Pensions - Articles - Second buy in completed for IET pension scheme


The IET Superannuation and Assurance Scheme, sponsored by the Institution of Engineering and Technology, has completed a pensioner buy-in with Pension Insurance Corporation covering all 300 of the Scheme’s uninsured pensioner members.

 Hymans Robertson was lead advisor for the transaction, with Mayer Brown International LLP providing advice on legal aspects. 

 The company and trustees were able to take advantage of favourable pricing during the second quarter of 2018. As a result, the buy-in led to a material improvement in the scheme’s funding position, reducing risk and improving the security for members.

 This buy-in was the second for the Scheme, following a c£30m medically underwritten buy-in in 2015 covering the Scheme’s pensioners with the highest pensions at that time. The trustees were early adopters of this staged approach to securing members’ benefits which is becoming commonplace among pension schemes. By capturing market opportunities with their two buy-ins, the trustees have been able to accelerate their journey towards fully securing members’ benefits.

 Philip Whittome, Chair of the Trustees of the IET Superannuation and Assurance Scheme commented: “The Trustees are pleased to have now secured buy-ins covering all of our current pensioners with a regulated insurance company. The Trustees were guided through an efficient and well-run process by Hymans Robertson, enabling the Scheme to secure a buy-in for less than our technical provisions funding reserve and thus raising Scheme funding levels to improve the security of all members' benefits.”

 Kieran Mistry, Hymans Robertson, lead advisor on the transaction added: “It was rewarding to work with the Trustees to achieve a fantastic outcome for the Scheme and its members, building on the success of their first buy-in. PIC’s collaborative and efficient approach led to a smooth and quick implementation.”

 Tristan Walker-Buckton, Senior Actuary at Pension Insurance Corporation said: “We are pleased to have conducted this buy-in with the Trustees of the IET Superannuation and Assurance Scheme, which has left the Scheme and its members in a much more secure position.”
  

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