Hays Recruitment completes £270m buy in with Canada Life

Written by Theo Andrew

Hays Recruitment has completed a £270.6m buy in with Canada Life, insuring all members of the groups defined benefit scheme.

The group confirmed the deal in its half year results published today, 30 August 2018, with Canada Life was funded through existing investment assets held by the trustee.

Furthermore, Hays contributed a further £15.3m to the scheme over the year.

Hays reported a pensions surplus of £75.9m on an IAS 19 accounting basis, as at 30 June 2018, compared to the £0.2m deficit recorded at the same period last year.

It said: “The surplus was primarily due to favourable changes in both demographics and financial assumptions (an increase in the discount rate and a decrease in the inflation rate), together with an increase in asset values.”

According to the group, the de-risking exercise is in line with its long-term strategy to reduce future volatility of its DB scheme, and the financial impact this would have on the business.

The group recorded a £95m deficit in its 2015 triennial valuation, agreeing an annual payment of £14m, with a fixed 3 per cent uplift over 10 years.

Hays added that it payed £109.7m in dividends over the year.

The group is currently undergoing its formal actuarial valuation as at 30 June 2018 and is due to be completed in April 2019.

Hays DB scheme closed to new entrants in 2001 and to future accrual in 2012.

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