Air Canada pension scheme agrees £380m buy-in with PIC

The Air Canada Pension Trust Fund has agreed a £380m buy-in with Pension Insurance Corporation (PIC), covering liabilities for around 1,400 members, 40 per cent of which are yet to start drawing their pension.

Punter Southall Governance Services (PSGS), the fund’s sole professional corporate trustee, was advised by Aon on the transaction.

PSGS representative, Wayne Phelan, highlighted securing the benefits for their members as a “long-term priority for the trustee for many years”.

“I am delighted we have reached this milestone and would like to thank Aon and PIC for their collaborative and flexible approach in what was a complex and challenging transaction,” he said.

Adding to this, PIC actuary, Richard Quintian, commented: “PIC is delighted to have worked with the trustee and the sponsoring employer, Air Canada, on this deal.

"The trustee has been able to significantly de-risk this scheme, including for all of its deferred members, providing greater security to them for the long-term and we are happy to have helped them reach this goal.”

Aon senior consultant, Joe Hathaway, added: “This transaction with the fund was contingent on meeting the objectives of both the trustee and company, including the requirement to complete the transaction in 2021 and with no further contributions.

“Through a combination of good preparation and close collaboration with all advisers, we were able to negotiate this transaction with PIC, achieving a really attractive outcome for all parties."

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