Italian brand Pirelli puts in a £600m pensions safety catchComments Off on Italian brand Pirelli puts in a £600m pensions safety catch
PIRELLI, the Italian tyremaker famed for its glamorous annual calendar, has struck a big money deal to cut the risk of ballooning pensioner payouts in future.
The Milanese company, bought by state-owned Chinese firm ChemChina last year, will shift 5000 pensioners from two UK pension schemes to insurance giant Zurich in a deal worth £600 million.
The deal, known as a longevity swap, turns responsibility for paying the pensions over to Zurich. In return Zurich gets a stream of payments from Pirelli.
“The longevity swaps help to improve the security of benefits for all members by removing the uncertainty from members living longer than forecast They also allow us to retain future investment flexibility,” Pirelli pension manager Tony Goddard said.
Away from its stock-in-trade making tyres, Pirelli is best known for its calendar, which this year featured Hollywood star Uma Thurman and British actress Dame Helen Mirren and has previously featured model Gigi Hadid (pictured).
Pirelli closed its final salary scheme to existing members in 2009.