On the go: The £988.7mn De La Rue Pension Scheme has agreed a £320mn buy-in with insurer Scottish Widows.
The deal marks the first pensioner buy-in in the scheme’s derisking journey, and will cover the liabilities of approximately 1,400 pensioner members.
Mike Roberts, PAN Trustees partner and De La Rue Pension Scheme professional trustee chair, said: “This buy-in is a major step in the scheme’s derisking strategy and significantly improves the security of all members’ benefits.”
While Hymans Robertson acted as lead transaction adviser, CMS provided legal advice to the trustee.
Elsewhere, the fund’s actuarial valuation was brought forward to April 5 2021 from December 2022, sponsoring company De La Rue’s 2022 annual accounts showed.
The valuation showed a reduced scheme deficit of £119.5mn, against a previous deficit repair contributions schedule totalling £177mn through to March 2029.
As a result, the scheme reported that the deficit can be funded through an annual payment of £15mn to March 2029. Previously, the annual payment was expected to increase from £15mn to £24.5mn between April 2023 and March 2029.
This article first appeared on MandateWire.com
