Non-associated multi-employer schemes for charities

Rather than running their own scheme, a number of employers participate in non-associated multi-employer arrangements.

These arrangements are often on a centralised basis with no segregation of assets or liabilities. An example of such an arrangement is the Pensions Trust.

The challenges

Participating in a non-associated multi-employer arrangement with non-associated employers can lead to an interesting set of issues. For example, managing any orphan liabilities that have been built up and dealing with the lack of control over issues like funding, investment and contributions. It is important that the pension costs are properly understood and managed by all employers including charities to prevent them becoming a major risk to future activities.

The services we can provide to employers in these arrangements include:

• helping organisations to understand their obligations and risks within these arrangements;
• advice on options to manage these obligations;
• assistance with leaving these arrangements, including advice on the withdrawal debt payable on exit;
• reviewing ongoing DC arrangements compared with alternatives in the market; and
• assistance with employee communications and consultations in relation to these arrangements.

We advise a number of clients and each employer and arrangement requires a different level of support and assistance - the work we have carried out for these employers has ranged from several hundred pounds upwards.

As a result of our experience we are well placed to help employers who participate in non-associated multi-employer pension arrangements. 

Significant experience

We have advised a number of employers in The Pensions Trust including the following sections:

• CARE Scheme;
• Growth Plan;
• Independent Schools Pension Scheme;
• Scottish Housing Associations’ Pension Scheme (SHAPS); and
• Social Housing Pension Scheme (SHPS).

We have also advised employers who participate in other non-associated multi-employer pension arrangements such as the Merchant Navy Officers Pension Fund (MNOPF) and the Milk Pension Fund.