01 December 2009
Harrods, the upmarket London retailer, is considering the sale
of its £200m pension scheme in a buy-out deal.
Harrods is thought to be seeking to sell the pension obligations
of more than 1,000 staff by selling the scheme to a specialist
insurer. A so-called buy-in deal, where certain liabilities are
insured rather than sold, is also being discussed.
The pension scheme was nearly £20m in deficit at the end of
January this year, according to accounts filed at Companies House
in the summer however the shortfall may have reduced as equity
markets rallied since March.
In 2006, Harrods closed its final salary pension scheme to new
entrants, offering new entrants access to a less generous money
purchase scheme.
