19th Jun 2009 07:00
19th June 2009
Dairy Crest Group plc ("Dairy Crest")
Announces Further Measures to Reduce Pension Fund Risk
Dairy Crest is today announcing that the Dairy Crest Group Pension Fund ( the 'Fund') has purchased a second bulk annuity which insures a further tranche of liabilities for pensions in payment.
In December 2008 the Fund insured half of its liability for pensions in payment prior to August 2008 with Legal & General Assurance Society Ltd ("L&G"). Through the transaction announced today, also with L&G, the Fund has insured the balance of those liabilities at a cost of approximately £160m.
The Fund's liability for members who retired before August 2008 is now fully matched by an insurance policy. Therefore the Fund and Dairy Crest are both now protected against financial and demographic pension risk for these liabilities.
Advisors to the Trustee were KPMG, Aon Consulting, Mercer and Clifford Chance.
Separately, Dairy Crest has recently begun consultation with employees looking at various options for the future of its final salary scheme.
Alastair Murray, Dairy Crest Group Finance Director said: "Dairy Crest is committed to improving the Fund's financial position, and we are making good progress in this respect. The Trustee has now insured all the liabilities for members who retired before August 2008, and last month we announced that Dairy Crest would pay additional cash contributions to the Fund of £20 million per annum starting in October 2009. We will continue to work with the Trustee to further reduce risk in the interest of all parties".
David Felder, Chairman of the Trustee, said: "the Trustee sees the insurance of this further tranche of pensioner liabilities as another key step in reducing the Fund's overall risk exposure. We will continue to work closely with the Company to enhance the security of members' benefits".
For further information:
Dairy Crest Group plc
|
Alastair Murray |
01372 472342 |
|
Brunswick |
020 7404 5959 |
|
Simon Sporborg |
|
|
Jayne Rosefield |
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