Former BHS staff are still waiting for their disgraced boss, Sir Philip Green, to deliver on his promise to plug the hole in their pensions pot.
Experts believe the law is on his side, and the Pensions Regulator is unlikely to be able to force the billionaire to save the scheme. He previously told MPs he would ‘sort’ the issue out, and he now faces calls for him to be stripped of his knighthood.
According to ITV News, it is thought that more than £300 million will be required to ensure the long-term viability of the pensions scheme.
No evidence
As it stands, the regulator has not found enough evidence to take legal action against Sir Philip, who notoriously sold the retail giant British Home Stores for £1 in 2015 to Dominic Chappell, a businessman and former racing driver who has been declared bankrupt on three separate occasions.
The company went bankrupt in April this year, leading to 11,000 members of staff losing their jobs and leaving a huge hole in their pension fund.
Dialogue
The Pensions Regulator and Sir Philip are continuing discussions about how the former boss can meet his commitment to prevent thousands of people from losing out as a result of the store’s crash.
A report is expected by the end of this year, although those in the know believe there is little the regulator can do to enforce any recommendation on Sir Philip. Apart from any moral obligations, the billionaire has little to fear, they say, from legal cases.
For his part, Sir Philip maintains he did everything he could to ensure the business stayed afloat, and he and his advisors are said to be working on a plan which would allow 13,000 pension members to walk away from the scheme with a cash lump sum.
Take steps
Those facing potential issues with their pensions would be advised to do everything they can to ensure they are debt-free before they retire.
One way to do this is by consolidating your debts through an IVA (Individual Voluntary Agreement), a legal agreement between you and your creditors which restructures your debt into affordable repayments. There are many companies which can help you, such as who can help with IVA’s.
Carrying out such measures now could save you from problems later in life.