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Pension Insurance Corporation plc (‘PIC’), a specialist insurer of defined benefit pension funds, has concluded a full scheme buy-in with the Trustee of the Medway Packaging Pension Scheme ('the Scheme'). The buy-in covers £52 million of liabilities for 425 pensioners and 150 deferred members.
The sponsoring company, Mondi Aberdeen Limited, is a UK subsidiary of Mondi plc, a leading packaging and paper manufacturer that makes innovative and sustainable packaging and paper solutions.
The Trustee was advised by Aon and Eversheds Sutherland. PIC was advised by Herbert Smith Freehills.
James Paterson, Chair of the Trustee for Medway Packaging Pension Scheme, said: “Following a thorough evaluation of the options available to secure member benefits over the long term we were satisfied that insuring the benefits with PIC was the best outcome for the Scheme’s members. This was particularly important in current market conditions and has led to an excellent outcome for our members which provides them with long-term security for their benefits.”
Deepash Amin, Origination Actuary at PIC, said: “Having worked closely with the Trustee and its advisers we are delighted to have completed a full scheme buy-in for all members of the Medway Packaging Pension Scheme. We have the flexibility and scale to offer solutions to well-prepared schemes of all sizes that approach the market using well-governed processes, such as Pathway. This transaction has helped the Trustee significantly de-risk the Scheme, remove risk for the sponsoring company and provide better security for all the policyholders’ future benefits.”
Dave Barratt, senior consultant in Aon’s Risk Settlement Group said: “This transaction emphasises how smaller schemes can make better decisions and access competitive insurer pricing with attractive terms if they approach the market in the right way. Using Pathway, Aon’s and Eversheds Sutherland’s solution for smaller bulk annuity transactions, we worked closely with the Trustee to identify the most important areas of focus ahead of our approach to market and achieved a robust governance approach and straightforward execution by using our pre-negotiated contract.”
Notes to Editors:
For further information please contact:
PIC
Clive Booth
+44 (0)7780 599247
Apella Advisors
Andrew Brown
+44 (0)7721 513777
About Pension Insurance Corporation
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 Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.
