The Trustee purchased annuity contract from PIC

Pension Corporation has disclosed that the Trustee of three Denso Manufacturing Midlands pension schemes has agreed a pension insurance buyout with Pension Insurance Corporation (PIC). The Trustee purchased a bulk annuity contract from PIC, which covers pensioners and deferred members with total liabilities valued in excess of GBP100m.

PIC was chosen by Denso and Capita Pension Trustees Limited, as Trustee, after a comprehensive and competitive process. Denso was advised by KPMG and Baker & McKenzie, with Capita being advised by Mercer and Hammonds, according to the company.

John Coomber, CEO of Pension Insurance, said: “The increased levels of security brought to member benefits through this pension insurance buyout reflect this stance. This was an ‘all risks’ transfer allowing the company an immediate and complete discharge from the schemes, in contrast with the usual insurance process which can often take more than a year to conclude. To accelerate this risk transfer, Pension Corporation became the sponsor to the schemes at the same time as the PIC insurance policy was purchased.”

Rosemary Kennell, trustee to the schemes, director of Capita Pension Trustees, said: “This transaction with Pension Insurance Corporation is another ground breaking all risks transaction that Capita have been involved in as a professional trustee and means that members now have increased levels of security for their benefits.”