UK Pensions Regulator rejects Uniq funding proposal
UK - The UK Pensions Regulator (TPR) has rejected a funding proposal put forward by food group Uniq to solve its £436m pension deficit.
In April, the company agreed a contribution holiday with scheme trustees under which Uniq would have only paid the annual £5m fees to the Pension Protection Fund.
From 2013 onward, the food group would then have paid at least £10m a year, or a third of its earnings, toward closing the funding gap.
According to Uniq, TPR said the Pension Framework, as currently constituted, failed to meet all of its criteria for clearance.
It added: "The company and the trustee continue to work together to seek a resolution for the Pension Scheme, and the company anticipates it will take some time to resolve."
Uniq said the outcome would have a "fundamental impact, either positive or negative" on both the scheme and overall company value.
The food group's pension deficit is many times more than the value of he company, placed at approximately £30m, meaning that winding up the scheme would result in Uniq's closure.