Mining company, Lonmin has struck a deal with Paternoster for the insurance firm to buyout the remaining pension benefits of members in its defined benefit (DB) scheme.

James Scott, chairman of the trustees of the Lonmin Superannuation Scheme, said: "Securing member benefits with an insurer means that the scheme fully covers its liability to pay the pensions and is no longer subject to risks relating to investments or members living longer than expected."

Lonmin trustees worked with Gissings Consultancy Services and Lovells on the transaction to ensure the best result for scheme members.

Andrew Dawson, director at Gissings, said: "We expect to see a significant growth in the buyout market this year and since January have seen a marked increase in companies looking seriously at the buyout option."