Hundreds of workers and retirees will have their pensions protected after they were rescued in a deal that unions hope will set a precedent.
Around 350 members of car parts manufacturer Covpress’s pension scheme faced reduced payouts when the scheme was sent to the Pension Protection Fund (PPF) as the company went into administration last October.
But they have been transferred to the new owner, steel giant Liberty House.
Around 350 members of car parts manufacturer Covpress’s pension scheme faced reduced payouts when the scheme was sent to the Pension Protection Fund (stock image)
It is thought this is the first time any pension scheme has been taken out of the fund.
Eddie Williams, joint administrator from Grant Thornton, said it was due to the willingness of all parties, the financial health of the scheme, and the strength of the business.
Covpress’s scheme had around £20million in assets.
Unite regional officer Adrian Ross welcomed Liberty’s actions, adding: ‘It reverses a trend where companies or potential new owners think they can dump their pension responsibilities onto the PPF, which is underpinned by the taxpayer.’
Liberty’s takeover of Covpress this week saved 740 skilled jobs at the plant in Coventry.
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