The pension trustees of Sir Philip Green’s former retail business are in negotiations with Pension Insurance Corporation to cover its retirement scheme payouts.
Sir Philip Green’s retail empire, Arcadia Group, collapsed two years ago, leaving behind retirement financing obligations. Arcadia Group’s pension plans are nearing an agreement to discharge these obligations.
The trustees of its executive and employee schemes are in detailed discussions with the insurance business Pension Insurance Corporation (PIC) regarding a transaction to insure approximately £1 billion in liabilities.
Other so-called pension risk transfer specialists are also rumored to have engaged in conversations in recent weeks, indicating that PIC is not the only party involved.
If an agreement is reached with PIC or another insurer, it would put an end to one of the most infamous pension disputes in British business history.
Sir Philip agreed to a £385 million funding package with The Pensions Regulator in 2019 to close the funding shortfall in Arcadia’s pension schemes, whose members include thousands of retail workers at Topshop and Dorothy Perkins, among others.
Lady Tina Green, the ultimate owner of Arcadia, contributed significantly to this financing.
Two years previously, the entrepreneur had put hundreds of millions of pounds into the retirement fund of BHS, the defunct department store giant, following a contentious battle with lawmakers.
The Pension Protection Fund, the industry-funded “lifeboat” that guarantees retirement benefits to participants of defined benefit plans sponsored by insolvent firms, is likely to play a significant role in reaching an agreement with an insurer.
This weekend, a spokeswoman for Arcadia’s pension trustees stated, “Trustees are working diligently to protect members’ entitlements and continue to investigate multiple possibilities to achieve the greatest long-term outcome for members of both pension schemes.”
“Discussions are underway, and board members will be updated as soon as possible.”
