The National Society for the Prevention of Cruelty to Children (NSPCC) Pension Scheme has insured £63m of its liabilities with Pension Insurance Corporation (PIC).
The scheme trustees worked closely with adviser JLT and PIC to design the contract which allows the trustees to defer meeting the cost of deflation, providing a material saving on the cost of the premium.
Independent trustee chairman Steve Delo of PAN Governance 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 advisers, and PIC, to shape the contract to meet our needs, which meant we were able to save a considerable amount on the premium.”
JLT consultant Tiziana Perrella said: “The trustees held matching assets which they were able to use to fund a transaction on favourable terms. Advance preparation to identify the most suitable contract structure and an efficient implementation process were crucial in achieving a positive outcome.”
PIC co-head of business origination David Collinson added: “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.”
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