Peugeot completes £140m bulk annuity buy-in with Scottish Widows

The trustee of the Peugeot Advanced Pension Plan has completed a £140m bulk annuity buy-in with Scottish Widows.

The transaction covers all members of the scheme, securing all benefits.

As a result, it has minimised the overall funding required to the plan, which is operated by parent company Groupe PSA, whilst providing full coverage of its benefits.

Willis Towers Watson was the lead advisor to the trustee on the transaction, alongside Gowling WLG (UK), LLP and Aon, with Natixis and Sackers advising the company.

Scottish Widows was advised by Herbert Smith Freehills.

Commenting on the announcement, Peugeot Advanced Pension Plan trustee director, Geoff Benney, said: “This full buy-in is the culmination of many years’ work by the trustee to de-risk the plan.

“Scottish Widows presented an attractive deal which provides comfort to the Trustee in regard to the security of members’ benefits and certainty of overall cost.”

Natixis head of pension advisory, Richard Ratcliffe, added: “We have been working with Groupe PSA to build support for a transaction.

“Ultimately, a collaborative approach with the trustee and their advisers helped to achieve a deal structured in such a way that provides certainty for the company and minimises the overall funding required through to the end of the process.”

Willis Towers Watson also said that good quality data and extensive due diligence completed upfront “ensured certainty of cost to the trustee ahead of entering into the contract”.

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