Pension Insurance Corporation (PIC), a specialist insurer of defined benefit pension funds, has announced the completion of a pension insurance buy-in with the Trustee of the EDS 1994 Pension Scheme, which is the pension plan of DXC Technology.
The agreement fully insures the Scheme’s pension liabilities; it covers 3,000 pensioners as well as 2,300 deferred pensioners.
According to the announcement, the full scheme buy-in has been secured in anticipation of a full buyout of the Scheme.
Ian Wilson, Chair of Trustee of the EDS 1994 Pension Scheme, said: “We are pleased to partner with PIC on this transaction and are confident that their proven member experience and strong financial credentials will ensure members’ benefits are secure.”
Tristan Walker-Buckton, Head of Pricing at PIC, commented: “We are proud to have been able to complete this buyout with the Trustee, despite significant market volatility.
“It was immensely helpful to understand the clear goals of both the Trustee and sponsoring employer. PIC’s responsiveness to these requirements, supported by the Buyers’ Reports, enabled the transaction to be completed within a short timeframe.”
The Trustee advisers, Mercer and Sackers, structured and led the transaction, which included cover for residual risks and was supported by up front insurer due diligence reports, known as Buyers’ Reports, prepared by DLA Piper and ITM.
It was also confirmed that the Company was advised by Mercer and Eversheds, and PIC by Addleshaw Goddard.
Ben Stone, Risk Transfer Partner at Mercer, said: “This is a significant step for the Trustee in their long term de-risking journey and the outcome they have achieved for the Scheme members is very positive.
“The key to success was a clear transaction timeline, significant preparation work and excellent communication between all parties involved. In an increasingly busy bulk annuity market these features are becoming critically important to achieve both Trustee and Company objectives.”
