Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • June 2016
06

BHS pension members 'protected' amid unsuccessful rescue bid

Open-access content Friday 3rd June 2016 — updated 5.50pm, Wednesday 29th April 2020

The Pension Protection Fund (PPF) has confirmed that the members of the BHS pension schemes will be protected.

2


PPF's comment follows yesterday's announcement from BHS' administrator Duff & Phelps that the 88-year-old chain would be wound down.

"Despite the considerable efforts of the administrators and BHS senior management it has not been possible to agree a sale of the business," said Duff & Phelps in a statement. 

"Although multiple offers were received, none were able to complete a deal due the working capital required to secure the future of the company."

BHS pension consists of two schemes: staff and senior management. The schemes are currently in a PPF assessment period, during which existing trustees are responsible for the day-to-day running of the schemes and members will continue to receive their benefits, said the PPF.

The department store went into administration on 25 April with a pension deficit of £571m, causing MPs to launch a double inquiry on the sale of BHS and its pension sustainability.  

In March 2015 former BHS owner Philip Green sold the company to the consortium Retail Acquisitions Ltd (RAL) for the nominal value of £1. 

So far the PPF, the Pensions Regulator, advisers and trustees have given oral evidence to the Work and Pensions Committee and the Business, Innovation and Skills Committee.

On 8 June MPs will question BHS management, the board of RAL and RAL's owner Dominic Chappell. Green has been called to appear on 15 June. 

Recent company collapses such as BHS and British Steel have prompted the Work and Pensions Committee to launch an inquiry into defined benefit (DB) pensions.

Chair of the committee Frank Field said: "The state of the British Steel pension scheme is further worrying evidence of a wider danger to one of the biggest savings successes in Britain during the last century - occupational pension schemes. 

"Pension law and regulation must urgently adapt to the issues of the future, rather than the problems of the past. The whole savings edifice is in danger."

Field said 11 million people had private DB pensions. More than 5,000 of the associated schemes are in a deficit of £805bn while combined surpluses of other schemes are around £4bn.

"The inquiry will consider, amongst other things, radical solutions that could be more easily implemented if real returns on capital rise again," he said.

He also confirmed the committee would respond to a consultation on British Steel pension scheme launched by the Department for Work and Pensions this week. 

The consultation runs until 23 June.

This article appeared in our June 2016 issue of The Actuary.
Click here to view this issue
Filed in
06
Topics
Pensions

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

New Fast-Growing Team - Actuarial Systems Development

London (Greater)
Excellent Salary Package
Reference
143762

Actuarial Pension Consultant – Scotland/Remote – Up to £90,000 plus bonus

Edinburgh / Glasgow / Remote working
Up to £90,000 + Bonus
Reference
143761

Part Qualified Pensions Actuary– Specialised Pensions Consultancy - Scotland/Remote - Up to £70,000

Edinburgh / Glasgow / Remote working
Up to £70,000 + Bonus
Reference
143760
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