Pensions - Articles - Aon advises Cookson Pension Plan on £30million future buy-in

 Aon Hewitt advised the Trustee of the Cookson Group Pension Plan (sponsored by Vesuvius plc) on its c£30 million buy-in for future pensioners to the end of 2015 with Pension Insurance Corporation (PIC), which was announced this morning. This is a follow-on deal to the £320m transaction for the plan, announced in July 2012, and which covered existing pensioners.

 Paul Belok, partner in Aon Hewitt’s Risk Settlement Group, said:

 "After advising the Trustee on the original deal, Aon Hewitt negotiated an extension of the contract with PIC to cover future retirements in the plan on pre-agreed terms, initially up to the end of 2015. The future premiums to be paid will essentially be calculated consistent with the original premium, although the terms reflect specific requirements to address points of detail that emerged during the negotiation process.”

 "The approach adopted here reflects the trend towards well-planned de-risking programmes and is one that could well be of interest to other pension schemes which have completed buy-ins for existing pensioners, or are now contemplating doing so. One note of caution is that care is needed to make sure that the contract terms are fully understood and sufficiently comprehensive, particularly in relation to the calculation of future premiums.”