The Trustee of The 600 Group plc’s UK defined benefits pension scheme has agreed to a buyout of the scheme liabilities by Pension Insurance Corporation Plc (PIC).
The agreement concerns the pension scheme liabilities of £201 million covering 2,000 pensioners and 800 deferred members to be transferred entirely to PIC, a specialist insurance company.
Following the completion of the arrangement, all surplus funds remaining will be returned to The 600 Group, minus a statutory 35% tax charge.
According to an announcement on the buyout, the total net amount payable to the company is estimated to be between £3 million and £4 million, and further details will be made available in the Group’s annual report.
Paul Dupee, Executive Chairman of The 600 Group plc, commented: “For some time the Trustee of our UK Pension Fund and the Company have been working towards a permanent transfer of future liability to achieve two goals: firstly, to better secure the benefits to be paid to the pensioners and fund members; and secondly to relieve the Company of the disproportionate liability of such a large scheme.
“Today’s agreement with Pension Insurance Corporation plc meets both of these important criteria. On completion the Company will have significantly greater liquidity, financial flexibility and been relieved of potential regulatory constraints while at the same time affording our pensioners and fund members the comfort of having a successful multi billion pound specialist organisation to fulfil the pension scheme’s future obligations.”
