families suffer financially when parent companies enter into insolvency.”
This is all at a time of fundamental change for pensions, with headline news and government promises of new laws to protect people in retirement. Suddenly pensions are being pushed centre stage.
It is fast emerging that the 10s of £billions at stake across the industry means specialist pensions thinking can add real value for trustees, companies and also for the UK’s macro economy.
“This climate has never been more prevalent as it is in the area of pensions regulation,” says Clive. “Powers are being reviewed, to see if they can work better to avoid the sorry outcomes that we have seen over recent years.”
In the specific matter of Silentnight, the Pensions Regulator issued a second Warning Notice (WN2). In the recent successful judicial review proceedings, WN2 warned of a potential liability to contribution notices in an amount equal to the pension deficit at the material time. The case is still progressing and therefore further comments and the final outcome will be for a later day, however the sums involved are substantial.
“Having spent five years at the regulator, I understand that the full spectrum of regulatory issues is essential to get the appropriate results,” explains Clive. “We still await to see the final result in Silentnight but as is clear from the judicial review, there have been material developments.”
Antony Miller, CEO/Director at 20- 20 Trustees Limited, concludes: “We enjoy working with Clive Pugh of Burges Salmon because he is often able to anticipate our needs, shares a similar ethos and energy, and operates in a commercially pragmatic but robust manner.”