Use of terms ‘connected’ and ‘associate’ in pensions

Although originally defined for use under the insolvency/bankruptcy framework as set out under the Insolvency Act 1986 and underlying regulations, the concepts of 'association’ and ’connection’ (together with the related concept of 'control’) have increasingly been adopted for use under various aspects of the UK’s pensions legislation.

Examples include:

1. •

   Moral hazard powers—the terms are used under the moral hazard provisions of the Pensions Act 2004 to determine the degree of remoteness of entities from the sponsoring employers of occupational pension schemes and whether such entities are potentially vulnerable to the exercise by the Pensions Regulator of his moral hazard powers, eg the issuing of financial support directions and contribution notices—for further information, see Practice Notes: Contribution notices and Financial support directions

2. •

   Employer-related investments—the terms are used under the employer-related investment legislation in relation to the ability of trustees of occupational pension schemes to enter into dealings with the schemes’ sponsoring employers or parties associated or connected with such entities. Please