BusinessBusiness RecoveryReaders Digest US parent could be held liable for UK pensions deficit

Readers Digest US parent could be held liable for UK pensions deficit

UK pension law could require RDA to bail out in-administration UK company

The £125m pension deficit of Readers Digest UK, which forced the company into
administration, may have to be paid off by its US parent.

Under UK pension law, the Readers Digest Association could be held liable to
pay some or all of the deficit, reports the
Telegraph.

The Pensions Regulator, is currently considering whether to issue a
‘financial support direction’ or a ‘contribution notice’ against RDA, which will
require them to make payments to reduce the deficit.

Readers Digest UK fell under the administration of Philip Sykes from Moore
Stephens when it was unable to meet its pensions obligations and failed to
receive approval for a deal between the RDA and the Pension Protection Fund to
inject £10.9m into the UK company.

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