The Pensions Act 2004 includes moral hazard provisions to reduce the risk of pensions schemes falling into the new Pension Protection Fund. The Pension Regulator has the power to issue a contribution notice to say a person is liable to pay the full s75 debt. The s75 debt triggers a statutory debt on an employer when it stops participating in a multi-employer scheme; the debt is a share of any total funding deficiency in the scheme. The power of the Regulator has major implications for employers.
