The regulatory intervention report covers key actions in the case including TPR’s anti-avoidance investigation into the potential use of its Financial Support Direction and Contribution Notice powers - culminating in TPR issuing Warning Notices against a number of respondents in November 2016.
The report shows how, in parallel with its investigation, TPR held extensive discussions with Sir Philip and his advisers to reach a settlement, announced in February this year.
As already announced, the settlement agreement provides funding for a new independent pension scheme to give future pensioners the option of the same starting pension as they were originally promised by BHS, and higher benefits than they would get from the Pension Protection Fund (PPF).
TPR Chief Executive Lesley Titcomb said: “We publish these reports on completion of significant cases in order to be as transparent as we can be about our regulatory work. This report on BHS illustrates to employers and trustees that we will use our powers to protect savers but that we are prepared to be flexible in our approach and work with all parties to reach the right outcome.
“In this case, we reached a settlement with Sir Philip Green that represents a strong outcome for the members of the BHS pension schemes. It takes account of the interests of both pensioners and the PPF, and brings a welcome level of certainty to present and future pensioners.”
The report looks back to TPR’s previous interactions with the BHS pension schemes over a number of years, including previous scheme funding discussions and business restructuring proposals.
Nicola Parish, Executive Director of Frontline Regulation, said: “The report highlights the lessons we have learned from this case about how we can regulate more effectively.
“We are already acting more quickly to intervene where we consider schemes to be underfunded, or where there are indications that employers may be avoiding their responsibilities. As part of our TPR Future programme, we are reviewing our internal processes and ways of working to be more efficient, more outcome-focused and communicate clearly to schemes what we expect from them.
“In addition we are recruiting staff to increase proactive casework, ensure early engagement with schemes and progress investigations more efficiently.”
To view the full report please click here
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