Retailer's DB members set for full pension after TPR intervention
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Members of the Edinburgh Woollen Mill Ltd Retirement Benefits Scheme are set to receive their full pension as new owners Purepay Retail paid £7m into the scheme and agreed a new funding plan to reach low dependency, following engagement by the Pensions Regulator.
TPR has published a regulatory intervention report about insolvent Edinburgh Woollen Mill, saying that working with the Pension Protection Fund and pension scheme trustee, in December last year it reached an agreement with new owners Purepay.
The new statutory employer has paid £7m into the scheme, which had about £37m in 2022, and agreed a recovery plan to reach full funding in the next few years. This means the 219 scheme members are set to receive full benefits instead of having to take a haircut in a PPF+ arrangement with an insurer.
The regulator engaged with the pension scheme trustee following the insolvency of the sole sponsoring employer, EM2020 Realisations, previously called the Edinburgh Woollen Mill, in late 2020.
TPR said in the months leading up to the employer’s insolvency, the employer had paid “material” dividends, while security from the group’s banks was assigned to the employer’s ultimate parent company. The regulator issued several statutory notices to gather evidence, until, in mid-2021, it considered opening a formal anti-avoidance investigation. Negotiations with Purepay to rescue the scheme started concurrent with the inquiry.
TPR’s executive director of regulatory compliance Gaucho Rasmussen said: “TPR won’t hesitate to take regulatory action, when necessary, but we welcome early dialogue with trustees and employers to resolve situations without needing to formally engage our anti-avoidance powers.”
Purepay, previously called Mistletoe Retail, and Purepay Retail Two are based in Manchester and have the same two directors.
TPR has published a regulatory intervention report about insolvent Edinburgh Woollen Mill, saying that working with the Pension Protection Fund and pension scheme trustee, in December last year it reached an agreement with new owners Purepay.
The new statutory employer has paid £7m into the scheme, which had about £37m in 2022, and agreed a recovery plan to reach full funding in the next few years. This means the 219 scheme members are set to receive full benefits instead of having to take a haircut in a PPF+ arrangement with an insurer.
The regulator engaged with the pension scheme trustee following the insolvency of the sole sponsoring employer, EM2020 Realisations, previously called the Edinburgh Woollen Mill, in late 2020.
TPR said in the months leading up to the employer’s insolvency, the employer had paid “material” dividends, while security from the group’s banks was assigned to the employer’s ultimate parent company. The regulator issued several statutory notices to gather evidence, until, in mid-2021, it considered opening a formal anti-avoidance investigation. Negotiations with Purepay to rescue the scheme started concurrent with the inquiry.
TPR’s executive director of regulatory compliance Gaucho Rasmussen said: “TPR won’t hesitate to take regulatory action, when necessary, but we welcome early dialogue with trustees and employers to resolve situations without needing to formally engage our anti-avoidance powers.”
Purepay, previously called Mistletoe Retail, and Purepay Retail Two are based in Manchester and have the same two directors.
