16 December 2009
Cadbury has struck a £500m deal to transfer a major
portion of its pension liabilities to a third party, effectively
transferring 10,000 retired workers pension obligations.
The trustees of the Cadbury Pension Fund have agreed to what is
known as a pension insurance buy-in, paying Pension Insurance
Corporation to insure, or effectively take on pension
liabilities.
Pension Insurance Corporation provides Cadbury with a bulk
annuity policy as part of the deal, meaning it will take
responsibility for the pensions of 10,000 members, all of them
retired workers.
The transfer leaves Cadbury's Pension Fund with about
£1.5bn of assets to cover pensions for 20,000 members.
