Smiths News PLC said it has received a warning notice from the Pensions Regulator over the Tuffnells Parcels Express pension scheme, raising the possibility of a financial claim against the company.
The group said it was notified on Friday that the regulator is considering issuing a Financial Support Direction. This is a power that allows the regulator to require financial backing for an underfunded pension scheme, even where there has been no wrongdoing.
Such directions operate on what is known as a no-fault basis. That means the regulator does not have to prove misconduct. Other parties connected to Tuffnells have also been identified as potential targets.
Smiths News owned Tuffnells Parcels Express from December 2014 until May 2020, before Tuffnells entered administration on 12 June 2023.
The regulator has stated that the Section 75 debt of the scheme is now estimated at £3,467,000. A Section 75 debt represents the deficit that can be pursued when an employer exits a defined benefit pension scheme. It is the maximum amount the regulator can seek in total from all parties.
The board said it is reviewing the warning notice with its advisers and will have the opportunity to make submissions before any decision is taken.
The case will first be considered by the regulator’s case team and then referred to its determinations panel.
Smiths News said it is too early to know whether a Financial Support Direction will be issued, or in what amount or form.
The board added that it maintains the view that the company acted reasonably throughout its period of ownership and was an overall net contributor of funding to Tuffnells.