BHS goes into administration

[TheDaddy]

Originally Posted by nomadking

And how many other final salary pension schemes were that different? The pension funds are SEPARATE from the businesses.

Who are you shouting at, me, the pension regulator or green himself who has offered tens of millions, what a bozo he must be, fancy offering 80 million quid when you don't have to because it's SEPARATE

[denphone]

Over the past 16 years, the BHS pension fund has fallen from a £5m surplus into a £571m deficit since Sir Philip Green bought it and l know l am no expert on anything but that does not seem right and proper in my opinion.

[nomadking]

Originally Posted by denphone

Over the past 16 years, the BHS pension fund has fallen from a £5m surplus into a £571m deficit since Sir Philip Green bought it and l know l am no expert on anything but that does not seem right and proper in my opinion.

And how did he have any control over that? They are controlled independently of the business. It went from a surplus of £5m in 2008 to a deficit of £137.9m a year later in 2009. Did anything happen to MOST pension funds around that time? The business then starting paying in more with a 23 year plan. By the time he sold it the deficit was £225.6m and NOT £571m.

The OECD obtained the figures from the UK’s Pensions Regulator. In the UK the average annual return on pension funds has fallen by 0.1% every year between 2001 and 2010.
By contrast returns on pension funds in Chile increased by an average of 5% a year, 4% in Poland and 3% in Germany.

[denphone]

BHS executives describe Dominic Chappell as 'a liar' with his fingers in the till.

http://www.bbc.co.uk/news/business-36476860

The former owner of BHS, Dominic Chappell, has been accused of being "a liar" who had his "fingers in the till" by top BHS managers.

Pretty damning to say the least.

[Horizon]

When the last recession caused the collapse of value of UK pensions, I believe Green panicked as he believed his entire wealth could be destroyed.

Rather than being patient, recessions don't last forever and stock markets and pension fund values recover, he sold BHS quick. Hence the mess we're in today.

This is why most organisations today have scrapped final salary schemes for new members as they fear the impact of recessions (and people living longer) on the value of final salary scheme pension funds.

Ultimately, the funding of a final salary scheme (a.k.a. Defined benefit scheme) is the responsibility of the employer. A defined contribution scheme, on the other hand, is down to the money markets and is much safer for the employer. Final salary schemes were manageable as long as relaxed tax and accounting rules allowed companies to use them to smooth out the peaks and troughs in their performance. Once those rules were tightened and a certain Mr G. Brown started raiding the funds for tax, they became untenable for most, though to be fair it was the ones that had been most poorly managed that collapsed outright. Some of the better ones survive, if on less favourable terms. I was in a final salary scheme for 7 years with a previous employer. The terms changed while I was a member and are not now as good as they were, but the scheme has survived and is still open, about 10 years after I left. Mind you, with only 7 years contributions I'm not expecting to get very much out of it.

[Gavin78]

It's my day off today so sat here just watching some of the grilling Mr G is getting atm on sky live....all he seems to be doing it stuttering utter garbage. it seems like he doesn't have the slightest clue how BHS was being run as if he bought it and just run it down to the ground for a quick quid.

He claims he doesn't know how to transfer money from accounts related to BHS and his banks lol

[Osem]

I'd have a bit more respect for committees like this if they weren't full of people who've been complicit in any number of appalling government failures and errors of judgement.

[denphone]

Philip Green agrees to pay £363m into BHS pension fund.

https://www.theguardian.com/business...s-pension-fund

I'll believe when it happens..

[denphone]

Indeed words and promises are cheap as its action that counts.

[Kursk]

If he doesn't, we should torpedo Lionheart. Come to think of it, we should torpedo Lionheart for the pure satisfaction

Originally Posted by Maggy J

I'll believe when it happens..

The article states ;

Green has already paid £343m into an escrow account as part of the settlement.