15 December 2008
Former employees of the electronics giant Thorn can look forward
to an uplift in retirement after Britain's biggest pension buyout
was announced yesterday. There are an estimated 15,000 members of
the scheme which has been bought out by the Pension
Corporation.
Thorn's pension fund will be used to buy annuities for members,
via individual policies, guaranteeing their income on
retirement.
There was a small surplus in the Thorn scheme which will used to
increase the annuities. It is anticipated that this will give
employees five per cent more than they were originally
promised.
The Pension Corporation is now effectively a regulated annuity
provider via its subsidiary, insurance company Pension Insurance
Corporation. It has recently been confirmed that schemes which have
been bought out are covered in the event of insolvency by the FSCS
and not by the PPF.
Kevin McLaughlin, a principal at actuary Mercer who advised the
Thorn pension trustees, said: "The trustees wanted the security
that a 100% insured buyout can provide and sought quotes from
several leading insurers. PIC came up with the best price."
