Arcadia Group strikes £850m buy-in with Aviva
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The trustees of the Arcadia Group and Arcadia Group Senior Executive Pension Schemes have agreed a £850m buy-in with Aviva, securing the benefits of around 8,800 members.
The fashion retailer’s collapse in November 2020 put owner Sir Philip Green under spotlight as he was embroiled in the collapse of retailer BHS in 2016.
The two Arcadia schemes entered a Pension Protection Fund assessment period on 30 November 2020. Barnett Waddingham, which ran the tender process on behalf of the trustees, said Aviva was selected “following a robust insurance market review, and a competitive and comprehensive selection process”.
According to Barnett Waddingham, members of the Arcadia Group Pension Scheme will receive the full scheme benefits they would have been entitled to if the insolvency and PPF assessment period had not taken place.
For the Arcadia Group Senior Executive Pension Scheme, the consultancy said pensions have been secured at the level they would have been in 2022 if the insolvency and PPF assessment period had not happened.
Barnett Waddingham added: “Further work is being carried out to determine the future level of pension increases for members of the Arcadia Group Senior Executives Pension Scheme and members will be updated at the earliest opportunity.”
Nicola Parish, executive director of frontline regulation at The Pensions Regulator, welcomed the news, saying the arrangement “should bring peace of mind to members and ensures they will receive benefits based on their scheme pension rather than through the Pension Protection Fund”.
Parish said the move formed part of the company voluntary arrangement in 2019.
Law firm Gowling WLG provided advice.
Does the deal bring peace of mind to trustees?
