The Pensions Regulator has agreed a settlement for all three Coats schemes following the issue of warning notices in December 2014.
Following a long-running investigation into thread manufacturer Coats Group plc (formerly Guinness Peat Group plc), TPR remained of the view that the Coats Pension Plan, the Staveley Industries Retirement Benefits Scheme and the Brunel Holdings Pension Scheme were insufficiently resourced. TPR began preparing the case for referral to the Determinations Panel in mid-2016.
After months of negotiations, in December 2016 the Trustees of the Coats and Brunel schemes agreed a settlement with Coats Group plc comprising a lump sum payment of £255.5m split between the two schemes, a change of the statutory employer to Coats Ltd and a full buyout guarantee from the parent, Coats Group plc. In June 2017 a similar settlement was agreed with the Trustees of the Staveley scheme comprising cash of £74m, change of employer to Coats Ltd and a guarantee from the parent.
As a result TPR agreed to cease regulatory action.
Argyll comment: This brings to a close a lengthy investigation that began in July 2013.