10 February 2023 , 17:25
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Nearly 9,000 pension scheme members of Sir Philip Green’s collapsed Arcadia high street empire are set to receive their full benefits in retirement, under a deal announced on Friday.
Insurance giant Aviva has agreed to take over two schemes for ex-Arcadia workers and management in a deal worth an initial £850million.
Members faced the risk of a shortfall in retirement after Arcadia, owners of chains such as Topshop and Topman, collapsed into administration in November 2020.
The schemes were initially rescued by the Pension Protection Fund, which steps in when firms go bust.
The buy-out by Aviva means members will get the benefits they would have previously received, and more than if they had remained in the PPF.
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Former staff members faced the risk of a shortfall in retirement after Arcadia (Daily Mirror/Ian Vogler)John Ralfe, an independent pensions expert, said the move was “excellent news” for members.
The main Arcadia Group Pension Scheme has 4,522 deferred members and 3,824 who are retired.
The separate scheme for executives has 464 members.
Alda Andreotti, chair of trustees, said: “This is a positive development for members, securing their benefits for the long-term.
“Members will receive benefits based on their Arcadia Scheme pension, rather than receiving compensation from the PPF.”
The Trustees will be contacting members in the coming months to update them.
The fate of Arcadia’s pensioners has been uncertain since the group went to the wall, with the loss of 13,000 jobs.
Arcadia collapsed into administration with an estimated £350million hole in its pension fund.
Sir Philip was in negotiations with The Pensions Regulator afterwards, and agreed to inject a substantial sum.
Nicola Parish, executive director of frontline regulation at The Pensions Regulator, said: “The arrangement should bring peace of mind to members and ensures they will receive benefits based on their scheme pension rather than through the Pension Protection Fund (PPF).”
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