Over £2.5 million will be paid into the pension scheme of Dundee-based Discovery Flexibles Ltd (DFL), a Dundee packaging company, following a court ruling and action by The Pensions Regulator (TPR).
TPR found that between 2008 and 2019, money was taken from DFL while its pension scheme, Danapak Flexibles Retirement Benefits Scheme (DFRBS), had a significant shortfall. The investigation was prompted by the scheme’s independent trustee, who raised concerns.
The company, which supplied packaging to major brands, was bought by Chris Wrigley and his wife Elizabeth for £1 in 2008 and sold in 2019 for the same amount. TPR found that money had been taken out during their ownership, and pursued compensation from the Wrigleys and Chris’s siblings, Paul Wrigley and Ann Pelgrave.
TPR took enforcement action, including a legal case that led to a ruling by the Upper Tribunal on August 4. In 2023, Chris and Elizabeth agreed to pay £2 million while Paul paid £222,483.
The Upper Tribunal on August 4 ordered Ann to pay £245,749 plus £85,000 interest.
TPR executive director of regulatory compliance Gaucho Rasmussen says: “The pensions system relies on employers with defined benefit schemes doing the right thing by their savers – and the vast majority do.
“But when things go wrong, mechanisms are in place to alert us. And when savers are at risk, we act to put things right.
“This case demonstrates our commitment to protecting savers and preserving the integrity of the pensions system. It also shows that we remain open to engagement and settlement where it delivers good outcomes for schemes.
“Importantly, it highlights that even when an employer remains in business, we will intervene where necessary to safeguard pension benefits.”
