Campaigner ‘optimistic’ over £363m paid into pension pot by Green
A CAMPAIGNER who called on Sir Philip Green to sell his yachts to plug holes in the BHS pension scheme following its collapse has said she is “cautiously optimistic” workers will be protected after the tycoon paid £363 million into the pension pot.
Charity secretary Lin Macmillan, who worked in a BHS managerial role in both Aberdeen and Lincoln during the 1980s, launched the petition after it became apparent how many employees stood to lose out when the firm collapsed.
Sir Philip said the amount, significantly less than the £571m deficit BHS was left with when it went bust in April last year, represents a “significantly better” outcome than the schemes entering the Pension Protection Fund (PPF).
The collapse of the high-street giant left thousands out of work and the deficit in its pension scheme affected approximately 22,000 holders.
News of the settlement with the Pensions Regulator comes after Sir Philip was grilled by MPs over the sale of the chain, which he owned for 15 years before selling it for £1 to the former bankrupt businessman Dominic Chappell. The settlement will allow all pensioners the option to receive pensions at the full starting level that they were promised by the BHS schemes.
Current pensioners who have received lower pension benefits since March 2016, because of the PPF level of compensation being paid, will have the opportunity to receive lump sums to make those underpaid benefits whole.
Miss Macmillan said that the amount would go some way to reassuring workers who lost out, but warned them to remain wary.
She said: “The devil will be in the detail. What I don’t know from what I’ve seen so far is whether this is inflation-proofed or not, because that will be critical.
“I don’t think that Sir Phillip is going to notice losing £360 million as much as an everyday person would.”
In a statement, Sir Philip said: “To achieve a significantly better outcome than entering the PPF, the contribution required to achieve this long-term solution was arrived at by the actuaries for both the regulator and the trustees.”