Premier Foods is to restructure the deficit contribution schedule covering its eight defined benefit (DB) pension schemes as part of a larger capital restructure.
In its full year results for the year to 31 December 2013, the foods producer, which owns brands such as Ambrosia, Hovis, Oxo and Sharwood’s, stated that on completion of a larger capital restructure, it will reduce cash payments to its DB pension deficit by £161 million over the next six years.
The organisation’s contribution schedule previously included a contribution goal of £383 million as at December 2019, but this has been changed to £222 million following its triennial actuarial valuation.
In its results statement, it said: “Following the 2012 refinancing agreement, the group and the pension scheme trustees agreed that pension deficit contribution payments would be suspended from March 2012 to December 2013. These deficit contribution payments resumed in January 2014.
“A new pension deficit contribution schedule has been agreed with the pension scheme trustees, which provides improved affordability for the group and certainty of cash flows for the next six years.”
The valuation of the employer’s two RHM schemes showed a £217.8 million deficit as at 31 December 2013. The deficit was £385.5 million for its six Premier Foods schemes at the same date.
The organisation’s UK DB pension scheme was closed to future accrual on 30 September 2013.
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