THE UK pensions watchdog has been urged to reveal why it agreed to Kodak’s £419m deal to keep its British pension plan out of the national rescue fund.
Independent pension consultant John Ralfe said the “extraordinary deal… seems to have abandoned rule-based pension regulation, and moved to ‘regulation by expediency’”.
The Pensions Regulator last week approved Kodak’s arrangement, which will see its pension fund buy two of its businesses and drop a £1.8bn deficit claim against the firm as it tries to exit bankruptcy.
“The Pensions Regulator should be banging the table on behalf of the PPF but it’s not at all clear how hands on it has been in cases like this,” he told City A.M.
Ralfe, who formerly ran the Boots pension scheme, called on the regulator to issue a Section 89 report detailing its decision.