Hoover Losses Widen After Pension Cost Hit l Defined Benefit Scheme Case Study
After being hit by more than £10m in pension costs, South Wales based appliance giant Hoover UK took headline news recently as their pre-tax loss widened to more than £12m. Following this news, Thomas Carroll Independent Financial Advisers issue a useful case study for businesses with how we assisted a client in reforming their defined benefit scheme.
Hoover reached an agreement with The Pensions Regulator to transfer staff into a pension protection fund. As part of the plan, Hoover will pay £60m to the pension scheme, which has more than 7,500 members, as well as ordinary shares representing a 33 per cent stake in the business.
The deal was agreed due to the risk that the company could have become insolvent without a restructuring of its pension arrangement. Read more about Hoover here.
In the case study below, the administration and structure of the scheme was reviewed along with all current and future costs. In this example, the annual savings to the client equated to over £160,000. The case study below highlights the process undertaken by our Chartered financial advisers and includes;
- Client profile
- The need for a solution
- What we did
- Key stages
Click here to download and view a PDF version of the case study.
To discuss the case study in more detail, contact Tony Smith via email here or call 02920 853764.