The Pensions Regulator (TPR) has issued a warning notice to Smiths News in relation to the Tuffnells Parcels Express Pension Scheme.

In the warning notice, TPR noted that the section 75 debt of the Tuffnells defined benefit (DB) scheme was estimated at £3,467,000.

Section 75 debt comes under the Pensions Act 1995 and is a legal requirement for DB scheme employers to pay a share of the deficit, calculated on a buyout basis.

TPR’s warning notice stated that the regulator was considering issuing a financial support direction (FSD) against Smiths News in relation to the scheme.

Alongside Smiths News, several other parties connected to Tuffnells Parcels Express were identified in the warning notice as potential targets of the regulator’s powers.

Smiths News owned Tuffnells, which was the sponsoring employer of the scheme, between December 2014 and May 2020. Tuffnells entered administration on 12 June 2023.

Smiths News’ board said it was reviewing the warning notice with its advisers and had the opportunity to make submissions to TPR in response.

These submissions will be considered by TPR’s case team and then referred to a Determinations Panel before any decision is made on whether an FSD should be issued against Smiths News, and in what form or value.

The board stated that it maintained the view that Smiths News acted reasonably throughout its time as parent of Tuffnells and that it was an overall net contributor of funding to Tuffnells during its period of ownership.

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