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Risk Management

WPP enters into buy-in with PIC to cover all pension liabilities

WPP PLC, London, insured 140 million ($198 million) in pension liabilities with Pension Insurance Corp., a spokesman said.

The buy-in transaction covers retirees and deferred liabilities of the communication services company's five defined benefit funds. "The company provided additional funds so that the trustees could finance the cost of the annuity policy, 140 million. This therefore reflects the assets of the plans and liabilities," the spokesman added.

Mercer, Independent Trustee Co. and JLT Employee Benefits advised the pension funds on the transaction.

"The bulk annuity market is currently undergoing a period of intense demand and we expect more such high-profile transactions in 2018, in what many believe will be an exceptionally busy year. This is an example of a major corporate and its trustee taking proactive action to manage their pension risks," David Ellis, partner at Mercer, said in a news release.