UK staff at popular publication Readers Digest have had their futures thrown in to doubt after a plan to plug a hole in the company’s pension scheme was thrown out.
Around 135 employees are set to be affected by the decision after the magazine offered a solution, which involved a £10.9 million cash settlement, to plug its £125 million deficit.
The decision could leave a number of employees looking into additional ways to fund their retirement.
Those who have purchased their own home could realise the potential of their assets through schemes such as equity release.
On hearing the decision, the magazines parent company, Reader’s Digest Association (RDA), said: "In light of this unusual and unexpected development, the RDA has filed a motion in the US Court in which it notes that, unless the pension deficit issue is resolved, it will no longer be able to support the UK business indefinitely and therefore, the UK business may need to file for administration".
