Changes to an Organisation's Legal Status

When the legal status of a church or employer changes, it may cease to be an "employer" for pensions purposes and the change may therefore create a cessation event  with a consequent employer debt, unless steps are taken to prevent this.

A change of status can occur if your organisation becomes a limited company (the old unincorporated trust ceases to be an employer) or if an amalgamation takes place with another body.

The document below gives details of a possible means to avoid a cessation event arising in these circumstances, but please note that each situation needs to be considered on its own merits, so it may not always be possible to resolve the potential pension problems arising from incorporation or amalgamation.

Please contact the Pensions Team at an early stage in the process.  The appendix to the document below provides a template for you to use, please send it as an attachment to pensionshared@baptist.org.uk.

Incorporation or Amalgamation Procedures (Jan 21)

Stage 2 of the procedure can be done at the same time as stage 1, there is no need to wait for a separate invitation. 

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