The CII has supported the buy-in of its defined benefit pension scheme with Legal & General. The scheme, which closed to new members in 2001, covers the benefits of around 330 members, including 150 current pensioners.
Achieving this outcome was the result of a long-term strategic plan for managing the DB scheme, developed, and supported by both the Trustees and the CII as sponsoring employer.
In 2018 CII sold its London office building, known as Aldermanbury, and committed to attributing at least half of the £19m sale proceeds to meeting the DB scheme liabilities.
The CII committed further that any remaining amount from the proceeds, after finalising matters for the pension scheme, would be put into a long-term fund for the benefit of the future of the organisation.
This new arrangement will secure the future benefits for pension scheme members and help to secure the future of the CII by removing the ongoing liability risk, uncertainty, and considerable administration costs.
This means that future funds can be attributed for the benefit of members, students and corporate customers rather than being used to meet past pension liabilities.