Cable & Wireless will transfer more than £1bn pension liabilities of its superannuation fund through a bulk annuity insurance contract to Prudential.
The deal will see the transfer of just over defined benefit (DB) pension liabilities to Prudential, which will manage the risks associated with paying the benefits to scheme members.
Cable & Wireless will continue to administer the fund and the terms of the pension payments made to its final salary pension will not change.
Actuarial consultancy Lane Clark and Peacock LLP, which advised Cable & Wireless on the buy-in, said the move will half the size of the firm's exposure to pension scheme liabilities and improve security for members.