Pension disaster at failed food firm

HUNDREDS of past and present employees of Albert Fisher face a bleak retirement after the fresh food company's collapse into receivership with a massive black hole in its pension fund. The revelation of the deficit in the main pension fund - where assets fall more than 25% short of liabilities - will intensify fears about pensioner poverty and the lack of guarantees for employees in company schemes.

Future income for those already drawing a pension from the company, which went bust last week, should be protected. But the outlook for workers and ex-employees who have still to reach retirement age is uncertain. Albert Fisher, based in Hemel Hempstead, Hertfordshire, employs about 3,000.

According to the latest annual report, the main pension fund had assets of £42.7m at the end of last September, but liabilities of £52.9m under new FRS17 reporting standards.

A valuation of the fund carried out in April 1998 put the assets at £41.5m. But most of the fund is invested in shares and the stock market has fallen by 15% since then. On top of this, pension fund liabilities grow by an average of 6% a year.

KPMG, the company's administrator, is trying to carve up Albert Fisher ready for a sale and wants to appoint an independent trustee to the pension fund. The trustee is expected to buy an annuity to safeguard current pensioners. But this will leave other members of the fund to carry the entire shortfall. They are unsecured creditors - well behind the banks, taxman and receivers.