It has emerged that Sir Philip Green has a pension deficit close to £1bn which creates a “worst case” scenario for the amount needed to pass the scheme to a third-party pension insurer should Arcadia closes.
In two letters posted, one to the members of the Arcadia staff fund and a second sent to a spate senior executive fund, outlined the calculations. It explains how Sir Philip intends to plug this enormous £1bn hole by using a ten-year funding plan.
Outlined within the proposal it sets out that the £565m will be settled and the scheme is back on track by 2026.
Frank Field chairman of the work and pensions select committee said: “Given the track record at BHS one couldn’t help but be anxious about how the plan is going to be fully implemented.”
“We now need to know whether all the interested parties are happy with the new funding plan. The retail market is changing quickly and these are huge sums.”
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