The pension fund of UK retailer Next has agreed a £510m ($643m) full scheme buy-in with bulk purchase annuity (BPA) specialist Pension Insurance Corporation (PIC).
This is the second deal between the two parties and follows a £100m buy-in in 2018. The completion of this new transaction means that a total of 3,600 pensioners and deferred members have now been transferred to PIC.
The Next scheme trustee was advised on all aspects of the buy-in by LCP. Legal advice was provided to the trustee by Herbert Smith Freehills.
Hymans Robertson and Shoosmiths advised the scheme sponsor Next plc and CMS Cameron McKenna Nabarro Olswang provided legal advice to PIC.
At the start of March, PIC agreed £50m ($63m) worth of buy-ins with the Trustees of three defined benefit pension schemes formerly sponsored by Thomas Cook Group, totalling £50 million.
The Thomas Cook Travel schemes entered Pension Protection Fund assessment in September 2019 following the liquidation of Thomas Cook Group. This is the second deal linked to the defunct travel firm in the last 12 months; last year, Aviva agreed a $900m buy-in with separate funds linked to the firm.
