Sir Philip Green pays £363 million to settle BHS pension scheme

Sir Philip Green pays £363 million to settle BHS pension scheme

Sir Philip Green has paid £363 million to settle the BHS pension scheme

Tuesday, February 28, 2017

Sir Philip Green has paid £363 million to settle the pension schemes of collapsed retailer BHS.

The billionaire said the amount, which is significantly less than the £571 million deficit the firm 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).

Thousands were left out of work when the high-street giant collapsed and the deficit in its pension scheme affected approximately 22,000 holders.

The settlement comes after Green was grilled by MPs over the sale of the chain, which he owned for 15 years before selling it for £1 to former bankrupt Dominic Chappell.

Green said: "I have today made a voluntary contribution of up to £363 million to enable the trustees of the BHS pension schemes to achieve a significantly better outcome than the schemes entering the Pension Protection Fund, which was the goal from the outset.

"The settlement follows lengthy, complex discussions with the Pensions Regulator and the PPF, both of which are satisfied with the solution that has been offered.

"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."

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.