Green To Pay BHS Pension Deficit
ARCADIA owner Philip Green has agreed to meet the shortfall in the BHS pension scheme to the tune of £363 million. The deal, reached with the Pensions Regulator, is part of a cash settlement following the collapse of BHS last April, The Guardian reports.
The payment will not entirely compensate the former BHS workers who had paid in to the scheme over the years - 11,000 of whom were still employed by the company when it entered administration - with several hundred million pounds of the £571 million deficit still outstanding. It will, however, relieve the personal pressure on Green, who was the subject of a parliamentary investigation following the store's collapse.
Legal action brought by the Pensions Regulator to attempt to force Green to reimburse those who lost their pensions when the company folded has now been stopped, and Green asserted today that the deal had presented a “significantly better outcome” than the regulator had mooted.