The Robinson & Sons’ Limited Pension Fund has agreed a £44m buy-in with Legal and General Assurance Society Limited (L&G), securing all of the group’s defined benefit (DB) pension scheme liabilities.

The buy-in covers all liabilities required to pay for all pensions for the scheme’s around 500 members and any eligible dependents.

Completion is subject to payment by the scheme of the agreed around £44m premium to L&G, which is expected on 14 December 2022.

According to Robinson, the purchase of the insurance policy will be financed entirely using existing assets held within the scheme.

The pension scheme closed to new entrants in 1997 and there are nine remaining active members who, subject to the outcome of a consultation process, would cease accrual and be offered pensions in the group's money purchase pension scheme.

Robinson also confirmed that, as the scheme is in surplus, the group is currently benefitting from a contribution holiday and there will be no immediate benefit to cashflow.

However, Robinson confirmed that if a surplus remains following the data cleanse exercise and completion of a full buyout, it is likely that the funds in the pension escrow account, which are around £3.2m, of which, £2.7m are loaned to the group on commercial terms, will be returned to the group.

Commenting on the transaction, Robinson chairman, Alan Raleigh, commented: "The transaction is an excellent outcome for our DB pension scheme members, the group and our shareholders.

“We have worked hard with the scheme trustees to reach this position and those efforts mean that the scheme can now be fully de-risked for the benefit of members and the group."

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