Paternoster will take about £10 million ($19 million) in pension assets from the Cuthbert Health Family Security Plan in its first takeover of pension plan assets and liabilities. Cuthbert Health, London, closed in 2002. Paternoster, a London-based annuity buyout firm launched earlier this year to target closed pension plans, is scheduled to begin paying retirement benefits on Dec. 15. The assets are mostly invested in AAA and AA bonds, Chief Executive Mark Wood said.
"This is our first transfer of assets," Mr. Wood said. "There's a substantial pipeline of business."
Four other pension plans agreed to transfer assets and liabilities to the company; Mr. Wood declined to name them. Two plans have assets of up to £10 million, and the other two have £10 million to £50 million each in total assets. Mr. Wood declined to be more specific.