On the go: The Chartered Insurance Institute Pension Scheme 1993 has completed a £55m full buy-in with Legal & General Assurance Society.
The buy-in covers the benefits of approximately 330 scheme members, including around 150 current pensioners. Mercer Investment Consulting advised on the transaction.
The deal marks a significant milestone in the scheme’s derisking journey and is the culmination of several years of planning and collaboration between the trustees, the institute and Mercer.
The scheme, with the support of L&G, will now be taking the next steps to finalise the buy-in policy.
Joanna Carter, Mercer principal, said the investment adviser had been working closely with the scheme on a fiduciary management basis “to deliver a robust dynamic derisking journey plan automatically capturing opportunities to derisk”.
“By entering into this buy-in with L&G, the trustees have improved security for scheme members and the institute has minimised its exposure to pension volatility,” she said.
Robert Fletcher, chair of the trustees, added: “This buy-in is the culmination of a project to significantly reduce risk in the scheme and has secured the benefits for 330 members in the process.”
Prior to the buy-in, the scheme’s strategic asset allocation stood at 90 per cent hedge management (liability-driven investments) and 10 per cent non-hedge management (UK credit).
This article originally appeared on Mandatewire.com
