Tate & Lyle and the trustee of the its group pension scheme have announced an agreement for a £930 million bulk annuity insurance ‘buy-in’ with Legal & General.
Imran Nawaz, chief financial officer of Tate & Lyle, said: “This transaction represents a good outcome for our UK scheme members, the company and our shareholders.
“We have supported the Scheme over many decades and made significant cash contributions to remedy a deficit that has existed between the Scheme’s assets and liabilities.
“That funding, combined with excellent stewardship by the scheme’s trustees, has meant that the scheme can now be de-risked for the benefit of members and the company.
“Importantly, cash contributions into the scheme will cease, saving around £20m of cash annually from the 2021 financial year, allowing the company to focus our future investments on delivering profitable growth.”