Pension Insurance Corporation (PIC) has completed a £370 million buy-in for the Hays Pension Scheme, sponsored by Hays Group.
The transaction covers 3,368 deferred members and 853 pensioners and dependents, insuring the scheme’s liabilities. Hays Group paid up to £13 million in advance to help close the purchase.
Hays Group has more than 11,000 employees and operates in 33 countries. In 2024, the company hired 280,000 white-collar candidates, 58,000 of whom were hired for permanent roles and 225,000 for temporary ones.
Among the advisers were Addleshaw Goddard representing PIC and Hogan Lovells representing the scheme. The scheme received actuarial advice from Hymans Robertson and investment advice from Mercer with LCP acting as lead transaction adviser.
Hays chief financial officer James Hilton says: “Following constructive and collaborative dialogue with the Scheme trustee, we are pleased to fulfil our 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. Our structurally improved cash generation will support investment in growth and the return of excess capital to shareholders in the medium-term.”
The Law Debenture Pension Trustee Corporation director and chair of trustees of the Hays Pension Scheme Sean Burnard says: “The buy-in transaction has helped us meet our objective of securing the pensions of all members of the Scheme. We are delighted to have partnered with PIC who were selected on their strong track record and excellent customer service.
“Being well prepared with good project management means we have secured good contractual terms with attractive pricing for our members. LCP led the process with excellent support from Hogan Lovells, Mercer and Hymans Robertson. 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.”
PIC head of new business strategy Deepash Amin says: “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 says: “We are delighted to have supported the Scheme and the Company in securing this buy-in. 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. It is another example of how great preparation and collaboration between all parties can get the best outcome for members of the Scheme.”
