So I made a comment at The Guardian about Green and the BHS pensions:
“The pension scheme was in surplus when Green bought BHS in 2000. Green and other shareholders since took out more than £400m in dividends from the business.”
Yes, and the pension scheme was just fine after they’d taken those dividends too. Even this newspaper has reported that the deficit was trivial as late as 2006, some years after those dividends. And I’ve seen an analysis stating that it was all fine in 2008.
“The deficit may now stand at more than £700m after the Bank of England’s post-Brexit measures reduced yields on government bonds, in which pension schemes invest.”
That’s what has killed it. When interest rates fall the capital sum you need to pay a pension rises.
Might be worth a newspaper pointing all this out.
Wasn’t sure they’d let it stay up even. But they’ve only gone and made it their pick of the comments, haven’t they?