Outokumpu – Insurance contract for the liabilities of the UK pension scheme
Outokumpu Oyj
Stock exchange release
December 20, 2021 at 9.30 pm EET
Outokumpu – Insurance contract for the liabilities of the UK pension scheme
Outokumpu operates a defined benefit pension scheme for its employees in the UK. The scheme trustee working closely with Outokumpu has now secured a 390-million-pound buy-in contract with specialist pension insurer Rothesay. With this contract, Rothesay insures the liabilities of the Outokumpu’s defined benefit pension scheme for 426 pensioners and a further 500 deferred members in the UK to guarantee the pension benefit payments. There will be no changes to the benefits of members of the pension scheme.
This transaction allows Outokumpu to mitigate risks related to the pension scheme involving for instance investments, changes in the interest rates as well as inflation and longevity, which could, if realized, result in an increase in the scheme’s liabilities.
The transaction is estimated to reduce Group’s equity by approximately EUR 100 million on a non-cash basis due to a change in actuarial valuation. The final amount is still subject to standard year-end pension valuation.
For more information:
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669
Media: Päivi Allenius, VP – Communications, tel. +358 40 753 7374
Outokumpu Group