23rd September 2019 Rosalind Connor comments in Professional Pensions as Thomas Cook’s defined benefit pension schemes are expected to enter the PPF
Thomas Cook’s four UK defined benefit (DB) pension schemes are expected to enter the Pension Protection Fund (PPF) as the company begins insolvency proceedings.
A PPF spokesperson assured members of Thomas Cook’s DB pension schemes that their benefits remain protected by the PPF at what must be a worrying time for all concerned.
Rosalind Connor said the case demonstrates the rise in popularity of long term funding targets.
“The pension scheme has been looking to extend contributions even though the scheme was in an ongoing surplus,” she said.
“This is because there is a growing tendency for schemes (encouraged by The Pensions Regulator) to have a long-term funding target – i.e. even if the scheme is in surplus now, to look to the future where the scheme can be bought out, or at least not be dependent on the strength of the employer.
“In the light of events this morning, that would seem to have been wise.”
The views in this article are intended for general information purposes only and should not be used as a substitute for professional advice. ARC Pensions Law and the author(s) are not responsible for any direct or indirect result arising from any reliance placed on content, including any loss, and exclude liability to the full extent. Always seek appropriate legal advice from a suitably qualified lawyer before taking, or avoiding taking, any action. If you have any questions on the points raised in the above, please do not hesitate to get in touch.