De Beers UK Pension Scheme completes £870m buy-in with PIC

De Beers UK Pension Scheme has completed an £870m full buy-in with Pension Insurance Corporation (PIC), securing the pensions of 1,464 current pensioners and 473 deferred members.

Hymans Robertson acted as lead adviser to the transaction, while CMS Cameron McKenna Nabarro Olswang provided legal advice to PIC, and Linklaters LLP provided legal advice to the De Beers trustee.

Barnett Waddingham also acted as scheme administrator and scheme secretary to the trustees.

De Beers UK Pension Scheme chair of trustees, Mike Page, said the deal was “the result of many years of hard work as we pursued a long-term de-risking strategy”.

“I want to thank my fellow trustees and our professional advisers, Hymans Robertson, Barnett Waddingham and Linklaters for their role throughout the process in scoping and executing the transaction, which further increases the security of scheme members’ benefits," he continued.

“PIC was selected for its flexibility and ability to complete the transaction in volatile markets, as well as its overall track record, including a deep-seated commitment to customer care.”

Adding to this, PIC co-head of origination, Tristan Walker-Buckton, said: “PIC is proud to have worked with the trustees of the De Beers UK Pension Scheme to de-risk the scheme, removing the risk associated with the scheme from the company’s balance sheet, and providing security to all their members for the long-term.”

Hymans Robertson partner, Dr Richard Wellard, also said that helping “the trustees secure their members’ benefits and achieve their goal” reflected “the vibrant bulk annuity market, but also the preparedness of the scheme, which is a vital factor in ensuring that insurers focus on a particular transaction over the many other opportunities brought to them".

Barnett Waddingham partner, Sue Foley, added: “This is a proud moment to see the scheme transact after years of planning.

“It has been a pleasure working with the trustee board and other advisers supporting them through a complex landscape, culminating in a buy-in that secures and safeguards the futures of the members.”

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