NSPCC completes pension buy-in

The National Society for the Prevention of Cruelty to Children (NSPCC) has completed a pension insurance buy-in for its defined benefit (DB) pension scheme.

The buy-in, which covers £63 million of pensioner liabilities, was concluded with Pension Insurance Corporation (PIC).

The transaction also allows the trustees to defer meeting the cost of deflation, making a material saving on the cost of the premium.

The trustees were advised by consultancy JLT.

Steve Delo, chief executive of Pan Governance and independent chair of the trustees, said: “We are delighted to have locked down volatility on a significant portion of our liabilities, securing those risks which we deem material.

“We worked closely with JLT, as our advisors, and PIC, to shape the contract to meet our needs, which meant we were able to save a considerable amount on the premium.”

David Collinson, co-head of business origination at PIC, added: “We are very pleased to have been able to help the trustees achieve their goals of insuring the pensioner benefits, while leaving aside deflation risk.

“We see many schemes which would like to insure some or all of their liabilities, but are unable to afford to do so.

“By shaping the risks which are insured in this way, we are able to make the product more affordable, while removing the biggest risks, such as longevity, inflation and investment.”