London, June 19 - British food group Dairy Crest has insured the remainder of its pension liabilities for 160 million pounds ($262.4 million) and is in talks with staff over the future of its final salary scheme.
The maker of Cathedral City cheese and Clover spreads has purchased an annuity policy from Legal & General to protect itself against fluctuating financial markets and the demographic risk posed by members living longer than expected.
"The trustee has now insured all the liabilities for members who retired before August 2008," Finance Director Alastair Murray said in a statement on Friday.
Last December the company announced it had insured half its pension risk with an annuity that it also bought from Legal & General for 150 million pounds.
Dairy Crest said last month it would cut future dividends by a quarter to help fund a reduction in its pension deficit which stood at 63.3 million pounds at the end of March versus a 31.6 million pound surplus a year earlier.
From October the company has said it plans to increase the amount it pays into its pension scheme to 20 million pounds a year from 12 million pounds last year.
It said on Friday that talks were underway with employees to explore "options for the future of its final salary scheme".