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PIC completes £800m buyout of BHS2 pension scheme

14th August 2018 - Author: Charlie Wood

Specialist insurer of defined benefit pension funds, Pension Insurance Corporation (PIC), has completed a full, £800 million buyout of the BHS2 pension scheme – set up in 2017 following the collapse of British Home Stores (BHS).

Pension Insurance Corporation logoBHS2 covers members of two predecessor BHS Pension Schemes, who chose to transfer to BHS2 under the terms offered by the predecessor BHS Schemes.

It does not include members who chose to transfer into the Pension Protection Fund, or some eligible members with small pensions who chose to take a lump sum in lieu of their pension.

“It has always been our goal to deliver the best possible outcome for the members of this scheme. A buyout guarantees member benefits under the BHS2 Scheme, and is the most secure solution for the members of this scheme,” commented Chris Martin, of Independent Trustee Services Limited.

The deal covers all 9,000 members of the BHS2 scheme, who will now become PIC policyholders.

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Uzma Nazir, Head of Origination Structuring at PIC, said, “We are proud to have been able to secure members’ benefits via an insured annuity. This brings certainty that the members will receive the benefits they opted for when choosing to join the new scheme.”

Partner and Scheme Actuary at Barnett Waddingham, Ben Pullen, added, “An attractive pricing opportunity existed in the bulk annuity market, and so we proactively assisted the trustee to take advantage of the opportunity to insure member benefits.”

“Reaching this outcome for the BHS2 Scheme so early is a testament to the combined efforts of all parties involved. We have provided actuarial and administrative support since the original insolvency of BHS in 2016 and are pleased to continue to support members through this process.”

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