LONDON (Alliance News) - Defence technology firm QinetiQ PLC on Wednesday said it has completed a buy-in for its pension scheme worth GBP690 million.
The QinetiQ pension scheme has completed its first bulk annuity insurance buy-in with Scottish Widows, owned by Lloyds Banking Group PLC.
The agreement, QinetiQ covers approximately 33% of the pension scheme's liabilities.
QinetiQ said the deal removes longevity, interest rate, and inflation risk for a third of its scheme, and will mean the accounting pension surplus on its balance sheet will fall by around GBP120 million, with no cash impact.
Huw Evans, chair of the scheme, commented: "This buy-in improves the risk profile and investment efficiency of the scheme for all members and represents a significant step towards securing the benefits promised.
"The trustees are grateful to their advisers and to the company and its advisers all of whom worked seamlessly together to ensure the transaction followed an effective and efficient process."
QinetiQ shares were 1.5% lower on Wednesday at 300.40 pence each.
Qinetiq (QQ.)
