Members of Arcadia Group’s pension schemes have their benefits secured after deal between trustees and Aviva
Members of Arcadia Group’s pension schemes have had their benefits secured after a deal between trustees and Aviva.
News of the agreement was welcomed by the 8,800 former employees of failed High Street brands like Topshop, Burton and Dorothy Perkins.
The demise of Sir Philip Green’s fashion empire in the autumn of 2020 had plunged thousands of pensioners into the dark.
Boost: News of the agreement was welcomed by the 8,800 former employees of failed High Street brands like Topshop, Burton and Dorothy Perkins
But now the buy-in deal will guarantee pension scheme members’ incomes, with an initial payment of £850m. A buy-in means that pension plans are protected from investment, inflation and longevity risks.
Britain’s largest insurer will now make regular payments into the plan to help meet monthly pensioner payroll requirements.
Aviva describes its role in the process as ‘remaining in the background with no direct relationship with members.’
Alda Andreotti, chairman of the trustees, said: ‘The trustees are extremely pleased with this substantial development.’
