Paternoster secures Powell Duffryn scheme in £400m buyout

The scheme sponsor – an engineering firm owned by financial services firm Citi – said the scheme’s 7000 members have all been notified of the transfer by the trustees.

PD Pension Plan chairman and independent trustee Nick Buckland said: "Our primary concern has always been to ensure as far as possible that our members’ benefits are secure and can be paid in full. In choosing Paternoster as the insurer we noted their evident experience in this area"

Paternoster chief executive Mark Wood said: "The Trustees, working closely with Citi, have conducted a rigorous process. The selection criteria included financial security and operational expertise.

"As a FSA regulated insurer approved as the annuity provider to members of 37 schemes, representing nearly 33,000 scheme members we were able to demonstrate both."

Citi’s insurance and pensions team acted in an advisory capacity and implemented the inflation and interest rate hedging in connection with this transaction.

Citi insurance and pensions structured solutions group head of pensions actuarial Francis Fernandes said: "Now that the benefits have been secured with Paternoster, the trustees are finalising with Citi the interim arrangements for the PD Plan prior to the issue of individual insurance policies to members.

"We foresee even stronger activity in the UK pension market and are stepping up our role in managing pension risk for sponsors and trustees."