Business
Defined benefit pension scheme buy-in
Macfarlane Group PLC has de-risked its defined benefit pension scheme, the Macfarlane Group PLC Pension & Life Assurance Scheme (1974), by purchasing a £53 million bulk annuity policy from Royal London. This transaction fully insures the scheme's liabilities, transferring all financial and demographic risks to the insurer, with pension obligations to members to be met by a regular income stream from the policy. The Group anticipates a potential buy-out and winding-up of the scheme within two years, which would remove it from the balance sheet. The scheme is currently in surplus, and the Group expects any surplus or deficit at buy-out to be no more than £1 million, with any excess funds potentially returning to the Group after tax. Disclaimer*
About this update from Macfarlane Group Plc
30 June 2026 Macfarlane Group PLC ("Macfarlane Group" or the "Group") Defined benefit pension scheme de-risked with buy-in Macfarlane Group PLC (LSE: MACF), the protective packaging specialist, is pleased to announce the de-risking of the Macfarlane Group PLC Pension & Life Assurance Scheme (1974) (the "Scheme") through the Scheme's purchase of a £53 million bulk annuity policy ("buy-in") from Royal London. As a result of the buy-in, with the exception of any post buy-in adjustments referred to below, all the financial and demographic risks relating to the Scheme's liabilities will be fully insured, with the policy paying a regular stream of income that matches the Scheme's pension obligations to all members. Subject to post buy-in data reconciliations and adjustments, the Group and the Scheme Trustees will have the option to proceed to a full buy-out and winding-up of the Scheme expected within two years, at which point it will be removed from the Group's balance sheet. The Scheme is currently in surplus, and the Group is not required to make any cash contributions. If a surplus remains at buy-out following post buy-in adjustments, any excess funds will be returned to the Group, subject to deduction of tax. If there is a deficit at buy-out the Group will be required to provide a matching cash contribution. It is anticipated that any surplus or deficit at buy-out will be no more than £1 million. The Group has no other defined benefit schemes. Aleen Gulvanessian, Chair of Macfarlane Group, commented: "This positive outcome will de-risk the Scheme and is in the interests of both members and the Group. This development has been achieved through constructive engagement between the Group and the Scheme Trustees over many years." Angela Campbell, Chair of the Scheme Trustees, commented: "We are pleased the Trustees, with the support of the Group, have been able to execute the buy-in transaction which meets our objective of securing the pensions of all members of the Scheme. The buy-in does not change benefits in the Scheme and pension payments will continue to be paid each month in the usual way." Further enquiries: Macfarlane Group Tel: 0141 333 9666 Aleen Gulvanessian Chair Peter Atkinson &...
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