Which option would prove best?
The scheme currently looks set to be bailed out by the PPF, which would see members receive a pension worth much less than they have built up.
As things stand, the obvious way for members affected to not lose out is for Green to take back responsibility for the scheme and fund it to a level which provides for benefits above the PPF level of compensation, or perhaps to set up a new scheme to which members may want to transfer instead of relying on the PPF. But can the members rely on Green - the man who had pledged to sort the pension problems when he appeared before MPs four months ago?
Green has voiced his desire to help the scheme members by investing personally in ‘topping up’ their reduced benefits, but the Pensions Regulator, who has a duty to protect both members of schemes and the PPF, would unlikely agree this proposal that only compensates members. If they were to do so, they would be setting a very dangerous precedent.
Sir Philip has vowed several times to sort out the pension problem, telling MPs in June that his advisers were working on a "resolvable and sortable" solution. On Monday, he told ITV that he was in a "very strong dialogue" with the pensions regulator to find a solution, but would not put a number on the level of financial support he would be willing to give.