We acted for the trustees in relation to complex proceedings commenced by the Pensions Regulator (TPR) to exercise its ‘moral hazard powers’, seeking financial support for the pension scheme’s deficit from a parent company of the employers, the Coats (formerly Guinness Peat) Group plc. We worked closely with TPR to provide factual and expert evidence, as well as legal arguments, in support of the claim. The proceedings were settled on terms that resulted in a very large cash payment to the scheme together with a full parent guarantee of its liabilities.
TPR commented:
“This case is a great example of how even after [warning notices] have been served, TPR, the company and the trustees can work together to achieve a good outcome for members without the need to formally enforce our powers..”
