Thousands of pensioners left going through an unsure retirement by the collapse of Sir Philip Green’s excessive road empire are on the verge of a funding deal backed by considered one of Britain’s greatest insurers.
Sky News has learnt that the trustees of the Arcadia Group pension scheme are near hanging a binding cope with Aviva to ensure its members’ incomes.
City sources stated a proper settlement was possible inside weeks, with Aviva understood to have seen off competitors from rival insurance coverage corporations, together with Pension Insurance Corporation (PIC).
If concluded, it could deliver to an finish negotiations about one of many UK’s most contentious company pension schemes.
The destiny of Arcadia’s pensioners, comprising workers of distinguished chains together with Burton, Dorothy Perkins and Topshop, has been within the stability since Sir Philip was pressured to place the group into administration within the autumn of 2020.
The retailer had been in monetary hassle for a while, damage by customers’ swap to on-line purchasing and exacerbated by the COVID-19 pandemic.
Sir Philip was in negotiations with The Pensions Regulator for months earlier than Arcadia’s collapse, and agreed to inject a considerable sum into the scheme.
His fraught discussions with the watchdog have been precipitated by the political row which engulfed the tycoon within the aftermath of the collapse of BHS, the division retailer chain, in 2016.
A memorable choose committee listening to with MPs that 12 months noticed the then billionaire castigated for his determination to dump BHS to Dominic Chappell, a now-imprisoned bankrupt, for simply £1.
Along with spouse Lady Tina, Sir Philip finally dedicated greater than £350m to spice up payouts to BHS’s pension scheme members, however not with out an unpleasant critique of his conduct by parliamentarians.
The exact construction of the deal between the Arcadia trustees and Aviva was unclear on Tuesday, however one insider stated it was anticipated to contain members receiving full advantages – albeit doubtlessly with extra restricted future will increase than present inflation ranges would justify.
Arcadia members are sure to obtain superior payouts to these they’d have gotten via the Pension Protection Fund lifeboat, which successfully ensures advantages value 90% of pension pots to unretired members.
The final public determine for Arcadia’s pension liabilities was within the order of £1bn, though the present determine was unclear.
Many retirement schemes have seen deficits shrink in latest months as rates of interest have risen.
Aviva and a spokesperson for Arcadia’s pension trustees each declined to remark.
Source: information.sky.com”
