Tate & Lyle Group Pension Scheme, London, insured £930 million ($1.16 billion) in liabilities through a buy-in with Legal & General Assurance Society Ltd., both companies announced in separate news releases Thursday.
This buy-in follows on from the first buy-in deal between the £1.2 billion pension scheme and Legal & General in 2012 for £350 million. This means that all scheme members are now covered by Legal & General.
"This transaction will support Tate & Lyle as it focuses on running its business, while ensuring that the long-term benefits promised to its pension scheme members are fulfilled," said Laura Mason, CEO of Legal & General's institutional retirement business, in the Legal & General release.
Imran Nawaz, chief financial officer of Tate & Lyle PLC, said in the company's release: "We have supported the scheme over many decades and made significant cash contributions to remedy a deficit that has existed between the scheme's assets and liabilities. Importantly, cash contributions into the scheme will cease, saving around £20 million of cash annually from the 2021 financial year."
The buy-in deal covers roughly 4,800 members. This deal, combined with the one made in 2012, means that about 6,700 members are now covered.