Italian tire maker Pirelli will cover the liabilities of three legacy defined benefit pension plans via a £100 million ($134 million) buy-in agreement with Pension Insurance Corp. (PIC).
The legacy funds covered in the deal are Pirelli General Executive Pension and Life Assurance Fund, Pirelli Tyres Limited Executive Retirement Benefits Scheme, and the Pirelli General Overseas Retirement Benefits Scheme. Each fund is based in Burton-upon-Trent, England, and sponsored by Pirelli UK and Pirelli Tyres.
The process and organizations of the deal were advised by Mercer, with the fund’s trustees receiving advice from law firm Lane Clark and Peacock (LCP) and Gowling WLG. The organizations received legal advice from Hogan Lovells.
“The trustees are delighted to have been able to conclude this transaction, which has allowed us to secure the benefits for current and past employees of three separate schemes,” Tony Goddard, pensions manager at Pirelli, said in a statement. “The PIC team impressed us with their knowledge and dedication to finding solutions that worked for all parties.”