|
TT Electronics PLC on Monday said it completed a buy-in of all its UK benefit pension liabilities for a cash benefit of £6 million.
TT is a Woking, England-headquartered manufacturer of electronic components.
The Trustee of the TT Electronics Pension Scheme has purchased a bulk annuity insurance policy from Legal and General Assurance Society Ltd. The scheme has around £400 million of liabilities, which are now matched by the insurance policy.
TT said it no longer bears any investment, longevity, interest rate or inflation risk in respect of the scheme.
The policy covers all liabilities required to pay all future defined benefit pensions for the scheme’s 5,000 members and eligible dependants.
The insurance policy has been purchased using existing assets held within the scheme, without TT making any additional contributions.
TT said it will not be required to make any future contributions into the scheme regarding defined benefit liabilities. TT said the buy-in delivers ‘greater security’ to the members.
The execution of this transaction means there will be a ‘significant’ increase in TT’s annual free cash flow, Chief Financial Officer Mark Hoad said.
TT shares were up 10% to 159.60 pence on Monday afternoon in London.
Copyright 2022 Alliance News Limited. All Rights Reserved.
|
