Consulting Editor Steven Hull is a partner at international law firm Ashurst and leads the London pensions team. He has over 18 years' legal experience of a wide range of pension-related matters in acting for employers and trustees. He has particular expertise in pension scheme reorganisations and mergers, deficit reduction and surplus resolution strategies, changing beneft structures, the pensions aspects of corporate transactions, and dealing with the new legislative regime following the Pensions Act 2004 and Finance Act 2004.

"Deficits are still a reality for some schemes, so this book is essential reading." Ruth Emery Pensions Management (FT Business)"

• Table of contents Preface 5 Steven Hull Ashurst Part 1: History Why are schemes in deficit? 7 Jonathan Seres Sacker & Partners LLP Traditional methods of 19 assessing and dealing with a deficit Stephen Yeo Watson Wyatt Part 2: Alternative methods of deficit reduction Scheme benefit changes 35 Camilla Barry Macfarlanes Career average revalued 45 earnings and other alternatives to final salary Danny Tsang K&L Gates Defined contribution schemes 55 Gary Smith Watson Wyatt Transfers with cash incentives 65 Ian Gault Susanne Wilkins Herbert Smith LLP Escrow accounts 75 Mark Alexander Julian Jones Lane Clark & Peacock LLP Other types of contingent asset 87 Mark Catchpole Stephenson Harwood Sectionalised schemes 97 Penny Cogher Speechly Bircham LLP Part 3: Investment revisited Asset allocation: 105 the drive to bonds Daniel Peters Aon Consulting Part 4: Practical considerations The legal position of 125 employers and trustees Diane Preston Trowers & Hamlins Employment considerations: 137 consultation and discrimination Sally Ling GR Comunications Issues in implementation: 147 communications Sally Ling GR Comunications Part 5: The impact of the Pensions Act 2004 The Pensions Regulator and 157 the Pension Protection Fund Andrew Powell Frances Phillips Taft Hammonds Moving a scheme into the 179 Pension Protection Fund Russell Agius Hewitt Associates The effect of the Pensions 189 Regulator on M&A activity Paul Jagger Hewitt Associates Part 6: Alternative buy-out market The emergence of an 197 alternative buy-out market Kenneth Donaldson Higham Dunnett Shaw plc Part 7: Corporate and scheme governance Directors' duties and 211 conflicts of interest Dana Burstow Allen & Overy LLP The developing role of 219 independent trustees David Archer Pitmans Trustees Limited Part 8: Deficit reductions around the world Canada 229 Mark Newton Heenan Blaikie LLP Germany 239 Christoph Crisolli Kliemt & Vollstadt Ireland 245 Fiona Thornton LK Shields Solicitors United States 251 Robert P Flanagan Mary K Samsa Seyfarth Shaw LLP Part 9: Outlook Future developments 261 Kevin Wesbroom Hewitt Associates About the authors 267

Consulting Editor Steven Hull is a partner at international law firm Ashurst and leads the London pensions team. He has over 18 years' legal experience of a wide range of pension-related matters in acting for employers and trustees. He has particular expertise in pension scheme reorganisations and mergers, deficit reduction and surplus resolution strategies, changing beneft structures, the pensions aspects of corporate transactions, and dealing with the new legislative regime following the Pensions Act 2004 and Finance Act 2004.

"Deficits are still a reality for some schemes, so this book is essential reading." Ruth Emery Pensions Management (FT Business)"

