The Prudential has today taken on the liabilities of a £1bn final salary scheme in what is being called the largest deal of its kind ever in the UK.
The company has committed to meeting the full cost of benefits due to trustees of the Cable & Wireless Superannuation fund who have already retired. It is the first ever £1bn bulk annuity policy in the UK – topping the £800m P&O scheme taken on by Paternoster in December last year – and, according to commentators, marks “a watershed” in the settlement of pension liabilities. Steven Dicker, senior consultant at Watson Wyatt, says: “This is a landmark deal which delivers significant risk reduction for both fund members and Cable & Wireless.” Watson Wyatt, the lead adviser on the transac...
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