On the go: Chair of the Work and Pensions Committee Frank Field has written to the Pensions Regulator about its engagement with Johnston Press on its pension scheme, which has now entered a Pension Protection Fund assessment period. The PPF has also raised concerns over the deal.
Johnston Press and Johnston Publishing went into administration on November 17 2018.
Johnston Press’s business and assets have been sold to JPI Media, a new group of companies owned by Johnston Press’s bond holders, but JPI Media has not taken over responsibility for the scheme.
Trustees said in a statement to members on Monday that they were currently liaising with Johnston Press’s administrators and the Pension Protection Fund about the scheme starting its PPF assessment period.
On Monday, the Work and Pensions Committee published a letter from Field to Lesley Titcomb, chief executive of the regulator, asking the watchdog to provide the committee with a detailed description of its involvement to date with Johnston Press.
“In particular, it would be helpful to have an explanation of why it was not possible to find a solution that would have avoided the pension scheme entering the PPF,” Field wrote.
He added: “It is difficult to understand why it is possible for JPI Media to acquire the business, no doubt in the expectation of generating a profit from it, but without taking any responsibility for its pension scheme.
“Might I ask whether, in the light of this and similar cases, you consider that adequate protections are in place to prevent schemes being dumped on the PPF, at cost to pensioners and levy-payers?”
A TPR spokesperson said: “Together with the Pension Protection Fund, we will be working with the administrators to understand the circumstances surrounding the sale and its implications for the Johnston Press Pension Plan and its members at this challenging time.
“Our role at this stage is to assess the terms of the sale of the business to ensure the pension scheme has been treated appropriately. We continue to work closely with the scheme trustee and the PPF,” the spokesperson added.
The PPF has also raised concerns over the deal. A PPF spokesperson said: “We have concerns surrounding the details of this pre-pack administration.”
The spokesperson added: "We will continue to work working closely with the Pensions Regulator and the company administrator to ensure the best outcome for the PPF and our levy payers.
“We want to reassure members of the Johnston Press Pension Plan that their benefits are protected by the PPF at what must be an unsettling time for them."
JPI Media declined to comment.
In an announcement published on the London Stock Exchange on Monday, Johnston Press highlighted that it had considered a regulated apportionment arrangement as an option.
The pension scheme had a deficit of over £40m, according to the 2017 Johnston Press annual report.
