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1123769
star this property registered interest false more like this
star this property date less than 2019-04-29more like thismore than 2019-04-29
star this property answering body
Department for Work and Pensions more like this
star this property answering dept id 29 more like this
star this property answering dept short name Work and Pensions more like this
star this property answering dept sort name Work and Pensions more like this
star this property hansard heading Eastman Kodak: Pensions Protection Fund more like this
unstar this property house id 2 more like this
star this property legislature
25277
star this property pref label House of Lords more like this
star this property question text To ask Her Majesty's Government who is responsible for oversight of matters regarding the Pensions Protection Fund (PPF) and Kodak; and whether they plan to commission an independent review of the handling of Kodak by the PPF and the Pensions Regulator and the advice received by both. more like this
star this property tabling member printed
Lord Myners more like this
star this property uin HL15407 more like this
star this property answer
answer
star this property is ministerial correction false more like this
star this property date of answer remove filter
unstar this property answer text <p>The Pension Protection Fund is a statutory public corporation led by its Board and accountable to Parliament through the Secretary of State for the Department for Work and Pensions.</p><p> </p><p>The original decision in the Kodak case, which provided savers with the potential to receive benefits above Pension Protection Fund levels, was finely balanced and carefully assessed with the benefit of the due diligence carried out for the trustees. Regulated Apportionment Arrangements, a restructuring mechanism which allows a financially troubled employer to detach itself from its liabilities in respect of a defined benefit scheme, are rare and The Pensions Regulator will only agree to them if stringent criteria are met, with entry into the Pension Protection Fund the expected outcome, and the Pension Protection Fund must not object to the Regulated Apportionment Arrangements. The Pensions Regulator published a section 89 regulatory intervention report in November 2014 describing in detail the considerations leading to the decision in this case.</p><p> </p><p>As a condition of approving the successor Kodak pension scheme in 2014, a memorandum of understanding was put in place giving The Pensions Regulator the power to closely monitor the progress of the scheme and if necessary trigger its wind up. This has allowed The Pensions Regulator, with the Pension Protection Fund, to remain actively involved in discussions about the scheme’s future. Due to underperformance of the underlying business it was concluded that the scheme would be unable to meet its long term funding requirements. Action has therefore been taken to bring the scheme into a Pension Protection Fund assessment period which commenced on the 25 March 2019.</p><p> </p><p>Specialist firms with extensive Pension Protection Fund experience have been brought in to manage the administration of the pension scheme and to oversee its efficient passage through the assessment process.</p><p> </p><p>Whilst the Kodak case is a significant claim, the Pension Protection Fund remains in a robust financial position. In its last reported accounts, the Pension Protection Fund had a £6.7 billion reserve and is currently on track to reach its funding objective. There has been no immediate impact on the Pension Protection Fund Levy arising from this case. The Pension Protection Fund aims to collect £500m in levy in 2019/20 which is £50m lower than it aimed to collect in 2018/19.</p><p> </p><p>The Pensions Regulator aims to learn from every major pensions restructuring case and has refined its approach to complex pension restructurings in light of the lessons learned in the Kodak case and successive cases. A letter was sent on the 17<sup>th</sup> October 2018 from Lesley Titcomb, the then Chief Executive Officer (CEO) of The Pensions Regulator, addressed to the Chair of the Work and Pensions Select Committee, Rt Hon Frank Field MP, summarising the lessons learnt in the Kodak case.</p>
star this property answering member printed Baroness Buscombe remove filter
star this property question first answered
less than 2019-05-14T15:29:45.337Zmore like thismore than 2019-05-14T15:29:45.337Z
star this property answering member
3349
star this property label Biography information for Baroness Buscombe more like this
star this property tabling member
3869
unstar this property label Biography information for Lord Myners more like this