Spirent pension scheme completes £142m buy-in with PIC

The trustees of the Spirent Communications plc Staff Pension & Life Assurance scheme have completed a £142m buy-in, meaning that all defined benefit (DB) liabilities for the scheme have now been fully insured.

The transaction, which completed in Q4 2022, secured the pension benefits of 1,353 members, including 490 deferred members.

LCP acted as lead advisor for the transaction, whilst legal advice was provided to the trustee by Baker & McKenzie LLP, and to PIC by Addleshaw Goddard.

Commenting on the transaction, Apex Group independent trustee chair, Jane Fryer, stated: “We are pleased to have been able to complete this buy-in with PIC as part of the long-term de-risking strategy for the plan.

“I want to thank PIC, with whom we chose to transact on the basis of their competitive pricing, strong financial position, and operational capabilities.

"I would also like to thank our advisors, LCP and Baker & McKenzie LLP, for their help and advice. All parties worked very well together, which has resulted in an excellent outcome for members.”

LCP partner, Imogen Cothay, also highlighted the deal as a “landmark transaction for the plan”, enabling both the trustees and Spirent to reduce risk on attractive terms with PIC.

“It is an excellent example of how a well-prepared pension scheme can act quickly and effectively to take advantage of favourable market conditions, even in a volatile market," she stated.

Adding to this, PIC origination actuary, Deepash Amin, stated: “PIC is proud to have had the opportunity to work with the trustees and Spirent to de-risk the plan.

“The trustees and Spirent, who worked closely throughout, had a clear set of objectives and had prepared well, enabling a smooth and efficient process. PIC continues to serve the whole of the pension market having announced transactions for small, medium and large schemes in 2023.”

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