3i Group Pension Plan, London, insured £650 million ($786.2 million) in liabilities through a buy-in with Legal & General Assurance Society, a spokeswoman said.
The transaction, which insured nearly two-thirds of the plan's liabilities — representing the benefits of about 280 retirees and 570 deferred participants — was a third risk transfer deal for the £975 million plan.
The remaining one-third of liabilities were insured through a £200 million buy-in in 2017 with Pension Insurance Corp. and a £95 million buy-in with Legal & General in 2019. All of the fund's liabilities are now insured.
"This transaction is a significant step forward in providing a more certain and secure solution for members' future benefits and removes significant risks in the plan that would otherwise be difficult to hedge. Achieving this level of security is especially valuable in the current economic climate and we are delighted that, with the support of our advisers, we have been able to take this step sooner than previously anticipated," Carol Woodley, chairwoman of the plan's trustees, said in a news release Wednesday.
The pension fund's trustees were advised by consultant Lane Clark & Peacock LLP, law firm Linklaters and adviser Lincoln Pensions. The plan sponsor was advised by Mercer and law firm Slaughter and May. Law firm Macfarlanes LLP provided legal advice to Legal & General.