Baker Hughes completes three buy-ins worth £900m with PIC

Energy technology company Baker Hughes has insured three of its pension funds in a buy-in transaction worth £900m (€1bn) with Pension Insurance Corporation (PIC).

The deals across the three schemes – the Baker Hughes (UK) Pension Plan, the Brush Group Pension Scheme, and the Pipeline Integrity International (PII) Group Pension Scheme – secure pensions of over 3,000 pensioners and dependents, and nearly 4,000 deferred members.

WTW led the transactions, and CMS provided transaction legal advice for all three pension funds, while PwC provided financial strength advice. WTW and Baker McKenzie advised Baker Hughes, while PIC was advised by Herbert Smith Freehills.

WTW is the actuary to the Baker Hughes (UK) Pension Plan, while LCP is the investment adviser, CMS is the legal adviser, and Aptia is the administrator.

Aon is the scheme actuary, administrator and investment adviser to the Brush Group Pension Scheme, while Squire Patton Boggs is the legal adviser, and Cardano is the fiduciary manager.

First Actuarial provides actuarial, administration and investment services to the Pipeline Integrity International (PII) Group Pension Scheme, and Irwin Mitchell is the legal adviser.

Sally Minchella, director at Law Debenture and chair of the Baker Hughes pension plan, said: “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 scheme, added that PIC was selected due to its track record, focus on members, and ability to meet the pension funds’ specific requirements.

Colin Mcfadden, chair of the Pipeline Integrity International fund, said the PIC team showed a “flexible and innovative approach to ensure our members’ needs were met”.

Matt Richards, head of origination structuring at PIC, noted: “It’s very rewarding having concluded these buy-ins with Baker Hughes.” He added that each of the pension funds covered had specific requirements that needed specialist restructuring.

“It’s thanks to the fantastic teamwork of everyone involved that we were able to conclude the deal in a relatively short time frame,” he said.

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