Smiths Group plc (LON:SMIN) announced today that the Trustee of the Smiths Industries Pension Scheme (the “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 £207m relating to over 2,000 legacy Scheme pensioners and dependants. Through a series of buy-ins, around £0.5bn of the Smiths Industries Pension Scheme liabilities has now been insured. Across Smiths Group’s two main UK schemes around £1.5bn of the liabilities has now been insured.
Bill Seeger, Smiths Group plc Chief Financial Officer, said: “Our sustained focus, over many years, on de-risking the Company’s pension liabilities has reduced volatility and has led to significantly lower funding obligations going forward – freeing up capital for Smiths to invest in growth opportunities. Over 95% of the Group’s total pension liabilities are hedged through our liability driven investment strategy.”
Nicholas Godden, Chair of the Smiths Industries Pension Scheme Trustee, said: “This is the first buy-in we have completed with Canada Life as part of our long-term de-risking strategy. We have made considerable strides to completely de-risk the Scheme and this remains our long-term aim.”