黑洞社区

Former workers at collapsed builder Rok must wait until the conclusion of a landmark court case to find out whether the government will help fill the 拢90m pension black hole uncovered by the company鈥檚 administrator.

A report by administrator PricewaterhouseCoopers (PwC) said the bulk of the deficit was in the company鈥檚 two main defined benefit pension schemes run by Rok 黑洞社区 and Rok Development for its 3,800 staff.

The news means Rok鈥檚 former and current workers may face huge short falls in their pensions because as a creditor, pension schemes rank behind the claims of secured creditors, most notably Rok鈥檚 banks which are owed about 拢75m.

The scheme may end up in the Pension Protection Fund, which may safeguard up to 90% of employees entitlement up to a maximum of 拢25,000 a year.

Alternatively the Pensions Regulator may issue a financial support direction (FSD), a move that would recognise the pension shortfall as an expense of the administration and give it priority over all other creditors, including the banks.

But FSDs are currently the subject of a legal dispute between the regulator and the administrators to Lehman Brothers and Nortel.

The appeal by the administrators in the Lehman/ Nortel case is expected to be ruled on in October or November. A defeat for the regulator could downgrade pension deficits in administrations.

Joint administrator Jeremy Webb said no decision about Rok鈥檚 pension scheme can be made until the court makes its decision.

He said even if in the event of a successful ruling for the regulator, Rok does not have the funds to meet the deficit.