Uniq picks up tab for pension deficit as RHM passes it on

Staff at RHM and Uniq are the latest to be hit by large holes in pension funds. Both companies have announced changes to their pension schemes to plug the deficits.

RHM's scheme, which covers half the workforce, has a £535m shortfall, but restrictive covenants prevent it from changing pension arrangements until September.

The group's human resources director Susan Fox said that average contributions for the 9,800 staff in the scheme would rise by about 2 percentage points, from an entry level of 3.5% to a maximum of 8%. It is also rejigging calculations for pensionable earnings and retirement terms and wants to cut its contribution -- currently 1.4 times an employee's. A 'salary sacrifice' scheme to cut national insurance contributions would also save RHM about £1m a year, said Fox.

Uniq said that new management had identified problems with its pension scheme in 2002. The £102m deficit is believed to have been one factor deterring take-over bids for the company.

Uniq will raise its contribution after April 1 from £8.4m to £15m a year, on top of the statutory £4.2m payment. It expected to maintain the new level for 12 years.

Meanwhile, over 1,000 Unison members at abbatoirs are voting on possible strikes, from March 23, over changes to the Local Government Pension Scheme.