Pace completes second £1bn buy-in

The Co-operative Pension Scheme (Pace) has completed a £1bn buy-in with the Pensions Insurance Corporation (PIC), securing benefits for approximately 7,000 scheme members.

This follows the first ever buy-in for the Co-op section of the scheme in January, which saw Aviva insure defined benefit pension liabilities for around 7,000 members, also at £1bn cost.

Both buy-ins form part of the schemes broader long-term de-risking strategy, with the trustee describing the latest transaction as a “positive result for scheme members”.

Co-op director of reward, Gary Dewin, said: “Our Pace pension scheme is one of the strongest in the UK and highly valued by its members.

“The purchase of Pace’s second significant insurance contract further protects members by strengthening the scheme’s position.”

The trustee received legal advice form Linklaters and investment advice from Mercer, while PIC was advised by Herbert Smith Freehills.

The transaction and bidding process was once again led by Aon, on behalf of the trustee.

The buy-in also follows the completion of a £750m capital raise by PIC, intended to support the firms role in the risk transfer market.

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