PIC secures £900m in buy-in transactions for Three Baker Hughes pension schemes

Pension Insurance Corporation plc (“PIC”), a provider of insurance solutions for defined benefit pension schemes, has arranged buy-in transactions with three pension plans associated with Baker Hughes (“the Company”): the Baker Hughes (UK) Pension Plan, the Brush Group Pension Scheme, and the Pipeline Integrity International (PII) Group Pension Scheme.

Completed at the same time, these buy-ins insure £900 million in pension liabilities and safeguard the benefits of over 3,000 current pensioners and their dependants, along with close to 4,000 deferred members.

Baker Hughes is a global energy technology firm with dual headquarters in Houston, Texas, and London, UK. The company operates in more than 120 countries.

Sally Minchella, Director at Law Debenture and Chair of the Baker Hughes (UK) Pension Plan, commented: “Achieving this transaction in expedited timescales is a great result for members and is testament to the highly collaborative approach between the trustees of all three schemes, the Company, PIC and the hard work of our advisory teams.”

Andrew McKinnon, Chair of the Brush Group Pension Scheme, said: “We selected PIC due to their track record and focus on members, combined with their ability to meet our specific requirements. I’d like to thank our advisers for their hard work over many years to get the Scheme to this point.”

Colin Mcfadden, Chair of the Pipeline Integrity International (PII) Group Pension Scheme, added: “We are very pleased to have completed this transaction which improves security for our members. The PIC team showed a flexible and innovative approach to ensure our members’ needs were met. I’m very grateful to our advisers for their hard work on this project and historically.”

Matt Richards, Head of Origination Structuring at PIC, noted: “It’s very rewarding having concluded these buy-ins with Baker Hughes. Each of the schemes covered had specific requirements that needed specialist structuring. It’s thanks to the fantastic teamwork of everyone involved that we were able to conclude the deal in a relatively short time frame.”

Shelly Beard, Managing Director at WTW, said: “It was great to lead this highly complex transaction for the three schemes, which required deep market knowledge, excellent teamwork and strong project management to meet everyone’s objectives.”

WTW oversaw the transactions, with CMS providing legal support for all three pension schemes. For the Baker Hughes (UK) Pension Plan, WTW serves as the Scheme Actuary, LCP advises on investments, CMS acts as legal counsel, and Aptia manages scheme administration.

The Brush Group Pension Scheme is supported by Aon in a combined role as Scheme Actuary, investment adviser, and administrator. Legal advice is provided by Squire Patton Boggs, and Cardano serves as the fiduciary manager.

In the case of the Pipeline Integrity International (PII) Group Pension Scheme, First Actuarial delivers actuarial, investment, and administration services, while Irwin Mitchell acts as legal adviser.

PwC offered financial strength guidance to all three schemes. Baker Hughes was advised by WTW and Baker McKenzie, and PIC received legal counsel from Herbert Smith Freehills.

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