Billionaire tycoon, Sir Philip Green, has agreed to pay £363 million in order to settle the pension schemes of collapsed retailer BHS. According to Sir Philip, even though the amount is significantly less than the £571 million deficit the firm was left with when it went bust in April last year, it represents a “significantly better” outcome than the schemes entering the Pension Protection Fund (PPF).
The closure of the high-street giant caused thousands of jobs and the deficit in its pension scheme affected approximately 22,000 holders. The new settlement was announcement after the MPs condemned Sir Philip over the sale of the chain, which he owned for 15 years before selling it for £1 to former bankrupt Dominic Chappell.
While making the announcement, Sir Philip mentioned in the statement that “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.” Moreover, the statement explained that “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.” Sir Philip pointed out that “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.”