Covering both deferred members and new retirees, this transaction marks the first time an APP has been partially converted into a new buy-in policy.
The conversion builds upon the original
The original transaction, and announced conversion, helps the AIB Scheme on its journey to full risk removal within planned timeframes. The innovative APP solution facilitates this by locking down investment-related risks and reducing volatility between the assets and bulk annuity pricing of the cashflows covered by the APP. As the APP already covered investment risk for the covered cashflows, the additional premium payable by the Trustee for the conversion was only in respect of the additional risks, principally longevity, that are now being passed to
The Trustee was advised on the transaction by Mercer, with Sackers providing legal advice.
We are delighted to have taken this important step with the AIB Group
This first conversion also underscores how APPs can deliver meaningful benefit for many trustees and their scheme members in the months and years ahead.
For further information, please contact:
(C) 2021 Electronic News Publishing, source