The Cancer Research UK Pension Scheme has completed a £250m pensioner buy-in transaction with Canada Life, Lane Clark and Peacock has announced.

The insurance transaction was made to completely remove risk for Cancer Research’s current pensioners, accounting for a third of its pension obligations.

The buy-in was funded by the scheme’s assets, primarily its existing gilt holdings, and it has helped to improve its funding position.

This transaction comes as part of the pension fund’s continued programme to reduce pension risk. Cancer Research was advised by KPMG and the trustee was advised by LCP.

Last year, the scheme improved the matching of investments to its obligations and lessened equity exposure following strong market returns over the year.

Furthermore, in 2014, the scheme de-risked its investments by reducing equity exposure as well as increasing the holdings in assets that were considerably in line with pension obligations.

Chairman of the trustee Graham Parrott said: “We are delighted to have worked in close partnership with our sponsor, Cancer Research UK, to complete this well timed and efficiently executed buy-in as part of our de-risking programme. The transaction benefits both our members and our sponsor.”

Cancer Research UK CFO Ian Kenyon added: “We are pleased to secure a transaction that both improves the funding position of the pension scheme and reduces the risk of contributions needing to increase in the future. This is another action which serves to reduce the charity’s cost base to concentrate spending on research.”

KPMG head of pensions insurance Tom Seecharan commented: “This fantastic result both removes risk and improves the funding position in the scheme, which can only be a good thing in the fight against cancer.”

Share Story: