The Pension Insurance Corporation (PIC) has completed a £63m buy-in with the trustees of the National Society for the Prevention of Cruelty to Children (NSPCC) Pension Scheme.

The PIC said that the deal made a material saving on the cost of the premium as it allows the trustees of the scheme to defer meeting the cost of inflation.

Steve Delo from PAN Governance, independent chairman of the trustees, said: "We are delighted to have locked down volatility on a significant portion of our liabilities, securing those risks which we deem material."

David Collinson, PIC co-head of business origination, said: "We see many schemes which would like to insure some or all of their liabilities, but are unable to afford to do so.

"By shaping the risks which are insured in this way, we are able to make the product more affordable, whilst removing the biggest risks, such as longevity, inflation and investment."

JLT advised the scheme's trustees on the transaction.

JLT consultant Tiziana Perrella said: "The trustees held matching assets which they were able to use to fund a transaction on favourable terms. Advance preparation to identify the most suitable contract structure and an efficient implementation process were crucial in achieving a positive outcome".

First published 20.05.2013

monique_simpson@wilmington.co.uk