Withdrawal arrangement | Practical Law

Withdrawal arrangement | Practical Law

Withdrawal arrangement

Withdrawal arrangement

Practical Law UK Glossary 9-206-2096 (Approx. 3 pages)

Glossary

Withdrawal arrangement

An arrangement that a participating employer in a defined benefit pension scheme 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 that the employer becomes liable to pay. Primarily, it must provide for the withdrawing employer to pay the basic, lower, amount of the employer debt, and one or more guarantors to guarantee payment of the residual amount.