Northern Ireland

Presbyterian Mutual Society (PMS) scheme: how it works

PMS name plate
Image caption Thousands of PMS members have been unable to retrieve their savings

Two and a half years after the Presbyterian Mutual Society (PMS) crashed, its investors will be getting some, but not all, of their money back.

Under the scheme being proposed, larger savers will be asked to defer some of the money they are due to get back for 10 years.

The different strands from the PMS rescue package are coming together.

The £175m loan from the Treasury, which has to be paid back, will be available from the start of the new financial year.

Also available will be another £50m; £25m of this figure is a loan from the Northern Ireland Executive.

Defer

The next step falls to the administrator Arthur Boyd, who will put a "scheme of arrangement" to all the PMS savers and investors, setting out how much money in the pound they will get.

This is the key figure that will determine how much investors will get back.

Under this scheme, the larger investors will be asked to defer some of the money they are due for up to 10 years.

This is to make more money available to help the smaller savers with accounts of less that £20,000 who have so far failed to get any of their money back.

All the investors will be asked to vote on these proposals.

The church will also ask some of the larger savers to enter into a voluntary arrangement to defer some of their money they are due, again to boost the money in the Mutual Access Fund that has been set aside to compensate the smaller savers.

The administrator says he hopes the money will be returned in June.

According to the Department of Finance and Personnel, there is no guarantee the investors will get a 100% return as the scheme depends on the recovery of the PMS assets in the long term.

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