So, Readers Digest (or rather the pension scheme of course) has now entered the PPF Assessment process as was almost inevitable following the calling in of the Administrators in February. Readers of my blog will know that RD had been in discussion with the PPF prior to this in relation to its multi million pound deficit and came a cropper when TPR refused to accept a negotiated deal that would have seen an innovative resolution including a significant cash injection and a large equity stake in the US parent company being taken by the scheme trustees.
Posts Tagged ‘TPR’
And they’re off…
I have decided that this blog will be an election free zone – at least for the time being. I suspect that none of the three main parties actually have much of a clue about pensions other than how they can get the over 55’s to vote for them with a bribe or two so let’s not go there and instead talk about a couple of other pensiony issues
First, a cautionary tale for Trustees, with tPR having reported two trustees from the firm GP Noble to the Serious Fraud Office. Charges have been laid and the matter is next due before Southwark Crown Court on 16 April.
It seemed like a good idea at the time…
Sometimes, its not just what you know…it’s who. The Pension Regulator has just found this out having been sent off with a flea in its ear by both the US and Canadian Courts in its attempts to enter the ‘world domination’ market by thinking – completely wrongly as it turns out – that it had jurisdiction in those countries.
The background is it’s attempt to make the overseas parent companies of the Nortel UK Pension Schemes to pay an additional contribution to cover the significant deficit. The US and Canadian courts have given permission for the overseas parent to ‘ignore’ the demand for £2.1 billion. Nortel is bankrupt by the way.
The Law of Unintended Consequences
In a mid week update to my Monday posting, Readers Digest has just announnced it is going into administration in the UK due to the size of the DB pension scheme deficit.
What seems to be most interesting in this case is that the parent company seems to have been in negotiation with the Pension Protection Fund about making payments to the scheme (presumably to ensure that the compromise it was contemplating would not prevent entry to the PPF should it be necessary). However, this ‘agreement’ did not meet whatever stringent test the Pension Regulator had in mind. Result – RD goes bust and the scheme probably ends up in the PPF anyway. Well done tPR – way to go!!
Jennie advises large multi-employer schemes as well as smaller single employer arrangements and has wide experience of both Defined Contribution and Defined Benefit schemes. Jennie qualified in 1986 originally as a criminal prosecutor. She sits as a Magistrate in her local justice area and is an Approved Chairman and Deputy Chair of the Bench Training and Development Committee. Jennie was formerly Legal Director of the Occupational Pensions Regulatory Authority. When her busy practice allows, Jennie likes to indulge her passion for travelling. To consult Jennie on any corporate Pensions matter, please call her on +44 (0)20 7749 2700 or send her an email by clicking below: