On the go: The Vesuvius Pension Plan has completed a final buy-in with Pension Insurance Corporation, covering £305m of liabilities.
This bulk annuity deal is the seventh transaction of the defined benefit scheme sponsored by the metal flow engineering company. With a total of £600m in liabilities, the scheme is now fully insured with PIC, a statement read.
As a result, Vesuvius no longer bears any investment, longevity, interest rate or inflation risks in respect of the DB scheme, it added.
The trustees were advised on the transaction by Aon, Linklaters and Premier Pensions, while Vesuvius was advised by LCP, and PIC by CMS.
Allan Course, chair of the trustee, said: “Working closely with Vesuvius to manage a gradual derisking of the plan over the past few years, and our approach of securing multiple buy-ins, which we developed with our advisers Aon, has enabled us to remove volatility from the UK plan and manage the pension plan risk effectively.”
John Baines, partner in Aon’s risk settlement group, noted that the series of transactions “is a great example of why a risk settlement strategy needs to be developed on a bespoke basis, with the scheme benefiting from a proactive approach to remove as much risk as affordable through a series of buy-in transactions”.
