CITIGROUP has shifted responsibility for paying the pensions of 20,000 past and present staff of EMI Group to Pension Insurance Corporation (PIC) in a landmark deal relieving the bank of up to £1.5bn of liabilities.
The bank, which employs 1,200 people in Belfast, is the latest employer to insure against lengthening lifespans which impose hefty extra costs on retirement funds.
It is paying the specialist insurer an undisclosed fee in the largest UK pension risk transfer to date, Citi and PIC said yesterday.
The deal is the biggest since Legal & General took on £1.1bn of pension liabilities from the T&N Retirement Benefits Scheme in 2011, according to data from Towers Watson, which advised the trustee for the EMI deal.
Citigroup seized the music company in 2011 from financier Guy Hands after private equity firm Terra Firma Capital Partners defaulted on its loans.
Sourced from http://www.belfasttelegraph.co.uk/business/business-news/citigate-transfers-pension-liabilities-29408167.htm