The GKN Group pension scheme trustee has secured an approximate £190m pension buyout with the Pension Insurance Corporation.

The de-risking strategy will cover current pension scheme members, who will exit the scheme and become PIC policyholders in due course. Other members have been transferred into a new GKN pension scheme, while the existing scheme is wound up.

The trustee of the GKN Group scheme was advised by Mercer, Pisnet Masons as its legal adviser and Cardano as an investment adviser.

GKN Group trustee chairman Rufus Ogilvie Smals said: “This transaction marks an important step in the Trustee’s long-term strategy to reduce risk as and when opportunities arise, whilst protecting the benefits of its members. A further 20% of the liabilities of the original Scheme are now insured. The Trustee believes that this is of benefit both to the members and to our corporate sponsor.”

PIC actuary Matt Richards added: “The Trustee has moved proactively and in a considered manner to achieve a strong outcome. This transaction is part of a long-term de-risking strategy undertaken by the Trustee which allowed them to take advantage of a window of favourable pricing. The Trustee should be congratulated for acting in a decisive manner to reduce risk across all pensions, not just those that have been insured.”

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