Members secured
39,000
Value
£4.7bn
Type
Full buy-out
Impact
- Absolute upfront certainty with no further premiums due
- Cover for residual risks from transaction completion
- Premium locked to scheme’s assets up front during volatile markets
Background
The G.E.C 1972 Pension Plan was disproportionately large compared to the sponsor company. The trustee decided to de-risk the assets, hedge rates and inflation and slowly try to improve the funding level of the scheme.
10+ years later, the trustee believed it was close to securing all members’ benefits through a buy-out.