The NCR Pension Plan has transferred around £670m of assets to the Pension Insurance Corporation (PIC) in a pension insurance buy-in transaction.

The scheme covers approximately 5,400 members who were formerly or are presently employed by certain subsidiaries of NCR Corporation, a global technology company, in the UK.

Stephen Swinbank, chair of trustees of the plan, said: "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."

He added that the trustees were "impressed" by PIC's flexibility and focus on customer care.

John Boudreau, NCR vice president and treasurer, said: "The agreement between NCR and the trustees is part of the third phase of NCR's pension transformation strategy that 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."

The trustees were advised by Towers Watson, Reed Smith and Russell Investment, while NCR was advised by Aon Hewitt and Charles Russell. PIC was advised by Herbert Smith Freehills.

Jay Shah, PIC co-head of origination, said: "The funding position of most defined benefit 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. We are delighted that the trustees chose us in what was an efficient and competitive tender."

First published 20.11.2013

monique_simpson@wilmington.co.uk