The Hays Pension Scheme has completed a £370m buy-in with Pension Insurance Corporation (PIC), covering the benefits of 853 pensioners and dependents and 3,368 deferred members.

Hays Group plc supported the transaction with an approximately £13m upfront cash contribution and as a result of the transaction, all the financial and demographic risks relating to the scheme’s liabilities are now fully insured.

LCP acted as lead transaction adviser, while the scheme received legal advice from Hogan Lovells International. Hymans Robertson provided actuarial advice and Mercer provided investment advice.

In addition to this, Hays Group plc received legal advice from Slaughter and May, while PIC received legal advice from Addleshaw Goddard.

Commenting on the transaction, chair of trustees at Hays Pension Scheme and director at The Law Debenture Pension Trustee Corporation, Sean Burnard, said: "The buy-in transaction has helped us meet our objective of securing the pensions of all members of the scheme.

Burnard added that the trustees were "delighted" to have partnered with PIC, which was selected based on their strong track record and excellent customer service.

"LCP led the process with excellent support from Hogan Lovells, Mercer and Hymans Robertson," he said.

"The co-operation and engagement of all parties was exceptional in helping the trustee to navigate a number of factors to reach this great outcome for both trustee and company."

Adding to this, chief financial officer at Hays, James Hilton, said Hays was "pleased" to fulfil its longstanding ambition to achieve full buy-in of the Hays Pension Scheme, fully insuring the scheme liabilities with a cost-effective approach that benefits all stakeholders.

"From a Hays perspective, the transaction eliminates pension-related balance sheet volatility and is expected to have a materially positive impact on group free cash flow from FY26F,” Hilton added.

"Our structurally improved cash generation will support investment in growth and the return of excess capital to shareholders in the medium-term."

Head of new business strategy at PIC, Deepash Amin, commented: "We are extremely pleased to have helped the trustees of the Hays Pension Scheme to reach this significant milestone.

"Being well prepared and having a clear set of objectives allowed us to deliver a tailored solution the scheme.

"It was a pleasure working with the Scheme and their advisors, who ran a smooth and efficient process."

LCP partner, Kenneth Hardman, said this "significant" transaction for the scheme has enabled both the trustees and Hays - who worked collaboratively throughout the process - to secure attractive terms with PIC.

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