Cable and Wireless Superannuation Fund, Blyth, England, has purchased a group annuity contract from insurance company Legal & General Assurance Society to secure a fourth and final pension buy-in transaction worth £340 million ($424 million).
The contract insures the benefits of about 1,800 retirees and deferred participants, according to a Sept. 21 news release from Legal & General.
The pension fund had previously completed pension buy-ins with Legal & General in 2017 and 2019 and another undisclosed insurer in 2008. This final buy-in transaction secures the remaining liabilities not included in the prior buy-ins, according to the news release.
"This is a further important step in reducing the exposure of the fund to investment and other risks, such as changes in life expectancy," said Dean Johnson, trustee director for the pension fund, in the news release. "With all benefits payable from the fund now matched by insurance contracts members can take great comfort in the security of their pensions in retirement."
As of March 31, 2021, Cable and Wireless Superannuation Fund had £1.5 billion in assets, according to its most recent summary funding statement.
Johnson and other pension fund officials could not be immediately reached for further information.