The contract covers approximately 11,500 pensioners in the PSS, who together account for approximately 60 percent of the Scheme’s total liabilities.
Andrew Robb, Chairman of the Trustee Company of PSS said ‘The move is a further step in reducing the risk exposure of the Scheme. The insurance removes the risk to the Scheme of a further increase in liability arising as a result of pensioner members living longer than currently expected. The Trustee is very mindful of the risk exposure of the Scheme and is committed to enhancing the security of all the members. This deal is welcomed as an important contribution to achieving this goal’.
Mark Lyons, Chief Financial Officer of Nippon Sheet Glass Co., Ltd., the parent company of Pilkington Group Limited, said ‘We have worked with the Trustee in completing this Agreement, which is consistent with the Group’s overall strategy to manage risk in all parts of its business. We see the outcome as positive for the Trustee, the Company and the PSS membership’.
The Trustee was advised by Aon Hewitt Limited (lead adviser), Towers Watson Limited (investment) and Hogan Lovells International LLP (legal advisers). The Company was advised by Hymans Robertson LLP (actuarial) and DLA Piper UK LLP (legal advisers). Insight Investment Management (Global) Limited will act as credit support agent and JPMorgan Chase Bank NA are the Trustee’s custodian.