Newell Rubbermaid UK Pension Scheme, Leeds, agreed to a £225 million ($302 million) buy-in with Legal and General, the insurer said in a news release late Thursday.
It is the second buy-in for sponsor Newell Brands. The latest one is for the Combined Newell and Record Section of the Newell Rubbermaid UK Pension Scheme, covering 800 retirees and 900 deferred participants.
The previous buy-in covered the Combined Parker and Sanford Section of the plan. Further details were not available, and company officials could not be immediately reached.
Steve Southern, chairman of the pension fund's trustee firm 20-20 Trustees, said in the release that the latest transaction was a key step in the derisking of the pension fund.
Legal & General was selected as preferred insurer in December and provided a price lock on the value of the funds' gilts portfolio while the terms of the buy-in were worked out, according to the release. Rachel Cutts, director of pension risk transfer for Legal & General Retirement Institutional, said in the release that the tailored price locks provided price certainty for trustees, particularly during the current period of high market volatility.
The pension fund "is now on the final stretch of its derisking journey," and Legal & General is looking forward to working with the trustee to convert both policies to buyout, Ms. Cutts said in the release.
The sponsor and trustee were advised by Aon. Pinsent Masons provided legal advice to the trustee and Clifford Chance provided legal advice to Legal & General.
