Feb 20, 2017
UK Vauxhall pensions 'could scupper GM Peugeot sale'
Vauxhall's pension scheme is one of the largest in the UK, with 15,000 members. Pensions expert John Ralfe said Peugeot owner PSA would not want to touch it "With a barge pole", saying he thought it had a deficit of about £1bn. Half of the members were pensioners, Mr Ralfe told the BBC's Today programme. According to company filings to the end of 2014 - the latest available - the pension scheme had assets of about £1.8bn but liabilities of about £2.6bn, leaving a deficit of £840m. Since then record low interest rates have hit the returns on government debt in which big pension schemes invest heavily, so the deficit has probably grown, Mr Ralfe said. He said he was clear that PSA would not want to take on the pension scheme so they would only buy the operating assets, including the plant and the Vauxhall brand, leaving the pensions with General Motors UK, he said. Mr Ralfe said he did not think the Vauxhall pensioners needed to be worried about their position, but said that while politicians were "Running around all over the place asking about jobs, they should also be running around asking about pensions".
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