UK -- The Pensions Regulator Programme has appointed PricewaterhouseCoopers to help develop a clearance procedure to ensure that companies and individuals undertaking legitimate corporate transactions will not fall foul of the ‘moral hazard’ clauses contained in the Pensions Act.

The government’s decision to adopt a clearance procedure followed concerns that uncertainty as to how the moral hazard clauses may apply could have an adverse impact on the UK’s corporate transactions and restructuring markets.

“A clearance procedure for pensions will ensure British business transactions can continue, whilst ensuring protection of pension benefits. We are delighted to be assisting the Pensions Regulator programme with this important development,” said Trevor Llanwarne, PwC chief actuary for pensions in the UK.

The Pensions Regulator Programme is a joint operation involving the department for work & pensions and the Occupational Pensions Regulatory Authority.

The Act’s moral hazard clauses are designed to stop parties acting to avoid funding a pension scheme deficit by passing the liability on to the Pensions Protection Fund (PPF), the result of which would be higher PPF premiums for the rest of UK business.