The trustees of The 600 Group's defined benefit scheme have reached a scheme liability buyout agreement with the Pension Insurance Corporation (PIC).

The scheme's £201m liabilities, covering about 2,000 pensioners and 800 deferred members, is to be entirely transferred to PIC. Once wound up, the scheme will return surplus funds — estimated to be worth between £3m and £4m — to The 600 Group.

The 600 Group executive chairman Paul Dupee said that the company and the scheme trustee board had been working "for some time" towards a permanent transfer of its future pension liabilities. He explained that the deal was made in order to better secure the benefits to be paid to the scheme's pensioners and members, and to relieve the company of the "disproportionate liability" attached to the scheme.

"Today's agreement with Pension Insurance Corporation meets both of these important criteria," said Dupee.

"On completion the company will have significantly greater liquidity, financial flexibility and been relieved of potential regulatory constraints, while at the same time affording our pensioners and fund members the comfort of having a successful multi-billion pound specialist organisation to fulfil the pension scheme's future obligations."

Share Story: