Aggregate Industries, Markfield, England, bought bulk annuities worth £305 million ($461 million) for two of its pension funds, thereby transferring risks to Pension Insurance Corp.
The company bought a £210 million buy-in policy for its £350 million Aggregate Industries Pension Plan in which PIC takes responsibility for benefits paid to members who had retired as of April 30, 2009, confirmed Clive Wellsteed, partner and head of the buyout practice at consultant Lane Clark & Peacock, which advised Aggregate on the transaction. The scheme will continue to manage assets to fund benefits for active employees.
Aggregate also bought a £95 million buyout policy for the Foster Yeoman Retirement Plan 2000 that is expected to transfer all risk to PIC. Aggregate picked up the plan as part of its 2006 acquisition of materials provider Foster Yeoman.