UK. TPR secures £730m insolvency protection for Sanofi Pension Scheme
Sanofi’s defined benefit (DB) pension scheme has additional insolvency protection of up to £730m for 20 years, following intervention from The Pensions Regulator (TPR).
The regulator worked with the global healthcare company to secure the increased financial support for the scheme, which also includes deficit repair contributions and an upfront payment of £37m, after warning that it would take enforcement action if necessary.
TPR added that the scheme, which has 16,500 members, now also benefits from a legally binding agreement which states that any dividend payments to the wider group paid by the scheme’s employers will be matched by contribution payments into the scheme.
The creation of this arrangement follows the regulator opening an investigation in August 2019 due to concerns that the scheme’s covenant had been weakened by a series of group restructures.
TPR determined that the guarantee package put in place by Sanofi was not sufficient and stated that, before it came to the new agreement with the healthcare company, it had intended to issue a Warning Notice seeking a Financial Support Direction.
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