The Institution of Engineering and Technology (IET), one of the largest STEM industry bodies, has announced the completion of a £50 million buy-in deal that sees the Pension Insurance Corporation (PIC) take on 300 uninsured pensioner members of its Superannuation and Assurance Scheme.
This is the second buy-in for the Scheme following the £30 million medically underwritten buy-in three years ago, which covered the Scheme’s pensioners with the highest pensions at that time.
Hymans Robertson was lead advisor for the transaction, with Mayer Brown International LLP providing advice on legal aspects.
A favourable pricing environment during Q1 2018 meant that the Company and trustees were able to secure a material improvement in the Scheme’s funding position, reducing risk and improving the security for members.
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, said, “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 added, “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.”