• Table of contents Preface 5 Steven Hull Ashurst Part 1: History Why are schemes in deficit? 7 Jonathan Seres Sacker & Partners LLP Traditional methods of 19 assessing and dealing with a deficit Stephen Yeo Watson Wyatt Part 2: Alternative methods of deficit reduction Scheme benefit changes 35 Camilla Barry Macfarlanes Career average revalued 45 earnings and other alternatives to final salary Danny Tsang K&L Gates Defined contribution schemes 55 Gary Smith Watson Wyatt Transfers with cash incentives 65 Ian Gault Susanne Wilkins Herbert Smith LLP Escrow accounts 75 Mark Alexander Julian Jones Lane Clark & Peacock LLP Other types of contingent asset 87 Mark Catchpole Stephenson Harwood Sectionalised schemes 97 Penny Cogher Speechly Bircham LLP Part 3: Investment revisited Asset allocation: 105 the drive to bonds Daniel Peters Aon Consulting Part 4: Practical considerations The legal position of 125 employers and trustees Diane Preston Trowers & Hamlins Employment considerations: 137 consultation and discrimination Sally Ling GR Comunications Issues in implementation: 147 communications Sally Ling GR Comunications Part 5: The impact of the Pensions Act 2004 The Pensions Regulator and 157 the Pension Protection Fund Andrew Powell Frances Phillips Taft Hammonds Moving a scheme into the 179 Pension Protection Fund Russell Agius Hewitt Associates The effect of the Pensions 189 Regulator on M&A activity Paul Jagger Hewitt Associates Part 6: Alternative buy-out market The emergence of an 197 alternative buy-out market Kenneth Donaldson Higham Dunnett Shaw plc Part 7: Corporate and scheme governance Directors' duties and 211 conflicts of interest Dana Burstow Allen & Overy LLP The developing role of 219 independent trustees David Archer Pitmans Trustees Limited Part 8: Deficit reductions around the world Canada 229 Mark Newton Heenan Blaikie LLP Germany 239 Christoph Crisolli Kliemt & Vollstadt Ireland 245 Fiona Thornton LK Shields Solicitors United States 251 Robert P Flanagan Mary K Samsa Seyfarth Shaw LLP Part 9: Outlook Future developments 261 Kevin Wesbroom Hewitt Associates About the authors 267

Consulting Editor Steven Hull is a partner at international law firm Ashurst and leads the London pensions team. He has over 18 years' legal experience of a wide range of pension-related matters in acting for employers and trustees. He has particular expertise in pension scheme reorganisations and mergers, deficit reduction and surplus resolution strategies, changing beneft structures, the pensions aspects of corporate transactions, and dealing with the new legislative regime following the Pensions Act 2004 and Finance Act 2004.

"Deficits are still a reality for some schemes, so this book is essential reading." Ruth Emery Pensions Management (FT Business)"

• Table of contents Preface 5 Steven Hull Ashurst Part 1: History Why are schemes in deficit? 7 Jonathan Seres Sacker & Partners LLP Traditional methods of 19 assessing and dealing with a deficit Stephen Yeo Watson Wyatt Part 2: Alternative methods of deficit reduction Scheme benefit changes 35 Camilla Barry Macfarlanes Career average revalued 45 earnings and other alternatives to final salary Danny Tsang K&L Gates Defined contribution schemes 55 Gary Smith Watson Wyatt Transfers with cash incentives 65 Ian Gault Susanne Wilkins Herbert Smith LLP Escrow accounts 75 Mark Alexander Julian Jones Lane Clark & Peacock LLP Other types of contingent asset 87 Mark Catchpole Stephenson Harwood Sectionalised schemes 97 Penny Cogher Speechly Bircham LLP Part 3: Investment revisited Asset allocation: 105 the drive to bonds Daniel Peters Aon Consulting Part 4: Practical considerations The legal position of 125 employers and trustees Diane Preston Trowers & Hamlins Employment considerations: 137 consultation and discrimination Sally Ling GR Comunications Issues in implementation: 147 communications Sally Ling GR Comunications Part 5: The impact of the Pensions Act 2004 The Pensions Regulator and 157 the Pension Protection Fund Andrew Powell Frances Phillips Taft Hammonds Moving a scheme into the 179 Pension Protection Fund Russell Agius Hewitt Associates The effect of the Pensions 189 Regulator on M&A activity Paul Jagger Hewitt Associates Part 6: Alternative buy-out market The emergence of an 197 alternative buy-out market Kenneth Donaldson Higham Dunnett Shaw plc Part 7: Corporate and scheme governance Directors' duties and 211 conflicts of interest Dana Burstow Allen & Overy LLP The developing role of 219 independent trustees David Archer Pitmans Trustees Limited Part 8: Deficit reductions around the world Canada 229 Mark Newton Heenan Blaikie LLP Germany 239 Christoph Crisolli Kliemt & Vollstadt Ireland 245 Fiona Thornton LK Shields Solicitors United States 251 Robert P Flanagan Mary K Samsa Seyfarth Shaw LLP Part 9: Outlook Future developments 261 Kevin Wesbroom Hewitt Associates About the authors 267