Last checked at 24 Nov 2023 07:00
Co-operative Group Limited
24 November 2023
Trustee of Co-operative Pensions Scheme ("Pace") completes "buy in" transaction for Co-op Section
The Co-operative Group ("Co-op") has been in discussions with the Trustee of the Co-op Section of the Co-operative Pension Scheme ("Pace") to assess opportunities to reduce the risks that the Co-op Section, and by extension the Co-op, is exposed to. The Co-op Section and the Co-operative Bank Section of Pace were created in 2018.
The Trustee has agreed a buy-in transaction for the Co-op Section with Rothesay Life plc, through which Pace has purchased a bulk annuity insurance policy, covering all liabilities required to meet future pensions and delivering greater security to members of the Co-op Section of Pace. This has been successfully achieved without the need for Co-op to make additional contributions, whilst leaving residual assets remaining in Pace. The terms of the policy will eliminate the primary investment, inflation and longevity risks that the Co-op Section is exposed to.
Co-op has a defined benefit pension net asset position. This transaction insures a significant majority of the liabilities represented within that net asset position, and is a significant step in the Co-op's continuing strategy of de-risking its pensions exposure. We will reflect the transaction in our year-end report and accounts for 2023. The benefits of members of the Pace scheme will not be impacted by this transaction.
Co-op is supportive of the strong stewardship and de-risking action taken by the Trustee, which creates a positive outcome for those current and former colleagues who are Pace members. This transaction also reduces the Co-op's exposure to the funding risks associated with our defined benefit liabilities which, in turn, strengthens our Co-op for the benefit of our members.
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Enquiries
Co-op Media Enquiries:
Russ Brady, 07880 784442, russ.brady@coop.co.uk
Cat Turner, 07834 090783, catherine.turner@coop.co.uk
Lauren Pogson, 07966 672112, lauren.pogson@coop.co.uk
About Co-op:
Co-op is one of the world's largest consumer co-operatives with interests across food, funerals, insurance and legal services. Owned by millions of UK consumers, the Co-op operates over 2,400 food stores, over 800 funeral homes and provides products to over 5,000 other stores, including those run by independent co-operative societies and through its wholesale business, Nisa Retail Limited.Employing almost 60,000 people, the Co-op has an annual turnover of over £11billion and is a recognised leader for its social goals and community-led programmes. The Co-op exists to meet members' needs and stand up for the things they believe in.