On the go: The £2bn QinetiQ Pension Scheme has completed a £130m buy-in with Legal & General Assurance Society. LCP acted as the lead adviser on the transaction and provided derisking advice.
The buy-in will cover the pension benefits for more than 390 new retirees.
As part of the agreement, an umbrella contract was established, which enables future transactions with L&G to be completed quickly and easily on the same pre-agreed terms when favourable pricing opportunities arise.
The scheme previously secured a £690m buy-in with Scottish Widows in April 2019, which covered all pensioners at the time.
Lisa Mundy, chair of trustees, commented: “This further step on the scheme’s journey increases the security of the benefits of all our scheme members. With the support from our advisers, the trustee was able to reduce the risks in the scheme, while also expanding our framework for future derisking.”
Separately, the scheme has introduced a new property allocation to its portfolio, with its implementation statement showing that a new exposure to commercial real estate debt was added to its strategic asset allocation.
In the year to June 30 2020, the scheme appointed M&G Investments and DRC Capital to handle this new asset class, with each manager allocated 3.5 per cent of the scheme’s total assets.
Elsewhere, the scheme’s most recent triennial actuarial valuation, which was undertaken as at June 30 2020, uncovered a £176.5m surplus.
This article originally appeared on MandateWire.com
