Tate and Lyle Amylum UK Pension Scheme has entered into a pension insurance buy-in.
The transaction, which covers £82 million of liabilities and more than 600 members of its defined benefit (DB) pension scheme, was concluded by Pension Insurance Corporation (PIC).
The employer and the trustees were advised by KPMG.
Steve Amor, head of group pensions at Tate and Lyle, said: “The organisation is very pleased to have removed the risk within the scheme at a cost that is less than the contributions that were planned over the next eight years.”
Michael Chatterton, chairman of trustees, added: “We have been looking at how we might move to full buy-in for a while, but volatility in the markets and the effect of low gilt yields had seemed to put this transaction on hold.
“However, the PIC team was proactive in suggesting how we might be able to take advantage of the recent, more favourable, market conditions.”
Ben Bramhall, director at KPMG, said: “This transaction became possible through improved market conditions and letting the insurer drive the timing of the transaction, which meant that pricing was better than the scheme’s expectations.
“Moving quickly and minimising execution risk was crucial in taking advantage of this opportunity.”
Mitul Magudia, actuary at Pension Insurance Corporation, added: “We are pleased to have been able to help the trustee secure their liabilities in this transaction, which hinged on helping the trustee crystallise the gains they have seen in their funding levels.
“The trustee and employer, together with their advisers, had prepared well for a transaction and therefore could move quickly to lock in favourable pricing when this was available.
