A number of Communisis companies went into administration at the end of December, with some of the firm’s assets subsequently sold to Paragon and 581 jobs saved, but with nearly 640 employees laid off.
The group’s old pension scheme had a £20.8m deficit in the Communisis accounts for 2021, and also had a call on some of the group’s property assets.
Kevin Dolan, trustee director at Vidett, which handles the trusteeship for the scheme, told Printweek: “The trustee has been liaising closely with Interpath over recent weeks and negotiated an agreement which it is anticipated will result in a much improved outcome over the longer term for scheme members.
“For now, the scheme has entered a PPF assessment period in light of the insolvencies of the sponsoring employers and the trustee and the PPF are working together considering various options in relation to the way forward which will be communicated to members when it is feasible to do so.”
Printweek also approached the PPF. A spokesperson said: “We’re aware of reports that Communisis has entered administration. We understand this must be a worrying time and we’d like to reassure members of the Communisis Pension Plan that we’re here to protect them, and we will work closely with scheme trustees to ensure the best possible outcome for members.”
During the assessment process, the PPF also exercises creditor rights on behalf of the scheme.
“We seek to maximise recoveries from the employer to the scheme to reduce any pension deficit,” the PPF stated.
The PPF works to protect nearly 10 million members of defined benefit pension schemes and currently pays pension benefits to more than 269,000 people.
When the sponsoring employer of an eligible pension scheme becomes insolvent, the PPF’s aim is to find the solution that's best for its members and the PPF.
Its team works with the scheme's advisers throughout this process, which is known as the assessment period.
“Assessment periods on average take around 18 months to two years to complete, but can be longer in complex cases,” the PPF explained.
“The key point of reassurance to members is that, whatever the outcome for the scheme, their benefits are protected to at least PPF compensation levels.”
For pensioner members who had retired prior to the insolvency, their benefits are “broadly protected” to 100% of their scheme pension.
For those who hadn’t reached their retirement age at the point of insolvency, their benefits are broadly protected to 90%.
Further details on PPF compensation levels can be found on its website.
