Pension Insurance Corporation (PIC) has successfully completed a significant £230 million buy-in for the Peel Ports Final Salary Pension Scheme. This transaction is designed to secure the pensions of approximately 2,000 members associated with several companies within the Peel Ports Group, including The Mersey Docks and Harbour Company Limited, Port of Sheerness Limited, The Manchester Ship Canal Company Limited, Clydeport Limited, and Clydeport Operations Limited.
The buy-in arrangement is a strategic move aimed at enhancing the financial security of the pension scheme, ensuring that members receive their promised benefits without disruption. Such transactions have become increasingly common as pension schemes seek to mitigate risks associated with funding deficits and market volatility.
This buy-in follows a series of similar initiatives by PIC, which has been active in the pension risk transfer market. Earlier this year, PIC also completed a £4.3 billion full buy-in of the Rolls-Royce UK Pension Fund, highlighting its growing role in the sector.
The completion of the Peel Ports buy-in is expected to provide peace of mind to the members of the pension scheme, as it shifts the investment and longevity risks from the scheme to PIC. This move aligns with broader trends in the pension industry, where many schemes are opting for buy-ins and buyouts to ensure long-term sustainability.
As the pension landscape continues to evolve, the role of firms like PIC becomes increasingly critical in safeguarding the retirement benefits of employees across various sectors. The recent appointment of Dom Veney as Interim CEO of Pension Insurance Corporation further indicates the company’s commitment to navigating these complex financial arrangements effectively.
This article was submitted via the World of Renewables press desk.
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