CARILLION has been accused of trying to “wriggle out” of its obligations to pensioners while paying out tens of millions in dividends for shareholders and “handsome pay packets” for bosses.

The Commons Work and Pensions Committee criticised the collapsed outsourcing and construction giant after publishing a letter from Robin Ellison, chairman of trustees of Carillion’s pension scheme, which gives an account of the firm’s pension scheme.

Earlier this month, MPs opened an investigation into the pension deficit of the collapsed outsourcer amid suggestions that The Pensions Regulator and the firm’s pension trustees failed to raise concerns about its business model after posting a profits warning last year.

Since Carillion went into compulsory liquidation on January 15, there have been job losses, project shutdowns and potential financial losses to around 30,000 suppliers and 28,500 pensioners.

The liquidation left in its wake a £900 million debt pile, a £590m pension deficit reported by the firm and hundreds of millions of pounds in unfinished public contracts.

Ellison’s letter suggests the pension deficit could be even higher at £990 million, the committee said.

Carillion has been “falling short” of what trustees expected it to contribute to pension schemes since 2008, the MPs said after analysing the letter.

The company cited cash flow problems as a reason for not making higher pensions contributions in 2011 and 2013.

However, the company paid more than £70m in dividends in both those years.

The trustees were also “kept in the dark” about the state of Carillion, only having access to information that was “largely” in the public domain until May 2017.

And finally, the trustees “negotiated away” pension deficit contributions in the autumn in an effort to keep Carillion afloat by enabling more borrowing, the MPs said in comments that will ratchet up pressure on Ellison ahead of his appearance before the committee on Tuesday.

In a damning assessment, committee chair Frank Field said: “It’s clear that Carillion has been trying to wriggle out of its obligations to its pensioners for the last 10 years.

“The purported cash flow problems did of course not prevent them shelling out dividends and handsome pay packets for those at the top.

“This culminated in negotiating deficit contributions away entirely last autumn to enable more borrowing.

“Remarkably, this was endorsed by the trustees and the Pensions Regulator (TPR).

The Labour MP went on: “Once again, TPR has questions to answer. They have been sniffing around Carillion – at the trustees’ behest – since at least 2008, though it is not apparent to what effect.

“When 10 years later the company collapses with £29 million in the bank and £2 billion in pension liabilities it doesn’t look good.”