This article is 12 years old. Images might not display.
It is part of the unusual corporate restructuring that was undertaken to keep UK Coal going.
The Pensions Regulator has published a report detailing its actions that allowed the UK Coal group restructuring.
UK Coal Mining Limited was the sponsor of sections in two industry-wide pension schemes, the Industry Wide Coal Staff Superannuation Scheme and the Industry Wide Mineworkers Pension Scheme.
The UK Coal Sections have about 6800 members.
On recent figures the UK Coal Sections would have had an estimated aggregate deficit on a “buy-out” basis of 900 million pounds ($US1.45 billion) on aggregate assets of £451 million.
In 2012 UK Coal concluded the group’s operating structure and balance sheet needed restructuring.
Following extensive discussions with the regulator a plan was agreed on that resulted in substantially all of the economic interest in the group transferring from shareholders to the trustees of the UK Coal Sections.
TPR executive director for defined benefit regulation Stephen Soper said the restructuring had improved the outlook for the business and would enable continued support to be provided to the UK Coal Sections from an ongoing sponsoring employer.
“This provides the best available opportunity to maximize the value provided by the group to the UK Coal Sections and therefore improve the chances of benefits being paid to members,” he said.
