Kenwood Pension Scheme has entered into a buy-in agreement for its UK defined benefit (DB) pension scheme.
The agreement, with Legal and General, enables the trustees of the pension scheme to insure its remaining liabilities, which mainly cover members yet to retire.
The transaction incorporates a deferred premium facility, which means that the covered members’ benefits are fully insured from the point of signing, but part of the full premium will be payable over a number of years in a way that suits the employer.
Tom Ground, head of bulk annuities at Legal and General, said: “We expect that this approach will become increasingly popular because it allows volatility and risk to be removed immediately while also providing greater certainty over future contribution requirements for employers.”
The trustees were advised by Capita Employee Benefits and law firm Burges Salmon.