Pension Insurance Corporation (“PIC”) has concluded a pension insurance buy-in with the Trustees of the NSPCC Pension Scheme. The transaction covers £63 million of pensioner liabilities. The Trustees were advised by JLT.
The transaction also allows the Trustees to defer meeting the cost of deflation, making a material saving on the cost of the premium.
The National Society for the Prevention of Cruelty to Children (NSPCC) is the only UK wide charity solely focused on preventing cruelty to children. The charity works directly with vulnerable children in 40 locations across the UK providing therapy, support and advice to them and their families. The NSPCC helpline provides a 24 hour phone number for adults to report child abuse or seek advice. The charity also runs ChildLine which takes over a million contacts a year from children and young people and visits primary schools throughout the country. The NSPCC also successfully campaigns for laws and policies to protect children and bring abusers to justice.
Steve Delo of PAN Governance, Independent Chair of Trustees, said: “We are delighted to have locked down volatility on a significant portion of our liabilities, securing those risks which we deem material. We worked closely with JLT, as our advisors, and PIC, to shape the contract to meet our needs, which meant we were able to save a considerable amount on the premium. Our advisors were instrumental in helping us source a suitable provider and supported us throughout the negotiation process. The PIC team were positive and flexible in helping us achieve our goals.”
Tiziana Perrella, the JLT consultant who advised the Trustees on the transaction, said:
“The Trustees held matching assets which they were able to use to fund a transaction on favourable terms. Advance preparation to identify the most suitable contract structure and an efficient implementation process were crucial in achieving a positive outcome”.
David Collinson, co-head of business origination at Pension Insurance Corporation, said: “We are very pleased to have been able to help the Trustees achieve their goals of insuring the pensioner benefits, whilst leaving aside deflation risk. We see many schemes which would like to insure some or all of their liabilities, but are unable to afford to do so. By shaping the risks which are insured in this way, we are able to make the product more affordable, whilst removing the biggest risks, such as longevity, inflation and investment.”
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