Pension Corporation, a leading provider of risk management solutions to defined benefit pension funds, today announces that the Trustees of the Aon Minet Pension Scheme (“the Scheme”) have signed a pension insurance buy-in agreement with Pension Insurance Corporation (“PIC”). The transaction covers a tranche of pensioners representing around 25% of the Scheme’s pensioner liabilities, with the premium being circa £100 million.
Robert Dickinson C.B.E, Chairman of Trustees, said:
“This buy-in agreement with PIC is very important to us as we move to further de-risk the Scheme through securing the liabilities, following a previous pensioner buy-in in 2009. We received excellent advice from Aon Hewitt, and the PIC team were responsive to our specific needs. We are very pleased to have been able to conclude this transaction with them.”
Paul Belok, Principal, Aon Hewitt, said:
“We worked closely with the Trustees to help them progress their de-risking strategy. To achieve this we ran a competitive process to assess the bulk annuity market for the best terms and structure and the resulting solution will further enhance members’ security.”
Jay Shah, co-Head of Business Origination, Pension Corporation, said:
“With this transaction the Trustees have insured benefits for a tranche of pensioners with PIC, which means that these liabilities are fully hedged. We are seeing more Trustees exchanging scheme assets such as Gilts and cash for a matching investment in the form of an insurance buy-in policy as pricing terms remain relatively attractive for schemes holding well matched assets”
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