Pension Insurance Corporation (PIC) has finalized a significant buy-in agreement worth £113 million with the Sopra Steria Retirement Benefits Scheme, specifically for the Steria Management Plan Section. This transaction is designed to safeguard the pension benefits of all 355 members associated with this section of the scheme.

The buy-in arrangement represents a strategic move by PIC, a firm that specializes in insuring defined benefit pension schemes. By entering into this agreement, PIC not only reinforces its portfolio but also provides a level of security for the retirees involved, ensuring that their benefits are fully funded and managed.

This buy-in is part of a broader trend in the pension industry where companies are increasingly seeking to mitigate risks associated with defined benefit plans. Such plans have been under pressure due to fluctuating interest rates and increasing life expectancy, which can lead to funding shortfalls. By securing a buy-in, pension schemes can transfer the investment and longevity risks to an insurer, providing peace of mind to both the scheme administrators and the members.

In recent months, PIC has been active in the market, having completed other notable buy-ins, including a £155 million agreement for Vistry’s Final Salary Pension Schemes and a £55 million buy-in for the Bibby Line Group Limited Pension Scheme. These transactions highlight PIC’s growing influence in the pension insurance sector and its commitment to providing solutions that enhance the security of pension benefits across various industries.

The successful completion of the Sopra Steria buy-in underscores the importance of strategic partnerships in the pension landscape, as organizations seek to navigate the complexities of pension funding and member security in an evolving economic environment.