Alliance UniChem Enters Pension Buy-In Deal

01 September 2010 (PLANSPONSOREurope.com) - The Trustee of the Alliance UniChem Group UK Pension Scheme has insured its defined benefit obligations with Pension Insurance Corporation Limited (PIC) in a pension buy-in deal.

The insurance covered the risks associated with overlooked beneficiaries, incorrect benefits and trustee liability. A Mercer news release said the transaction is classed as a buy-in but will become a buyout when the Trustee allocates the bulk annuity policy to the individual scheme beneficiaries and winds up the pension scheme.  

Mercer acted as the Trustee's actuarial and insurance adviser, helping to ensure that the interests of the scheme's beneficiaries were properly represented, according to the announcement. David Ellis, a Principal at Mercer and UK Head of Mercer’s Longevity Risk Management Group, commented: "Companies of all sizes are acting decisively to manage their pensions-related risks.”  

Rebecca Moore
editors@plansponsoreurope.com