Polestar Group will wind up its pension scheme following approval from The Pensions Regulator (TPR).
TPR concluded that full funding of the scheme over any reasonable period was unlikely and that the scheme should be wound up in the interests of its members and the Pension Protection Fund (PPF).
After receiving professional advice, the trustee agreed with TPR’s view, and has written to members informing them of its decision to wind up the scheme.
The publishing firm has a pension scheme deficit of about £500 million.
Stephen Soper, executive director for defined benefit (DB) regulation at TPR, said: “With no employer support, the funding gap between the scheme’s assets and liabilities could only be closed through taking excessive investment risk.
“This would not be in the best interests of the generality of members or PPF levy payers. We therefore believe that the trustees’ decision to wind up the scheme is the right one.”
For more on closing defined benefit pension schemes