Dec 19, 2017
UK pension lifeboat ready to block Toys R Us rescue
The UK's pension lifeboat fund is expected to vote against a restructuring proposal for the British arm of Toys R Us unless it injects £9m into its retirement fund, in a move that could plunge the retailer into administration and risk the loss of 3,200 jobs. The plans led the Pension Protection Fund, the industry-backed lifeboat for company pension schemes, to begin an assessment of the UK business' retirement fund, which is estimated to have a funding shortfall of £25m to £35m. Given the size of the deficit for the retirement fund, which would need to be absorbed by the lifeboat scheme, the PPF is expected to exert its creditor rights and press Toys R Us for a £9m payment, according to people briefed on its plans. This figure is understood to cover three years of deficit contributions that Toys R Us UK was scheduled to make to the retirement fund, which pays assured pensions to members. Failure to reach an agreement on the UK pensions scheme could lead Toys R Us UK to fall into administration, threatening 3,200 jobs across the country. "We continue to work closely with the trustees of the Toys R Us pension scheme and externally appointed advisers given the current CVA proposals," said a spokesperson for the Pension Protection Fund.
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