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British Home Stores - a familiar story?


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3 hours ago, thplinth said:

wow shocker looks like the employee pension fund is underfunded.

The BHS pension scheme is underfunded to a much higher degree than the the TATA scheme, widely reported last week. I think the total assets of the BHS scheme is about £400 million which is actually less than what I have seen reported as the pension deficit. This means that the BHS scheme is less than 50% funded. Questions need to be asked about what the scheme administrators were up to.

In comparison the TATA scheme is also underfunded by about £500 million but it is a far bigger scheme. Although £500 million is a lot of money the TATA scheme is actually over 90% funded. Many private companies would be very pleased if their pension fund was over 90% funded. Many aren't anywhere near that. It's not that long ago that it was widely accepted that 60 to 70% funding in pension schemes as fairly normal. 

The scheme members will be covered by the Pension Protection Fund but the maximum they will get out of that is 90% of their entitlement. Lot's of them will get much less than 90%.

 

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