The Pensions Regulator published an intervention report detailing anti-avoidance action against Cliden Construction Limited and connected parties after the company sought to avoid its pension debt, including by paying dividends before entering liquidation. The action resulted in a settlement with a former director and a related company, and funds have been paid into the Plumbing & Mechanical Services (UK) Industry Pension Scheme. The regulator warned participating employers that attempts to leave pension liabilities for other employers could trigger enforcement action. Cliden Construction incurred a debt under Section 75 of the Pensions Act 1995 in early 2019 after it stopped employing active scheme members. It entered liquidation in June 2023 with the debt unpaid. The regulator issued a Warning Notice seeking Contribution Notices, compelled witnesses to attend interviews and fined the company’s accountants for failing to comply with statutory information requests. The multi-employer defined benefit scheme has a deficit of about GBP 258 million, more than 30,000 members and over 300 sponsoring employers. When an employer leaves without paying its share of the deficit, the liability is distributed among the remaining employers.
The Pensions Regulator2026-07-28
UK Pensions Regulator secures settlement over avoided plumbing scheme debt and warns participating employers
The Pensions Regulator secured a settlement and payment into the plumbing industry pension scheme after anti-avoidance action against Cliden Construction and connected parties. It warned participating employers that attempts to evade their pension debts and shift liabilities to other employers could result in enforcement action. The scheme has a deficit of about GBP 258 million and more than 30,000 members.