Yell Pension Plan completes £370m full scheme buy-in with PIC

The trustee of the Yell Pension Plan has completed a £370m full scheme buy-in with the Pension Insurance Corporation (PIC).

The buy-in is the second between PIC and the trustee, following an initial £200m buy-in with the plan in 2014, which insured retirement benefits for 500 pensioners.

The latest buy-in covers the remaining liabilities of the plan, with the pensions of all plan members are now secured, taking the total plan liabilities covered by PIC to £570m.

The transaction was agreed in expectation of the full plan moving to buyout when all 1,800 plan members will become PIC policyholders.

Lane, Clark and Peacock (LCP) was the lead transaction adviser to the trustee of the Yell Pension Plan and Allen and Overy (A&O) provided legal advice, while PIC was advised by Herbert Smith Freehills.

Yell Pension Plan chair of trustees, John Reeve commented: “We are delighted to have completed this transaction in unsettling times.

"Yell and the plan’s trustees worked closely together for many years to improve the plan’s funding levels and by working with PIC, we were able to act quickly to secure our members’ futures.

“I want to extend my thanks to the trustees, past and present, and the sponsoring company for this great result for members.

“PIC has a proven track record and an excellent reputation for customer care, which we have experienced first-hand, and I’d like to thank them and the teams at LCP and A&O for helping us achieve this excellent outcome.”

PIC head of origination structuring, Uzma Nazir, added: “The trustees acted quickly to use their improved funding position to secure the remaining uninsured liabilities.

"Given our existing positive relationship with the plan, they approached us to provide an insurance solution.

“This transaction has helped the trustee complete the de-risking of the plan, remove risk for the sponsoring company and provide better security for its members in times of economic uncertainty.”

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