PILKINGTON have confirmed a new insurance arrangement which it says will increase security for its pension members who are now living longer.

Pilks and the Trustee of the Pilkington Superannuation Scheme (PSS) have agreed a longevity insurance arrangement with Legal & General Assurance Society, intended to “increase the security of the scheme for members and reduce exposure to the volatility of longevity forecasts”.

This contract covers approximately 11,500 pensioners in the PSS, who account for approximately 60 per cent of the scheme’s total liabilities.

Andrew Robb, chairman of the trustee company of PSS said: “The move is a further step in reducing the risk exposure of the scheme. The insurance removes the risk of a further increase in liability arising as a result of pensioner members living longer than currently expected.

“The Trustee is very mindful of the risk exposure of the scheme and is committed to enhancing the security of all the members. This deal is welcomed as an important contribution to achieving this goal.”

Mark Lyons, chief financial officer of Nippon Sheet Glass. the parent company of Pilkington Group Limited, said: “We have worked with the Trustee in completing this agreement, which is consistent with the group’s overall strategy to manage risk in all parts of its business. We see the outcome as positive for the Trustee, the Company and the PSS membership.”