The Pensions and Lifetime Savings Association (PLSA) comments on Arcadia entering administration.
Joe Dabrowski, Head of DB, LGPS and Standards, PLSA said: “The news of the Arcadia Group entering administration will be incredibly worrying for its thousands of current workers and pension scheme members.
“There will be plenty of talk about the pension scheme deficit and whether that will be filled by Sir Philip Green.
“However, the most important thing for concerned scheme members to know is that their final salary pensions will be protected by the Pension Protection Fund. The pensions lifeboat already looks after more than 425,000 members’ pensions and has the financial strength as well as experience to deal with any claims resulting from the company’s collapse.
“Retirees over the normal pension age of the scheme who are already receiving their benefits will continue to receive them, while deferred members, those who are yet to retire and people under the normal retirement age of the scheme would get 90% of the expected income, up to a cap of around £40k a year.
“We call upon regulators to act urgently to ensure that members are protected and to take the strongest possible action against any unscrupulous companies that may look to take advantage of savers.’’
Mark Smith, Senior PR Manager
020 7601 1726 | [email protected]k
Steven Kennedy, PR Manager
020 7601 1737 | 07713 073024 | [email protected]