TI Group Pension Scheme completes second buy-in with PIC

TI Group Pension Scheme, London, completed a £130 million ($161 million) buy-in with Pension Insurance Corp., said a spokesman for the sponsoring employer Smiths Group PLC.

In its second pension buy-in, the £1.7 billion TI Group Pension Scheme insured liabilities relating to 1,500 legacy plan retirees. The group conducted a risk transfer transaction covering £170 million liabilities with PIC in 2013.

The spokesman said almost 30% of the group's U.K. pension liabilities are held in buy-in policies as part of a sustained derisking strategy.

“Focus on derisking the company's pension liabilities has reduced funding volatility and has led to significantly lower funding obligations going forward — freeing up capital for Smiths to invest in growth opportunities,” Chris O'Shea, chief financial officer of Smiths Group, said in a news release.

Chris Surch, chairman of the TI Group Pension Scheme trustee, added in the release: “This is the second buy-in we have completed with PIC as part of our long-term derisking strategy. We have made considerable strides to completely derisk the plan and this remains our long-term aim."

The trustee was advised by Aon Hewitt and Mayer Brown.