UK Coal transfers DB pension to the PPF
Employee Benefits (United Kingdom)
By Jennifer Paterson
July 10, 2013
UK Coal’s defined benefit (DB) pension scheme has been transferred to the Pension Protection Fund (PPF) as the mining firm enters administration.
Working closely with the PPF, UK Coal has developed a plan that will provide protection on accrued benefits for employees in the scheme. Members of the industry-wide Mineworkers’ Pension Scheme will see their pension administered by the PPF. [EXPAND Read more]
Around 50% of the current workforce are members of a defined contribution (DC) pension scheme, the industry-wide Coal Staff Superannuation Scheme. Their contributions will not be affected by this administration and restructuring. Also unaffected are pensions accrued prior to privatisation in 1994.
As part of a restructure, which began in March 2012, the mining organisation will be owned by UK Coal Mining Holdings Ltd, a new parent company to the group, which is intended to be run by a new employee benefit trust.
Kevin McCullough, chief executive of UK Coal, said: “Entering administration and the subsequent restructuring was the only way we could preserve any of the business and, while I’m delighted we’ve saved 2,000 jobs, we’ve also had to make some very difficult decisions.” [/EXPAND]