The trustees and sponsor of the EMI Group Pensions Fund have avoided a hearing before the Pension Regulator’s (TPR) determinations panel after reaching an agreement on its funding in line with requirements under the Pensions Act 2004.
Press releases indicate that the group would provide £197 million of additional funding by April 2016, as well as an immediate injection of £16 million.
The issue over the deficit in the pension scheme had been an ongoing discussion between the employer and trustees since 2007, which eventually led to TPR issuing a Warning Notice to invoke its powers to decide on the funding documents under section 231 of the 2004 Act.
The Warning Notice sought to impose the methods and assumptions to be used in calculating the technical provisions, a recovery plan and a schedule of contributions. It has since been withdrawn.
Following the agreement, TPR has issued a statement in which executive director for delivery, June Mulroy, said:
‘As is often the case, our ability to impose a solution provides an incentive for parties to agree, even if at the last moment. We are determined that scheme funding targets are set with appropriate levels of prudence, and we will not hesitate to invoke our powers where necessary.’