British American Tobacco U.K. Pension Fund, London, insured £400 million ($555 million) in liabilities through a buy-in with Pension Insurance Corp., a spokeswoman confirmed.
The transaction covered 75% of the liabilities of non-retired participants and follows an initial buy-in conducted with PIC in May 2019 that covered £3.4 billion of liabilities.
The pension fund has total liabilities of £4.1 billion and 10,000 plan participants.
"We are pleased to have secured this second insurance agreement with PIC, which guarantees the pension payments for many more of our members," said Graeme Munro, chairman of the pension fund, in a news release. "Increasing the security of members' benefits and reducing risk are top of the trustees' agenda and this latest transaction is another step towards achieving our aims."
