View more on these topics

BHS pensions deal worth £350m edges closer

BHS

The Pensions Regulator and Sir Philip Green are said to be close to a deal to help plug the BHS pension schemes’ deficit with Green paying in more than £350m.

Sky News reports a deal is imminent and could be agreed later this week.

One source told Sky News the deal would likely involve lump sum payments to former BHS employees with smaller pension pots, while a new scheme will be set up to make ongoing payments to remaining members of the scheme.

In November The Pensions Regulator began enforcement action against the former BHS owner, as well as Dominic Chappell and Retail Acquistions which bought the now collapsed department store.

The Work and Pensions committee has called for TPR to have a “nuclear deterrent” to prevent companies from sidestepping the scheme liabilities.

A spokesman for Green declined to comment.

A spokesman for TPR says: “We remain in discussion with Sir Philip’s advisers.

“Any settlement offer we accept has to be robust enough to stand the test of time and mean that members and the Pension Protection Fund are not left in a worse position further down the road.”

Recommended

Dominic Chappell arrested in BHS tax investigation

Former BHS owner Dominic Chappell has been arrested as part of a tax investigation following the collapse of the department store earlier this year. The Guardian reports Chappell’s personal company, Swiss Rock, owes more than £500,000 in tax, including £365,000 in VAT and £196,306 in corporation tax. Swiss Rock was paid at least £1.6m by […]

13

Shockwaves: BHS scandal set to fuel next wave of DB transfers

Advisers are braced for another wave of defined benefit pension transfers as the collapse of high street retailer BHS sends shockwaves through a public worried about the frailty of the pension system. Labour MP and chair of the Work and Pensions committee Frank Field says previous owner Sir Philip Green holds the “final responsibility for […]

5

‘Nuclear deterrent’ against DB failure needed, MPs say

The Pensions Regulator needs a “nuclear deterrent” to stop companies dodging their pension scheme responsibilities, according to a group of MPs. Publishing its report into defined benefit pensions this morning, the work and pensions select committee says Govt should consult on giving TPR the power to triple the fines it can currently levy. The MPs […]

Converting pension savings to a retirement income…

Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. Income drawdown is more flexible than an annuity. However, it also increases the likelihood that individuals won’t be able to maintain their income throughout their lifetime. In this short video, we explain the risks that […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com