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BHS Pension Scheme Saved by an Insurance Buyout

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.

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