MNOPF completes £1.6bn buy-in with PIC

The Merchant Navy Officers Pension Fund (MNOPF) has converted its pensioner longevity swap into a £1.6bn buy-in with the Pension Insurance Corporation (PIC).

The move from an existing pensioner longevity swap with Pacific Life Re secures the pensions of around 14,000 members of the scheme.

PIC said the deal was the third conversion of a longevity swap to a buy-in that it had been involved in, “signifying a growing appetite in the market for these types of deals”.

The trustee was advised by Willis Towers Watson and received additional legal advice from Baker McKenzie, while PIC was advised by CMS.

MNOPF chair, Rory Murphy, commented: “This buy-in enables us to more effectively manage the risks faced by the fund as a whole, providing greater certainty to members that their benefits will continue to be paid in full from the fund.

“It is also good news for employers in the maritime and shipping industry, who have already saved many millions in deficit contributions over recent years as a result of our improved funding position.”

PIC head of origination structuring, Uzma Nazir, noted: “We are delighted that the MNOPF trustee chose to work with PIC and ultimately secure this tranche of their members’ benefits with us.

"It takes expertise to complete a conversion of a longevity swap to a buy-in and all parties worked well together to get the trustee’s desired goal. A great outcome for all.”

Willis Towers Watson senior director, Shelly Beard, stated: “Novations of longevity swaps are becoming increasingly commonplace, and this one proved to be particularly quick and efficient because the 2014 longevity swap was structured through a Guernsey-based captive.

“It was great to partner with PIC, Pacific Life Re and the trustee to implement another ground-breaking transaction at attractive pricing.”

The MNOPF is an industry-wide pension scheme established in 1937 to provide retirement and death benefits for shipping companies’ officers.

    Share Story:

Recent Stories

Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video interviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today. Please click here for an edited write-up of the video

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Cost transparency
Pensions Age editor, Laura Blows, discusses investment cost transparency and savings with Aon’s Neil Smith and Chris Hawksworth. Please click here for an edited write-up of the video
Multi asset credit
Pensions Age editor, Laura Blows, discusses multi asset credit with Royal London Asset Management senior fund manager, Khuram Sharih

Advertisement Advertisement