The trustees of the Brockhampton Pension Scheme have completed a £40m full buy-in with Just, securing the benefits of around 250 remaining uninsured members.

The deal builds on the scheme’s 2019 pensioner-only buy-in with Just, marking the latest step in its long-term de-risking strategy.

LCP acted as the lead adviser to the trustee, working closely with the sponsor, Portsmouth Water.

A notable feature of the transaction was the decision to insure pension increases in line with pension increase review orders (PIROs) - an approach common in utility and former civil service schemes but unusual elsewhere.

PIROs, issued annually by the UK government and currently based on CPI, could be subject to future policy change.

Insuring PIRO-linked increases, therefore, allows the scheme to protect against any divergence from CPI-based uplifts.

Trustee chair, Nicholas Roadnight, said the deal “represents a major milestone” and builds on the foundation of its earlier transaction.

“This full buy-in gives us coverage across all members,” he added, thanking LCP for “efficiently navigating complex problems” and the sponsor for its continued support.

Just senior business development manager, Geraint Jones, said the deal demonstrated the market’s ability to support schemes “of all sizes, and with any type of complexity”.

He noted that close partnership working enabled the insurer to accommodate the trustee’s requirements for non-standard benefits and enhanced contractual terms.

Also commenting on the transaction, LCP partner, David Stewart, highlighted the significance of insuring non-standard benefits at a time of increasing focus on simplification.

“It is great to see that non-standard benefits can still be insured, even for smaller transactions,” he said, adding that this gave trustees “peace of mind” that benefits were secured in line with scheme rules.

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