- The Work and Pensions Committee has called for Government to introduce a ”nuclear deterrent” stop companies and individuals avoiding pension responsibilities.
- The deterrent would amount to a fine worth three times the amount that person or company should contribute to fill pensions deficit.
- Under scheme Sir Philip Green would pay about £1bn to fill BHS blackhole.
Arcadia tycoon Sir Philip Green may have to pay £1bn to resolve the BHS pension debacle under new proposals tabled by MPs.
The Work and Pensions Committee has called for the Government to introduce a “nuclear deterrent” to stop companies or individuals attempting to avoid their pension responsibilities.
This deterrent would be a fine from The Pensions Regulator (TPR) worth three times the amount it believes a company or individual should contribute towards filling the deficit in a pension scheme.
The regulator is understood to be seeking £350m from Green to fill the blackhole in the BHS pensions scheme, which would mean the retail boss would face a charge of about £1bn.
The fine is part of measures the Work and Pensions Committee is proposing to avoid another BHS scandal.
The department store collapsed into administration earlier this year with a £571m blackhole in its pension scheme.
Chair of the committee Rt Hon Frank Field MP said: “It is difficult to imagine [TPR] would still be having to negotiate with Sir Philip Green if he had been facing a bill of £1bn, rather than £350m. He would have sorted the pension scheme long ago.”