Former Arcadia workers are close to finally getting a pension payout following its collapse into administration three years ago.
Sir Phillip Green’s enterprise fell into administration 2020, leaving 13,000 jobs at risk.
It meant thousands of retirees facing an uncertain future.
Arcadia’s pensioners, which include former staff from well-known brands like Topshop/Topman Burton and Dorothy Perkins, were left with an uncertain future.
But according to a report from Sky News, the trustees of the Arcadia Group pension plan are close to reaching a legally binding agreement with the FTSE 100 insurer to guarantee the former staff are paid.
A formal agreement was expected to be reached in the coming weeks.
City sources say Aviva had beaten other insurance providers such as Pension Insurance Corporation.
If successful, it would put a stop to discussions surrounding one of the most contentious corporate pension plans in the UK.
Arcadia’s pensioners, which include well-known brands like Topshop/Topman Burton and Dorothy Perkins, have been hanging in the balance.
The company said the Covid-19 pandemic’s effects, which included the long-term forced closure of its stores, had “severely damaged trading across” all of its brands.
The specifics of the agreement between the Arcadia trustees and Aviva are currently unknown.
However, a source told Sky that it is anticipated that members will receive their full benefits, possibly with less frequent future increases than current inflation levels would warrant.
Members of Arcadia will undoubtedly receive higher compensation than they would have through the Pension Protection Fund lifeboat.
This basically assures payouts to non-retired members equal to 90 percent of pension pots.
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Although the current amount was not known, the last estimate made public for Arcadia’s pension liabilities was around £1 billion.
Source: Retail Gazette