The Alcatel-Lucent pension scheme has completed a £100m buy-in with Pension Insurance Corporation (PIC).
According to PIC, the deal has boosted the security of the French telecommunications equipment specialist’s retirement scheme by covering its current pensioner benefits.
Trustee chair Martin Couzens said the buy-in was speedily executed as part of the fund’s de-risking programme.
“PIC’s track record with buy-ins and its focus on delivering to trustees’ requirements was a big plus in their favour,” he said.
PIC head of origination structuring Uzma Nazir said: “As we have seen, trustees, such as those for the Alcatel-Lucent Pension Scheme, who have moved to lower risk assets over a number of years are now able to complete buy-ins to enhance security.
“After a very busy few months in the market, we expect this clear trend to continue for the foreseeable future,” he added. “We are proud to have been able to help the trustees to efficiently de-risk.”
Aon Hewitt advised the trustee on the deal. The firm’s settlement adviser, Dominic Grimley, said the speed of execution of this transaction showed the experience and commitment of the trustee.
“It was very rewarding to transfer risk within a matter of weeks of identifying the opportunity from Aon Hewitt’s platform, Bulk Annuity Compass,” he said. “It helped that the client had clearly established objectives.”
The deal follows PIC’s £90m buy-in of the Civil Aviation’s pension scheme earlier this month and a £140m deal with ICI Specialty Chemicals Pension Fund in November.
