The Qantas Airways Limited (UK) Retirement Benefits Scheme has completed a £40m buy-in with the Pension Insurance Corporation (PIC), covering all remaining uninsured members within the scheme.

The buy-in was completed as part of a long-term partnership with PIC, following on from a previous £25m buy-in in 2018, meaning that PIC now insures the pensions of every member of the scheme.

PIC received legal advice from Herbert Smith Freehills pensions partner, Rachel Pinto, while the trustees were advised by Aon, with legal advice from Eversheds Sutherland and Reed Smith LLP in relation to benefits.

Commenting on the news, chair of the trustees, Bojan Jokovic, stated: “We are delighted to have completed this second buy-in with PIC, which covers the remaining uninsured members within the scheme.

"This is part of a long-term de-risking strategy led by Aon over the past five years which has allowed us to complete this transaction despite the current uncertainty in the markets.

"PIC was flexible in helping us achieve our aims and I want to thank them and the scheme’s advisers for their hard work.”

PIC head of business development, Mitul Magudia, also highlighted the deal as demonstration of how smaller schemes can access competitive insurer pricing with attractive terms if they prepare and approach the market in the right way.

“PIC is really pleased to have had the opportunity to work with the trustees and Qantas Airways Limited again to significantly de-risk this scheme, providing greater security to all their members for the long-term," Magudia continued.

"We have the flexibility and scale to offer solutions to well-prepared schemes of all sizes that approach the market using well-governed processes.”

Adding to this, Aon risk settlement group associate partner, Michael Walker, said: “The two Qantas Airways buy-in transactions demonstrate the strength of Aon’s ‘journey to settlement’ proposition.

"Careful planning was carried out ahead of the 2018 buy-in, developing a clear strategic path to follow in the years ahead.

"Subsequent comprehensive data and benefits preparation, as well as timely investment de-risking, ensured the trustees and company could rapidly lock into favourable annuity pricing when the opportunity arose.”

Share Story: