Alitalia Italian Airlines Pension and Assurance Scheme has entered into an insurance buy-in with Pension Insurance Corporation (PIC) to stabilise the scheme’s funding position.

The scheme is currently in the Pension Protection Fund’s (PPF) assessment period following the Administration of Alitalia in 2008, which collapsed with the Italian Government owning 49.9 per cent of the shares.

The scheme has a section 75 deficit in excess of £22 million, and the buy-in will see £53 million of assets transferred to PIC to secure its current funding position and aim to improve and secure further funds if available in the future.

Barnett Waddingham advised on the deal.

Chairman of the trustees, Miles Buckinghamshire, said: “With pragmatic advice from Barnett Waddingham, we are delighted to have entered into this innovative arrangement with PIC. It has allowed us to lock down out asset and liability position in volatile markets to the benefit of our members whilst we continue to vigorously pursue the trustees’ claim in the Italian Administration court proceedings in Rome.”

PIC’s Mitul Magudia added: “We’re pleased to have developed the right insurance solution for this situation. This builds upon our track record of offering bespoke solutions for trustees to help them secure member benefits for the long-term.”

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