Clarks Footwear Pension Fund has completed a second buy-in with the Pension Insurance Corporation (PIC) for £540m (€651m), securing the pensions of almost 5,000 pensioners and dependants and over 3,000 deferred policyholders.
The buy-in follows the fund’s first transaction with PIC for £280m in 2022, as PIC has now insured all £820m of the fund’s defined benefit (DB) liabilities.
The scheme trustees received legal advice from Travers Smith, investment advice from WTW, and covenant advice from Penfida. PIC was advised by Isio as well as CMS, receiving legal advice from Burges Salmon.
Libby Edwards, chair of the fund, said the transaction with PIC secures the long-term security of “all our members’ benefits”, adding that the previous experience with the insurer “meant choosing to work with them again was an easy decision”.
Philip Yau, chief financial officer at Clarks, added that achieving a full buy-in is a “major step in fully securing members’ benefits at the same time as eliminating pension-related balance sheet volatility”.
He said: “We would like to thank the fund trustee and the support of all the advisers for their hard work in achieving this milestone.”
Deepash Amin, head of new business strategy at PIC, said: “It is always rewarding to complete repeat business with clients who have had first-hand experience of our exceptional customer service.”
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