The Air Canada (UK) Pension Trust Fund has completed a buy-in deal with Pension Insurance Corporation (PIC), while the Keysight Technologies UK Limited Retirement Benefits Plan has signed a buy-in contract with Just Group.
For the Air Canada scheme, PIC – a specialist insurer of defined benefit pension funds – will cover £380m (€454m) of liabilities for about 1,400 members, 40% of which are yet to start drawing their pension (deferred members).
Punter Southall Governance Services (PSGS), the Air Canada fund’s sole, professional corporate trustee, was advised by Aon.
Wayne Phelan, representing PSGS, said: “Securing these benefits for our members has been a long-term priority for the trustee for many years. I am delighted we have reached this milestone and would like to thank Aon and PIC for their collaborative and flexible approach in what was a complex and challenging transaction.”
Richard Quintian, actuary at PIC, said: “The trustee has been able to significantly de-risk this scheme, including for all of its deferred members, providing greater security to them for the long-term and we are happy to have helped them reach this goal.”
Keysight Technologies and Just Group
As for the Keysight Technologies fund, Just Group’s buy-in transaction is worth £58m. This is the plan’s second transaction with Just Group as part of its phased de-risking strategy following a £250m buy-in earlier in 2021.
The two transactions have now secured the liabilities of all of the fund’s 900 pensioner members, it said.
Nick Johnson, chair of trustees at the scheme, said: “As we implemented an umbrella contract as part of the first transaction with Just, we were able to take advantage of favourable market conditions to go ahead with this second transaction.”
WTW, the scheme’s actuary, led the transaction on behalf of a joint working group formed by the trustees and the plan sponsor.
The trustees were advised on the transaction by WTW, Linklaters provided legal advice and Mercer investment advice. Pinsent Masons provided legal advice to Just Group.