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The Actuary The magazine of the Institute & Faculty of Actuaries

Prudential in biggest pension scheme deal this year

Cable & Wireless, the telecommunications giant, has entered into a bulk annuity buy-in insurance agreement with the Prudential. The agreement, the largest in the UK this year, covers the pensioners ‘in-payment’ element of C&W’s defined benefit pension scheme.

Tony Rice, Cable & Wireless group finance director, said: “We are delighted that the Pension Fund Trustee has secured this transaction, which effectively reduces the Fund’s exposure to liabilities by over £1bn. The buy-in materially reduces the Fund’s and shareholders’ exposure to the future risk of adverse changes in actuarial assumptions and investment returns. The involvement of a financial institution of Prudential’s quality should provide our pensioners with confidence that their fund will continue to be well-managed.”