Philips insures defined benefit pension

Electronics manufacturer Philips has entered into a bulk annuity transaction for its defined benefit (DB) pension scheme.

The policy, with insurer Rothesay Life, is being held by the trustee of the Philips Pension Fund and covers £484 million worth of liabilities.

It provides the pension scheme with a secure, low-risk asset with additional protections, including cover against longevity risk and pension increase risk.

Addy Loudiadis, chief executive foficer at Rothesay Life, said: “We are delighted that the Philips trustees have selected Rothesay Life to manage a portion of their risk in paying defined benefit pensions to their members.”