PIC completes £52m buy-in with Medway Packaging Pension Scheme

Pension Insurance Corporation (PIC) has concluded a full scheme buy-in with the trustee of the Medway Packaging Pension Scheme, covering £52m of liabilities for 425 pensioners and 150 deferred members.

The trustee was advised by Aon and Eversheds Sutherland, while PIC was advised by Herbert Smith Freehills.

The scheme sponsor is Mondi Aberdeen, a UK subsidiary of Mondi plc, a packaging and paper manufacturer.

Medway Packaging Pension Scheme chair of the trustee, James Paterson, stated that the scheme had evaluated a number of options available to secure member benefits over the long term before choosing PIC to ensure the best benefits for its scheme members.

PIC origination actuary, Deepash Amin, commented: “Having worked closely with the trustee and its advisers we are delighted to have completed a full scheme buy-in for all members of the Medway Packaging Pension Scheme.

“This transaction has helped the trustee significantly de-risk the scheme, remove risk for the sponsoring company and provide better security for all the policyholders’ future benefits.”

Aon Risk Settlement Group senior consultant, Dave Barratt, added: “This transaction emphasises how smaller schemes can make better decisions and access competitive insurer pricing with attractive terms if they approach the market in the right way."

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