(updated with correction)
The Church of England Pensions Board agreed to a buy-in with Prudential U.K. for £100 million of the £295.7 million defined benefit section of the Church Workers Pension Fund, confirmed a spokeswoman for the fund.
The deal covers 70% of the retired employee liabilities of the DB fund. The pension fund has £382.4 million in total assets.
Under the terms of the bulk annuity agreement, Prudential will make payments to the fund which match 70% of the payments made to current retirees.
“The board is committed to meeting its pension commitments to those who serve the church,” said Jonathan Spencer, chairman of the pensions board, in a news release. “We have made excellent returns on our investments in gilts and bonds over the last few years, and are now using these gains to reduce employers' exposure to future risks in the DBS section of the fund.”
Mercer provided investment advice on the transaction. Lane Clark & Peacock was lead adviser, and Linklaters provided legal advice.