The Trustee of the Coats UK Pension Scheme (“the Scheme”) is committed to ensuring the long-term security of the Scheme.
We are pleased to announce that we’ve taken an important step to improve the security of members’ Scheme pension benefits.
We’ve chosen to enter into an agreement with Pension Insurance Corporation (“PIC”) to buy an insurance policy, called a ‘buy-in policy’. This involves securing the benefits payable to members and their dependants for the long term.
The Trustee previously purchased a similar policy with Aviva in 2022. Together with the policy from PIC, the Trustee has now secured the benefits of all members.
The Trustee has worked closely with Coats (“the Company”) throughout this process and the Company has provided the Trustee with approximately £100m of special funding to enable this transaction to take place.
There are no changes to the Scheme benefit entitlements as a result of this transaction. The Scheme will continue to be managed by the Trustee and administered by the Coats Pensions team. The Company will continue to be Principal Employer in support of the Scheme.
A letter is being sent to all CUKPS members giving more information about this transaction. We ask all our members to look out for this letter.
Members do not need to do anything in response to this letter.