Bernard Matthews’ pension shortfall ‘grows to £40 million’
Trustees and the Pension Protection Fund (PPF) are investigating whether cash was taken from the Bernard Matthews pension scheme when the company went into administration last year, reports in the media have said.
Both the PPF and trustees are said to be currently working to maximise the recoveries for 700 members of the pension scheme following Bernard Matthews’ administration last year.
This news follows a report written by Professor Prem Sikka of the University of Essex in October 2016 who claimed: “No attention has been paid to the hardship caused to retired and existing employees. It is all too easy for companies, their director and shareholders to extract cash and dump pension obligations to employees, leaving the PPF or taxpayers to foot the bill”.
At that time, the Bernard Matthews Pension Fund recorded a published deficit of £17.5 million. According to Antony Miller, chief executive of the 2020 trustees, who was speaking to the Financial Times, this figure is now between £30 million and £40 million.
Miller told the Financial Times: “We are investigating whether actions taken in recent years were appropriate, necessary and resulted in the pension scheme receiving fair value.
“We are reviewing a vast amount of historic data and communications and will use the findings to conclude on what action, if any, that we should take and whether to involve the pensions regulator.
“20-20’s focus, as the professional trustee, appointed late last year, is on trying to provide members with as much of their promised benefits as we can,” Miller continued.
“It is clear in this case that our members have suffered and that certain other parties have gained.”
A statement from a PPF spokesperson added: “The Bernard Matthews pension scheme is in a PPF assessment period and members can be reassured that they are protected. The PPF takes over the creditor rights where an employer goes bust and the pension scheme is being assessed for entry. We are therefore working with the insolvency practitioner, The Pensions Regulator and the trustees of the scheme to maximise the recovery to the scheme.”
Meat Management contacted Boparan Private Office for comment, however at the time of publishing it had not responded.
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