PIC completes £25 million full buy-in of the FSCS Pension Scheme

PIC, a specialist insurer of defined benefit pension schemes, has concluded a £25 million full buy-in of the FSCS Pension Scheme ('the Scheme'), sponsored by the Financial Services Compensation Scheme ('the Employer'), the UK’s statutory compensation scheme for UK authorised financial services firms. The transaction secures the benefits of all 154 members, comprising 37 pensioners and 117 deferred members.

Following an improvement in funding and asset derisking, the Scheme completed a preparation period, concluding with the ability to transact without additional contributions required from the Employer.

Giles Payne at Capital Cranfield, Chair of the Trustees, said: “Broadstone and Arc guided us expertly through the issues raised which meant we could confidently transact, safe in the knowledge nothing was left to chance. We are pleased to have secured this deal with PIC and are grateful for their engagement in the process along with the support of the Employer and the advisers involved.”

Richard Quintian, Head of Pricing and Funded Reinsurance at PIC, said: “We are proud to have completed a buy-in for the FSCS Pension Scheme, helping the Trustees with their goal of providing their members with long-term security for their pensions. Being well prepared when approaching a busy market allowed the Trustees and their advisers to complete the process in an efficient and timely manner.”

Christopher Rice, Deal Lead and Scheme Actuary at Broadstone, said: “The Trustees and Employer understood the importance of thorough preparation before approaching the market and this led to a competitive process. We’re delighted to have led the Trustees through this process, securing an excellent price with PIC, meeting the Trustee’s and Employer’s objectives and securing the pensions of all its Scheme members.”

Legal advice was provided to the Trustee by Arc Pensions Law, to the Employer by Eversheds, and PIC were advised by Herbert Smith Freehills. Broadstone led the transaction, providing annuity broking advice, alongside their existing appointment as Scheme Actuary, administrator, secretarial and investment consultant.

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For further information please contact:

Apella Advisors for PIC
Arne Wysny
+44 (0) 7818 497469
PIC@apellaadvisors.com

About PIC
The purpose of PIC is to pay the pensions of its current and future policyholders. PIC provides secure retirement incomes through comprehensive risk management and excellence in asset and liability management, as well as exceptional customer service. At half year 2024, PIC had insured 348,600 pension scheme members and had £47.7 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of UK defined benefit pension schemes. At 30 June 2024, PIC had made total pension payments of £14.9 billion to its policyholders and had invested more than £13 billion in the UK economy, creating considerable social value. 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