Sleepeezee pension scheme agrees £18m buy-in with L&G

The Sleepeezee Retirement Benefits Plan 1975 has agreed a £18m buy-in with Legal & General (L&G), securing the benefits of around 200 retired and deferred members.

Included in the trustees’ work in preparation for the transaction was aligning the scheme’s assets more closely with the expected insurance pricing by transitioning into L&G Investment Management (LGIM) buyout aware funds.

PwC was appointed as specialist adviser by the trustees and sponsoring employer for the transaction, while Hogan Levells provided the trustees with legal advice.

Commenting on the announcement, Sleepeezee Retirement Benefits Plan 1975 trustee chair, Giles Orton, said: “I am delighted to have completed this buy-in, which will provide greater security for members’ benefits in the plan.

“I want to thank all of our advisers for helping us through this journey, including PwC who helped us navigate a busy market for a relatively small scheme.

“I am also grateful for the support the company has provided throughout the plan’s journey to this point; we have worked collaboratively throughout to achieve a great outcome.”

L&G Retirement Institutional new business actuary, Rebecca Otter, commented that the “key” for smaller schemes entering the market is to ensure that they are well prepared.

“The preparation the trustees had carried out, combined with our streamlined approach, meant we were able to price the plan quickly, making the process seamless and straightforward,” she explained.

“It was great to work alongside an existing client of L&G to secure a transaction that protects the benefits of all members of the plan.”

Also commenting on the announcement, PwC lead risk transfer adviser, Sam Whalley, said: “As lead adviser to both company and trustee, and in a market that is busier than ever before, we worked closely with L&G to find capacity to obtain the buy-in quotation at the right time.

“We were also able to help structure the sponsor financing which allowed the trustee to secure the buy-in, as well as allowing the company to continue to invest in the business.

“Through the use of the LGIM buyout aware funds, we were able to support the trustee to achieve a level of price certainty during the execution phase that is rare for the scheme of this size.”

Sleepeezee, the sponsoring employer, is a UK-based mattress manufacturer that will celebrate 100 years of business next year.

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