NCR enters defined benefits pensions buy-in

The NCR Pension Plan has entered into a pension insurance buy-in with Pension Insurance Corporation (PIC).

The transaction aims to secure benefits for members of the technology organisation’s defined benefit (DB) pension scheme by transferring around £670 million of assets.

The NCR Pension Plan covers approximately 5,600 members who were formerly, or are currently, employed by subsidiaries of NCR Corporation in the UK.

The trustees of the pension scheme were advised by Towers Watson, Reed Smith and Russell Investments. NCR Corporation was advised by Aon Hewitt and Charles Russell. PIC was advised by Herbert Smith Freehills. 

John Boudreau, vice president and treasurer of NCR, said: “The agreement between NCR and the trustees is part of the third phase of NCR’s pension transformation strategy, which aims to reduce our global liability and increase recurring free cash flow.

“We are pleased that the plan will maintain a robust financial footing and expect to take additional steps to accomplish a full buyout.”        

Stephen Swinbank, chair of trustees for the plan, added: “The trustee board has guided the plan to a position where it is able to insure all pension obligations. The plan’s asset profile and improving investment markets have assisted.”

Jay Shah, co-head of origination at PIC, said: “The funding position of most DB schemes in the UK has improved in recent months as a result of investment performance, increasing long-term interest rates and contributions from the sponsor.

“For many pension plans a buy-in or buyout has now become more affordable.”