Arcadia Group’s pension schemes are closing in on a deal to dump retirement funding guarantees made by the retail empire owned by Sir Philip Green previous to its collapse two years in the past.
Sky News has learnt that the trustees of its government and employees schemes are in detailed discussions with Pension Insurance Corporation (PIC), the insurance coverage firm, a couple of transaction to insure roughly £1bn of liabilities.
The discussions are usually not regarded as unique with PIC, and different so-called pension threat switch specialists are additionally mentioned to have been engaged in talks in current weeks.
If a deal is efficiently concluded with PIC or one other insurer, it will draw a line beneath one of the crucial infamous pension rows in British company historical past.
Sir Philip agreed a £385m funding bundle with The Pensions Regulator in 2019 to plug the hole in Arcadia’s pension schemes, whose members embody hundreds of excessive avenue staff at chains together with TopShop and Dorothy Perkins.
A big chunk of that financing got here from Lady Tina Green, who was Arcadia’s final proprietor.
The tycoon had additionally injected a whole lot of thousands and thousands of kilos into the retirement fund of BHS, the collapsed division retailer chain, two years earlier, following a fraught battle with politicians.
The Pension Protection Fund – the industry-funded ‘lifeboat’ which ensures retirement payouts to members of outlined profit schemes sponsored by employers which turn out to be bancrupt – is prone to play an influential function in agreeing a take care of an insurer.
A spokesperson for Arcadia’s pension trustees mentioned this weekend: “Trustees are working hard to protect members’ benefits and are continuing to explore several options to ensure the best long-term outcome for members of both pension schemes.
“Discussions are ongoing and trustees will replace members on the earliest alternative.”
Source: information.sky.com”