Lonmin becomes first FTSE100 firm to buyout scheme liabilities

The FTSE 100 mining firm said it had secured benefits relating to members in its defined benefits plan with the buyout provider.

It added members had been informed of the decision by the trustees of the scheme.

Lonmin Superannuation Scheme chairman of the trustees James Scott said: "Securing member benefits with an insurer means that the scheme fully covers its liability to pay the pensions and is no longer subject to risks relating to investments or members living longer than expected.

Paternoster chief executive Mark Wood added: "For the trustees and their advisers, member security has been paramount during this thorough and rigorous process.

"We are delighted to have been able to secure the benefits for these scheme members."

"We undertook a full tender exercise and chose Paternoster on the basis of their evident experience in taking over pension funds such as ours."

Gissings Consultancy Services advised the trustees on the buyout and Lovells provided legal advice.

Gissings director Andrew Dawson commented: "We expect to see significant growth in the buy-out market this year and since January have seen a marked increase in companies looking seriously at the buy-out option."