We helped Trinity Mirror complete multiple buy-ins to reduce pension liabilities
With ten DB pensions pension plans all closed to future accrual and £1.7bn of pension liabilities, Trinity Mirror needed an innovated approach to take down their pension liabilities.
- £1.7bn of pension liabilities on its balance sheet at 31 December 2012 across ten pension plans
- Corporate strategy since the economic downturn in 2008 to pay down net debt through cashflow rather than drawing on the Group's banking facilities
- Parallel strategy to de-risk historic pension liabilities without affecting cash commitments to the pension plans
- All DB pension plans were closed to future accrual in 2010 and a programme of insurance buy-ins commenced in 2011
- We helped them to identify carefully targeted buy-ins as a cost-effective way of reducing and controlling its pension exposure
- By the end of 2012, seven of the pension plans had completed buy-ins for total premiums of over £500m
- We negotiated two pensioner buy-in transactions as part of this programme, covering over £350m of liabilities
- Four of the smaller pension plans were insured in full, as part of an approach tailored to the circumstances of each plan
Following the latest phase of insurance buy-ins in 2012, Trinity Mirror has now insured 25% of its pension obligations. This was achieved in parallel with a reduction in the Group's net debt by over £200m since 2008 and with little or no impact on pension contribution requirements. It was made possible by locking in high bond valuations to pay the buy-in premiums.
How we can help
We are market leaders at each stage of de-risking, including planning, investment strategy, transactional services and wind up.
We help pension scheme trustees and sponsors to determine the ultimate destination for their scheme and help them put together a plan to get there, including how to effectively manage the risks they face along the way.