Tate & Lyle reduces pension risk

Sweeteners and food products giant Tate & Lyle has agreed to a 347m-pound partial pensioner buy-in which covers nearly half of its total pensioner liabilities.

The firm said that the trustee of the its group pension scheme has made the agreement with financial services giant Legal & General about the buy-in which covers around 43% of its commitments, "which effectively hedges these liabilities in full".

"Tate & Lyle is committed to meeting our pension commitments to existing and former colleagues," said Chief Financial Officer Tim Lodge.

"We are delighted the group scheme trustee has secured this agreement with L&G, well known as a high-quality long-standing annuity provider. This transaction is an important step in our strategy to work with our schemes' trustees and fiduciaries to reduce pension risk on a phased basis over time."

The company said that the buy-in involves the purchase of a bulk annuity policy under which L&G will pay to the trustee amounts equivalent to the benefits payable to three out of every seven of the scheme's pensioner members.

Tate & Lyle said that there will be not material impact on its cash flows or 'adjusted' earnings as a result of the deal.

BC