REG - WH Smith PLC - WHSmith Pension Trust announcement

WH SmithAnnouncement

08/08/2022 07:00

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RNS Number : 1549V  WH Smith PLC  08 August 2022

WH Smith PLC

 

8 August 2022

 

WHSmith Pension Trust completes Buy-In of Defined Benefit Pension Scheme
through purchase of bulk annuity insurance policy

 

 

The Board of WH Smith PLC ("WH Smith") today announces that the Trustee of the
WH Smith Pension Trust (the "Trust") has purchased a bulk annuity insurance
policy from Standard Life, part of Phoenix Group, insuring all liabilities to
pay all future defined benefit pensions to the Trust's 12,950 members and any
eligible dependants.  Phoenix Group is the UK's largest long-term savings and
retirement business with c.£310 billion of assets under administration and
c.13 million customers.

 

The insurance policy was purchased using most of the existing assets held
within the Trust, without the need for WH Smith to make any additional
contributions.

 

The purchase of this insurance policy follows a long period during which the
Trustee, with the support of WH Smith, has reduced investment, interest rate
and inflation risks in the Trust, and the funding level has improved.  The
bulk annuity policy matches the Trust's cash flow benefit obligations to its
members, removing longevity and other demographic risks as well as investment,
interest rate and inflation risks.

 

As a result of this comprehensive risk-removal, WH Smith will not be required
to make any future contributions into the Trust regarding defined benefit
liabilities.

 

There will be an immediate small benefit to the cashflow of the Group and
there will be a small reduction in the Group's liabilities.

 

All members of the Trust have been informed of this transaction.  The amount
of benefits they are due to receive in the future are unaffected by it.

 

WH Smith will issue its normal pre-close trading statement in respect of the
financial year ending 31 August 2022, on 7 September 2022.

 

 

 

Enquiries:

 

WH Smith PLC

Mark
Boyle
Investor Relations
07879 897687

Nicola Hillman                                    Media
Relations                                  01793 563354

 

Brunswick

Tim Danaher
 
0207 404 5959

 

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