Consumer goods organisation Reckitt Benckiser has completed a £415 million pension buy-in transaction with Scottish Widows.
The buy-in arrangement will insure the defined benefit (DB) pension liabilities of 1,400 members in the Reckitt Benckiser Pension Fund. The new transaction removes the interest rate, inflation and longevity risk relating to these liabilities. Members of the scheme will see no change in the amount of benefits they receive, or the percentage that they pay.
The transaction was advised by Willis Towers Watson and Travers Smith, with Scottish Widows being advised by Herbert Smith Freehills.
Brian Bentley, chair of the trustee at the Reckitt Benckiser Pension Fund, said: “The Trustees have been working with our advisers over a number of years to secure the right long-term de-risking deal for the fund.
“We were impressed with the agility shown by Scottish Widows, alongside our advisers, to complete the transaction at a particularly challenging time. We are very happy to have formed this partnership with Scottish Widows, which is an important step in the fund’s de-risking journey and in doing so improve the security of benefits for all members.”