MG Rover Group has reached an £8 million pension settlement with The Pensions Regulator (TPR) following an investigation into its senior pension scheme.
More than 100 former employees, who were members of the scheme, will now receive a cash bonus almost ten years after the car manufacturer collapsed in April 2005.
In 2012, TPR issued a warning notice to MGR Capital, indicating its intention to issue a financial support direction.
The payments will be funded from the assets of MGR Capital, which will pay £8 million into the scheme after an agreement was reached between the trustee of the scheme and the subsidiary.
The scheme is also now expected to avoid entry into the Pension Protection Fund (PPF).
Stephen Soper, interim chief executive at TPR, said: “I am very pleased with the £8 million settlement, which is substantial in this context and an excellent outcome for the scheme.
“Our involvement once again demonstrates that the regulator will not hesitate to use its powers to protect the retirement savings of scheme members and limit calls on the PPF.
“It is clear that our warning notice led to productive negotiations with MGR Capital, concluding in a settlement which achieves our joint objectives to act in the best interests of scheme members and the PPF.”
