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| Version 2 | Version 3 |
|---|---|
| Coal mines seek pension rescue deal | Coal mines seek pension rescue deal |
| (about 11 hours later) | |
| A large part of the UK's remaining coal mining industry is expected to be taken over by the state-established Pension Protection Fund, the BBC understands. | A large part of the UK's remaining coal mining industry is expected to be taken over by the state-established Pension Protection Fund, the BBC understands. |
| The operator of the mines, formerly UK Coal, is expected to enter administration in the coming days. | The operator of the mines, formerly UK Coal, is expected to enter administration in the coming days. |
| The PPF is then expected to take on the assets as well as a pensions liability estimated at about £550m. | The PPF is then expected to take on the assets as well as a pensions liability estimated at about £550m. |
| The deal is expected to keep the mines running and save jobs, but lead to a cut in miners' pensions. | The deal is expected to keep the mines running and save jobs, but lead to a cut in miners' pensions. |
| There are about 7,000 current and former mine workers whose pensions could be affected, with the Financial Times reporting they face a reduction of 25%. | There are about 7,000 current and former mine workers whose pensions could be affected, with the Financial Times reporting they face a reduction of 25%. |
| A spokesman for the PPF confirmed that it was "one of a number of parties involved in discussions about the future of operations at UK Coal", but said it was not able to comment further while discussions were continuing. | A spokesman for the PPF confirmed that it was "one of a number of parties involved in discussions about the future of operations at UK Coal", but said it was not able to comment further while discussions were continuing. |
| "Our role is to protect the interests of pension scheme members and minimise any resulting costs to our levy payers," the spokesman said. | "Our role is to protect the interests of pension scheme members and minimise any resulting costs to our levy payers," the spokesman said. |
| 'Unprecedented' deal | 'Unprecedented' deal |
| The PPF is responsible for bailing out struggling pension schemes, but does not usually take on the control of the companies backing those pension schemes. | The PPF is responsible for bailing out struggling pension schemes, but does not usually take on the control of the companies backing those pension schemes. |
| It was established by the government 10 years ago, but is funded through a levy on pension funds. | It was established by the government 10 years ago, but is funded through a levy on pension funds. |
| John Ralfe, a pensions consultant, described the expected deal with UK Coal as "unprecedented". | John Ralfe, a pensions consultant, described the expected deal with UK Coal as "unprecedented". |
| He told the BBC's Today programme that the size of the pensions liability was significantly bigger than any other the PPF had handled in its 10-year history. | He told the BBC's Today programme that the size of the pensions liability was significantly bigger than any other the PPF had handled in its 10-year history. |
| "This is the single biggest hit by a country mile that the pension fund has had," he said. | "This is the single biggest hit by a country mile that the pension fund has had," he said. |
| UK Coal has been suffering significant financial difficulties, and underwent restructuring last year. It suffered a costly fire at the Daw Mill pit in Warwickshire earlier this year. | UK Coal has been suffering significant financial difficulties, and underwent restructuring last year. It suffered a costly fire at the Daw Mill pit in Warwickshire earlier this year. |
| It now operates two deep mines and six surface mines under UK Coal Operations, which is a subsidiary of UK Coal Mine Holdings. | It now operates two deep mines and six surface mines under UK Coal Operations, which is a subsidiary of UK Coal Mine Holdings. |
| It is not clear which business is due to enter administration as part of the rescue deal. | It is not clear which business is due to enter administration as part of the rescue deal. |
| Under the plans the pits will continue to operate, safeguarding 2,000 jobs. |