The 2,200 member Wilkinson Group Retirement Benefits Scheme is set to go into Pension Protection Fund (PPF) assessment after its sponsor, Wilko Limited, went into administration yesterday.
The High Street homeware retailer - which has around 400 shops across the UK - collapsed yesterday (10 August) after failing to secure a rescue deal. It is understood the stores will remain open while the administrator, PwC, looks for a buyer for all or part of the business.
In its latest published accounts for the year ended 29 January 2022 showed the Wilkinson Group Retirement Benefits Scheme had assets of £203m and liabilities of £219m - an accounting deficit of around £16m.
The trustee of the Wilkinson Group Retirement Benefits Scheme said that now Wilko Limited was subject to insolvency proceedings, the scheme was expected to enter into a PPF assessment period.
In a statement, the trustee board reassured members their pensions were safe. It said: "The trustee would like to reassure pensioner members that notwithstanding commencement of a PPF assessment period, the pensioner payroll will continue to be paid on the normal due date.
"Furthermore, the Trustee would reassure all members that as a minimum, they will receive PPF compensation levels."
The trustee statement said further details on PPF compensation can be found on the organisation's website.
The trustee statement added: "The trustee is taking advice from its professional advisers as well as liaising with the PPF and will be sending a detailed communication to all members to provide further information shortly."
The PPF also reassured members of the Wilkinson scheme. A PPF spokesperson said: "We're aware of the insolvency of Wilko yesterday. We understand this must be a worrying time for the pension scheme members and we'd like to assure those members that we're here to protect them if needed."
