Lehman Brothers Pension Scheme – £184 million settlementPrint publication
The Pensions Regulator (tPR) has finally reached a compromise in respect of the Financial Support Directions (FSD) which it issued in connection with the Lehman Brothers Pension Scheme.
The settlement has followed many years of litigation, resulting in a Supreme Court judgment on 24 July 2014, where it determined that an FSD is effective against insolvent companies, and that liabilities under it rank as a provable debt.
The successful compromise will result in the Lehman Brothers’ group companies paying trustees an amount that is likely to secure, in full, the liabilities to its deferred members. This is estimated to be in the region of £184 million, which was the scheme’s buyout deficit as at 30 June 2014.
The settlement will be welcome news for the deferred members and trustees alike, as tPR expects that the amount payable under the terms of the settlement will result in the Scheme not having to enter the PPF.