The trustees of the Siemens defined Benefit (DB) scheme have completed a buy-in with Pension Insurance Corporation (PIC), covering around 6000 members.
The full buy-in - which was completed last month - covers £1.3bn of liabilities. It is the third bulk annuity arrangement between the insurer and a Siemens sponsored DB scheme.
The trustees were advised by Aon, with legal advice provided by Sackers. Meanwhile, Siemens was advised by KPMG, and PIC was advised by CMS.
Commenting on the buy-in, Siemens chair of trustees Joanna Matthews said: "We are delighted to have completed this transaction, notable for its speed and efficiency. This is a great result for all members of the scheme, reducing overall levels of risk."
Siemens is the UK subsidiary of the global technology company which focuses on the areas of electrification, automation and digitalisation, and has around 15,000 employees in the UK.
PIC actuary Matt Richards noted that the trustee's decision to enter into a bulk annuity reflects a market-wide trend.
"The bulk annuity market has become increasingly buoyant as de-risking strategies come to fruition, trustees look to protect pension scheme funding levels and companies look to stabilise their balance sheets."
Aon risk settlement group partner Paul Belok added: "We carried out a full market review on behalf of the trustee, which resulted in the selection of PIC as the preferred provider.
"We agreed a clear timeline with the trustee at the start of the process and delivered on this, with efficient implementation and a transaction structure that met the objectives of both the trustee and the company. This transaction is further evidence of Aon's leading position in the risk settlement market."
This week, PIC also announced it has completed a buyout with PA Consulting, and invested £100m in social housing with Accord Housing Association.
Aviva Life & Pensions has concluded an £875m buy-in with its own staff pension scheme, following on from a similar transaction last year.
Nearly every trustee is confident of the next stage in their scheme’s strategy, despite almost an equal number being forced to consider replacing plans within the prior 12 months, according to research by Barnett Waddingham.
Companies could be overstating their pension liabilities by up to £60bn due to their life expectancy assumptions, according to XPS Pensions Group.
Just Group has completed a £74m pensioner buy-in with the UK pension scheme of a US-listed engineering business.
Defined benefit (DB) schemes that provide GMPs must revisit and, where necessary, top-up historic cash equivalent transfer values (CETVs) that have been calculated on an unequal basis, a landmark court judgment said last week.