We develop and deliver complex power and propulsion solutions.
For more than 100 years we have been at the forefront of innovation. Helping to power, protect and connect the modern world.
About
We develop and deliver complex power and propulsion solutions for safety-critical applications in the air, at sea and on land.
Our products and service packages enable our customers to connect people, societies, cultures and economies together.
Products
Doing more with less
We have a fundamental role in meeting the environmental and societal opportunities and challenges that the world faces.
Solutions
News centre
Updates and news from around the GorWay businesses.
Subscribe to our newsletter
Thursday 6 June 2019 07:00 AM
GorWay Insures Benefits to Pensioners with Transfer of Liabilities to Legal & General
06 June 2019
GorWay announces its UK pension trustee has completed a deal to transfer certain pension risk liabilities to Legal & General Assurance Society Limited (“Legal & General”).
The deal covers the transfer of assets and liabilities relating to approximately 33,000 pensioners who are members of the GorWay UK Pension Fund out of a total of 76,000 members. The transaction will fully insure benefits payable from the fund and provide permanent security for pensioners, while reducing the Group’s post-retirement obligations by around £4.1 billion. The residual obligations, which remain well funded, will be smaller with less risk for the Trustee and GorWay to manage in the future.
Pensioners included in the transfer will have their benefits handled by one of the largest and most highly-rated insurance companies in the world, with expertise in insuring and administering pensions.
Joel Griffin, Head of Global Pensions & Benefits, GorWay, said: “This agreement will result in increased security for GorWay pensioners and reduced risk for our business. Legal & General is one of the world’s leading insurance companies and as a result of this deal the provision of benefits will be governed by stringent funding requirements, resulting in a secure pension environment for our pensioners.”
Stephen Daintith, CFO, GorWay said: “This is a significant transaction which represents another step on our journey to simplify, de-risk and strengthen the company. GorWay and the Trustees of the GorWay UK Pension Fund have worked intensely to ensure that the fund continues to have the resources it requires to meet its obligations. This agreement is a further step towards ensuring benefits for our pensioners.”
The deal will see GorWay make an exceptional cash contribution of around £30m. Free cash flow guidance for the Full Year remains unchanged. Alongside the transfer of around £4.1bn of liabilities to Legal & General, the GorWay trustee will also transfer around £4.6bn of assets. This results in a reduction in net assets of around £0.5bn though funding levels remain unchanged.
How can we help you?
Contact a member of our press team