From The Pensions Regulator:
The Pensions Regulator has today published its draft
The material detriment test, introduced by the Pensions Act 2008, is a new test for contribution notices, based on whether a sponsor’s actions or failures have a materially detrimental effect on the likelihood of members receiving their benefits.
The code, which targets the new material detriment test, sets out the circumstances in which the regulator expects to use this new power. It aims to provide greater certainty on its use to help trustees, employers and other related parties to understand the practical application of the new ground for contribution notices.
The new material detriment test will come into effect on commencement of the code of practice. The code will only relate to the new ground for contribution notices and has no impact on the other grounds, powers, clearance or scheme funding, which will continue…