Last Wednesday, as Chair of the Work and Pensions Select Committee, Stephen wrote to The Pensions Regulator (TPR) to confirm the steps it is taking to make sure the Wilko Group supports its pension scheme. Stephen has previously met TPR in September to discuss the impact of Wilko’s collapse on the members of its pension scheme.
Wilko entered administration in August 2023 following problems with its finances and supply chain. The collapse of the retail chain put 12,500 jobs at risk. As of April 2023, Wilko’s pension scheme also has 1,878 members: 1,062 of whom are deferred members and 816 are pensioners.
Wilko had previously struggled to fund its pension. Wilko was paying £8.8 million per year into its pension scheme to reduce its funding deficit. The collapse of Wilko puts those payments at risk.
In his letter, Stephen asked TPR if it would issue a contribution notice or financial support direction against the pension scheme. Either would require Wilko - which has relaunched as an online retailer since its collapse - to financially support its pension scheme with further payments. Stephen also asked TPR for details on the impact on its funding of the investment strategy, known as Liability Driven Investment (LDI), that the scheme had adopted.