Article 351GE Monarch collapse leaves yet another pension fund up in the air

Monarch collapse leaves yet another pension fund up in the air

by
Phillip Inman
from Economics | The Guardian on (#351GE)

The state-sponsored pension rescue fund is creaking under the weight of final-salary schemes whose sponsoring companies can no longer support them

Pensions are the tail wagging the economic dog - sometimes in the strangest ways. Take the high-profile collapse at Monarch Airlines. It's a sorry story of corporate raiders facing accusations of asset-stripping one of the country's largest holiday airline businesses and leaving taxpayers to pick up the tab. The once strong, if slightly dated, brand was taken over by private equity financiers to try to make it into another Ryanair.

When that failed, it appears the owners could still walk away with a profit, following a sophisticated offloading of the debts, including the ailing pension fund - once a major creditor to the business. The fund, which is in the state-sponsored Pension Protection Fund (PPF), may have been left short when it first collapsed in 2014.

Continue reading...
External Content
Source RSS or Atom Feed
Feed Location http://feeds.theguardian.com/theguardian/business/economics/rss
Feed Title Economics | The Guardian
Feed Link https://www.theguardian.com/business/economics
Feed Copyright Guardian News & Media Limited or its affiliated companies. All rights reserved. 2024
Reply 0 comments