Printer and image product manufacturer Lexmark has completed a £46 million pension buy-in for its UK division’s pension scheme.
The deal, which was carried out with insurance and financial services Canada Life and pensions administration, investments and employee benefits provider Broadstone, secures the benefits of all 177 plan members, comprising 93 pensioners and 84 deferred members. The transaction completed in March.
Sponsored by Lexmark Holdings in the UK, the plan had shown gradual funding improvements over the years and steps had been taken to prepare it for the insurance market. It will now proceed to full buy-out and wind-up.
Broadstone provided annuity broking as well as scheme actuary, investment consultancy, secretarial and administration services. No sponsor contribution was required.Osborne Clarke provided legal advice.
Richard Pells, chair of trustees, said: “We had been planning to complete an insurance transaction for a while as the plan’s funding had been improving for some time. As a long standing client of Broadstone, we had total confidence in its expertise to advise us on this significant step for the plan members and we are delighted with the result it achieved working with Osborne Clarke and Canada Life. Now that we have increased the security of our members’ benefits, we look forward to an orderly transition to Canada Life.”