Smiths Group plc (LON:SMIN) announced today that the Trustee of the Smiths Industries Pension Scheme has entered into a bulk annuity buy-in agreement with Canada Life.
Demonstrating the Company’s commitment to de-risking its pension liabilities, the buy-in policy covers liabilities totalling £176m relating to over 2,000 legacy Scheme pensioners and dependants. This is the Scheme’s second such policy with Canada Life. Through a series of buy-ins, around £0.8bn of the Smiths Industries Pension Scheme liabilities has now been insured. Across the Company’s two main UK schemes around £1.6bn of the liabilities are now insured.
Nicholas Godden, Chair of the Smiths Industries Pension Scheme Trustee, said:
“This is the second buy-in we have completed with Canada Life as part of our long-term de-risking strategy. We have made considerable strides to de-risk the Scheme and our aim is to continue to do so in the future.”
John Shipsey, Chief Financial Officer, said:
“Our sustained focus, over many years, on de-risking the Group’s pension liabilities has reduced volatility and led to lower funding obligations – freeing up capital for Smiths to invest in growth opportunities.”