Civil Aviation Authority Pension Scheme completes second pension buy-in

The Civil Aviation Authority Pension Scheme, London, completed a £90 million ($110.5 million) buy-in with Pension Insurance Corp.

The scheme trustees were advised by Aon Hewitt and Reed Smith on the buy-in, which is backed by gilts, said a news release provided by a spokesman for the CAA.

The deal marks the second buy-in for the £2.4 billion plan, following a £1.6 billion risk transfer transaction with Rothesay Life in July 2015.

“This buy-in (is) the next step in our long-term derisking strategy for the plan,” Joanna Matthews, chairwoman of trustees, said in the release.

Paul Belok, a partner in Aon Hewitt’s risk settlement group, said in the same release: “A particularly positive aspect of this transaction was the price lock that was agreed with PIC, which ensured that the attractiveness of the terms from the plans’ perspective was not affected adversely by market movements during the relatively volatile period before the risk was transferred.”

The CAA spokesman declined to comment beyond the news release.