LONDON (Reuters) – The pensions of 9,000 workers of collapsed British division retailer chain BHS had been secured on Sunday after a specialist insurer introduced an insurance coverage buyout of the agency’s ‘BHS2’ scheme protecting 800 million kilos of liabilities.
FILE PHOTO: A lady walks previous the Wood Green department of division retailer chain BHS, in London, August 28, 2016. REUTERS/Peter Nicholls/File Photo
Pension Insurance Corporation stated the buyout left members of the scheme, which was arrange in 2017 following BHS’s collapse and a money injection by former proprietor Philip Green, totally insured and sure to obtain advantages underneath the scheme.
A pension insurance coverage buyout entails a switch of the promise to pay pension fund members, shifting that accountability from the fund to the insurer, and giving policyholders a assured revenue stream.
BHS fell into administration in 2016 with a pension deficit of 571 million kilos, with 11,000 jobs lost as end result. An outcry over the collapse prompted the government to attempt to clamp down on bosses who don’t do sufficient to guard staff’ pensions.
In February final 12 months Green, who was blamed by British lawmakers for the demise of the BHS, paid 363 million kilos to plug a gap within the pension scheme. Green had offered the chain in 2015 for one pound.
Reporting by William James; Editing by Mark Potter