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<p>The best support for a defined benefit pension scheme is an ongoing trading employer.
Working with the shareholders, pension trustees and Pension Protection Fund, The Pensions
Regulator were pleased to be able to agree a £310m package of support last week that
would provide greater certainty for the Arcadia pension schemes. This comprises security
to the value of £210m, together with the £100m in cash from Lady Green. The Pensions
Regulator remain satisfied that the arrangement is the right one for members and the
Pension Protection Fund in challenging circumstances and is equitable in the context
of the wider Company Voluntary Arrangements process.</p><p> </p><p>The Pension Regulator’s
goal is to protect the interests of members of the Arcadia schemes as far as possible
in these difficult circumstances. A successful outcome will mean ongoing Deficit repair
contributions payments from the company, enabling the schemes to become fully funded
in due course. Had the Company Voluntary Arrangement votes failed, or if the Company
Voluntary Arrangements are successfully challenged, the position of the pension schemes
would be/will be much less certain. Deficit repair contributions from Arcadia Group
Limited, initially £25m per annum (paid in equal monthly instalments) and escalating
in subsequent years, would cease. The amount recovered by the pension schemes would
be significantly less in an uncontrolled insolvency than under the terms of the Company
Voluntary Arrangement. On this basis The Pensions Regulator supported the Company
Voluntary Arrangement.</p>
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