Reader's Digest collapses after pensions deal failure

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

The title's American parent group - Reader's Digest Association - said it was no longer able to give its support following the UK Pensions Regulator's decision not to approve plans to fund the pension scheme, which has a £125 million shortfall.

Administrator Moore Stephens said it was reviewing the title's financial position, but intended to continue publishing while it sought a buyer. It also said winners of last week's prize draw would receive their money.

The company said it was too early to comment on the future of the magazine's 117 staff.

Reader's Digest, which has offices in Canary Wharf and Swindon, has a history dating back to 1938 and a circulation of 541,282 in Britain.

Its failure means its UK pension fund, which has 1,600 members, may have to be bailed out by the Pension Protection Fund.

The PPF pays out in full for members drawing a pension from failed schemes, but caps payment for those who are yet to retire at 90 per cent, with a ceiling of about £28,000. The limit is expected to leave 32 members - two per cent - out of pocket.

The Pensions Regulator said it was considering using its powers, which could see the watchdog force US parent RDA to pay up rather than see the scheme fall under the PPF.

It had ruled against proposals through which the RDA would have put £10.9 million as a lump sum and one third of the equity of the British business into the pension fund.