Approved withdrawal arrangement
An arrangement that a participating employer ( www.practicallaw.com/6-206-1084) in a defined benefit pension scheme ( www.practicallaw.com/0-107-7545) may enter into with the trustees of the scheme when it withdraws from participation. The aim of the arrangement is to reduce the amount of the employer debt ( www.practicallaw.com/0-206-2072) that the employer becomes liable to pay. As with a standard withdrawal arrangement ( www.practicallaw.com/9-206-2096) , the withdrawing employer must pay a share of the employer debt, and one or more guarantors must guarantee payment of the residual amount. However, the share payable by the withdrawing employer may be lower than is permitted under a standard withdrawal arrangement, and for this reason the approval of the Pensions Regulator ( www.practicallaw.com/9-201-5137) is required.