On the go: The Co-operative Pension Scheme has agreed a £400m buy-in with the Pension insurance Corporation, covering the pensions of around 2,000 members.
The deal, which covers the section of the scheme for Co-operative Bank employees, follows a £1bn buy-in for the main section of the scheme that was announced in February, also with PIC. Another buy-in for the Somerfield Pension Scheme, also sponsored by the group, was reached last year.
While defined benefit funding levels have in many cases been dashed by market volatility over the past months, widening spreads on corporate bonds have meant that well-positioned schemes have been able to access improved pricing for bulk annuity contracts.
Chris Martin of Independent Trustee Services Limited, the chair of the Co-operative Pension Scheme’s trustee, said: “I’m delighted to have completed this transaction with PIC, which improves member security, particularly in volatile markets. The PIC team was focused and efficient, and the streamlined process meant this was a smooth transaction."
Tracey Kneller, chief people officer at the Co-operative Bank, said: “The buy-in represents a positive step in the management of the scheme, as part of the good work of the trustee in continuing to implement its derisking strategy, and will further strengthen the scheme for members.”
