UK defined benefit risk transfer
specialist insurer Pension Insurance Corporation (PIC) has come to
the rescue of members of the Alitalia Italian Airlines Pension and
Assurance Scheme which is currently subject to assessment by the
Pension Protection Fund.
The assessment follows the placing
into administration of the scheme’s sponsor, Italian airline
Alitalia in 2008. At the time the airline collapsed the Italian
Government owned 49.9% of its shares.
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To protect the current funding
level the schemes trustees will transfer £53m ($80m) of assets to
PIC. The scheme is significantly underfunded with a deficit in
excess of £22m, according to PIC.
In arranging the buy-in, PIC worked
with consulting actuaries Barnett Waddingham.
