Food distributor PZ Cussons has appointed Mercer to provide a de-risking service for its defined benefits (DB) schemes.
PZ Cussons conducted an overall review of its DB pension risks, and having identified a long-term target and agreed this with the trustees, both parties were looking for a way to implement their aims and start to address the risks within the existing investment and funding strategies.
Brandon Leigh, group finance director, said: “We closed our defined benefit pension plans in 2008 and had been looking at ways of reducing the risks associated with our legacy arrangements.
“Various liability management options had been put in place as a step towards addressing these risks, but the majority of the liabilities still remained in the plans.†
“By delegating the responsibility for daily monitoring and implementation of an agreed strategy to Mercer, we have also been able to ease the governance demands associated with managing the plans.”
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