Marvin OnumonuEdinburgh Woollen Mill’s pension scheme is expected to become fully funded after an intervention by The Pensions Regulator (TPR).
TPR published a report on its role in securing a rescue deal for the Edinburgh Woollen Mill Ltd Retirement Benefits Scheme after the company became insolvent.
TPR worked with the Pension Protection Fund (PPF) and the scheme’s trustee to reach an agreement with Purepay Retail Limited, the new owner.
Purepay took over as the scheme’s statutory employer after buying the business out of insolvency.
Without this deal, the scheme would have gone into the PPF or secured benefits with an insurer, which would likely have been higher than PPF levels but still less than full benefits.
Now, members are expected to receive their full benefits as they fall due.
Gaucho Rasmussen, executive director of regulatory compliance at TPR, said: “This case illustrates our commitment to protecting members and targeting our actions to have the most impact.
“Strong collaboration with the PPF and pension trustees and active dialogue with the new owner were decisive factors in achieving this rescue package.
“Members’ pensions are now more secure thanks to a new statutory employer, who has made a £7m lump sum payment into the scheme and agreed a recovery plan to help the scheme become fully funded in the next few years.”
Rasmussen added: “Transparency between sponsoring employers and trustees is vital, especially when employers are facing financial difficulties.
“TPR won’t hesitate to take regulatory action, when necessary, but we welcome early dialogue with trustees and employers to resolve situations without needing to formally engage our anti-avoidance powers.”
