Amey OS Pension Scheme completes £400m buy-in with PIC

The Amey OS Pension Scheme has completed a partial buy-in with PIC, insuring approximately £400m of pension liabilities.

The transaction covers a total of 3,473 members, including 1,938 deferred members.

XPS Pensions Group acted as lead transaction adviser to a joint working group, which consisted of representatives from Amey and the trustee.

Squire Patton Boggs provided the trustee with legal advice, while Broadstone is the scheme actuary.

PIC was advised on the transaction by Addleshaw Goddard and CMS provided legal advice to the employer, Amey.

Amey is a UK-based infrastructure and engineering company that partners with national and local government to manage assets and projects for sustainable growth.

Commenting on the transaction, Zedra Governance managing director and scheme trustee, Kim Nash, said: “I would like to thank Amey, PIC, and our advisers for their collaborative approach in getting this transaction done in volatile market conditions.

“Increasing the security of members’ benefits and reducing risk were top of the trustee’s agenda and we are delighted to have partnered with PIC to achieve this excellent outcome.”

PIC head of business development, Mitul Magudia, added: “This transaction was undertaken on an accelerated timescale and its successful completion reflects the strong capabilities of all those involved.

“Aligning corporate activity with bulk annuity transactions introduces additional challenges and stakeholders to the decision-making process.

“We are pleased to have successfully navigated that process in partnership with the scheme and are delighted with the outcome for all concerned.

“As has been widely reported, schemes are particularly well funded at the current time, and we hope many schemes are able to make similar announcements over the course of 2023.”

Amey group pensions director, Andrew Devlin, said the firm was grateful to the trustee and advisers for their efforts in concluding the deal, which took place alongside but separate from preparations for Amey’s recent change in ownership.

“We are delighted to have played our part in enhancing members’ security, whilst reducing balance sheet risk in line with Amey’s wider pension strategy. We thank our shareholders for their support throughout the process,” he concluded.

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