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Troubled Uniq Hands 90Pc Of Firm To It's Pension Fund.

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http://www.dailymail...ed-milkmen.html

'Boss Geoff Eaton has proposed handing 90 per cent of the group over to the guardians of its retirement scheme, which counts thousands of retired Unigate milkmen among its members.

In return, Uniq would be freed from making any future payments into the fund.

The unprecedented proposal has yet to be signed off by the pension fund trustees, and would also need to be approved by the Pensions Regulator, Uniq shareholders and the government.

The desperate measures underline the crushing weight of its 21,000 member scheme on Uniq, which sells desserts, sandwiches and salads to retailers like Marks & Spencer.

The scheme had a deficit of £436million at the end of March - more than 50 times Uniq's current market value of £8.5million.

The pension black hole is the legacy of Uniq's days as stateowned dairy group Unigate, when it employed an army of milkmen across Britain.'

here we go.what chance is there of any potential shortfall landing in the laps of Joe Taxpayer?Didn't know Uniq was formerly state owned,but I can see a queue building.

some sort of major pension default seems inevitable.there's jsut no way the taxpayer can bail all the funds that are in trouble(and that's before stock markets smack-which I read in the tea leaves).I wonder if the people who made all the nice promises 50/60 years ago,had any idea that they would take companies down.

Pensions apartheid looks set to blossom.How on earth do you get on the long side of that?

Every single defined benefits scheme in the UK is almost certainly doomed to eventual failure.

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...what chance is there of any potential shortfall landing in the laps of Joe Taxpayer?....

100%.

Privatisation is just borrowing. Lots of the big companies have a deficit bigger than their market cap all their pensions were guaranteed when they were sold off. Read the recent news about BT (BA in the same boat). Royal Mail about to be sold off on same basis.

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100%.

..... Lots of the big companies have a deficit bigger than their market cap all their pensions were guaranteed when they were sold off. Read the recent news about BT (BA in the same boat). Royal Mail about to be sold off on same basis.

Taxpayers-face-22bn-bill-if-BT-goes-bust

Help me out here.: does this have "too big to fail" implications? Here's an interesting article on 16 Oct 2010:

BT Group has held on to its government contracts despite planned cuts to public spending next week

... all of BT's central government contracts remain in place after talks with Cabinet Office Minister Francis Maude. ... Shares in BT rival Cable & Wireless Worldwide fell almost 20pc in July after it warned trading had been hit by a slowdown in the UK public sector

Now, if you had heads up on likely ruling less than a week away ....

Edited by Sledgehead

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Every single defined benefits scheme in the UK is almost certainly doomed to eventual failure.

Correct. Especially as pension funds are the ones who ended up owning all the worthless MBSs.

No-one would buy the MBSs with their own money, the only people who would touch them would be people gambling other peoples money and getting paid on short term profits. That pretty much only leaves pension funds.

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http://www.dailymail.co.uk/money/article-1322323/Troubled-Uniq-hands-90pc-firm-retired-milkmen.html

'Boss Geoff Eaton has proposed handing 90 per cent of the group over to the guardians of its retirement scheme, which counts thousands of retired Unigate milkmen among its members.

Thank God Ernie never lived to see this...

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Thank God Ernie never lived to see this...

he had the biggest pension in the West

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Pensions apartheid looks set to blossom.How on earth do you get on the long side of that?

you could get on the short side, or maybe just look a little closer.

BT has a 22bn black hole that will be thrown upon the treasury's books should BT go bust. Now what do you think the chances are of the government cutting its contracts with BT and forcing it into possible financial distress and bankruptcy? I don't know either, but I do know the government cut C&W contacts so sharply back in July it hit their shares for 20%, yet, less than a week before the biggest spending cuts since the war, BT retianed ALL of its contracts with the government.

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http://www.dailymail.co.uk/money/article-1322323/Troubled-Uniq-hands-90pc-firm-retired-milkmen.html

'Boss Geoff Eaton has proposed handing 90 per cent of the [£8.5million] group over to the guardians of its retirement scheme, which counts thousands of retired Unigate milkmen among its members

....

The scheme had a deficit of £436million at the end of March - more than 50 times Uniq's current market value of £8.5million.

Anyone else having trouble squaring that circle?

Edited by Sledgehead

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Pensions apartheid looks set to blossom.How on earth do you get on the long side of that?

Choose one:

  1. Be already retired. Or failing that, grab your pension NOW! (snag: only available to over-55s with entitlements)

  2. Be clear of the demographic bulge. (snag: only available to under-40s)

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Anyone else having trouble squaring that circle?

Best possible deal for the pension fund. If stopping contributions to the fund makes the company viable so it can turn a profit, then the value rises. Could rise quite spectacularly if it was in fact the pension fund dragging an otherwise-viable company down.

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Choose one:

  1. Be already retired. Or failing that, grab your pension NOW! (snag: only available to over-55s with entitlements)
  2. Be clear of the demographic bulge. (snag: only available to under-40s)

F*ck.

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Best possible deal for the pension fund. If stopping contributions to the fund makes the company viable so it can turn a profit, then the value rises. Could rise quite spectacularly if it was in fact the pension fund dragging an otherwise-viable company down.

So why should the company stop making contributions? What vehicle will pay the pensions? Not sure I understand the situ.

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Ponzi schemes are typified by the last enrolee being the loser. These pension schemes are typified by the last enrolee being the luckiest bugg*r ever!

Edited by Sledgehead

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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