The UK’s pensions regulator is probing concerns that P&O Ferries has defaulted on £146m in debt for its 20,000-member group pension scheme.
The ferry operator owes the largest share of the program’s total deficit of £1.25 billion, but has not made any voluntary contributions since its acquisition in 2006 by the logistics giant. DP World, which is largely owned by the Dubai Sovereign Prosperity Fund, according to the Supreme Court. ruling in 2015.
P&O Ferries and its owners have been fiercely criticized for their decision Bao 800 UK-based crew without notice on Thursday, to cut costs by replacing them with cheaper dealer staff.
The ferry company has lost £100m a year over the past two years and says its business is not “viable” with its current staffing structure. The new structure will cut staff costs by about 50%, according to an internal email posted by the Financial Times.
The losses were covered by DP World, which reported record results for 2021, with earnings before interest, taxes, depreciation and amortization rising 15% to $3.8 billion.
Labor wrote to the Pensions Authority in January calling on the watchdog to probe P&O’s unpaid contributions to the Merchant Navy Ratings Pension Fund.
Matt Rodda, shadow work and pensions secretary, told parliament in June 2021 the debt could cause “serious problems” for the fund, which has 20,000 members working in a range of the company far exceeds the P&O.
On Friday, the Pensions Regulatory Authority confirmed that it had received a letter from Rodda regarding the MNRPF.
“We are working closely with the MNRPF trustee in our role to protect retirement plan savers,” the regulator said. “We are not commenting further at this stage.”
The MNRPF scheme reports a deficit of £96 million at most recent valuations in 2020. As a multi-employee retirement scheme of last resort, if participating employers are having trouble paying their bills. contributions, the side effect is that other employers must meet the default contributions. About 100 employers participate in the program, but only about half of them are asked to contribute.
P&O has deposited more than £80m into the fund since 2016 and the outstanding shortfall is secured against two of the ferry company’s ships, according to a person briefed on the matter.
P&O declined to comment on its pension liabilities.
The scheme’s trustees said: “We are working with the Pensions Authority to assist with any investigation or action that will protect the interests of the fund, both in terms of benefit security.” of members and the impact on other participating employers.”
In 2018 the Pensions Authority opened an investigation into the governance of the MNRPF and issued a warning notice the following year recommending the appointment of an independent trustee to the scheme because of a variety of issues. management topic.
Additional reporting by Simeon Kerr in Dubai
