On Sunday, August 12, it was reported that former UK retailer British Home Stores (BHS) has finally secured its employees’ pension by an insurance buyout amounting to $1 billion.
BHS, once was a British department store chain, had its closure on August 2016 and about 11,000 jobs were affected by it. After the devastating event, the former department store chain was left with a pension deficit amounting to $729 million.
A lot of concern has surfaced after that, as well as issues regarding its leaders not having enough ability to sustain and protect their former employees. As a result, it left the government with no choice but to take action for the issue at hand.
Yesterday, the pensions of over 9,000 employees have finally been secured after an insurance buyout. A pension insurance buyout lets the insurer get all the responsibility to pay pension fund members from the fund. It also benefits policyholders as they are given a guaranteed income stream.