The TPR believes a scheme is deliberately avoiding their pension obligations and leave the issues to the Pension Protection Fund (PPF) then TPR can act using the following:

• Contribution notices: where there is a deliberate attempt to avoid a statutory debt these direct those involved to pay an amount up to the full statutory debt either to the scheme or to the board of the
• Financial support directions: these require financial support to be put in place for an underfunded scheme where TPR concludes that the sponsoring employer is either a service company or is insufficiently

A clearance procedure is available to employers who wish to confirm that they will not be subject to TPR’s anti-avoidance powers in respect of a transaction. This does not mean that TPR ‘approves’ of the planned transaction, merely that it will not issue contribution notices or financial support directions. This is particularly relevant for those employers considering transactions that are materially detrimental to a defined benefit pension scheme and its members.