Pension Insurance Corporation plc (PIC) has concluded a £725m full buy-in with the trustee of the Former Registered Dock Workers Pension Fund.

The Former Registered Dock Workers Pension Fund is a multi-employer pension scheme covering dock workers and ex-dock workers who have worked for a number of ports and shipping organisations across the UK.

PIC said that together with existing insurance policies, the transaction completely removes risk in respect of the fund’s pension liabilities. Preparatory work undertaken by the fund, was also said to have benefitted the transaction, as it allowed the trustee to move quickly to secure attractive pricing and obtain comprehensive risk cover.

Unusually, the transaction was funded entirely from the fund’s assets without need for further contributions from the sponsoring employers. The trustee was advised by Lane Clark and Peacock (LCP), the lead adviser for the transaction, Hogan Lovells on legal matters, Pi Consulting acted as the fund secretary and Aon Hewitt advised on funding and administration.. The sponsoring employers were advised by KPMG. PIC was advised by Herbert Smith Freehills.

Commenting, chairman of the trustee Ian Forrest said: “We are delighted to have secured the benefits for all members in full with an established, UK regulated insurance company. The Trustee is grateful to its various advisers for preparing the fund to achieve this full buy-in, and to PIC for dealing with the transaction so efficiently.”

In addition, PIC head of origination structuring Uzma Nazir said: “PIC is very pleased to have provided the trustees with insurance to secure the pension benefits for the members of the fund. The fund was in a good position having de-risked the assets over several years. We were able to accept the fund’s assets as payment of the premium, which gave the trustee certainty on price. We were also happy to offer the trustee flexibility where needed and a commitment to outstanding policyholder care, which is something we at PIC pride ourselves on.”

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