Italian airline Alitalia has entered into a pensions-buy in arrangement as part of efforts to stabilise its pension scheme's funding position.
As part of the deal, which was advised by Barnett Waddingham, the airline's pension scheme will transfer around £53 million of assets to the Pensions Insurance Corporation to secure its current funding position. In addition, it will provide a facility to improve and secure further funds if available in the future.
The scheme is currently within a pension protection fund (PPF) assessment period following Alitalia going into administration in 2008. When the company collapsed the Italian government owned 49.9% of the shares.
Paul Jayson, a partner at Barnett Waddingham, said: "This arrangement is a key step for the trustees of the Alitalia scheme as they work their way through the PPF assessment period. We belive this insurance policy reduces the risk to members' benefits having captured a favourable position."
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