The Group’s defined benefit scheme is the Memory Lane Cakes Pension Scheme (“Scheme”) which is a separately administered plan. The trustees have appointed advisers to provide investment advice and fund managers to manage the Scheme’s assets. The investment managers will ensure that suitable internal operating procedures are in place to control individuals making investments for the Scheme.

The majority of the Scheme’s liabilities are linked to price or wage inflation. The investment policy seeks to provide a return in excess of government bonds, whilst also hedging some of the interest rate and inflation risk in the Scheme (using Liability Driven Investment strategies).

On the basis of continued long-term support by the Principal Employer, Memory Lane Cakes, the Trustees will continue to measure and manage the risks of the Scheme’s long-term investment strategy against the liabilities calculated by the Scheme Actuary as part of the triennial valuation.

The Group operates two Defined Contribution (DC) pension schemes on behalf of its employees, a contract based Group personal pension and Master Trust. The Group has put in place a Pension governance committee which works with third party pension scheme advisers to provide governance oversight of both schemes. Whilst the Master Trust is overseen at provider level by a set of Trustees the Group also includes this in its ongoing DC Governance process.

The Group’s governance oversight looks to address the standards outlined by the Pensions Regulator’s DC code of practice. The DC code focuses on a set of standards that are related to the requirements of pensions legislation and reflect the regulator’s view of good practice. The committee meets regularly to asses both schemes against these standards. The committee then implements action plans to ensure the Group’s pension schemes continue to provide good quality and good value retirement benefits for members.