EDS 1994 pension scheme secures £1.1 billion full scheme buy-in with PIC

Pension Insurance Corporation plc ('PIC'), a specialist insurer of defined benefit pension schemes, has signed a £1.1 billion pension insurance buy-in with the Trustee of the EDS 1994 Pension Scheme to fully insure the Scheme’s pension liabilities.  The agreement provides certainty and security for all of the Scheme's 3,000 pensioners and 2,300 deferred pensioners. The full scheme buy-in has been secured in anticipation of a full buyout of the Scheme. 

The Trustee advisers, Mercer and Sackers, structured and led the transaction, which included cover for residual risks and was supported by up front insurer due diligence reports, known as Buyers’ Reports, prepared by DLA Piper and ITM. The Company was advised by Mercer and Eversheds. PIC was advised by Addleshaw Goddard.

Ian Wilson, Chair of Trustee of the EDS 1994 Pension Scheme, said: “The Trustee is pleased to have reached such a great outcome for our members, which was achieved through a collaborative partnership with the Company and with the extensive support of our and the Company’s advisers. We are pleased to partner with PIC on this transaction and are confident that their proven member experience and strong financial credentials will ensure members’ benefits are secure.”

Ceyhun Cetin, VP and Treasurer of DXC Technology, parent of the Scheme’s sponsoring employer, said: “DXC has been highly focused on delivering for our colleagues and by strongly funding our plan we have put both our colleagues and DXC in a better place. This allows for conversion to a fully guaranteed insured solution for our colleagues while putting DXC on a stronger financial foundation.”

Tristan Walker-Buckton, Head of Pricing at PIC, said: “We are proud to have been able to complete this buyout with the Trustee, despite significant market volatility. It was immensely helpful to understand the clear goals of both the Trustee and sponsoring employer. PIC’s responsiveness to these requirements, supported by the Buyers’ Reports, enabled the transaction to be completed within a short timeframe.”

Ben Stone, Risk Transfer Partner at Mercer, said: “This is a significant step for the Trustee in their long term de-risking journey and the outcome they have achieved for the Scheme members is very positive. The key to success was a clear transaction timeline, significant preparation work and excellent communication between all parties involved. In an increasingly busy bulk annuity market these features are becoming critically important to achieve both Trustee and Company objectives.”

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Notes to Editors:

For further information please contact:

PIC                                                    

Clive Booth                           
+44 (0)7780 599247

boothc@pensioncorporation.com

Apella Advisors                                

Andrew Brown                      
+44 (0)7721 513777                                                                             

PIC@apellaadvisors.com

About PIC
The purpose of PIC is to pay the pensions of its current and future policyholders. PIC provides secure and stable retirement incomes through leading customer service, comprehensive risk management and excellence in asset and liability management. At 31 December 2021, PIC had insured 282,900 pension scheme members and had £51.1 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of U.K. defined benefit pension schemes. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com

About DXC Technology
DXC Technology is the world’s leading independent, end-to-end IT services company, serving nearly 6,000 private and public-sector clients from a diverse array of industries across 70 countries. The company's technology independence, global talent and extensive partner network delivers transformative digital offerings and solutions that help clients harness the power of innovation to thrive on change. DXC Technology is recognized among the best corporate citizens globally. For more information, visit dxc.technology