The FSCS Pension Scheme, sponsored by the Financial Services Compensation Scheme – the UK’s statutory compensation scheme for UK authorised financial services firms – has completed a £25m bulk purchase annuity full buy-in deal with PIC. The transaction secures the benefits of all 154 members, comprising 37 pensioners and 117 deferred members.
Following an improvement in funding and asset de-risking, the scheme completed a preparation period, concluding with the ability to transact without additional contributions required from the employer.
“Broadstone and Arc guided us expertly through the issues raised which meant we could confidently transact, safe in the knowledge nothing was left to chance. We are pleased to have secured this deal with PIC and are grateful for their engagement in the process along with the support of the employer and the advisers involved,” said Giles Payne at Capital Cranfield, Chair of the Trustees.
“We are proud to have completed a buy-in for the FSCS Pension Scheme, helping the trustees with their goal of providing their members with long-term security for their pensions. Being well prepared when approaching a busy market allowed the trustees and their advisers to complete the process in an efficient and timely manner,” said Richard Quintian, Head of Pricing and Funded Reinsurance at PIC.
Legal advice was provided to the trustee by Arc Pensions Law, to the employer by Eversheds, and PIC were advised by Herbert Smith Freehills. Broadstone led the transaction, providing annuity broking advice, alongside their existing appointment as Scheme Actuary, administrator, secretarial and investment consultant.
“The trustees and employer understood the importance of thorough preparation before approaching the market and this led to a competitive process. We’re delighted to have led the trustees through this process, securing an excellent price with PIC, meeting the trustee’s and employer’s objectives and securing the pensions of all its scheme members,” said Christopher Rice, Deal Lead and Scheme Actuary at Broadstone.
