Philips Pension Fund purchases buy-in policy
The trustee of the Philips Pension Fund has purchased a £300m ($510m) buy-in policy from Prudential to insure the liabilities relating to around 1,800 pensioner members.
LCP advised the trustee on all aspects of the transaction including preparation, price and contract negotiations, and driving the process to optimise value-for-money for the pension fund.
“We have sought to balance our requirement for value-for-money with the insurers’ need for timing certainty. Being well-prepared and having the right governance process in place is key to being able to give this timing certainty,” said David Jordan, Philips Pension Fund chair of trustees.
This is the second buy-in to be executed by the pension fund as part of its strategy for managing investment, longevity and other risks. The fund’s first buy-in (£484m) was executed with Rothesay Life in August 2013.
“We are currently seeing well-established pension schemes opting for large annuity buy-ins as their de-risking route of choice,” said Prudential’s executive director of UK and offshore, Tulsi Naidu.
LCP advised the trustee on all aspects of the transaction including preparation, price and contract negotiations, and driving the process to optimise value-for-money for the pension fund.
“We have sought to balance our requirement for value-for-money with the insurers’ need for timing certainty. Being well-prepared and having the right governance process in place is key to being able to give this timing certainty,” said David Jordan, Philips Pension Fund chair of trustees.
This is the second buy-in to be executed by the pension fund as part of its strategy for managing investment, longevity and other risks. The fund’s first buy-in (£484m) was executed with Rothesay Life in August 2013.
“We are currently seeing well-established pension schemes opting for large annuity buy-ins as their de-risking route of choice,” said Prudential’s executive director of UK and offshore, Tulsi Naidu.
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