Amey OS Pension Scheme, Oxford, England, completed a total £65 million ($85 million) buy-in deal with Just Retirement Ltd.
The trustee of the pension fund purchased two separate buy-in policies with the life insurance company, covering benefits for 1,000 participants.
Kim Nash, sole independent trustee of the Amey pension fund and a client director at PTL, an independent trustee services firm, said in an e-mail that the Amey fund has two sections, and the buy-in covered both but was dealt with as one deal. Ms. Nash said the total assets of the pension fund are about £150 million, and the deal covers about 35% of liabilities.
PricewaterhouseCoopers advised Amey and led the process with PTL. A news release from PwC said prices were fully protected against Brexit-related market activity, with transactions completed five weeks after initial prices from a panel of insurers were received. Specific details on the pricing were not disclosed.
“We worked with Just Retirement and the trustee to agree (to) a mechanism whereby the scheme assets were fully matched to the buy-in price movements during the five-week period from initial insurer quotations to deal completion,” said Ben Stone, pensions consulting director at PwC, in the news release. “This was a significant achievement for the scheme — particularly given the large fluctuations in investment markets during that period.”