PIC completes three buy-ins worth £900m with Baker Hughes

Pension Insurance Corporation (PIC) has completed three buy-ins worth £900m with pension schemes linked to Baker Hughes. 

The deals cover the Baker Hughes (UK) Pension Plan, the Brush Group Pension Scheme, and the Pipeline Integrity International (PII) Group Pension Scheme. 

These buy-ins secure the benefits of over 3,000 pensioners and dependants, and nearly 4,000 deferred members.

Sally Minchella, director at Law Debenture and chair of the Baker Hughes (UK) Pension Plan, said: “Achieving this transaction in expedited timescales is a great result for members and is testament to the highly collaborative approach between the trustees of all three schemes, the Company, PIC and the hard work of our advisory teams.”

Andrew McKinnon, chair of the Brush Group Pension Scheme, said: “We selected PIC due to their track record and focus on members, combined with their ability to meet our specific requirements. 

“I’d like to thank our advisers for their hard work over many years to get the Scheme to this point.”

Colin Mcfadden, chair of the PII Group Pension Scheme, said: “We are very pleased to have completed this transaction which improves security for our members. 

“The PIC team showed a flexible and innovative approach to ensure our members’ needs were met. 

“I’m very grateful to our advisers for their hard work on this project and historically.”

Matt Richards, head of origination structuring at Pension Insurance Corporation (PIC), said: “It’s very rewarding having concluded these buy-ins with Baker Hughes. 

“Each of the schemes covered had specific requirements that needed specialist structuring. 

“It’s thanks to the fantastic teamwork of everyone involved that we were able to conclude the deal in a relatively short time frame.”

Shelly Beard, managing director at WTW, said: “It was great to lead this highly complex transaction for the three schemes, which required deep market knowledge, excellent teamwork and strong project management to meet everyone’s objectives.”

WTW led the transactions and provided scheme actuary support to the Baker Hughes (UK) Pension Plan, with LCP as investment adviser, CMS as legal adviser, and Aptia as administrator. 

Aon was scheme actuary, administrator and investment adviser, Squire Patton Boggs was legal adviser, and Cardano was fiduciary manager to the Brush Group Pension Scheme. 

First Actuarial provided actuarial, administration and investment services, with Irwin Mitchell as legal adviser to the PII Group Pension Scheme. 

Meanwhile, PwC gave financial strength advice to the three schemes. 

WTW and Baker McKenzie advised Baker Hughes, while PIC was advised by Herbert Smith Freehills.