Alps Electric Pension Scheme, Milton Keynes, England, conducted a £33 million ($40.5 million) buyout with Pension Insurance Corp., said a spokesman for Capita Employee Benefits, which advised the trustee of the pension fund.
Deloitte advised the sponsoring company, Alps Electric Europe GmbH, a subsidiary of Tokyo-based Alps Electric Co. Ltd. a developer and manufacturer of high-quality electronic components for electronics and industrial equipment.
“We are delighted to have been able to insure the pension benefits of our members with PIC, despite the volatility and uncertainty in the markets,” Peter Woodland, chairman of trustees, said in a news release.
“We entered into an agreement with PIC to insure once certain conditions were met, and this allowed us to complete the transaction when a window of opportunity in markets opened,” Mr. Woodland added.
Akash Rooprai, head of pensions risk management at Capita Employee Benefits, added in the release: “We worked with PIC to manage the transition of assets from a 'with-profits policy' in an effective way that maximized the efficiency of the transaction.”
Spokesmen for Capita and Alps Electric were not available for further comment on the scheme's history of risk transfer transactions. The size of the plan's assets was not immediately available.