Unnamed UK pension scheme completes £17m buy-in with Just Group

The UK pension scheme of an unnamed overseas banking group has secured a £17m pensioner buy-in with Just Group.

The transaction was completed on 3 August 2021 and covered 54 pensioner members.

K3 Advisory worked in partnership with Cartwright to provide scheme actuarial and investment advice.

Professional trustee services were provided by Capital Cranfield, while Blake Morgan provided legal advice to the scheme’s trustees.

Commenting on the announcement, K3 Advisory senior actuarial consultant and transaction lead, Thomas Crawshaw, described the deal as “hugely satisfying”.

“Once again, through diligent preparation with the Cartwright team and making the most of our market insight, we were able to get multiple insurers to bid,” he continued.

“We secured highly competitive pricing, with Just Group coming in at a level below the scheme’s technical provisions, which meant all pensioners could be included.

“To minimise the risk of the markets moving against us between the quote and completion, we also negotiated a price lock based on gilts. A win for all concerned.”

Also commenting on the transaction, Cartwright senior investment consultant, Tom Hawthorn, said: “If a scheme is thoroughly prepared, and transaction ready, as this one was, then there is no reason why it can’t move quickly to avail itself of the same market opportunities and favourable funding conditions that are available to larger schemes.

“We have advised the trustees for many years and, working in partnership with K3, this buy-in is a further step forward in meeting their long-term objective, which ultimately will see them securing members benefits at a cost that the employer can afford.”

Capital Cranfield independent trustee, Andy Cheseldine, stated that the process was “efficient and rewarding” and he had “no doubt” that many smaller pension schemes will go down the same route over the coming months and years.

Just business development manager, Peter Jennings, concluded: “Smaller schemes can be underserved in the busy current market. We are pleased to have secured the benefits for this group of members.

“In order to be able to work with smaller schemes insurers require an efficient process, including co-operative initial discussions on quote delivery followed by a clear and efficient timeframe between quote, decision and transaction – something K3 understands well and delivers.

“The busier the market becomes the more important it will be for schemes to be soundly prepared so the process can be as straightforward and efficient as this transaction.”

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