LONDON Dec 7 Sweeteners and starches maker Tate
& Lyle has insured almost half its staff pension
liabilities in a 347 million pounds ($558 million) deal with
life insurer Legal & General, the biggest such
transaction in Britain this year.
Tate & Lyle's pension scheme is paying L&G for a so-called
bulk annuity policy that will generate income covering 43
percent of its pension obligations, the two companies said on
Unforeseen increases in pensioners' lifespans, fuelled by
medical advances and lifestyle changes, are threatening
retirement schemes with extra costs just as volatile financial
markets make it harder for them to generate secure retirement
income for their members.
This has put pressure on pension schemes to pass on some of
their pension liabilities to financially stronger banks and
insurance companies, creating a booming pension risk transfer
L&G is one of the biggest players in that market in Britain,
having done 480 million pounds of bulk annuity business in the
three months to Sept. 30.