An inconvenient truth: Pensions in the UK have priority ranking

Defined benefit pension schemes in deficit have long been a matter of concern. The outcome in October 2011 of linked appeals by the administrators of the groups of both Nortel and Lehman Brothers were a notable triumph for the UK Pensions Regulator and scheme trustees. However, the adverse consequences of these cases on lenders and insolvency practitioners, created by the ‘oddities, anomalies and inconveniences’ of a ‘legislative mess’ are also likely to generate important knock-on effects for corporates and scheme trustees.