Pasty maker’s pension shortfall soars to £173m
BILLION-pound pie and pasty maker Samworth Brothers has reported that its pension deficit has ballooned to £173 million, from £69 million in 2015. The mak maker of Melto Melton Mowbray pork pies, p Ginsters p pasties and Soreen malt bread revealed the shortfall as i it paid an £ £18.3 million di dividend to its fam family owners. The group, which also makes food for supermarkets, said the deficit calculation was a preliminary one carried out for accounting purposes and that a comprehensive three-year review was ‘in progress’.
‘We take very seriously our commitments to our people, including our pension scheme members,’ said the Leicestershire-based firm.
‘Many businesses are finding themselves in the same position due to low bond yields.’
The company said sales rose 7 per cent to £991 million in the year to the end of December 2016. Profits dropped 2 per cent to £48 million.
The firm said in its annual report that it would discuss any funding requirements with the regulator if necessary. It said: ‘As part of the [three-year review] process the company must agree with the trustees of the scheme the contributions to be paid to address any shortfall.’
Work and Pensions Committee chairman Frank Field said: ‘It’s great that The Mail on Sunday is spotting these big pension deficits in private companies. But we have actually got a regulator and it should be them ringing me to let me know about these situations and saying “here is a list, this is our work for this quarter”. I mean, are they even looking at this?’
A spokesman for The Pensions Regulator declined to say whether it had spoken to Samworth Brothers or the committee. It added that it did not discuss specific companies.
The pie-maker’s president, Sir David Samworth, was knighted in 2009 for services to charity.