Pension Insurance Corporation plc (PIC) has completed a £370 million buy-in for the Hays Pension Scheme, securing coverage for over 4,200 members and transferring all associated financial and demographic risks.
Hays Group contributed approximately £13 million in upfront funding to support the transaction. With this buy-in, the Scheme’s liabilities are now entirely covered against financial and demographic risks.
James Hilton, Hays Chief Financial Officer, said: “Following constructive and collaborative dialogue with the Scheme trustee, we are pleased to fulfil our longstanding ambition to achieve full buy-in of the Hays Pension Scheme, fully insuring the Scheme liabilities with a cost-effective approach that benefits all stakeholders.
“From a Hays perspective, the transaction eliminates pension related balance sheet volatility and is expected to have a materially positive impact on Group free cash flow from FY26F. Our structurally improved cash generation will support investment in growth and the return of excess capital to shareholders in the medium-term.”
Hays Group plc, a global leader in recruitment and workforce solutions, operates in 33 countries with a workforce of over 11,000 employees across 21 specialist areas. In 2024, Hays supported over 280,000 career placements, including 225,000 in temporary and contracting roles and 58,000 in permanent positions.
Sean Burnard, Director at The Law Debenture Pension Trustee Corporation plc and Chair of Trustees of the Hays Pension Scheme, said: “The buy-in transaction has helped us meet our objective of securing the pensions of all members of the Scheme. We are delighted to have partnered with PIC who were selected on their strong track record and excellent customer service.
“Being well prepared with good project management means we have secured good contractual terms with attractive pricing for our members. LCP led the process with excellent support from Hogan Lovells, Mercer and Hymans Robertson. The co-operation and engagement of all parties was exceptional in helping the Trustee to navigate a number of factors to reach this great outcome for both Trustee and Company.”
LCP led the transaction as the principal adviser. Legal support for the Scheme was provided by Hogan Lovells International LLP, with actuarial advice from Hymans Robertson and investment guidance from Mercer. Hays Group was advised by Slaughter and May, while PIC received legal counsel from Addleshaw Goddard LLP.
Deepash Amin, Head of New Business Strategy at PIC, said: “We are extremely pleased to have helped the Trustees of the Hays Pension Scheme to reach this significant milestone. Being well prepared and having a clear set of objectives allowed us to deliver a tailored solution the Scheme. It was a pleasure working with the Scheme and their advisors, who ran a smooth and efficient process.”
Kenneth Hardman, Partner at LCP, said: “We are delighted to have supported the Scheme and the Company in securing this buy-in. This significant transaction for the Scheme has enabled both the Trustees and Hays – who worked collaboratively throughout the process – to secure attractive terms with PIC. It is another example of how great preparation and collaboration between all parties can get the best outcome for members of the Scheme.”
