Employee reward and benefits news
Reader's Digest faces pensions woe, bankruptcy
One of the world's most popular and well-known titles looks like it is on the brink of collapse, with the pension fund of the organisation in the UK being under fire.
The publication's 135 British-based employees' futures have been put in doubt after a deal to bail out the pension fund fell through.
According to Reader's Digest Association (RDA), the magazine's US parent company, explained that UK regulators had not approved a rescue plan to resolve a significant yet longstanding unfunded liability within the pension scheme, adding that as a result, it will not be able to support it.
This would mean that the UK business may have to file for administration and has already delayed the US company from emerging from Chapter 11 bankruptcy in its home country.
Based in Chappaqua, New York State, the Reader's Digest gets a readership of over eight million and issued its first copy in 1922.
Posted by Elizabeth Mewes
