Printer company derisks DB scheme
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The Lexmark Pension Plan has secured a £46m full buy-in after offers from several insurers. The scheme is sponsored by the UK division of US-based printer and image product manufacturer Lexmark Holdings Inc.
The transaction with Canada Life completed in March and covers all 177 scheme members, including 93 pensioners and 84 deferred members.
Broadstone provided annuity broking as well as scheme actuary, investment consultancy, secretarial and administration services. Legal advice was provided by Osborne Clarke.
The scheme had shown gradual funding improvements over a number of years, according to Broadstone, and steps had been taken to prepare it for the insurance market at the right time.
“We had been planning to complete an insurance transaction for a while as the plan’s funding had been improving for some time,” said trustee chair Richard Pells.
“Now that we have increased the security of our members’ benefits, we look forward to an orderly transition to Canada Life,” Pells added.
Mark Channon, scheme actuary and deal lead at Broadstone, said the plan was well prepared to approach the market.
“This resulted in interest from several insurers and culminated in excellent pricing from Canada Life, completing the transaction without the need for any additional contribution from the sponsor,” he noted.
Natalie Keeble, business development manager bulk purchase annuities at Canada Life, said: “The plan was well presented and ready to transact, so we were pleased to be asked to quote and then selected as the trustees’ chosen insurer.”
Broadstone provided annuity broking as well as scheme actuary, investment consultancy, secretarial and administration services. Legal advice was provided by Osborne Clarke.
The scheme had shown gradual funding improvements over a number of years, according to Broadstone, and steps had been taken to prepare it for the insurance market at the right time.
“We had been planning to complete an insurance transaction for a while as the plan’s funding had been improving for some time,” said trustee chair Richard Pells.
“Now that we have increased the security of our members’ benefits, we look forward to an orderly transition to Canada Life,” Pells added.
Mark Channon, scheme actuary and deal lead at Broadstone, said the plan was well prepared to approach the market.
“This resulted in interest from several insurers and culminated in excellent pricing from Canada Life, completing the transaction without the need for any additional contribution from the sponsor,” he noted.
Natalie Keeble, business development manager bulk purchase annuities at Canada Life, said: “The plan was well presented and ready to transact, so we were pleased to be asked to quote and then selected as the trustees’ chosen insurer.”
