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.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"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
-
Millions at risk of 'unnecessary' tax bill – how to shield your savingsMillions of Brits could be taxed on their savings interest this year as their savings interest exceeds the personal savings allowance. Are you at risk?
-
Savers will have to wait as long as 48 years to build a £1m cash ISA pot if allowance is cutChancellor Rachel Reeves is rumoured to be planning a cut to the cash ISA allowance in the Autumn Budget, making it harder for savers to build wealth. Will you still be able to build a £1 million cash ISA pot?
