The Church of England Pensions Board has agreed a £100m buy-in with Prudential.

The transaction covers 70 per cent of pensioner liabilities of the defined benefit scheme section of the Church Workers Pension Fund.

Lane Clark & Peacock acted as lead adviser on the transaction, legal advice was provided by Linklaters and Mercer provided investment advice.

The Church of England Pension Board chairman Jonathan Spencer said the board is “committed to meeting its pension commitments to those who serve the Church”.

“We have made excellent returns on our investments in gilts and bonds over the last few years, and are now using these gains to reduce employers’ exposure to future risks in the defined benefit scheme section of the fund,” he said.

“The transaction effectively means that just over two-thirds of the pensioner liabilities in the DBS section of the fund are fully hedged.”

The Church said the benefits of the fund’s members including active employees and deferred pensioners, are unaffected by the transaction, and all pension payments and day-to-day administration will continue to be handled by the board.

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