On the go: Trustees of the embattled Arcadia pension funds are in talks with The Pension SuperFund, which could result in the schemes being absorbed by the consolidator.
The move, first reported by Sky News, may bring a sign of hope to members of the struggling retailer’s pension funds, who might otherwise stand to see their benefits reduced by 10 per cent should they fall into the Pension Protection Fund.
Edi Truell, founder of TPSF, confirmed that the consolidator is in contact with the trustees of the Arcadia pension funds. “Any transaction would be subject to their agreement, the Pensions Regulator and/or PPF clearance, as the case may be,” he told Sky News.
The schemes, which are said to have a £350m deficit, will receive an extra payment in the next 10 days. According to the Financial Times, Tina Green, the wife of retail tycoon Philip Green, will pay a final £50m promised to its pension fund. The payment was due in September 2021 as part of an agreement struck with TPR and the trustees last year.
Pensions Expert reported on Monday that Arcadia’s struggles could see superfunds enter the arena. The Work and Pensions Committee chair Stephen Timms wrote to Charles Counsell, chief executive at TPR, asking him what reassurances the regulator could give to scheme members on consolidators “should the strength of that guidance be tested in the coming weeks”.
Mr Timms told Pensions Expert his question was based on previous statements of interest in Arcadia’s troubles by Luke Webster, TPSF chief executive.
Mr Webster wrote last year that, pending the payments and recovery plan agreed between Lady Green, Arcadia and the scheme’s trustees bringing the deficit down sufficiently, TPSF would “stand by to assist the Arcadia pension scheme trustees to deliver scheme members into a safe harbour where we believe there could be a better outcome for all”.
A spokesperson for the Arcadia schemes’ trustees declined to comment both on the talks with the consolidator and the schemes’ deficit figure.
