The trustees of the Honda Group UK Pension Scheme have entered into a pension insurance buyout agreement with the Pension Insurance Corporation.
The deal will insure the £7 million Honda Racing Development portion of the £700 million scheme, which covers both deferred and current pensioners. This part of the scheme was supported by the part of the company formerly active in Formula One. The buyout was completed following an additional payment from Honda.
A statement from the scheme’s trustee chairman said: “Following the wind-up of Honda’s Formula One activities we have now secured the pensions of the members of this portion of the pension scheme. All remaining Honda companies will continue in the Honda Group UK Pension Scheme managed by the trustee.
“We have been impressed with the professionalism and flexibility of Pension Insurance Corporation’s team in helping us to achieve this successful buyout for the HRD members.”
Jay Shah, co-head of business origination at Pension Insurance Corporation,added: “We are delighted to have worked with Honda, a company synonymous with superior engineering and safety, to insure the members in this section.
“This is the third pension fund sponsored by a Japanese firm to have bought out with the Pension Insurance Corporation. We expect to see a rise in multi-nationals buying out their UK pension schemes to facilitate operational changes.”
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