UK Can

2nd September 2008

In September 2008, PIC insured the pension benefits for Can Plan fund members in a £42million transaction.

Transaction highlights:

Value and certainty:

• Developed changes to investment strategy in concert with the trustee and advisers to support this locking-in of the premium
• Agreed a short data verification period, prior to assumption of all risks

Speed:

• Innovative, tailored proposal to initially provide a bulk annuity to meet trustee desire to transfer risk at the earliest opportunity
• Closing stages of the deal lasted around one month

Flexibility:

• Insured specified benefits at a level greater than the pension benefits provided by the PPF
• Shared market risk during exclusivity period, up to risk transfer date

Focus on the pension fund members:

• Maximised benefits for members at a greater level than the pension benefits provided by the PPF
• Sensitive treatment of members going through PPF assessment, including regular member communications issued jointly with the trustee

"The majority of members of The UK Can Pension Plan are likely to achieve a far better outcome than they would have anticipated when the PPF assessment period started. It has been a very difficult couple of years for them. We were particularly pleased with Pension Insurance Corporation's approach of putting members at the forefront of the process. A key factor in the decision of the trustee to choose Pension Insurance Corporation was its willingness to tailor a solution to make the transition as smooth as possible."

Chris Martin, Managing Director, Independent Trustee Services and Trustee to The UK Can Pension Plan