The buyout is expected to lead PIC to provide individual policies to members preceded by bulk policy for the Fund's trustee
UK-based Pension Insurance (PIC) has announced that the trustee of
Thorn Pension Fund has accepted a proposal from Thorn to wind up the fund and to insure its benefits with Pension Insurance.
The company said that this is the largest ever UK Pension Insurance buyout involving the settlement of GBP1.1 billion of pension liabilities and the securing of benefits for over 15,000 scheme members.
The trustee satisfied itself assuming insuring the benefits with
Pension Insurance provides increased long-term security to the fund’s members. In addition, the terms negotiated by the trustee will mean an uplift of around 5% to the members’ benefits, according to the company.
The buyout means that PIC will in due course provide an individual policy to each member, preceded by a bulk policy written in the name of the Fund’s trustee. PIC is fully authorised and regulated by the Financial
Services Authority.
Chris Martin, chair of the trustee of Independent Trustee Services, said: After an extremely competitive process of considering all the options for enhancing member benefit security, the trustee is delighted to have appointed PIC as its partner for the provision of bulk annuities. At a very challenging time in the investment markets, PIC was able to protect members’ final salary benefits while also providing a financial uplift. The trustee believes that this buyout represents the best overall outcome for the fund’s members.