Cable & Wireless, the telecoms group, caused a stir last week when it arranged the largest-ever deal to de-risk its pension scheme, covering half its roughly £2bn in liabilities by purchasing a £1bn annuity from Prudential.

Significantly, however, the risk reduction covers only C&W’s existing portfolio of pensioners; liabilities of those still employed and deferred members – those who have left the company’s employment but are too young to retire – are not covered by the pact.