Philip Green's pensions settlement is only the beginning of the road for thousands of loyal BHS workers-Frank Field

Sir Philip Green has reached an out-of-court settlement to pay £363million to settle the BHS pensions scandal

Philip Green has agreed to pay the BHS pensions scandal (Photo: Getty)

This is a really important milestone on the road to justice for BHS pensioners.
But Sir Philip Green ’s out-of-court settlement with The Pensions Regulator does not mark the end of that road. Far from it, in fact.
Let’s not forget that thousands of loyal BHS workers lost their livelihoods as a result of the shoddy way in which the company was managed – or mismanaged – in the years leading up to its downfall.
A barrow-load of money was taken out of the company in those years – filling the pockets of the Green family and a small army of well-paid advisers – while individual BHS outlets were left to rot.
The Commons Work and Pensions Committee, which I chair, has been pushing for justice for almost a year. Questions that came from our work – why did those in charge of BHS allow it all to end in tears for the company’s loyal workforce?

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For example – will be answered in the year or two ahead of us. The Insolvency Service has beefed up its inquiry team that is taking a forensic look at how and why BHS went under.
The liquidator is, likewise, taking its work up a gear; poring through deals that took place.
So let us breathe a sigh of relief today for those BHS pensioners who will be able to enjoy a better retirement than looked likely before today.
But let us also keep a close eye on the net that is beginning to close around those responsible for the sorry demise of a once great British institution, and the loss of 11,000 jobs on our high streets.
Labour MP Frank Field is the chair of the Work and Pensions Select Committee

Culled from Mirror Pension

Bill Gates reveals what he would tell his 19-year-old self -Toby Meyjes

Bill Gates has shared his views on a number of topics including intelligence and social media (Picture: @BillGates/Twitter)

As one of the world’s richest and most influential people, it is fair to assume that Bill Gates would be fairly satisfied with his life.
But if the billionaire was to give any advice to his 19-year-old self, it would be smartness is not quite as important as he thought back then.
The Microsoft co-founder explained that intelligence is not is not ‘single dimensional’ as he once believed, in a ‘Ask Me Anything’ Q and A, he hosted on Reddit.
The other topics covered included his favourite holiday spot and views on social media but he reserved his most compelling answers for the most complex questions.
Regarding the advice to his younger self, he said: ‘I would explain that smartness is not single dimensional and not quite as important as I thought it was back then.

‘I would say you might explore the developing world before you get into your forties.
‘I wasn’t very good socially back then but I am not sure there is advice that would fix that – maybe I had to be awkward and just grow up.’

Bill Gates on…

Bill Gates explained what advice he would give his 19-year-old self (Picture: Michael Gottschalk/Photothek via Getty Images)

…what he finds most curious in life

‘I still find the creation of life and the way the brain works the most fascinating areas.
‘Nick Lane has some great books exploring what we know about how life started. It is amazing how little we know about the brain still but I expect we will know a lot more in 10 years.’

…his greatest achievement

‘Although the Foundation work is super promising and will be the biggest thing over the decades ahead I still think the chance to be part of the software revolution empowering people was the biggest thing I have gotten to do.
‘Right now I am very focused on making sure we successfully eradicate polio – that will be amazing if we do it – as good as shipping even the best software product.’

..disguises

 …jumping over chairs

…the most pressing issues we can solve in the next decade

…social media

…what money can’t buy when it comes to philanthropy

‘Philanthropy is small as a part of the overall economy so it can’t do things like fund health care or education for everyone. Government and the private sector are the big players so philanthropy has to be more innovative and fund pilot programs to help the other sectors. A good example is funding new medicines or charter schools where non-obvious approaches might provide the best solution
‘One thing that is a challenge for our Foundation is that poor countries often have weak governance – small budgets, and the people in the ministries don’t have much training. This makes it harder to get things done.
If we had more money we could do more good things – even though we are the biggest foundation we are still resource limited.’

…favourite vacation spot

‘Australia is particularly nice. It is summer there when it is winter here so going there in December and January is especially nice. I spent Thanksgiving there last year.
‘I have gotten to travel to a lot of great places like the Amazon in Brazil which I recommend.’

