City Link staff face non-payment of December pension

City Link will not be able to provide employees with their December pension payments after going into administration on 25 December.

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The courier’s workforce received defined contribution (DC) pension payments of £1,041 per calendar month, but will not receive the December bill due this month.

A spokesman from City Link said: “City Link make monthly payments to staff, but December’s payment will not be received on time due to City Link going into administration.

“Any contributions owed to the pension scheme at the date of the appointment would represent a claim against the company, which in certain circumstances might represent a preferential claim.

“It is currently too early to determine whether it qualifies as a preferential claim; this will be determined over the coming weeks.”

The DC scheme, provided by the People’s Pension, does not have a deficit and is therefore not impacted by the insolvency of City Link.