Herbert Smith Freehills advises PIC on £370m buy-in of Yell Pension Plan

Herbert Smith Freehills has advised long-standing client Pension Insurance Corporation plc (PIC), a specialist insurer of defined benefit pension funds, on its buy-in with the Trustee of the Yell Pension Plan. The latest buy-in, the second between PIC and the Trustee, covers the £370 million of remaining liabilities of the Plan, and the pensions of all Plan members are now secured. The transaction takes total plan liabilities covered by PIC to £570 million.

PIC secured an initial £200 million buy-in with the Plan in 2014, insuring 500 pensioners. This latest transaction has been agreed in expectation of the full plan moving to buyout when all 1,800 plan members will become PIC policyholders.

The Herbert Smith Freehills team advising PIC was led by Pensions partner Samantha Brown.

Samantha Brown commented: "We are delighted to have had this opportunity to work with PIC on this important transaction. The bulk annuity market is thriving and we are delighted to be playing a role in enabling PIC to provide a long term secure home for scheme member benefits."