…what is success

Culled from Metro

Kaduna Govt Commences Implementation of New Pension Scheme

The Kaduna State Government is to commence the implementation of the new pension scheme on Tuesday by paying pension benefits to its retirees scheme.
The Executive Secretary of the tate Pension Bureau, Mr. Dan Ndackson, who disclosed this at a news conference in Kaduna yesterday, said the state government introduced new scheme to address the hardship always faced by pensioners.
He said the new pension scheme remedies the problems and failures arising from the implementation of the 2007 pension law and saddled the state with more arrears of pension and gratuity.
Ndackson explained that the new pension arrangements protects the earned pension rights of workers and end the problems that unfunded pension schemes have always created for pensioners and government alike.
He said: “The state government has nothing to gain from the contributory pension scheme, but it has raised its own contribution as an employer to 13 per cent while the worker pays seven per cent monthly. This is a pro-people decision taken to improve the welfare of pensioners”
According to him, “Kaduna State has migrated all public sector workers to the contributory pension scheme. With this scheme, pensioners are spared the hardship, delayed payments and fraud that bedeviled the old scheme.”
He added that the new system is so efficient that public servants that just retired in January and February 2017 can start earning their pension immediately.
“In preparation for this transition, we selected actuaries to determine the accrued pension liabilities in respect of each employee of the government based on the contract of service existing before 1 January 2017,” he said.
Ndackson added state government deserves credit for devoting more of its resources to paying pensioners, stressing that government has nothing to gain from the contributory pension scheme.
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4 Things to Know Before Taking Money From Retirement Accounts -Sheiresa Ngo

Man holding money | iStock.com/Alen-D

One day you’re enjoying your job and loving life. Things are going well and you have no complaints. Then, seemingly overnight, you’re living your worst nightmare. You’ve been laid off, your unemployment benefits will end soon, and you’ve blown through your emergency savings fund. If you’re in a tight spot and you can’t figure out how to make ends meet, you might be considering requesting a hardship withdrawal from your retirement account. This is often the last resort for those who have cleaned out their savings and run out of other sources of money.
Ed Snyder, a certified financial planner and co-founder of Oaktree Financial Advisors, says that while a hardship withdrawal can be a lifesaver in a time of need, there are still some catches to watch out for. “A 401(k) hardship withdrawal helps bail you out of a really tight spot when you have no other options. However, depending on your income and the amount of the withdrawal, the distribution could put you into a higher tax bracket,” warns Snyder in an interview with The Cheat Sheet.
Here’s what you should know before you withdraw money from your retirement account.

1. Your request could be declined

401 (k) plan | iStock.com

Not all retirement plans offer the option for hardship withdrawals because it’s not a required feature. So make sure to check first and see if you are able to receive a distribution. Also know that a determination will be made regarding whether you really have a significant need. If it is determined that you or your spouse have assets available, you will most likely not be granted a hardship distribution. The IRS uses a vacation home as an example of an available asset that could be liquidated to help cover an unexpected financial emergency.

2. Know what qualifies as hardship

Are you rich or poor? | iStock.com

If your retirement plan does offer the option to take a hardship withdrawal, it will outline the specific requirements to qualify. One of the requirements is that you must have what is referred to by the IRS as an “immediate and heavy financial need.” The IRS automatically considers an employee to be in immediate and heavy financial need if the distribution request is for expenses such as funeral costs or significant medical costs. You’ll also automatically qualify if you need the money to prevent an eviction from or foreclosure on your primary residence. These are known as safe harbor distributions. For further information on what qualifies as a safe harbor distribution, see the IRS publication titled Retirement Topics—Safe Harbor Distributions.
When it comes to 401(k) hardship withdrawals, your family won’t be left out in the cold. Requests can also be made to meet the financial need of a spouse or dependent. In addition, a request can also be made for expenses to assist a non-spouse or non-dependent beneficiary, thanks to the Pension

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3. You’ll have to wait to make future contributions

Hand holding out money | George Marks/Retrofile/Getty Images

If you’re suddenly in the position to contribute to your plan again, tough luck. Know that if you want to make contributions to the plan, you’ll generally be required to wait at least six months after you receive a hardship distribution. That means you lose the value of having your money invested in the markets.

4. You’ll owe taxes–and most likely penalties, too

IRS | Win McNamee/Getty Images

Taxes and penalties are in your future. Unlike a 401(k) loan, a hardship distribution does not have to be repaid. However, you will owe taxes on the distribution because it’s considered income. In addition, if you are less than age 59 ½, you’ll also owe a 10% early withdrawal fee.

Jeff Rose, certified financial planner and founder of personal finance blog Good Financial Cents, says a 401(k) hardship withdrawal should be taken with caution. Depending on the situation, the consequences could outweigh the benefits. He recommends looking at other options first, such as taking out a personal loan. “Using a 401(k) hardship withdrawal should only be done as a last resort. Look for all other options for accessing money before tapping into your 401(k) retirement savings,” Rose says on his blog. “A 401(k) hardship withdrawal reduces the amount of your retirement account permanently since it’s never repaid, you’ll miss out on compounding interest and earnings, and most likely pay both income taxes and penalties on the amount withdrawn, making it an expensive option for gaining access to your money.”

Culled from Money & Career Cheat Sheet