Stuart Price, Partner and Actuary at Quantum Advisory, explains why the PPF’s firm stance can be seen as a positive action…
Stuart said: “By insisting that Toys R Us pay additional contributions into the Scheme now, the PPF are ensuring that if a CVA is reached then the Scheme is in a stronger position than they currently are. This outcome would then mitigate the financial burden on the PPF if the Scheme was to enter the PPF in the future. “To me, it looks like a game of Russian Roulette as, if the CVA does not happen and the Toys R Us Pension Scheme enters the PPF, then the PPF levy payers will pick up the cost anyhow.
“Thursday’s decision will be interesting, but I do think the PPF needs to stand its ground as the outcome here could set a precedent in the future.”
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