Week ending 7 June 2019
Arcadia CVA saga
After recent negotiations with the Pensions Regulator, it appeared that the Arcadia Group might get the support it needed for its CVA. Additional security of £210 million has been agreed for the DB pension scheme in addition to the £100 million contribution promised by Lady Green, meaning that the PPF is now prepared to vote in support of the CVA proposals. However, the vote has been postponed until 12 June with the aim of gaining further support from creditors, which reportedly includes a major landlord.
A Rolls Royce of a buyout
The Rolls-Royce UK Pension Fund has agreed a buyout with Legal & General for £4.6 billion. The deal covers 33,000 pensioners, which is just under half of the scheme’s members. The transaction is structured as a buy-in initially but is expected to convert to a partial buyout shortly.
HMRC not appealing
HMRC has withdrawn its appeal in a case concerning the loss of fixed protection for a member’s lifetime allowance. The individual concerned had failed to cancel a direct debit and so continued to contribute to a pension scheme, meaning he should have lost his fixed protection. However, the judge ruled that, because the breach was accidental, the individual should retain the higher protected lifetime allowance of £1.8 million.
HMRC data problems
HMRC has admitted that over 300,000 of the online state pension forecasts issued since 2016 were incorrect due to data issues. The problem seems to be for people with a particularly complex work history. HMRC is reported to be working urgently on the problem.