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Hays PLC - London-based recruitment company - Announces the de-risking of the group’s legacy UK defined benefit pension scheme through a £370 million bulk annuity policy entered into with Pension Insurance Corp. Building on the purchase of a bulk annuity policy with Canada Life for a premium of £270.6 million in August 2018, the new policy fully insures the scheme’s remaining benefit obligations. Says the group’s current £18.2 million annual deficit funding contribution has ceased, effective from the date of the transaction. Adds that a £12.6 million upfront cash contribution has been paid with an expected further around £6 million of expenses to be paid through to final scheme buy-out and wind-up.
Chief Financial Officer James Hilton explains the transaction eliminates pension related balance sheet volatility and is expected to have a ‘materially positive’ impact on group free cash flow from 2026.
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