EDS pension scheme agrees £1.1bn buy-in with PIC

The EDS 1994 Pension Scheme has agreed a £1.1bn buy-in with Pension Insurance Corporation (PIC), securing retirement benefits for all of the scheme’s 3,000 pensioners and 2,300 deferred pensioners.

The trustee was advised by Mercer and Sackers, which included up front insurer due diligence reports prepared by DLA Piper and ITM, while the company was advised by Mercer and Eversheds, and PIC was advised by Addleshaw Goddard.

The full scheme buy-in was secured in anticipation of a full buyout in future, with EDS 1994 Pension Scheme chair of trustee, Ian Wilson, highlighting the transaction as a "great outcome for members".

"We are pleased to partner with PIC on this transaction and are confident that their proven member experience and strong financial credentials will ensure members’ benefits are secure," he said.

Adding to this, DXC Technology, parent of the scheme's sponsoring employer, VP and treasurer, Ceyhun Cetin, said: “DXC has been highly focused on delivering for our colleagues and by strongly funding our plan we have put both our colleagues and DXC in a better place.

"This allows for conversion to a fully guaranteed insured solution for our colleagues while putting DXC on a stronger financial foundation.”

Mercer risk transfer partner, Ben Stone, also highlighted the transaction as a “significant step” for the trustee in their long term de-risking journey, which achieved a “very positive” outcome for members.

“The key to success was a clear transaction timeline, significant preparation work and excellent communication between all parties involved,” he continued. “In an increasingly busy bulk annuity market these features are becoming critically important to achieve both trustee and company objectives.”

PIC head of pricing, Tristan Walker-Buckton, added: “We are proud to have been able to complete this buyout with the trustee, despite significant market volatility.

“It was immensely helpful to understand the clear goals of both the trustee and sponsoring employer. PIC’s responsiveness to these requirements, supported by the buyers’ reports, enabled the transaction to be completed within a short timeframe.”

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