The annuity deal represents around 20pc of the TI Group Pension Scheme’s assets. The scheme is sponsored by global technology firm Smiths Group.
Current and future scheme pensioners will see no change in their benefits or the way in which they are paid.
Smiths Group UK pensions director Mike Abrams said: "The trustee chose to purchase annuities to match a portion of the scheme’s liabilities, the aim being to reduce the effect of changing investment and mortality conditions on the scheme’s funding position, so providing greater security and stability in the funding of all members’ benefits."
Legal & General annuities business managing director Simon Gadd added: "We are seeing a significant increase in the number of trustee bodies considering options to reduce the risks involved in running their pension schemes.
The TI Group Pension Scheme trustee was advised on this purchase by Aon Consulting, Mayer Brown International and Mercer.
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