(Reuters) -Energy giant BP (LON:BP) is in talks with insurers over a so-called buy-in deal for its 30 billion pound ($38.30 billion) pension scheme, the Financial Times reported on Friday.
Trustees of BP's UK defined benefit scheme are in talks with multiple insurers to take over liabilities of the British oil company's UK final salary plan, the report said, citing five people familiar with the discussions.
"As trustee, we have a duty to continually review and assess all investment options to manage the security of the Fund and members' benefits. Such options include long-term insurance policies," BP Pension Fund Trustee said in an emailed statement.
"Investing in such a policy would not amount to selling the Fund, which would continue to operate as normal under the oversight of its independent trustee board."
BP declined to respond to a Reuters request for comment.
Companies have been trying to offload pension schemes from their balance sheets in recent years as they are expensive to run, while bulk annuity deals have provided a growing source of income for insurers.
In February, Pension Insurance Corporation agreed to a pensions buy-in deal totalling around 6.5 billion pounds with insurer RSA Group, covering the pensions of 40,000 members, in the largest ever bulk annuity deal of the kind.
That buy-in involved the insurer taking on the risk of the pension scheme's liabilities.
($1 = 0.7832 pounds)