Pension Insurance Corporation (PIC) has wrapped the £1bn pension insurance buy-in with the Trustee of the Co-operative Pension Scheme.
The deal guarantees pension benefits for nearly 7,000 scheme members in the Co-op Section of the Scheme.
Following the deal, the Trustee will receive regular payments from PIC to fund the pension payments in the future.
However, the Trustee will remain responsible for paying the Scheme’s pensioners.
The Co-operative Pension Scheme chair and Trustee Chris Martin said: “This buy-in is another step in improving member security as the Trustee continues to follow its long-term de-risking strategy, and is a positive result for scheme members, the Trustee and the Co-op.
“I want to thank PIC for their proactive and flexible approach to helping us complete this transaction. I’d also like to thank the Co-op team and our advisers Aon, Linklaters and Mercer.”
The Co-op, which owned by millions of members, is one of the largest consumer co-ops. It also has the fifth-largest food retailer in the UK, a funeral services provider, a general insurance business.
Besides, it owns a legal services business.
The Co-op reward director Gary Dewin said: “Our Pace pension scheme is one of the strongest in the UK and highly valued by its members. The purchase of Pace’s second significant insurance contract further protects members by strengthening the scheme’s position.”
The transaction was led by Aon. The Trustee hired Linklaters legal advice and Mercer investment advice.