7,000 mineworkers retirement takes HUGE HIT ! British Coal Pension enters PPF , Who’s Next ?

I wrote an article for the British Chamber of Commerce Japan Magazine in March saying that there will be more and more pension schemes going into the PPF Article here , today British Coal went into the scheme.

The retirement income of 7,000 mineworkers at UK Coal, Britain’s largest coal mining business, took a hit on Tuesday . Why you ask ? as the pit operating group responsible for repairing the pension deficit of at least £450m sank into a long-anticipated administration.

The PPF—a statutory fund run by a statutory corporation—has neither government guarantees nor funding. The fund’s objective—to pay compensation to defined benefit (DB) pension scheme members when their employers go bust and cannot afford to pay what they promised—is to be commended. PPF has taken over responsibility for partially honouring the pension promises made by UK Coal before it went into administration .

Looking at the figures the PPF is looking like it will be taking on a deficit of £500m ! Making it the largest ever deficit to enter the scheme dwarfing the Nortel deficit which was £333m in 2009 .

I believe there are other schemes that are on the edge of entering the PPF scheme , What this means ? Simple the income you thought you were going to have from your pension will not be that !

Because of this I have created a list of my top 10 pension schemes who is on my watch list , Many of them are in the FTSE 100 .

Tony Evans

http://www.ft.com/cms/s/0/306e2522-e893-11e2-aead-00144feabdc0.html

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