Signet Jewelers clasps buy-in for U.K. pension plan

Signet Jewelers Ltd., Hamilton, Bermuda, entered into an agreement with Rothesay Life to purchase a group annuity contract to complete the process of terminating its U.K. pension plan.

The company disclosed the purchase of the contract in an 8-K filing Thursday with the SEC.

The July 29 agreement provides for Signet Pension Trustee Ltd., as trustee of the Signet Group Pension Scheme, to facilitate the purchase of the group annuity contract to secure the plan's accrued liability in a buy-in contract.

As part of the termination of the pension plan, the contract will eventually be converted into a buy-out contract, at which point Rothesay Life will take on the benefit-paying responsibilities of the 1,909 participants and beneficiaries in the plan.

An exact timeline for that conversation was not disclosed. Signet will contribute £16.85 million ($23.2 million) to the pension fund as part of the agreement.

As of Jan. 30, U.K. pension plan assets totaled $299 million, while projected benefit obligations totaled $248 million, for a funding ratio of 120.6%, according to the company's most recent 10-K filing.

Signet Jewelers spokesman David Bouffard referred questions to the 8-K filing.