Consultancy firm PA Consulting has signed a full buy-out for all members of its PA Pension Scheme with the Pension Insurance Corporation (PIC).
With the deal, which covers £850m of liabilities, specialist insurer PIC will take on the responsibility for the pensions of PA’s 2,400 defined benefit (DB) scheme members.
Kully Janjuah, group company secretary at PA Consulting, said: “We are delighted to have secured this buy-out. The company and our partner the Carlyle Group, have put in significant time and effort to get the scheme to this position.”
PA was bought by Carlyle two years ago when the consultancy firm was valued at $1bn (£76om).
For PIC, the deal wraps up a busy first half of the year, in total the insurer has written £3.2bn of new business which reflects the pension benefit of 14,000 scheme members.
Mitul Magudia, head of business development at PIC, predicts: “As things stand, we see it being a record year for the bulk annuity market with more than £20bn worth of buy-ins and buy-outs expected in total.”
