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04-Sep-08 11:30 [Pensions]
Cable & Wireless guarantees pension plans Telecommunications company Cable & Wireless (C&W) has signed a deal with Prudential to safeguard and guarantee 5,000 pension payments belonging to employees.
C&W's Superannuation Fund, a final salary pension scheme now closed to new members, was secured through the purchase of a record-breaking £1 billion deal with the company.
The move by the telecom group marks the biggest transfer of pension liabilities from a major company to a specialist insurer, overtaking the deal between Rothesay Life and the scheme provided by Rank Group, a transaction worth £700 million.
Jonathon Camfield of Lane Clark & Peacock, which advised C&W on its deal, said: "It's a win-win situation for the pensioners.
"They are still within the pension fund, and have its full support, and on top of that they have the additional security from the Pru."
Online news provider Techwatch recently noted that C&W was a step closer to acquiring Thus, the company formerly known as Scottish Telecom.
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