Support charity entered administration with £6.4m pension debts

14 Sep 2015 News

Helpline charity BSS, which went into administration in July with the potential loss of more than 400 jobs, owes more than £6.4m to its pension scheme, according to a statement of affairs filed last week.

Helpline charity BSS, which went into administration in July with the potential loss of more than 400 jobs, owes more than £6.4m to its pension scheme, according to a statement of affairs filed last week.

The charity owes a total of £7.65m, most of it to its pension fund, according to the statement of affairs. However it expects to raise only £2.49m from the sale of its assets, leaving a shortfall of £5.16m.

The charity was a member of two different defined benefit pension schemes – its own scheme and the Scottish Voluntary Sector Pension Scheme, a multi-employer scheme.

The statement of affairs includes payments of only £133,000 on employee arrears of wages and holiday pay.

The charity employed 436 people, according to its most recent accounts, and ran helplines and contact centres for charities and others. Clients included mental health charity Mind, the National Fraud Authority, and the Department for Business Innovation and Skills.

At the time of administration, it was originally announced that parts of the charity would continue to operate and administrators have refused to confirm whether the entire charity will close and enter liquidation. A statement of administrators’ proposals has been filed with Companies House but has not yet been made public.

In its most recent accounts, for the period to March 2014, the charity said it had faced an extremely difficult trading environment, and had made considerable redundancies.

“The financial year ending 31 March 2014 has again seen a difficult environment for the charity, with the short-term consideration of price often achieving a greater status than quality in many tender discussions,” the charity said at the time.